Kate Hudson isn’t content to just proceed as the charming star of many a romantic comedy. Even though Kate Hudson started her career with an impressive Academy Award nomination for Best Supporting Actress in the Cameron Crowe film, “Almost Famous,” she still knew she wanted to make her mark as an entrepreneur as well. With Fabletics, the subscription-based workout gear line that’s designed to highlight a woman’s attractiveness even as she amps up her fitness, Hudson has scored again.
Taking on Amazon
In just three years in business, Hudson and her partners have grown the Fabletics workout clothing line into a $250 million business. This achievement is even more impressive when you consider that right now Amazon.com controls 20 percent of the online “active wear” online market. Fabletics is subscription based, and offers those “members” who sign up for the clothing brand a chance to review clothing choices from the comfort of home. Customers who sign up for the membership take an online survey that lets the company know their taste and preferences in workout gear, so the clothing choices sent to them will be a good fit all around.
Fabletics offers chic looks in its activewear clothing, and one aspect that sets the brand apart is the appealing, affordable price point. What the Fabletics team has learned, also, is that these days, the high competition that exists in the ecommerce clothing world means that just offering high quality products and great service isn’t enough. Customers today want something more, which includes a great customer experience, exclusive designs and last-mile service, along with brand recognition. Fabletics has managed to offer all of this, which is why customers are really responding to the brand. With fit and attractive Hudson as a spokesperson, the brand awareness of the Fabletics line gets an extra boost as well.
Though Fabletics started as an ecommerce only brand, the line is now planning to open more physical stores, to add to the sixteen already in existence. Fabletics uses a “reverse show rooming” approach in its physical stores, as the stores appeal to those who are already members. Customers can browse in the real stores and then add their purchases to their online carts when they choose to buy. The model is win-win for customers and for the brand too, no doubt about it.
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.
In order for any clothing company to really have a chance at competing with Amazon, they need to step up and generate some impressive sales numbers on a consistent basis. The reason being is that Amazon already has 20 percent of all the sales in this extremely competitive niche, and that is with thousands of clothing retailers trying to compete with them each year. That being said, it does appear Kate Hudson’s Fabletics might have exactly what it takes to make their way to the top. On the subject of sales numbers, we find that Kate Hudson’s Fabletics has brought in around $250 million in sales of workout clothing for women in a little under three years now.
To get a clear understanding as to why this athleisure brand is beginning to separate themselves from the pack, you only need ask Hudson herself about what is driving her sales numbers. Hudson will tell you that the combination of reverse showrooming and perks of her membership plan are the pillars to the foundation of the growth of those sales numbers. Just take a second and look inside the mall, the customers at the Fabletics stores are not being pushed to buy by the sales associates, they are being encouraged to shop the active-wear, try on all the workout apparel, and even take the Fabletics lifestyle quiz.
In order to be a dominant force in this diverse fashion e-commerce market, it all comes down to the sales at the website. This is where Kate Hudson’s Fabletics is beginning to shine. Part of the perks of shopping and trying on the workout apparel at the retail store is that each of these pieces will be uploaded to your online account at Fabletics so you are able to just continue shopping when it is convenient for you. Since the customer is already sure the leggings, tank tops, or yoga pants fit, they simply go impulse buying at the larger online inventory and fill up their shopping cart with everything they could possibly want.
Membership perks for the Kate Hudson’s Fabletics customer also includes discounted active-wear pricing all year, free shipping for online orders, and the help of your own Fabletics personal shopping assistant. These are just a few of the reasons that Kate Hudson’s Fabletics has been growing their customer base and making a strong push to try and take Amazon off that top spot.