Amazon isn’t surprised often, especially in the market of online apparel sales. This retail giant has been dominating that space for years, and despite over 1,000 clothing retailers fighting for the same dollar, Amazon pulls in 20 percent of the total sales. Kate Hudson’s Fabletics might be the company to really give Amazon fits, as they have already in three years brought in over $250 million in sales in one of the most competitive niches online and in the mall.
Hudson talks about the success of her athleisure brand having to do with a unique blending of reverse showrooming and a membership plan that actually rewards customers. Compare the rewards of being a Prime member at Amazon, where you pay $80 a year to get air shipping, and nothing more. Hudson says her rewards are numerous, and women are responding by buying more from her each year. Take a look at how things transpire at the mall, at in the Fabletics stores women are lined up to get their memberships, enhance it by taking the Lifestyle Quiz, and even trying on just about everything inside the store.
The sales online are what are separating Kate Hudson’s Fabletics from the crowd and allowing her company to close the gap on Amazon. Since these women at the malls are trying on all the clothing and have memberships, those items get transferred to their online profiles for future consideration. When these women have the time, they roll over to the e-commerce store and can simply buy whatever they want without worry if the pieces will fit or not. They buy workout apparel, yoga pants, and all the active-wear they can afford because they know how it fits already. Unlike other e-commerce sites where you buy a piece and wait to see if it fits, at Kate Hudson’s Fabletics you only need to look for the latest exciting pieces of apparel and load up that cart.
Kate Hudson’s Fabletics rewards its customers with free shipping on every online order for the life of the membership. Members also get discounted clothing prices and the assistance of their own personal shopper who used quiz answers or buying patterns to select one item each month for consideration. The pampering is part of the sales process, and women are responding by opening their pocketbooks and spending in record numbers. Amazon may not be enjoying that huge slice of the pie for much longer.
Adam Goldenberg and Don Ressler officially opened their e-commerce venture, Fabletics in 2013. The company sells stylish athletic wear that can be custom-made to the consumer’s personal style. Fabletics became so popular they expanded their apparel line with each successional year. In 2015, the trio added men’s athletic wear. In 2016, swimsuits and dresses were integrated into the collection at http://rgtadvisors.com/bio/adam-goldenberg/. Their advertisements using Kate Hudson became popular with consumers and accrued a lot of press exposure. So popular in fact, that in the first three years of opening Fabletics was worth $250,000,000.00.
With the prosperity that ensued, Goldenberg opened up some physical locations and the decision to change the name to TechStyle was decided. This decision was made because the company starting incorporating computer analysis as part of its business strategy. With this data they are afforded the knowledge of what to stock in stores according to what sold, and what items are popular. Recently, Adam Goldenberg did an interview with CNBC to further explain why they changed Fabletics to Techstyle. He went on to articulate that customers can now purchase through a VIP program which offers discounts and due to collected data on transactions they can identify any problems that need to be resolved quickly on styleforum.net. Goldenberg further extinguished his company Techstyle from competitors by the fact that they offer the best brands that consumers have shown vast interest in. He indicated that data assimilated technology from the beginning to the end is what prospers brands.
The most recent company expansion on vator.tv is that their sizing is now all-inclusive and offers all sizes to women with hopes of making them feel just as glamorous and confident. Techstyle has adopted the fair concept of recognizing individualism and is creating apparel that works for all dimensions. Techstyle designers give attention to value, fit and flair.
Adam Goldenberg is truly a genius among innovative worldwide marketers. In just four years Techstyle launched into “unicorn” status, indicating his venture is worth 1 billion dollars. He has been an inspiration to many aspiring businessmen with the proven strategy of merging technology information with industry marketing.
The e-commerce market is extremely competitive, especially when it comes to fashion. Amazon controls 20% of the e-commerce fashion market, but there is one company that is taking Amazon head-on and having success, Fabletics, a subscription-based activewear company that has experienced a lot of growth in recent years.
Fabletics has a few things working in its favor helping them with this cause. Its celebrity CEO, Kate Hudson, is a huge help to the company with branding and marketing. The company has also adopted the subscription method of selling its activewear to consumers. Mixing Hudson’s inspiration-laden social media marketing campaign with their convenient purchasing methods has led to Fabletics growing to a $250 million business.
The company has gotten more aggressive recently and has started opening physical stores. There are sixteen stores so far across the United States and there are planning for several more in the coming years. These stores have been a success because of their unique methodology. The following are three ways that Fabletics is changing the way the fashion stores operate.
The Reverse Showroom – One issue clothing retailers have is people finding products they like in the store and buying them online at a lower price. Fabletics has developed a way to combat this by creating what they call a “reverse showroom”. Most of the people that shop in the stores are current or future members. The store gives them the ability to try on clothing and then place it in their shopping cart online for purchase when they get home.
Fabletics Uses Online Data to Shape Their Physical Showroom – Each store utilizes localized data about customer preferences to guide their buyers, helping them avoid stocking items local shoppers wi not be interested in. Fabletics succeeds by being a national clothing brand with a local touch.
They Understand the Modern Consumer – Shoppers today want innovative money-saving ways to purchase items along with both a fast point of sale and streamlined shipping methods. Fabletics provides all of these things, leading to the company growing at an average rate of 35% per year. The company is also great at keeping members informed about future products. The complete and clear understanding of Fabletic’s current and future competitors is the backbone of its success so far.
Starting a new clothing brand in today’s market is a daunting proposition. New brands know they are going to have to compete with Amazon. There are companies that are doing it with some success recently, thanks to niché products and innovative purchasing methods.
Subscription-based shopping has been around for years in other markets and is only just starting to catch on in the clothing world. Kate Hudson and her company are at the forefront of this industry-changing trend. The company’s strategic and intelligent approach to opening and expanding physical retail locations both helps them in that market and serves to improve the online sales. Amazon still controls the e-commerce world, but companies like Fabletics still have room for success.