Understanding how any company could compete with Amazon all comes down to first getting an understanding about how profitable this retail giant really is. Looking at the fashion e-commerce market, we see that there are thousands of clothing companies all trying to get the same customer, yet Amazon is easily making 20 percent of all the sales in this very competitive market. That being said, we see that Kate Hudson’s Fabletics has emerged from the pack and is making moves to actually compete on a higher level with Amazon. In three years, Kate Hudson’s Fabletics has already sold in excess of $250 million in women’s apparel and workout clothing.
How was Hudson able to get her athleisure brand to be able to compete on a global scale with the biggest retailer in the industry? The first thing that we have to look at is the two key factors that separate Kate Hudson’s Fabletics from the other active-wear sellers. Inside the Fabletics store in the local malls, you will find this is more of a unique shopping experience than anything else. There are women all over the store trying on all the yoga pants, there are women taking the Fabletics lifestyle quiz, and we even see women just window-shopping without sales associates pressuring them to buy.
The biggest difference with Kate Hudson’s Fabletics in this competitive fashion e-commerce market, they utilize reverse showrooming and their membership package to drive sales. Once these shoppers become members and visit any of the retail stores, each item they try on inside the store will instantly be moved to the online store shopping cart. Even if these women are too busy at the mall, they can log into their Fabletics account any time and those pieces will be waiting for them to purchase. Since sizing is no longer a concern, these customers tend to shop the larger online inventory and buy in bulk.
Kate Hudson’s Fabletics continues to give customers more in perks than any other retailer in this space. Fabletics members receive a shopping assistant, free shipping on online orders, and deep discounts on the workout apparel online and in the mall stores. Your shopping assistant selects one piece each month they think you will love based on quiz answers. Kate Hudson’s Fabletics has what it takes to really put a scare in Amazon and finally being able to compete with them on a bigger global platform.