In order for a clothing retailer to even get in on the same conversation with Amazon as far as sales, the company had better be raking in millions in sales in a very short amount of time. Looking at it first from the side of Amazon, this giant in the online retail world is breaking the bank and doing 20 percent of all the sales in that competitive market. Now we look at Kate Hudson’s Fabletics, and incredibly they have been able to do over $250 million in sales in a few short years.
If the sales continue to grow year to year as predicted, Amazon could really have their hands full.
Hudson spoke about how her women’s workout apparel company has been able to soar so high this year, and her answer is reverse showrooming and the Fabletics membership package. To see how things have been changing in this niche, simply take a drive to the mall and walk inside one of the Fabletics retail shops. This is not your ordinary clothing story by any stretch of the imagination. Not only are sales associates not pressuring customers to make a purchase, these women are walking around the store and trying on yoga pants, window-shopping for the latest in active-wear, and even taking the store’s Lifestyle Quiz to enhance their memberships.
Many leave the store without buying, so how can a company sustain $250 million in sales without closing the deal?
Fabletics is in fact closing the deal and in a very big way. The company has employed a sales tactic that women are falling in love with all around the country. If a member tries on anything inside the Fabletics retail shops, it will be uploaded immediately to their online account. What does this mean in relation to sales? It means everything, because these busy women can pick up shopping at a time more convenient for them knowing each piece they tried on is waiting for them online. At the online store, the inventory is larger, so they continue looking for new colors and styles based on the size that already fits them perfectly.
Now comes the part where Fabletics showers those same members with perks of every sort. Shoppers enjoy free shipping when they place orders online. These customers get discounts on all the apparel throughout the shops and online site. When they complete the Lifestyle Quiz, members get their own Fabletics personal shopper to help them select new releases each month.