To get a better understanding as to how far a lead Amazon has over the competition in the online clothing market, you just need to know that over one thousand retailers are fighting for the same dollar, and Amazon gets 20 percent of it. That is a huge advantage that allows the giant retailer to relax knowing even the closest competitor could be far off in the distance. Kate Hudson’s Fabletics is hoping to put a little pressure on that retail giant, and pulling in well over $250 million in sales over the last three years is a great start.
When you listen to the way Hudson describes the success of her athleisure brand, it basically comes down to two sales practices that may surprise many. At the core of Fabletics success is a rewarding membership program and reverse showrooming. To understand these two in layman’s terms, let us take a trip to the mall and go into the Fabletics retail stores. This is not your average shopping experience by any stretch of the imagination. Shoppers are applying for membership, enhancing the membership taking a Lifestyle Quiz, window-shopping, and trying on everything they want without pressure from Fabletics sales associates.
With the relaxed atmosphere, you might thing this is where the majority of sales are taking place. In fact, Kate Hudson’s Fabletics is making the majority of their revenue from online sales. Here is where membership perks really kick into gear. Since these women were at the mall trying on the latest in active-wear, they log into their account online and all those leggings, tank tops, and yoga pants, are uploaded to the inline profile for consideration. Knowing that the clothing fit perfectly in the mall, customers are able to focus on surfing the expansive inventory and not worry about getting a piece and returning it until they get the right size.
Compare that to what happens when you buy from Amazon. In the hopes the clothing fits, you buy one pair of leggings and pay for your shipping and wait. When the clothing finally arrives, you discover it does not fit and you send it back. Now once your account is credited for the return, you try to buy the right size and wait. If you got lucky this time, only a few weeks has passed since you placed the initial order and most of the excitement about ordering has certainly disappeared by now as a result.
Membership benefits at Kate Hudson’s Fabletics don’t end there. Customers enjoy discounts on workout apparel throughout the site, free shipping for online orders, and even their own shopping assistant. Your shopping assistant uses your quiz answers as a guide for picking one new arrival each month for your consideration. No pressure at any step of the way, you will find shopping at Kate Hudson’s Fabletics in the mall or online is all about catering to the needs of women shoppers who are looking to be pampered rather than treated like a number.