Kate Hudson And Fabletics Take Aim At Amazon

In the story of David and Goliath, not too many people gave David a chance. But David wound up having the last laugh. Today, Kate Hudson and her company Fabletics are taking on modern day retail Goliath by the name of Amazon.

 

Hudson has grown Fabletics into a $250 million business in just three short years by selling athletic clothing directly to consumers. By combining an aspirational brand with the convenience of a subscription membership, Fabletics has grown by 35 percent year over year.

 

It is that stellar growth rate that has given Hudson and company the confidence to take on Amazon. This will be no small feat given that Amazon controls 20 percent of the online fashion market.

 

According to Fabletics General Manager, Gregg Thorgmartin, it is the company’s membership model that will allow them to take on Amazon. By using customer data they can offer personalized service to their customer and reduced costs.

 

  1. Reverse Showrooming

Most brick and mortar retail stores lose money when customers come into the shop, browse for items and then go home and buy them online for a cheaper price. Fabletics does not have that problem. In fact, the encourage it.

 

The company currently has 16 retail stores throughout the country and is planning on opening more in the coming year. Because they have started out as a membership-based retailer, 30-50 percent of customers who walk into their retail stores are already members. Once a member tries on a particular item of clothing it will go into their online shopping cart and they can complete the purchase online at their convenience.

 

In addition, 25 percent of customers who walk into the store sign up for membership right there and then. It is not important to Fabletics where their customers make purchases. For them, the retail store is just another facet of their customer service.

 

  1. Big Data

Fabletics understands the personalization is key to their customer’s shopping experience. The company works hard to present to right product to the right customer at just the right time, making the buying decision effortless.

 

As such, the inventory of each retail store is determined by the data of local members. This ensures the store will most likely carry items that local consumers want. As trends change so will store inventory.

 

  1. People And Culture

At its heart, Fabletics is about customer experience. They work tirelessly to give their customers exactly what they want while promoting an active lifestyle. This attention to customer service has created a community of loyal customers. These delighted customers will turn into brand evangelists and help the company grow.

 

Competing with Amazon will not be easy. However, Fabletics has built a foundation of happy customers and used technology to its full advantage. By combining both they are sure to give Amazon a run for their money.

One thought on “Kate Hudson And Fabletics Take Aim At Amazon”

  1. If Fabletics it to truly compete with the e-commerce behemoth, they are going to have to leverage three of their main strengths. Armed with this information the company is constantly tweaking store inventory to get just the right mix. It would have made sense that superior writing paper would have these things work for them all around too.

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