Amazon never expected that Kate Hudson would give them a run for their money. The popular Hollywood star appears to be taking a slice of the huge pie that the huge online seller has enjoyed eating all these years, specifically in the sportswear niche. Hudson is selling women’s sportswear online through her company Fabletics and it appears that she is taking a huge chunk of the market that was previously dominated by Amazon.
In just a span of three years, Hudson’s Fabletics was able to infiltrate the seemingly impenetrable global market of Amazon. If current statistics are to be believed, her company has already amassed a whooping $250 million growth in business. Fabletics is selling her brand of sportswear directly to its growing list of customers. In doing so, it has breached into the 20 percent market share of the global online marketing giant. The attractive membership plan and easy online shopping which Hudson’s company offers seem to be the spear point of her company’s success.
Fabletics attracts its customers by asking them to answer a list of questions about their lifestyles. These questions are designed to help prospective clients to choose various products according to their tastes and lifestyles. Signing up as a member is also free making it easy for people to join as members. If a customer chooses to be a VIP member, she can buy her first outfit for only $25. On top of that, the client also gets discounts on other items she would like to purchase. Customers are also encouraged to buy items on a monthly basis. But they can also skip buying in one month if they don’t want to.
Fabletics utilizes a unique marketing strategy that took the dominant sportswear seller by surprise. The company is using what is called the ‘reverse showroom technique’ where customers can see the workout apparels, their features and their prices online, Other online sellers were wary of using this technique because of its seemingly high cost. Apparently, Hudson had proven her competitors wrong with the way she has catapulted her sales to the top in just three years. In addition to this effective strategy, Fabletics also uses all these sales data it has collected to choose what items they will sell in a specific area.
It appears that the unique business model that Hudson adapted for Fabletics is the main ingredient of her company’s business success. She capitalizes on a subscription service model that enables her customers to get their sportswear every month for a fee. Who could resist such an offering if the price of the item is cut in half? And customers are not limited to ordinary, run-of-the-mill items. Hudson’s workout apparels offered in Fabletics are trendy, stylish and high quality items. On top of these, her business model ensures customer satisfaction and improved users’ experience. The result could not be ignored and this must be the reason why Amazon is getting worried.