Lister Wilson

Kate Hudson Dominates E-Commerce

How can a company ever expect to take of Jeff Bezos’s nearly $1 Trillion business Amazon? Well, Kate Hudson’s company, which is worth less than 1% of Bezos’s, is discovering how.

Fabletics is an athleisure brand that is the brainchild of Kate Hudson.

 

She says that it is her goal to empower women to become the best version of themselves. Hudson’s friend, Demi Lovato agreed, saying, “The company is all about inspiring women and empowering them to be the best version of themselves, to be strong, and it doesn’t matter what shape, or size, or age. It’s just about empowering women, and I love that.” Fabletics accomplishes empowerment by creating clothes that fit your lifestyle, but also, prompt you to get active.

 

While Fabletics is a great idea, how can such a small company hope to compete with Amazon which controls 20% of the e-commerce fashion industry? Hudson has discovered a few ways.

 

Fabletics began by working on a subscription-based model. The goal was to make obtaining Fabletics clothes as easy on the consumer as possible. To receive clothes, all a customer has to do is sign up online with their credit card and every month new clothes come to their house. Subscriptions are a hassle-free service.

 

Over time though, while this model was working, Kate wanted to expand. She did this by using the Apple’s model as a guide. Soon, Hudson opened over sixteen stores throughout various states, mostly in California. Over the next few years, she plans on doubling the number of physical locations Fabletics has.

 

Her desire to open physical stores comes with some difficulties. Today, retail stores suffer the problem of showrooming. Showrooming occurs when a customer enters your shop with no intentions to purchase the products at your location. Instead, they look at your product and examine it there and then go online to find the most competitive price they can. This problem alone has closed hundreds of stores throughout the country. Kate Hudson has a unique way to deal with this issue.

 

Fabletics implemented an idea known as reverse showrooming. Her goal was to ensure that everybody who walked into her store was already a customer. She accomplished this through local events that built loyalty to her brand.

 

If Fabletics interests you, I recommend you take their lifestyle quiz and see what product is right for you.