Kate Hudson and her new company Fabletics have taken the fashion e-commerce world by storm. Fabletics is designed as an athleisure brand that is meant to motivate women to exercise, eat right, and become a better version of themselves. The clothes are meant to make them look good and feel strong while they are active in self-improvement. Demi Lovato, renowned pop singer and Disney star, has become one of their main sponsors due to the inspirational effect that this product has on women.
Perhaps the company most shocked at Fabletics uprising is the internet retailer Amazon. Amazon once enjoyed a sizable 20% market share in the e-commerce fashion industry. However, Fabletics has begun chipping away at this giant’s great lead. One of the reasons Fabletics was able to begin stealing market share from the great Amazon is because Kate Hudson employed several of Amazon’s weaknesses into her business strategy.
Kate Hudson exploited Amazon’s inability to leverage the power of the crowd. Amazon, for being such a great website, does not sell any of its own products; thus, it cannot create any loyalty to its brand. Fabletics however, is more than capable of getting women loyal to their product and the amazing benefits that come along with it.
Kate Hudson began getting the power of the crowd behind her when she began hosting local events that put local dealers in the spotlight and allowed women to exercise in Fabletics clothing without committing to purchasing. When she did this, she noticed that 85% of the people ended up purchasing one of her products.
Kate Hudson would ride this wave of customer loyalty and begin opening retail locations in five different states. Many analysts told her not to open up retail locations because retail locations were suffering something known as the curse of the showroom.
Showrooming occurred when somebody came into a physical store with no intentions to purchase a product. Their only intention was to handle the product with their hands and see it with your own eyes before going online to find a better price or sale somewhere else. This led to many retail stores, even Walmart, to consider different strategies as they began to lose profit.
Kate Hudson, however, did not have to worry about showrooming. She did not have to worry about this because she opened Fabletics stores in areas where she already had customer loyalty. She found that 50% of the people coming to her physical store already purchased Fabletics products online. In addition to this, she found out that 85% of sales that come to Fabletics came through repeat customers. This allowed her to gain an edge on Amazon and begin dominating the fashion industry.
Since Fabletics can change your life, you are highly encouraged to jump on the Fabletics.com and take their personal lives lifestyle quiz. This quiz will assess your daily activity levels, preferred exercises, and weight loss goals and then it will assign you clothing that would help you achieve all these things.
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