Knowing that Amazon controls over 20% of the online fashion sales, why would any active-wear company want to try to do battle with this e-commerce giant? When you have Kate Hudson as a founder, you can take risks because you know your company is about to set the fashion industry on fire. In the last three years, Hudson took Fabletics from nothing to $250 million, and she has Amazon in her sights.
The reason Fabletics is growing at such breakneck speed is a unique formula of using subscription mechanics to sell active-wear to customers. Combine convenience, low-pricing, and wildly innovative styles, and you have the recipe for succeeding in this very competitive clothing space.
Hudson says that in order to get her athleisure brand a world-wide audience, she had to break the mold of high value brands being defined by price and the quality of goods. Instead, Hudson says that things like customer experience, last-mile service, brand recognition, and exclusive designs are becoming important to the modern customer.
Hudson says that her clothing experience is unlike any other because the consumer can first window shop in the retail outlets with zero pressure to buy. In fact, if the customer has already registered as a member and taken the Lifestyle Quiz, each time they pick up an item in the retail store that they like, it is added to their online account. Maybe she wants to just kill time in the mall looking at a few of the latest releases in yoga pants and she how she looks in the new styles, then later tonight in the peace and quiet of her home, she can select the colors or styles she wants.
That’s the secret! Fabletics is building a modern version of high-value brands and applying their unique membership platform to the mix to enhance the shopping experience. This membership model allows users to personalize the service at half the price of items found on Amazon and other competitors.
The success of Fabletics has to be due in part to the reverse showrooming process. People browse offline, and 30-50% of those people that walked through the store are already members, another 25% will become members right there in the store. When customer try on an article of clothing, it goes into the online shopping cart. Fabletics doesn’t care if the customer buys in the retail store, its just another extension of service.