It might not be fair to say that the competition is going to take Amazon down, but in one niche they may be in for a real dog fight. Amazon has been comfortably sitting atop the leader board in the online clothing market, gobbling down 20 percent of the online sales in this one niche. That being said, it appears that Kate Hudson’s Fabletics is making a charge to the front of the pack after pulling in an impressive $250 million in sales of her high-quality workout apparel. Does Hudson have the winning formula to really take Amazon down?
Hudson explains that her athleisure brand is all about high-quality and low pricing, combined with reverse showrooming and her one-of-a-kind membership platform. Take a look how women are shopping at the Fabletics stores in the mall to get an idea how this formula is working for Hudson. Once inside the store, women are trying on all the latest workout apparel in the store, window-shopping when they have time, or simply stopping by to enhance their memberships by taking the Fabletics Lifestyle Quiz. This laid-back and relaxed atmosphere is really connecting with women.
So you may be wondering where does the majority of the sales come from at Fabletics, the answer is at the e-commerce site. Kate Hudson’s Fabletics customers head to the online store at their convenience, and then they really start loading up the shopping cart for one reason. Since they already have been in the store at the mall and tried on the apparel, they know exactly how it fits, Each item they tried on is then moved to the online profile as part of the membership, so women simply select the item and go shopping for more colors and styles of the same. They go from buying one piece to half-dozens in the blink of the eye.
Hudson’s Fabletics customers receive so much more as part of the membership plan. Every order placed online gets free shipping, regardless how long of a member thy have been. membership also rewards these customers with discounted pricing on select workout apparel and active-wear. These customers even get their on personal shopper who selects an item each month based on quiz answers or how the customer is shopping over the months. This all equals a huge challenge for Amazon who offers none of these benefits at a time women want to be pampered.
People all over want to look like models while working out and want to stay fashionable even when they are sweating it out, and Fabletics is a brand that has divulged into that market and given people exactly what they want. Fabletics was founded in 2013 by Kate Hudson and since then has created quite an impact on the world of fashion and activewear.
Even with numerous brands penetrating the activewear segment, people looking to find the latest trends in activewear tend to shop from sites like Amazon, which currently own a large part of the market share, making it harder for smaller brands to establish themselves. However, Fabletics managed to establish themselves as a prominent brand even in a market scenario as saturated as this by incorporating rather original plans and methods of selling which brands rarely include. For example, Fabletics sells their activewear through their membership program which their customers have to sign up for when they decide to purchase from the brand for the first time. This system lets the brand keep their customers and enables their clients to buy more and more from the brand more frequently than customers of other brands do. Through the membership plans, customers receive sets of activewear every month by choosing a plan that is suited to their needs. Customers can get anywhere from one to as much as seven sets of activewear per month depending on their subscription plan. The people who have signed up for this program get the latest trends in the fashion world delivered to their doorstep every month without having to put in much effort.
With the success of their online store, Fabletics decided to expand and reach a larger target audience through their tar and mortar stores which the brand started opening up in early 2015. As of right now, the brand has already opened sixteen stores across the country. However, the industry of showrooming can be competitive, with a lot more factors which customers take into consideration while walking into a store. Even regarding their physical store, Fabletics decided to take the path less traveled by putting into a system a marketing technique commonly referred to as reverse showrooming. By using this method, customers can enter the store and browse through the clothes that are available on the site and choose from a wide selection of products, People entering the store are encouraged to try on the products and get a feel of the quality of clothing that Fabletics offers. This also gives clients a better understanding of what kind of activewear looks good on them and what doesn’t. What’s different about this store is that customers aren’t made actually to buy the product in the store. Instead, they are encouraged to go online and look at the products once again and make their decisions to purchase the product in their own time. This has especially proven extremely useful when trying to rope in potential customers who have been adverse to online shopping and the world of e-commerce in the past.