Not many people enjoy facing giant corporations because corporations often have a stronghold on the market share. This is undoubtedly true for the juggernaut Amazon.com. However, this has not stopped Kate Hudson from using her athleisure brand Fabletics to take them on.
Most business analysists think it is crazy to take on Amazon since they control 20% of the fashion e-commerce industry. However, Kate Hudson has not let this stop her. She took Amazon by using a subscription mechanic that allows you to sell her clothes to customers on a monthly basis. These clothes have been an inspiration to her customers and have empowered them to achieve more of their goals. The strategy with Fabletics is that they use last mile service, give the customer an experience they will never forget, increase the recognition of their amazing brand, and use exclusive designs.
Recently, Fabletics has taken a move out of Apple’s toolbox and opened physical stores. Currently, they have sixteen stores in operation throughout Hawaii, Illinois, Florida, and California. They plan on opening many more stores in many more states soon.
The reason they can take Amazon on is by using a technique called reverse showrooming. Showrooming has been a thorn in the side of all retail stores across America because it allows people to come inside the physical store and browse products offline only to leave the store and buy the same product online for a cheaper cost. Fabletics stopped this by implementing reverse showrooming.
Their strategy is to get the customer loyal to Fabletics before they even enter the store. They do this by building relationships with local communities and focusing on local markets through events and activities. This focus on community has resulted in 30 to 50% of those entering the store to be customers of Fabletics already.
Hudson says that she is proud of what she has accomplished. She has been involved with Fabletics from day one. Her role in the company has been to ensure that customer service is top notch. In addition to this, Hudson made sure that communication with the customer was the main priority for her business. This focus on the customer has resulted in high trust ratings from various websites and also a loyal customer base that is always growing thanks to passionate word of mouth. Hudson says she will stay with Fabletics and help the ship to run its course.