Amazon has been enjoying the top spot in the e-commerce apparel niche for years, and when you command 20 percent of the sales in that space, you don’t worry too much about your competition. There really has not been a run on Amazon for years, but today it seems one company is making huge strides to take over that top spot. Kate Hudson’s Fabletics is growing at a record rate, exploding sales of $250 million in sales in a 36 month span, and there doesn’t appear to be anything to slow the company down.
Hudson discusses the success to her company, and attributes this success to reverse showrooming and her unique membership program. Looking at how the sales process works, customers shop at the retail Fabletics store in the mall first. These customers look at all the different workout apparel, try on the different new active-wear pieces, grab the free membership, and take the Lifestyle Quiz. The astonishing thing about the success of Fabletics is that most customers do not buy in the retail store.
How does Hudson achieve $250 million in sales when women are not buying in the store at the mall?
The reason Fabletics is so successful has to do when these shoppers visit the online Fabletics store. As part of the membership, these shoppers will see everything they wore at the retail store now in their shopping cart. Knowing the pieces fit perfectly in the store, here is how the reverse showrooming process works. Buyers are home in a relaxed atmosphere, so they begin adding pieces to the cart based on the that size, and this includes many of the new arrivals they want to be the first to own.
Hudson says her athleisure brand is all about high-quality and low pricing, but membership also includes free shipping and your own personal shopper. The shopping assistant will look at the quiz results and prior purchases then select one item every month for your consideration. Hudson’s no pressure approach means you don’t have to buy anything the assistant chooses and you are free to add as many or as little items to your cart as you like. The success of Kate Hudson’s Fabletics is in direct coloration to how women want to be treated during the shopping experience, a combination of pampering and wide variety of apparel choices all in one location. Amazon should be concerned about the gap closing very shortly.