Amazon has enjoyed the lack of competition for many years, commanding over 20 percent of the e-commerce sales in the apparel niche without concern. Each time a new competitor shows up in the women’s active-wear space, Amazon pushes its foot down on the gas and keeps widening the gap to the nearest competitors. Things might be about to change if Kate Hudson’s Fabletics has anything to say, because in the last three years this women’s workout apparel company has sold $250 million in sales and shows no signs of slowing.
To get an understanding of how this company has grown so quickly, Hudson will tell you that all the credit goes to the sales process of reverse showrooming and her membership program. These aren’t new sales concepts, in fact, many of the competitors that Fabletics has passed by are using the same techniques with minimal results. Hudson says her customers head to the local Fabletics stores and treat it like a buying experience. These women will sign up for their free memberships, take part in the Fabletics Quiz, check out all the new apparel, and try on as many outfits as they can.
To understand how the company makes so many millions, we need to see how these women buy. They might not spend a fortune at the retail store in the mall, and that is perfectly fine with Hudson. She says that her customers head to the e-commerce Fabletics site at their convenience and really step it up. Now since they already tried on the clothing and now it fits, the eliminated any guesswork when it comes to selecting new clothing online. While these women may have bought one or two items in the local mall, online they go crazy and buy a half-dozen or more without concern.
The ace in the hole for Hudson is that her athleisure brand is also high-quality at the lowest possible pricing. When women purchase from Hudson’s Fabletics, they know they are getting the latest releases at the lowest prices and made from quality materials that last. This buying experience combined with membership benefits like free online shipping and even the help of a personals shopping assistant is something that appeals to these women. The numbers have been growing year to year and Hudson says her company is just getting warmed up. Don’t be surprised to see Amazon getting a real run for their money soon.