The world of e-commerce is controlled by a handful of internet businesses such as eBay, Amazon, Google, YouTube, and Apple. Many business experts believe that the only way to succeed economic climate is to partner with one of these businesses and use them to enhance your market share. In other words, the business gurus say don’t take them head-on. This advice seems to be lost on Kate Hudson though who has vowed to take on the internet juggernaut, Amazon.
Kate Hudson is taking on Amazon with her e-commerce business Fabletics. Currently, Amazon owns a 20% market share in the fashion e-commerce sector, but Kate Hudson has discovered a way to defeat them.
Building Fabletics on a subscription model, customers leave a credit card on file and then receive athleisure clothes in the mail every month. These clothes are custom fit to their everyday lives. These clothes are known for being better quality than Amazon and are aspirational and push every customer to achieve more.
Fabletics also competes with Amazon by utilizing great customer service. Fabletics views customers as family and has received at 95% trust rating from various third-party evaluators across the internet.
Fabletics also competes with Amazon by utilizing physical stores. Currently, Kate Hudson has sixteen stores spread throughout Hawaii, Illinois, Florida, and California. In the last quarterly call, Hudson promised that many more stores were on their way.
Fabletics was able to open several brick and mortar stores by fixing the curse known as showrooming. Showrooming is the practice of customers coming into a store to examine and test run a product with no intentions to buy that product in the store. Instead, they will go home and search the internet for a better deal. Fabletics fixed that by guaranteeing the best price in their stores and ensuring that 50 % of those entering were already loyal Fabletics customers.
Kate Hudson has gone on record stating that she is in this for the long haul and she is proud to be making such a difference in the lives of women around the world. Demi Lovato said that Fabletics, “is all about inspiring women and empowering them to be the best version of themselves…”
Fabletics has created a cult following where 85% of their sales are from repeat customers. I encourage you to take the Fabletics six question lifestyle quiz to see which set is right for you.