It can be a real struggle for just about any company to compete on a global scale in the fashion market online, especially when you are going up against Amazon. As of today, Amazon commands over 20% of the fashion e-commerce space, but that didn’t seem to scare Kate Hudson. When Kate Hudson started Fabletics, no one gave her much of a chance of putting a dent in the Amazon dominance. In a short three years however, Hudson and her company surpassed $250 million in sales, and she is just getting started.
If you listen to Hudson, she tells a story about how her business is about making it easier for women to shop, whether in her stores or online. The reverse-showrooming technique that her business employs is unique because she really doesn’t care if you window shop in her store and buy nothing. In fact, she encourages shoppers to come by the store, open an account, try on anything, and then go home to think about it. This is a huge contrast to the high pressure sales tactics in many fashion retail outlets.
How can Hudson and Fabletics be making money running a company like this? Easy, it is all about convenience and quality. Hudson says that when a customer walks in her store and opens an account, they get to touch and feel the merchandise, unlike shopping on Amazon. Then those items they try on are added to the online account so they can consider them at another time. Hudson says that what happens is, the consumer goes home and now knows the style and size that fits them perfectly, so they browse around at home when they are in a more relaxed atmosphere, and they buy more than they even thought they would.
The reason Fabletics has exploded onto the scene in such a powerful way is two-fold. One, you have the backing of one of the most famous women on the planet, Kate Hudson. Secondly, the company using the subscriptions mechanic to move millions of dollars of active-wear at incredible low prices. This is not your average membership website however, things really are quite advanced at Fabletics.
Once you have opened your account and made a purchase either in the store or online, you should have completed the Lifestyle Quiz, something that will make the shopping process even easier. Now each month you see a new item chosen around your specs, that you can either buy or decline, you have all the power at Fabletics.