Amazon usually is quite comfortable sitting atop the online apparel industry, despite years and thousands of clothing retailers trying to topple the giant from their perch. The online giant is raking in about 20 percent of all the online clothing sales, and leaving thousands to fight over scraps at the bottom of the market. Then you have Kate Hudson’s Fabletics, breaking free from the pack and doing what no one has been able to do before, give Amazon a real run for the money. Looking at the sales in the last three years, Kate Hudson’s Fabletics has already made in excess of $250 million, something that certainly has gotten Amazon’s attention.
To get a better understanding of how Kate Hudson’s Fabletics was able to do the impossible, we speak with the CEO herself and get the dirt on what her secret is. To the surprise of most, the secret is all about reverse showrooming and membership perks, nothing more. This might seem hard for many to even comprehend, but it works for this women’s clothing company. To follow the money, we have to start in the local mall at the Fabletics retail stores. Women in the store are applying for their free membership, taking the Lifestyle Quiz, browsing the racks, and window-shopping til their hearts content.
Many of these shoppers leave the retail store without buying, can Kate Hudson’s Fabletics sustain record sales this way?
Leaving the store without buying is actually just part of the reverse showrooming sales process. Hudson says these women today are busy, and they are out doing their business and only have limited time to pamper themselves. They browse the store knowing each item that they try on is going to be uploaded to their online shopping cart at the Kate Hudson’s Fabletics website. Then they can return at their convenience to pick up shopping at their leisure.
From leggings, tank tops, to yoga pants, this athleisure brand has something for everyone. Add into the mix those membership perks we talked about earlier, and you can see why Amazon certainly has their hands full with Kate Hudson’s Fabletics. Those perks include help from a personal shopping assistant, free shipping for online orders, discounts on all the workout apparel, and the ability to return items without any questions. All this adds up to one thing, customer satisfaction, and they are showing their approval by breaking records as far as sales for this one online clothing company.