While Amazon may not be in any immediate threat of being taken off the top spot as an e-commerce retailer, they appear to be getting some heat in one particular niche they have dominated for years. In the online apparel niche, Amazon commands 20 percent of the sale sin that space, but that slice of the pie may be getting significantly smaller. Kate Hudson’s Fabletics has burst on to the scene, and sales of women’s apparel in the last three years has surpassed $250 million with no signs of slowing down.
Hudson commented about the success of her athleisure brand, crediting reverse showrooming and her unique Fabletics membership plan as the causes. Although this line of high-quality active-wear sells itself, the buying experience is something women are drawn to. They start by heading over to the Fabletics retail store at the local mall. Here these women get to check out all the latest workout apparel and active-wear releases. Women apply for the free membership try on all the clothing they want, do a little window-shopping, then take the Lifestyle Quiz. There is no high pressure sales tactics from Fabletics associates, and customers often leave without spending a penny.
Without spending money, how is Kate Hudson’s Fabletics making $250 million in sales?
The overall sales process doesn’t really take hold until these same female shoppers visit the Fabletics online e-commerce site. Since these consumers have tried on apparel at the retail store, part of the Fabletics membership includes the feature where those items get moved to the online profile too. Now since these items were already worn and fit perfectly, the guesswork is removed from the equations as these women are free to surf the store for even more of a selection. These women will add different styles, colors, and new arrivals, often spending significantly more than they would have at the mall.
The Kate Hudson’s Fabletics membership includes free shipping on the online orders, discounted active-wear pricing, and the assistance of a personal shopper who picks one item each month that matches your quiz results and adds to the cart. The ease in ordering and high-quality merchandise only enhance the overall buying experience at Kate Hudson’s Fabletics. This buying formula seems to be working, and if the sales numbers keep growing, we may have a new queen at the top of the e-commerce apparel niche in the very near future.