Before you can talk about any company catching Amazon, you have to look at how far up the mountain this retail giant really is. In the apparel industry, Amazon is pulling in close to 20 percent of all the sales in this space. With thousands of clothing retailers trying to make a buck, you can see how dominant they are when a fifth of every sale gets credited to them. Things may be about to get more difficult for Amazon as Kate Hudson’s Fabletics gains more momentum. In only three short years Kate Hudson’s Fabletics has sold $250 million in women’s workout apparel, and they appear to be growing in popularity year to year.
Hudson gives credit for the success of her athleisure brand to the sales process she uses called reverse showrooming and her rewarding membership plan. Though these two concepts are nothing new to the world of apparel sales, Hudson seems to have struck a very unique balance that has sales exploding and her client base expanding. Look for a moment at how things transpire inside the Fabletics stores at the local malls. The women shopping here are under no pressure to buy, in fact, they are window shopping, trying on all the active-wear, and even filling out the Fabletics Lifestyle Quiz. There is never pressure from the sales associates for these female shoppers to buy anything, so that begs the question as to how did this company sell $250 million in only 36 months?
The secret to the success of Kate Hudson’s Fabletics has to do with what happens when these same customers wind up hitting the e-commerce store. Part of the benefits of being a member to this clothing company is everything you try on at the mall that fits your perfectly is transferred to your online account. Now when you have the time to kick back and relax, you can search the enormous online inventory for new arrivals in yoga pants, tank tops, or leggings. Since these customers already know the sizes that fit them perfectly, all they have to do is grab as many pieces of clothing as they like.
Unlike shopping at eBay or Amazon where you buy a piece, pay to have it shipped, then return it several times until it fits, the guesswork is eliminated at Kate Hudson’s Fabletics. Membership benefits also includes free shipping for all online orders, a personal shopping assistant, and deep discounts on all workout apparel.