To compare any company to Amazon is saying a lot, especially when you are talking about the competitive women’s apparel niche. Amazon has been sitting on top of this market for years, and today dominates with 20 percent of all the e-commerce sales for active-wear for women. That being said, it appears that a company that was not even around a few years ago is trying to make a play for that top spot, and numbers do not lie. Kate Hudson’s Fabletics has exploded on the scene in three short years, pulling in an overwhelming $250 million in sales in this market and putting Amazon on notice.
When Hudson was asked to elaborate on the success of her active-wear company, she was quick to point out that reverse showrooming and a rewarding membership were the two keys. These are not new techniques, but the balance between the two has her company on the rise. Hudson says that women visit the local mall and visit the Fabletics store, where they try on her athleisure brand and get their free membership. Customers often take the Lifestyle Quiz to enhance the membership, part of the ultimate success to the company. But sales in the stores at the mall are not overwhelming by any stretch, so how how did the company sell $250 million in three years?
The secret to Kate Hudson’s Fabletics success, when these same consumers hit the online store. These women make full use of their membership, and online is where all the magic takes place. First off, every piece of high-quality active-wear or women’s workout apparel that was worn in the store shows up on their online member profile. Knowing the pieces fit perfectly when they were in the Fabletics retail shop allows these women to shop without fear of the clothing not fitting. What the company is seeing is these customers go from trying on two pieces in the store to buying six pieces online.
Included with the free membership to Kate Hudson’s Fabletics is lower piece pricing and free shipping of all online orders. Those who took the Lifestyle Quiz will also get a personal shopper from Fabletics who picks a new item each month for the customer to consider. The ease in which the customer can shop online and the growing variety of the active-wear only makes it easier for these women to become loyal long-term customers.