How Fabletics is competing with Amazon

Currently, almost 20 percent of e-commerce fashion market is controlled by Amazon making it virtually impossible to succeed in fashion. However, Kate Hudson’s Fabletics has changed this narrative. In just three years, Kate Hudson has managed to grow her $250 million worth Fabletics business. It relies on a subscription mechanism to sell clothes to customers. Historically, high-value brands have been defined by the quality of the services or goods and price. However, the recent change in economics shows that this combination doesn’t guarantee success anymore or isn’t competitive enough.

 

Fabletics does its physical stores different from competitors hence its success. For instance, unlike its counterparts, Fabletics promotes ‘reverse showrooming.’ With showrooming, potential customers browse offline only to purchase items at lower prices elsewhere. Thanks to the unique way Fabletics started out, it has managed to reverse the model. Rather than harmful browsing, they have successfully changed browsing to positive. They could have taken the route of pop-up, but opted for a strategy that makes them dependable, know the local markets better and build strong relationships through events. Thanks to their strategy, almost 50 percent of the customers who walk through their doors are members already. Additionally, an additional 25 percent are turned to members in the store. When customers are shopping and happen to try some clothes, items are added to their shopping cart online.

 

Fabletics is very much aware that physically and digitally displaying the right content is important and ensures that the brand journey of the customer isn’t destroyed. Relying on online local data preferences implies that physical stores stock items that have a higher likelihood to appeal customers and can be easily tweaked with tastes and trends changes. Moreover, stores are only stocked in relation to the various inputs such as social media sentiments, membership preferences, sales activity in real-time, and store heat mapping data.

 

The growth of Fabletics has had its own share of challenges. However, it has progressively ventured into new territories with completely new competitors. It’s widespread consumer education, the balance of lifestyle, and customer experience appears to be yielding fruits. According to its Corporate Marketing Officer, Shawn Gold, the brand has grown successfully by 35 percent in just one year. It is difficult to build a fashion brand without having a well-defined mechanism to compete with Amazon. Fabletics is defining itself using enterprise technology, exclusive product, and data science.

Kate Hudson’s Fabletics Tired of Chasing Amazon

Amazon has been without question the number one online retailer in the women’s apparel niche. When you own 20 percent of the sales in a competitive market, you are doing pretty good for yourself. While most of the competition is resigned to playing a secondary role, Kate Hudson’s Fabletics has been making some serious strides to take over that top position from Amazon. Looking at the Fabletics sales numbers for the last three years, $250 million in sales of active-wear is impressive regardless the niche.

 

Hudson says that her unique athleisure brand is high-quality and a fresh new look that has women really excited about her brand. There has to be more to the selling process to pull in $250 million in sales, and Hudson says the credit lies in her membership program and a sales process known as reverse showrooming. Looking closely at how the sales process works at Fabletics, we have to begin this journey at the retail stores at the local mall. That is where you will find women of all ages trying on the workout apparel, looking through racks of new active-wear, applying for a free membership, or taking the store’s Lifestyle Quiz.

 

There is no pressure to buy at the retail stores, that is because Hudson knows that the power in her apparel brand lies in the e-commerce setting. When these same women eventually go to the Fabletics website, one thing that is completely unique for these shoppers is everything that they tried on at the store in the mall is now available in their online shopping cart. That takes a bit of the guesswork out of shopping online, so these women can focus on looking for clothing and loading up the shopping cart. When the size of the items is no longer a concern, women go from buying one piece to see how it looks when it arrives to a half-dozen based on just pricing.

 

Kate Hudson’s Fabletics is all about giving women a new type of shopping experience, and as members to the site these women are getting low pricing, free shipping, and even their own shopping assistant. When you are buying at Amazon, you need to wait until that one piece arrives to try on, they you return it until you finally find the one that fits. With Fabletics, you know how it fits and can focus on the buying experience instead.