Why Kate Hudson’s Fashion Brand, Fabletics, Has A Competitive Edge In The Market

With Amazon controlling 20 percent of the fashion e-commerce industry, succeeding in the field is almost a pipe dream for any person. However, with such challenges, Kate Hudson’s Fabletics has managed to grow to a company worth $250 million in three years. What strategies is the company employing to ensure they survive in the industry? Fabletics sells quality activewear at fair prices. Historically, high value brands have been defined by quality and price. However, with the shift in economy, this combination is losing its prominence. To determine high value, the modern consumer pays attention to finer details such as customer care, last-mile service, brand recognition and exclusive design among many other factors. The company sells their products through a membership subscription plan. They have 16 physical stores in different locations, including Hawaii, Florida, Illinois, and California. They are also planning to open more stores this year.

Gregg Throgmartin, Fabletics’ general manager, said that their brand is succeeding in the market due to their membership model, which allows them to deliver personalized products and services to their clients. Additionally, the company strategizes on the element of positioning just like Apple and Warby Parker, which is paying off. The following factors make their physical stores unique.

  1. Reverse Show rooming

Most businesses are struggling to keep up with new entrepreneurial tactics. One of these strategies is show rooming where clients browse the products and services offered by a given store offline, but end up buying products elsewhere at a cheaper price. Fabletics has avoided the pop-up store model by ensuring that close to 50 percent of clients who walk to their stores are members and the other 25 percent register as members once they enter the store. Their retail strategy ensures that every item that a customer tries is included in his or her shopping carts.

  1. Less dependence on online data

As much they rely on online data, they stock their products not only according to the online preference, but also depending on local membership, social media trends and real time sales activities.

III. Focus on accessibility, people and culture

As Fabletics expand, they are venture into new territories and woo more clients. To this end, they have learnt to balance their lifestyle, customer experience, consumer education and culture. The company evolves to ensure that they deliver products that satisfy the utility of their clients. Their clear understanding of the modern consumer is evident in their smart distribution, innovative membership programs, and fast purchase options. This information was originally published on Forbes.

About Fabletics

Fabletics is a fitness apparel company. It only operates on membership plan. Those who subscribe for VIP membership only spend $25 for their first outfit plus other discounts on la carte items. The main reason for membership is to ensure that clients get customized outfits of 2-3 pieces each month for $49-$59. Clients who opt to skip a month are not charged any fee. Upon joining the company, clients take a survey to determine the style and preferences of their workout outfits. These outfits include tanks, shorts, and carpris among others. Customers are assured of quality, value, ease of use, and style. Those who wish to join Fabletics should feel free to take the Lifestyle Quiz from Fabletics Website to find out which activewear is best for them. This information was originally mentioned on A Foodie Stays Fit’s website.

Can Kate Hudson’s Fabletics Grab More of the Amazon Market?

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.