Competing with Amazon in any niche is a really tough road to travel. In the women’s apparel niche, Amazon commands over 20 percent of the sales and has been in the top spot for years. Kate Hudson’s Fabletics came on the scene only a short while ago, but in those few years the company has gone on to shatter records and rake in an incredible $250 million in sales of high-quality women’s workout apparel and active-wear. Considering the competition, these numbers are even more impressive.
Kate Hudson recently talked about how her athleisure brand has really exploded in popularity with women, due in part to the unique shopping experience her customers enjoy. Take a closer look at the Fabletics store in the mall, and you discover that there is no pressure by sales associates, women are trying on all the pieces of active-wear in the store, they are signing up for their free membership, and even taking the Fabletics Lifestyle Quiz. This relaxed atmosphere might seem unconventional because many women leave the store without buying anything, or so it appears.
How is Fabletics making $250 million in sales without the customers paying in the store?
To better understand how Kate Hudson’s Fabletics is raking in so much money, we again look at those same women who left the retail store without making a purchase. While they were trying on the active-wear in the store, each item was being added to the membership profile page online. When these women visit the Fabletics website, they see all the items that they wore and that fit them perfectly. Without having to guess which pieces of workout apparel fit, these customers start adding pieces to their cart based on colors, styles, or new arrivals. These customers tend to spend even more than they would have at the retail setting.
Included with the convenience of ordering online, the Fabletics membership includes access to a personal shopping assistant. lower pricing, and free shipping for any online order. This is more of a shopping experience than it is buying women’s apparel. Amazon doesn’t have the resources in place to compete through this type platform, so Kate Hudson’s Fabletics is steadily building a loyal customer base of women who are not only buying more, they are buying often. This company could eventually get to the top spot is the sales numbers continue to grow year to year like they have been.