To say that any business is in position to dominate Amazon is one tall order, but that is exactly what appears to be happening in the highly-competitive online apparel market. Looking back, Amazon has enjoyed that top spot for many years, racking up 20 percent of the total sales each year, and nothing appeared to be able to derail them. Then out of nowhere, Kate Hudson’s Fabletics not only separates themselves from the thousands of other clothing sellers, they take in $250 million in sales in less than three years.
Hudson was reached for comment as to why her company has been able to do what so many others could not, and she simply says it is all about membership perks and reverse-showrooming sales techniques. This may seen confusing to many, so instead of hearing what works, we decided to take a closer look and see the sales process in action. Take a trip inside the Fabletics retail store in the local malls, you see women lining up to window shop, try on the latest in workout apparel, and even sitting down to take the Lifestyle quiz.
The biggest surprise is when these same shoppers leave the stores without buying anything, and Hudson is fine with that.
The reason Hudson has no issue with her customers leaving the store without making a purchase is because she knows these loyal members will be shopping online when time permits. Her loyal customers love this athleisure brand, and they know that every time they visit the retail store and try on anything, it will be transferred to the online account too. That means these women are free to handle all the chores in their day, returning to the Fabletics website later and picking up where they left off. They can shop the vast online inventory, piling yoga pant, tank tops, and leggings into the cart.
Unlike Amazon, Kate Hudson’s Fabletics is committed to giving their customer far more in membership perks that a simple discount on shipping. At Kate Hudson’s Fabletics, you don’t pay for membership like you do at Amazon, but you receive free shipping, discounts on all the women’s workout apparel, as well as your own shopping assistant assigned to your account to pick a piece each month based on quiz answers. In an industry where you have so much pressure to stay ahead of the competition, Kate Hudson’s Fabletics has found a winning formula that results in record sales.