Most companies that are selling clothing online or in a retail setting realize they have their work cut out if they want to compete with Amazon. Looking at it from a numbers perspective, Amazon is destroying the competition in this very competitive space, raking in almost 20 percent of all the sales of clothing. That does not appear to scare Kate Hudson’s Fabletics, in fact, this clothing company has made huge strides to possible catch the giant, already pulling in over $250 million in sales of unique women’s active-wear and workout apparel.
Looking a little more closely at this athleisure brand, we see that the success is more than high-quality, a celebrity name, or even the low pricing. Hudson herself says that she owes the success of the brand to her membership perks and the sales practice that is better well-known in the industry as reverse showrooming. To get a better understanding of exactly how these two sales practices are garnering such enormous sales figures, first we wander down to the Fabletics store at the local mall. In this store, women are window-shopping, they are trying on everything in stock, they are even taking the store’s lifestyle quiz to help enhance their membership.
There is no sales pressure at the retail stores in the mall, in fact, some women try on everything but buy nothing at the mall stores. The secret to Kate Hudson’s Fabletics success is when these same women wander over to the e-commerce stores. Now since you were trying ion all the apparel in the mall, each piece that you think fit you perfectly is uploaded to your online account. This membership perk allows you to now shop the vast inventory online without concern whether the pieces will fit you or not. So what happens is, these shoppers grab more yoga pants, more tank tops, and more leggings.
Membership benefits at Kate Hudson’s Fabletics doesn’t end there by any means. These shoppers will receive free shipping for the online orders, special discounted pricing, even the help of a Fabletics personal shopping assistant. Your assistant picks a new piece of workout apparel based on quiz answers or shopping history, places the item in the cart once a month, and you decide if you love it or not. Amazon is working on a completely different sales model, possibly why Kate Hudson’s Fabletics has been steadily gaining ground over the last couple years.