Amazon has been blazing a trail of its own for many years, and the profits they make leave thousands of small businesses in their wake. In the online apparel niche, Amazon pulls down 20 percent of the sales year-to-year, then the thousands of competitors in that space are left to try and make a profit with the remaining customers. That is the reason Amazon usually doesn’t fear a small charge by one of those competitors, until recently. Kate Hudson’s Fabletics pulled away from that group at the bottom and in three years has already taken a huge bite out of Amazon’s profits.
Kate Hudson’s Fabletics sold $250 million in ladies workout apparel and appears to just be getting some traction in this space.
To get a clear understanding if this was a fluke or if Kate Hudson’s Fabletics is actually poised to dominate the online apparel world, we hear from Hudson herself as to what she believes was the ultimate secret to their success. Hudson says it isn’t the high-quality merchandise driving sales, it is her membership package partnered with the reverse showrooming sales practice. If you want to see these two components in action, drive to the local mall and walk in the Fabletics retail shops. These stores are packed with women trying on all the apparel, applying for a free membership, taking the company’s Lifestyle Quiz, and window-shopping for as long as they want without a sales associate pressuring the customer to make a purchase.
How does this equate to $250 million in sales? It all comes down to the online shopping experience.
Remember when we talked about women in the retail shops trying on all that apparel with no pressure, they understand that they are just making sure the apparel fits, they definitely intend to buy later. When these women have more time, can relax, and are sitting with nothing left to do, they visit the Fablectics website and complete the shopping experience. Since they tried on the clothing, it has already been automatically uploaded to their profile page, and now they can shop for items based on size and stuff that online cart with impulse buys. This is why the average online shopper at Kate Hudson’s Fabletics spends far more than they would at Amazon or eBay.
The overall appeal of this athleisure brand is a combination of a relaxed shopping experience, high-quality merchandise, free shipping, and low pricing. members of Kate Hudson’s Fabletics even get their own shopping assistant who selects items based on those quiz answers for buyer consideration.