While Kate Hudson’s Fabletics might not be able to completely take over Amazon, the company is poised to do what no other fashion company has been able to do in all these years. Amazon currently commands over 20% of the clothing market online, but in only three short years Kate Hudson’s Fabletics has made over $250 million in sales and it appears there is no sign of the company slowing down. But how can this celebrity dominate in a space that has been completely engulfed by the Amazon e-commerce machine.
To hear directly from Hudson, she talks about how her athleisure brand is reaching an audience in a way that no other fashion company is succeeding. Hudson says that the success of her company is a combination of her membership program and reverse-showrooming. Most buyers don’t know what these terms mean, but they are certainly responding when they visit her stores and shop online too. Hudson says when women come to her retail store in the mall, they are free to try on the active-wear and never pressured to buy anything. Consumers come into the Fabletics store, sign-up for as free membership, take the Lifestyle Quiz, try on clothing, and leave.
How could a company make $250 million in sales when the buyers are allowed to leave the store most of the time without buying you might ask?
To hear it from Hudson, women like to window-shop without pressure on their break or when out with friends. As a member, all the things these ladies try on in the store get transferred to the online site. So when she gets home after a long day and logs into the Fabletics website, everything she ever tied on is there in the store to consider. Now that you know what size fits and flatters your frame, you simply look at the huge assortment of workout gear and choose your items with free shipping.
Now as a member of the Fabletics site, you get a personal shopper who’ll look over your purchases and quiz results, then choose something new and exciting for you each month. Again, no pressure here, shoppers can select the items chosen for them or simply reject them and buy something more to their liking without any pressure or hassles. This is a unique business model that appears to be working as more women around the globe are helping to give this company global recognition to compete with Amazon.