Amazon has not been too concerned about the competition in the apparel niche because they have been commanding 20 percent of that market for years. With thousands of e-commerce clothing companies trying to chip into that lead, you might think Amazon has reason to be concerned. It wasn’t until recently when Kate Hudson’s Fabletics began to close in on Amazon that they took notice. This active-wear company has gone from no sales to $250 million in sales in less than three years and definitely has the attention of Amazon.
When Hudson was recently talking about the success of her company, she simply says that a combination of reverse showrooming and her membership package are the basics that have exploded the growth of her company. These are sales techniques that are not new, but somehow Hudson has created a blending of the two that are attracting female shoppers to her store. Looking at the entire sales process from the eyes of a consumer, they head to the Fabletics store at the mall where they can get their free membership, take the Lifestyle Quiz, and try on anything they like inside the store.
Whether these women buy at the retail store or not does not affect this winning formula, it is what happens later where all the magic occurs. These same women will eventually go to the Fabletics e-commerce website, and once they log into their account they discover all the items they tried on at the local store are now in their online profile. This takes away some of the uncertainty of buying online because you know the apparel fits, so you can focus on just buying colors, styles, and anything you desire.
By eliminating the question of size, Kate Hudson’s Fabletics customers are buying more and becoming loyal returning customers. Included with the membership is discounted pricing, free shipping, and a personal shopping assistant who uses quiz results and buying patterns to choose an item each month for consideration. Pampering is certainly working for Hudson, as her customers are buying more at the online store than they ever would have purchased at the mall. This is a huge contrast to buying at Amazon, where you pick a piece of workout apparel or active-wear and hope when it arrives that it fits. Now with Kate Hudson’s Fabletics, you are getting exactly what you need the first time without the hassle of returning apparel that doesn’t fit.