To really see how dominant a force Amazon has been for these past few years, we have to look at a only one statistic. Amazon commands an incredible 20 percent of sales in the e-commerce world of women’s apparel. Although they sit comfortably at the top, there seems to be some rumblings off is the distance that is getting a lot of attention this year. Kate Hudson’s Fabletics has gone from nowhere to $250 million is the sale of women’s apparel in only three years, and they could easily catch Amazon if they keep up this blistering pace.
When Hudson commented on the success of her athleisure brand, it seems to come down to a few simple basics. The concept of reverse showrooming and her unique membership are simple in premise, but the overall concept is really turning heads. Looking at how the process works in real-time, we see women of all ages at the Fabletics store in the mall grabbing their free membership, trying on all the latest releases of workout apparel, even taking the Fabletics Lifestyle Quiz. What is surprising to some is that many of these shoppers don’t buy anything in the retail store.
How can a company do $250 million in sales and not sell hard at the retail stores?
To see how the Fabletics company is pulling such big numbers, we have to see how these women shop once they are home in a comfortable setting. Since they already tried on the active-wear in the store, they know exactly what size outfits they need to buy. Online, they can search other styles and new arrivals, and buy more than they originally planned. Those items they wore at the local store are all saved in the online profile, so shopping for a exact fit is easy. Rather than pick up a piece of active-wear at the mall, these women shop for hours online, buying hundreds of dollars of apparel in one order.
As part of the membership package, customers receive lower pricing, free shipping on orders online, and the help of a personal shopping assistant who selects one item each month based on the quiz answers. Kate Hudson’s Fabletics has discovered a way to offer women high-quality merchandise with the added convenience of shopping from home without concern of the apparel not fitting. At this rate, the gap between Amazon and Fabletics will be nothing very soon.