Why Kate Hudson’s Fabletics Has Amazon on the Ropes
Amazon has been in cruise-control as far as sales in the clothing niche, and this is in an industry where you have several thousands of clothing companies fighting for the same customer. Amazon is taking in 20 percent of every sale that is made in this space, wile the rest are taking much smaller pieces of the remaining sales. Kate Hudson’s Fabletics is hoping to keep Amazon on the ropes by taking a huge chunk of those sales away this year. Looking at the sales numbers over the last three years, we see that Kate Hudson’s Fabletics has made over $250 million in sales and is gaining momentum.
Hudson says her athleisure brand is seeing such incredible success due in part to the reverse showrooming sales process and the many rewards included with the Fabletics membership plan. These two sales techniques are not anything new to clothing companies, many of them are using them in one form or another. To see how Hudson and her company utilize these techniques in real-time, we need to first take a short drive to the Fabletics retail stores in a local mall. What we discover is that women are not just buying all the latest in active-wear, they are trying on all the workout apparel in the store, window-shopping with zero pressure from sales associates, and even filling out the Fabletics lifestyle quiz.
Now here is where the power of these two sales techniques really come into play. These same customers will visit the online store, and their membership benefits have already kicked in. Each piece of clothing they tried on inside the Fabletics store has been transferred to their online shopping cart for further consideration. So these women try on the piece at the mall, then when they have more time to shop, they visit the e-commerce store with a larger inventory and are able to grab all the latest in leggings, yoga pants, and tank tops.
Membership benefits for Fabletics customers do not end there, these women are enjoying free shipping on those orders, they are getting discounted prices, and they even get their own shopping assistant. Your assistant uses quiz answers to help them pick an item for you once a month, then you decide to buy, delete, or just keep shopping. Amazon might be on the ropes this year if they think sticking to their dated membership package is going to outlast Kate Hudson’s Fabletics.