Amazon has not had any real competition in the women’s clothing market in some time. To show how dominant Amazon has been in the fashion e-commerce market, we only need to look at the fact that they are taking in about 20 percent of all the sales in this extremely competitive market. That leaves thousand of clothing companies all fighting for the remaining dollars, so small pieces have to go around to all. Kate Hudson’s Fabletics is not content on scratching and clawing for scraps, they have been making waves of their own. In under three years, Kate Hudson’s Fabletics has sold $250 million of women’s active-wear and workout clothing.
When Hudson gets to talking about her athleisure brand, the credit always seems to go to the sales technique known as reverse showrooming and her vast membership perks. To be able to get a better understanding of how these two work side by side, we need to first visit the Fabletics stores in local malls. These women are doing more than buying yoga pants, tank tops, or leggings, it is a shopping experience. These customers are taking the Fabletics lifestyle quiz, applying for membership, window-shopping, and trying on all the active-wear in the stores.
The real secret to the success of this workout apparel company happens online. Visiting the Fabletics e-commerce store, you see something quite unique happening. Since you were already shopping in the mall, those items you tried on were instantly uploaded to your member account. What these women are doing online since they already know the active-wear fit is simply stuffing their shopping carts with as much clothing as they can. In this highly competitive fashion e-commerce market, this gives Kate Hudson’s Fabletics an advantage that few can compete with, and the increase in sales each year is a clear indication they have found a winning formula.
The perks of being a Kate Hudson‘s Fabletics member also include help from a personal shopper, discounts on workout clothing, and free shipping for the online orders. This is a shopping experience many customers fall in love with and go on to become loyal Fabletics customers for the long haul. While Amazon is charging their members up to $80 to get discounted shipping for one year, Hudson’s Fabletics is piling on the free benefits just because these shoppers are loyal to the brand and spending their money in record amounts.
Kate Hudson teamed up with JustFab Inc. Co-CEOs to launch Fabletics in 2013, after seeing a significant gap in the active wear retail space. They offered stylish, good quality workout gear at an affordable price.
So what is Fabletics? Fabletics is an online American member-based fitness store that sells fitness apparel, sportswear, and accessories, commonly known as athleisure. Their clothes are designed to be fun, easy, and take you out from the fitness studio to real life effortlessly.
Fabletics has rapidly grown since 2013. For the company to succeed in fashion when Amazon controls 20% of the online fashion market is no easy task. The subscription mechanic that Fabletics has adopted has been part of the reason for success in the $250million business. This membership model allows for personalized services and trendy clothes and accessories at half the competitors’ prices.
There are two kinds of members in Fabletics; Regular members and VIP members. Signing up as a regular member is pretty easy. All you need is an email address and a password, and you can shop for fitness apparel at regular, slightly more expensive, prices. VIP members, however, get discounted prices, deals on the apparel all at no extra shipping charges. The catch is that VIP members are charged a monthly subscription fee of $49.95 which could be applied to goods shopped unless you decide to “skip” a month.
Another major strategy for Kate Hudson’s Fabletics success is the “reverse-showroom” technique. This is a technique that allows customers to first browse for the product online and then buy it in store after getting a chance to see it in person. Fabletics has cleverly stocked up physical stores based on the data gathered from the online users browsing habits in a particular area.
Kate Hudson’s motivation to materialize stylish and affordable fitness wear has been one encouraging journey. She shared her 5-point recipe for success which has continued to grow her business and produce sales:
The first ingredient is to identify marketing opportunities. Her second recipe is to stay hands on in your business. Element number three is to rely on big data to make decisions. Four is to get inspired and lastly to believe in yourself and take risks.
Fabletics has indeed become a force to be reckoned with. And it all began with a sign-up. Why not try it today. You never know, you just might get hooked: https://www.fabletics.com/get-started
Few brands of e-commerce can stand up to Amazon, an organization that controls 20% of the market. However, there are some that are willing to give the giant a run for its money. Kate Hudson’s Fabletics has grown into a 250 million dollar business in the past three years, becoming a serious competitor in the the world of activewear as well as e-commerce in general.
Offering affordable, high quality and stylish workout clothes for women and men, the young company has already made a name for itself among activewear enthusiasts. With the iconic Hudson as a spokesperson and in-house fashion guru, the brand aims at making life better for active people everywhere.
Using a subscription method to sell its clothing, Fabletics mixes self-improvement, convenience and membership as its method to attract customers. Adding to the traditional combination of price and quality, Fabletics employs customer experience, brand recognition and exclusive design to offer a high-value product to the high-demanding public. This, in combination to a broad spectrum of clothing that’s both stylish and comfortable, ensures a strong and direct connection to the public.
Apart from its monetary growth, there are signs that the company’s strategy has been paying off. This year, for example, they will be opening new physical stores, adding to the 16 that are already functioning in different parts of the country. This is yet another step towards the goal of creating a modern, re-imagined version of a high-value brand. The secret, according to Fabletics’ general manager Gregg Throgmartin, is establishing a membership model that allows Fabletics to offer personalized service and on-trend fashion at half the price of competitors. “It’s just a lot easier to make people happy when you know who they are and what they want,” he stated.
In addition to having a dynamic subscription mechanic online, Fabletics has focused greatly on providing unique physical stores that make shopping an exciting and uplifting experience. One of the issues they have tackled is the phenomenon of showrooming, or the practice of going to a store to examine a product before buying it online at a lower price. While other stores are harmed by this practice, Fabletics has found a way to turn it around, making it positive. Through their current strategy, they have managed to build relationships and trust while getting to know the local public through events and activities. The result is a high amount of memberships being sold, which ensures that sales will be made online.
The way Fabletics handles online data has also been an important factor in its success connecting with customers. By displaying the right content both physically and digitally, they have managed to provide a more satisfying journey of brand discovery. By using local data from online stores to determine what items will be featured in physical stores, the brand is able to offer what the public wants in a more accurate fashion. This selection is constantly tested and tweaked in order to achieve a higher level of customer satisfaction.