When most apparel companies decide to enter the market, they know that they are going to have a very rough go at it since Amazon already commands 20 percent of the market online. Apparently no one told Kate Hudson’s Fabletics that this was not the ring to be entering, and her company is beginning to dominate in a space that most fail. Looking at the last three years, Kate Hudson’s Fabletics has made over $250 million in sales and shows no sign of slowing.
Hudson was asked about the success of her company, and her responses were not at all what were expected. According to Hudson, reverse-showrooming and a unique membership platform are the keys to the company growing at such a rapid pace. To see the company in action, we have to head over to the local mall and visit one of the Fabletics retail stores. Women are encouraged to sign-up for the free membership and take the Lifestyle Quiz to unlock even more benefits. Regardless how many things you try on in the store, they are then kept in your online profile for your consideration at another time.
Hudson says that many of the women spend a considerable time window shopping and trying on her high-quality athleisure brand without buying at the retail stores. These women who tried on one or two pieces in the retail setting are now adding four, five, or more sets of workout gear and active-wear to their cart. These customers get free shipping, discounted pricing, and even their own personal shopper.
Speaking of personal shopper, as a member of Kate Hudson’s Fabletics, those who filled out the Lifestyle Quiz will now have a personal shopper who chooses one item each month and adds it to the shopping cart for consideration. The item is based on the quiz answers, customers size, and previous purchases. This formula might be a little unique, but it seems to have struck a chord with consumers looking for a better way to buy their clothing online. If sales are any indication of future success, Kate Hudson’s Fabletics is going to become a force to be dealt with in this space for many years to come now.