Most businesses that try to get some of the share of the fashion industry pie already know not to mess with Amazon and their commanding 20% of the market. That is unless you are Kate Hudson’s Fabletics, and poised to go after the giant and take a big slice of the apparel industry. Looking back over the last three years, Fabletics has commanded an impressive $250 million in sales, and the numbers appear to be heading in the right direction as she reaches a global marketplace.
Talking with Hudson about the success of her company, she credits the growth to a few key parameters. First she credits the membership platform at her company for rewarding her customers like they should be, and secondly, the reverse-showrooming process takes all the pressure off the shopper and increases the ease in which they can shop. When you are offering customers a high-quality athleisure brand with the convenience of ordering from home, you grow your brand quickly and steadily.
Hudson explains the process beginning with a woman going into the retail store in the mall. These women are actually encouraged to window-shop, no pressure by the sales associates to buy anything. Women can open a free membership and also fill out the Lifestyle Quiz so they can enhance their membership. Now all the items tried on in the store are added to the online profile whether they buy or not. later that night when home, the consumer can shop at Fabletics online and look at all the items they already tried on and adored. Now they can buy those items, similar items, or shop for other workout apparel.
In addition to free shipping and deep-discounts for members of Fabletics, they get their own personal shopper who will carefully select one item each month an add it to the account. At the top of each month, the consumer can buy the item the personal shopper selected, or refuse it and continue shopping. Nothing ships without the permission on the buyer, so this no pressure sales approach really resonates with consumers as they are making the move to Kate Hudson’s Fabletics more each year.
These high-quality pieces of active-wear are sold at low prices with free shipping and are really going to be giving Amazon a run for the money in the coming years as shoppers realize this is the best possible way to shop for clothing.