How Did Kate Hudson’s Fabletics Explode Their Profits?

To understand how Kate Hudson’s Fabletics has become a dominant force in the clothing market, you need to compare the numbers to the best in this industry. There is no disputing that the king as far as sales in the online apparel industry is hands down Amazon. This retail giant is commanding 20 percent of all the sales in that space year to year with no signs of slowing. Kate Hudson’s Fabletics wants to change how women are shopping for active-wear, and the numbers don’t lie as to the success of this brand. In three years, Kate Hudson’s Fabletics has already taken a huge bite out of Amazon’s profits, that bite is around $250 million and growing.

 

While domination in this fashion e-commerce market has been done by one company for a decade, Hudson says the appeal of her athleisure brand is reaching a whole new audience. The combination of Fabletics membership perks and reverse showrooming have really struck a chord with shoppers, just take a look inside the retail store at the mall to see what we mean. These Fabletics shops are overrun with women who are taking a Lifestyle Quiz, window-shopping, and trying on anything that may appear as a new release. Then many leave the store without buying, so how does that equate to $250 million is sales?

 

Kate Hudson’s Fabletics has set up the retail shops so that if a member is shopping and trying on apparel, whether it be yoga pants or tank tops, it gets uploaded to the online member page too. That means when the member leaves the store and goes online at a time that is convenient to them, all those pieces are sitting in the shopping cart. Now they know the size that fits them, so they keep on shopping and look for new styles or a variety of different colors they can add to their workout collection or be the first at the gym to show them off.

 

Now add into the equation free shipping for the online orders, discounted prices on all the merchandise, and even help from a Kate Hudson’s Fabletics personal shopping assistant, and you can see why women are raving about this new shopping experience. Amazon is going to have their hands full trying to change their shopping model to compete, and at the rate things are progressing, Kate Hudson’s Fabletics may soon be the new giant in the apparel market.

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