Kate Hudson’s Fabletics Has Amazon Seriously Concerned

In recent years, Amazon hasn’t had to be worried about any of the several thousand clothing retailers fighting to beat them in the fashion e-commerce market. Year after year, Amazon keeps churning out sales of 20 percent and distancing themselves from the rest of the pack. Then all of a sudden, Kate Hudson’s Fabletics busts onto the scene and in three years has already sold over $250 million in women workout apparel and active-wear. If Amazon was not worried before, the fact that gap to the nearest competitor is closing should get their attention now.

 

To be able to get a better understanding why this athleisure brand has become so popular, Hudson says all you need to do is look at her membership perks and reverse showrooming sales technique. These two processes have driven the company out of the crowded field and into the position of taking charge of this market. Take a drive to the mall and step inside the local Fabletics store. Here you see women of all ages inside the store trying on different pieces of workout clothing, browsing racks for all the new releases in active-wear, and taking part in the lifestyle quiz.

 

To dominate like Amazon in the fashion e-commerce market, it is all about sales online. This is where Kate Hudson’s Fabletics has found a way to connect with their customers and pull away from the closest competitors. Imagine when a woman is inside the store and trying on some tank tops. Each item is ten uploaded to that member’s online account, allowing them to leave the store without buying but continue online at their convenience. No long concerned about how the clothing will fit, these customers will tend to go on shopping the larger online inventory on impulse, loading up more items than they even thought about buying.

 

The membership perks for Kate Hudson’s Fabletics customers just keep coming. In addition to the transfer of items to the online account, members enjoy free shipping, discounted workout apparel pricing, and even an assigned personal shopping assistant. These perks are making it easy for new shoppers at Kate Hudson’s Fabletics to becoming loyal long-term loyal shoppers who return month after month to see what their personal shopper has chosen for them. If Amazon has been riding high without any worries, they may need to start worrying about Kate Hudson’s Fabletics in the very near future.

Fabletics Business Success Strategy and Brand Overview

Have you ever gone into a store in order to try something on, knowing that you will later purchase the item online for a better deal? If so, you are not alone. Many retailers struggle with this “show-room” phenomenon, which makes brick and mortar stores a place for customers to browse, but not to shop.

 

Kate Hudson’s athletic wear brand, Fabletics, has found success by using the reverse showroom technique. The brand is based on e-commerce, and leverages customers’ desired to try things on physically bey using a membership model for the business. With this model, many people who enter the store are already members, or can join the brands membership club while in the store. The store-front functions as a place to make contact and build relationships, and also collect data on shopping preferences. Whenever a customer in a brick and mortar Fabletics store tries something on, the item is simultaneously placed into their online shopping cart. The system has led to incredible growth for the Fabletics company, and has taken the shoppers natural tendency of wanting to try clothes on first, and leveraged it. Because it is built with the new kind of shopper in mind, Fabletics is finding success where other retailers find incredible challenge.

 

In the clothing industry, companies used to be able to put a quality product out there and find success based on price point, marketing, and availability. But with the changing economy and the addition of e-commerce sites like Amazon, clothing companies are finding it harder and harder to succeed. Consumers expect more from their product, at lower prices. They find relationship to brand important, and even compare what services will be offered in the “last-mile” of the item that they purchase. Increased competition leads to innovation, and Fabletics rose to the challenge.

 

Fabletics products are focused towards female athletes who want comfortable, attractive, and affordable athletic wear. The style is contemporary and chick, with many modern cuts and artistic details. The fabrics are aimed at functionality, and use sweat-wicking, breathable fabrics so that the wearer can compete and train with comfort.

 

A great aspect of the brand is that they include visually pleasing prints in many fun varieties. The outfits come in all sizes, showing that the brand is for athletes of all body shapes and sizes, and all levels of ability. The membership site is simple to use, and once you become a member you can cancel at anytime, so it is low risk to get involved.

Customer Happiness Is Number One To Fabletics

With Amazon consuming 20 percent of the fashion e-commerce market, it’s hard to get in the business. This makes the success of Fabletics all the more amazing. Kate Hudson’s brand has grown into a $250 million business in just three years, taking action on the ever-growing ‘activewear’ movement. By using a simple subscription mechanic, they deliver individualized fashion to members, with added convenience.

 

 

Historically, brands have been deemed high-value as defined primarily by their quality and price. With the world of the internet growing, a shift in those economics has happened. Now, things like customer experience, exclusive design, last-mile service, and brand recognition are becoming more and more important. Fabletics’ simple design has allowed them to become a high-value brand.

 

 

The simple mechanic of their business has proved successful for Fabletics. The company keeps opening more and more physical stores, with no plans to slow down soon. General Manager Gregg Throgmartin believes their secret lies in how their membership model allows them to give each customer a personalized service at half the price of their competitors.

 

 

Even Fabletics’ stores are different. While most places are getting destroyed by showrooming, Fabletics switched the model. Usually people browse offline but then go home and buy them cheaper online when they get home. Because of the unique way Fabletics started out, up to 50 percent of the people who walk in their store are already members. Another quarter will become members before they leave. Fabletics intertwines customers’ shopping carts, integrating their choices in their dressing room and their choices in their online carts. It doesn’t matter to Fabletics if you buy in-store or online, as long as you’re a member.

 

 

Fabletics even stocks their shelves based on local data. They take data about what local members like and their social preferences, deciding what to stock on their shelves with that information. This adds to the company’s already guaranteed personalized service. Last-mile service and customer experience is the end game.

 

 

From the customers’ stand point, Fabletics is simple yet personal. Customers love that as a member, you get 2-3 pieces of clothing each month and skip a month without being charged. After taking surveys that ask you what kinds of exercise you do and what kinds of outfits you like, Fabletics matches the results and creates a list of suggestions for you.

 

 

As far as the quality is concerned, the product is well worth the price. There is a wide variety of options for each customer, from simple to bold, sheer to solid. Their unlimited options make it easy for each customer to customize each outfit to their taste. The value of each brand is unquestionable, saving the customer time and money by providing them with an easy service.

 

 

Fabletics offers customers many choices, from outfit choices to skipping a month of payment. For die-hard exercise enthusiasts, they’ve got everything necessary. For those who may not have the need to have new activewear each month, skipping is always an option. At Fabletics, it’s all about the customer.