When looking at the highly competitive e-commerce apparel niche, Amazon has been having their way with the competition for years, pulling in an unbelievable 20 percent of the sales in that space. It might seem foolish to try and compete with the giant, but one such company has their sights on going right to the top themselves. Kate Hudson’s Fabletics has been pulling in about $250 million in the last three years, and those numbers mean they are making a serious play for the top spot in that niche.
When you try to figure out the success of this company, all you have to do is listen to how Hudson describes the sales process. Hudson says a unique blending of reverse showrooming and company membership have women making purchases in record numbers. At first, you look at the sales in the retail Fablectics stores in the mall and don’t see anything out of the ordinary. Women are getting their free memberships, taking the Lifestyle Quiz, window-shopping, but more importantly they are trying on all those pieces or workout apparel. This athleisure brand could sell itself based on style and high-quality, but you may be surprised how many shoppers leave the store without buying anything.
Hudson says that her company sees record sales when it comes to the e-commerce store. As a member to the Fabletics website, when you try on the active-wear in the retail store, all those items are then transferred to the online shopping cart. Women who loved the way that a style fit are able to go online and find far more colors than in the store, so they wind up buying more. That is how the reverse showrooming process works, no more guessing if something will fit, you already know so you search the website for new arrivals and stock up. Compared to shopping in the retail setting, these women are putting more in their online shopping carts as a result.
The combination of that relaxed buying atmosphere, lower pricing, and free shipping for online orders, have women joining the Kate Hudson’s Fabletics in record numbers. No longer is shopping online problematic like when buying at Amazon and having to guess if that workout apparel will fit, now you already know how it looks and feels and you can buy as much as you like without worry of having to return the wrong sizes over and over.