Amazon has been perched at the top of the e-commerce fashion market for years, and at 20 percent of sales in this space, they usually do not fear too many things. It seems like out of nowhere this little company that no one gave a chance is starting to cut into the Amazon market, and Kate Hudson’s Fabletics is making waves with over $250 million in sales these last few years. One thing is certain, if Amazon was not taking notice before, when they see that revenue shifting to another retailer, they are going to look twice.
Hudson was asked about her athleisure brand, and how she was able to do what so many other businesses in the fashion space have failed to do against Amazon. Her response points towards two factors, reverse showrooming and a unique membership. This combination is something that even Amazon doesn’t employ, but Hudson has somehow made it work. To see the process in action, all you have to do is head to the mall and visit one of the Fabletics retail shops. Women come in to window-shop or just try on the latest releases, but many leave without buying anything.
The secret to Kate Hudson’s Fabletics success, when these same shoppers return to shop via the website. Now all those items that these customers wore in the retail store appear in the online profile for consideration. Knowing which size was a perfect fit, these women can now shop with confidence knowing each item they purchase is going to look and feel amazing. This is a huge contrast to the shopping experience at Amazon where you have to wait until the product arrives before you see whether or not if it fits.
Women who took the Lifestyle Quiz are rewarded with lower pricing, free shipping, and the assistance of a personal shopper. This personal shopper chooses a new item each month they feel matches the taste of the customer, and placed in the shopping cart. Buyers can keep the item, reject it, or simply shop for something else. This no-pressure sales approach at Kate Hudson’s Fabletics is part of the reason sales have exploded in the last three years. Amazon should be worried because Fabletics seems to have found a winning formula that appeals to the masses in this space.