Now that Amazon has been comfortably in the driver’s seat in the online apparel market for years, they have seen just about competitor threaten to take them off the top spot. Even with a huge 20 percent of sales in a very crowded apparel market, Amazon has thousands of competitors all struggling at the bottom trying to make enough money to stay profitable. Now take a look at Kate Hudson’s Fabletics, a company working in the same niche as Amazon, but able to sell nearly $250 million of their ladies workout apparel in only three short years.
This is quite an accomplishment considering who the leader is in this market, and Hudson will tell you that it all comes down to a few key fundamentals. In order to distance themselves from the competition and close the gap to Amazon, Kate Hudson’s Fabletics employs a unique membership program combined with reverse showrooming. These two techniques seem to work well together, and seeing is believing in this industry for certain. Look at what happens inside the Fabletics retail store at the local malls. Women are lining up to take the Lifestyle Quiz, window shop, try on new arrivals, and just enjoy the no pressure sales atmosphere.
In fact, most women leave the Kate Hudson’s Fabletics retail stores without buying. Is this model going to sustain?
Leaving the store actually is part of the reverse showrooming sales technique that has helped Kate Hudson’s Fabletics to explode in sales, and here is how it works. Women today are busy, and while they love trying on this athleisure brand in the stores, they don’t have time to browse all the selection, so they leave the store knowing that Fabletics has already uploaded the ones they tried on into their online account. Now when these same women have the time, they can log into their account at Fabletics and continue the shopping knowing exactly what sizes to buy.
Membership perks are what separates Kate Hudson’s Fabletics from Amazon and eBay. Instead of having to pay around $80 for a Prime membership at Amazon, you get your numerous membership perks for free at Kate Hudson’s Fabletics. These membership perks include getting free assistance from your own personal shopping assistant. Discounts on all the apparel both online and in the stores at the mall, and even free shipping for all your online orders. At this rate, Kate Hudson’s Fabletics will be dominating the market when new shoppers are quickly turned to loyal customers.