Amazon has been enjoying the success of being the top retailer for women’s apparel online for years. There are numerous clothing companies over the years that have tried to take a bite of the 20 percent market share Amazon has in this area, but none have been able to budge this giant from that perch. It appears that Kate Hudson’s Fabletics has a plan in place to not only catch Amazon, but to pass them in this apace and become the top selling retail for high-quality women’s active-wear. In the last years, you only need to look at the numbers to see Fabletics is pulling in over $250 in sales with no signs of slowing.
Hudson spoke as to the success of her company, and surprisingly it came down to just a few key components. The success of Fabletics was due in part to the rewarding membership plan and a sales process known as reverse showrooming. She explains the success in the way buyers shop and purchase, all starting in the Fabletics store in the local mall. At the mall stores, women are free to look at all the latest pieces of active-wear, apply for the free membership, take the Lifestyle Quiz, or try on as many of the pieces of workout apparel as they like. This no pressure approach is refreshing, and many women will leave the retail store without making a purchase.
How could a women’s clothing company on the same space as Amazon do $250 in sales without customers buying at the store?
The understand the magic in the Kate Hudson’s Fabletics success story, we continue watching these women who left the store but eventually wind up shopping online at the Fabletics website. Since these women have tried on numerous pieces of active-wear in the mall, as a member, these pieces all get added to the online store profile. Knowing the apparel already fits perfectly, these women find it easier to buy those pieces in different colors, shop for new arrivals, or search for pieces based on that size because the online inventory is that much greater. These women wind up buying more than they would in the mall, and they are racking up huge numbers for Kate Hudson’s Fabletics.
Women who have the Fabletics membership enjoy free shipping with online orders, lower pricing on apparel online, and even the assistance of a personal shopper. Kate Hudson’s Fabletics has discovered a success formula that is putting everyone in this space on notice.