Amazon has been at the summit when it comes to selling women’s apparel online, pulling in close to 20 percent of sales in this market for many years. They have seen the competition get close a few times, but they quickly fade away and have not been too much of a concern. Amazon may have to pay closer to Kate Hudson’s Fabletics this year, a women’s active-wear company that has already sold over $250 million in high-quality workout apparel in three years.
When Hudson was asked to talk about the success of her clothing company, she credits much of the success to reverse showrooming and her unique membership program. Although her athleisure brand could sell on its own, the way women are shopping tells the real story of the company’s success. Women come down to the Fabletics retail store in the mall, then they apply for the free membership, check out some of the new arrivals, take the Lifestyle Quiz, and try on just about everything in the store. Many customers leave the store buying nothing after all that, and this is not a concern for Hudson.
If potential customers are leaving without buying, how did Fabletics rake in over $250 million is sales of workout apparel in 3 years?
The reason Fabletics is enjoying such enormous success is all due to how these same customers shop online. Now when they have the time after their hectic day, these women head to the Fabletics website where they discover all the workout apparel they wore inside the retail store is waiting for them in their online cart. Knowing how perfectly the clothing fit, it is easier to shop when you know exactly what size to purchase. There is no guessing like when you purchase clothing on Amazon, and Kate Hudson’s Fabletics customers will buy more items than if they were in the store due to the larger online inventory.
Part of the benefits of being a member of Fabletics program is free shipping on all online orders, discounted pricing and special deals, as well as the help of your very own personal assistant. Kate Hudson’s Fabletics has found a way to cater to women who want to buy online at their convenience and get exactly what flatters their body the first time. Amazon should be concerned because this formula is not only unique, it appears to be turning average buyers into long-term loyal customers.