The online clothing industry is one of the more competitive, and each year it only gets more challenging to make your was as a retailer because Amazon is taking a bigger piece of the pie. Smaller retailers in this space have trouble growing because year after year Amazon is taking 20 percent of all the sales across this competitive industry. That being said, these scary statistics might frighten off most in the clothing niche, but not Kate Hudson’s Fabletics. The company recently reported revenues in excess of $250 million in only a short three-year span, something that certainly has gotten the attention of Amazon by now.
When Hudson was asked to talk more about how her company was able to navigate such challenging water, her response surprised many who already are struggling in this busy niche. Hudson says that she gives credit to her company’s success to membership perks and the sales process the company uses called reverse show-rooming. This athleisure brand is flying off the shelves of the retail store and from the website. Look inside any of the retail stores and you find women trying on everything they can get their hands on, then taking the company Lifestyle Quiz, and more often than not leaving without buying.
Hows does a clothing retailer make over $250 million in sales without getting shoppers to buy?
The reverse show-rooming is the real key to success here. Every time a member is at the stores at tries on a piece of Fabletics merchandise, the company uploads those pieces right to the online account. What this eventually does is allow these women to come to the website when they have more time, and simply continue their shopping experience on their terms. Knowing which sizes fit them perfectly, they now are free to look at other styles or colors based on that parameter, and load up from the vast online inventory.
Kate Hudson’s Fabletics has no trouble showering their customers with perks unlike any other clothing retailer. In addition to the ease of shopping online, members are getting free online shipping, discounted apparel prices, and their very own shopping assistant. These are thing even Amazon will struggle with, because as of today they are charging their Prime members $80 a year just to get discounted shipping, not free shipping. Kate Hudson’s Fabletics could grow a huge audience in record time if they keep up at this rate.
Posted in: Fashion