Amazon has not had too much concern about the competition over the last few years. They dominate the online apparel market by a landslide, raking in over 20 percent of all sales in this very competitive niche. Kate Hudson’s Fabletics is one clothing company in this niche that is not going to simply sit back and fight for crumbs, they want to give the giant a real run for the money. Kate Hudson’s Fabletics has sold a very impressive $250 million in sales of workout apparel for women in only a few years, and Amazon is taking notice.
Listen carefully to what Hudson says about her athleisure brand and why it has been so successful for the last couple years. She credits all the success to a few key components, reverse showrooming and a very rewarding membership program. Look at how the sale process is taking place at the local mall, and you will discover women piling into the Fabletics retail store and doing things like taking a lifestyle quiz, window-shopping, and even trying on all the workout apparel and active-wear they desire. What might come as a surprise here is that many of these shoppers are not buying anything while they shop at the mall, so there has to be a catch.
The real catch here is what happens when the customers show up at the Fabletics e-commerce site. here is where all the magic of record sales takes place, and it really is something to behold because no one is really taking advantage of the technique. So because these women were trying on the clothing at the mall, they discover all those pieces of apparel are not sitting waiting for them in their online account. If the clothing already fits them perfectly, what winds up happening is these customers start surfing the website for new colors, new styles, new arrivals, and they load up the shopping cart in the process.
The biggest attraction for workout apparel customers is the additional benefits from being a Fabletics member. These members are getting free shipping for their online orders, discounts on the clothing in the online store, even the help of their very own personal shopping assistant. The assistant uses the quiz answers to pick a piece of clothing each month for the customer to consider. Amazon should pay close attention today to the way sales are increasing here or they may be in the mix at the bottom of this market very soon.