With the expansion of the fashion industry in today’s world, it would not be wrong to say that anyone who holds an interest in fashion is vying for power in this field, and is constantly working on racing to the top. As profitable as the field is, there are certain names that currently hold a monopoly over a significant part of the business. Consisting of a vast database that spans across borders and is accessible to the majority of the global population, one would think it impossible to take down such an expansive online platform, especially seeing as how it controls 20% of the online fashion market. However, one name that is increasingly growing as a threat to the power and popularity of Amazon is renowned Hollywood actress Kate Hudson’s fashion empire, Fabletics.
Considering that the actress has managed to establish a business worth $250 million in only a span of three years, a question arises as to what strategies have been employed to run this business and drive it towards the vast amount of success that it has amassed today.
Conceptualized in 2013, Fabletics has strategized its business in a unique way by adopting a policy known as the reverse showroom effect, whereby customer choices and likes are closely observed and narrowed down. This allows the company to produce exactly the kinds of products, specifically sportswear, that customers would be interested in purchasing, thus keeping customers satisfied, so that happy customers keep coming back for more.
Being an online subscription retailer, the company has been largely successful in beating other competitors in the market because it presents members with a custom-made set of outfits that are specifically designed in accordance to each customer’s respective needs. Due to her customer-specific business strategies, Hudson has thus far managed to gain massive trust and popularity on the part of her customers, and this has helped her land a solid customer base.
After emerging as a successful online platform, Fabletics launched its first retail stores in September 2015, located in various malls in areas like Columbia, New Jersey, Newark, etc. With its growing success and vision of revolutionizing e-commerce for fashion articles, Fabletics is expanding to launch three more retail stores within the year, but despite having a physical brick and mortar stores, its online target community is the top priority of the business. By tracking what customers like and dislike, the company finds it increasingly easy and fruitful to satisfy customers all around by keeping them in the loop of what products are available for sale.
Furthermore, the technique of the reverse showroom has proved to be quite productive for her business, and Hudson is following the footsteps of other successful companies, like Apple and Warby Parker, to achieve the most out of her fashion empire.