Amazon enjoys being the leader in the online apparel market so much that they are pulling in an incredible 20 percent of the sales over thousands of other retailers. To even close the gap to Amazon, you had better be bringing in huge numbers on a regular basis. Kate Hudson’s Fabletics is doing just that, and selling over $250 million over a three year period has certainly grabbed the attention of just about every other retailer in this space because they want to know what and how this company is doing differently.
Hudson says her athleisure brand is more than high-quality or low pricing. The secret to the incredible success of her company has to do with reverse showrooming and membership perks. On the surface, these sound like two common marketing techniques that most companies are trying to use in one form or another. What is it about the way Kate Hudson’s Fabletics is utilizing these techniques that makes them so successful? Take a close look at how these women are shopping at the Fabletics stores at the local malls. This is not your average retail store, something very unique is happening inside.
Look at how these women are free to check the new arrivals that are coming in without pressure from sales associates. Then you have some women applying for the membership plan and enhancing it by taking the Lifestyle Quiz. Women are trying on all the clothing, window-shopping, it really is all about the overall shopping experience. There are many who don’t buy anything after spending time in the mall stores. How could a company pull in $250 million in sales running a store like this? The secret is in the e-commerce store and how these women ultimately shop.
Look at how shopping occurs at other online clothing shops and you see the difference right away. If you go to eBay and order a pair of leggings, you are guessing if they fit and so you order one piece and you wait. When it finally arrives and is wrong, you have to set up a return authorization, ship it back, then start all over again When you finally get the piece you wanted, it might be several weeks down the road and by then all the excitement is gone. This is not pampering, this is all about torture and it isn’t thrilling.
Part of Hudson’s Fabletics membership perks includes transferring items you wore in the store to your online account. That makes it easier to just buy more active-wear instead of working about the size fitting or not. Kate Hudson’s Fabletics perks also include free shipping for online orders, as well as discounts on all workout apparel. Whether these ladies are shopping for yoga pants, leggings, or tank tops, now they have the ability to get the apparel they need online in bunches without the apprehension of worrying about the wrong items arriving and having to be shipped back. Amazon may have some company in the top spot in the very near future.