Fabletics has done the impossible; it has made Amazon scared. At one time, Amazon had owned a 20% market share in fashion e-commerce, that is, until Fabletics came along.
Fabletics is the athleisure company owned by Kate Hudson, and it has grown more than 200% over the last three years and is now valued at $235 million. In one year, Fabletics has opened sixteen physical stores across several states and is looking to expand into Canada over the next few years. It has taken over some of Amazon’s market share, and that trend is looking to continue as we move into 2018 and beyond.
The reason Fabletics has been so successful is that Kate Hudson has shifted the paradigm of the consumer. She stopped thinking of business as selling somebody a product and started thinking about it as a consensual transaction that positively impacted both sides. This shift was cemented when Hudson began treating customers as lifetime friends. This treatment of customers has had several beneficial consequences for Fabletics.
Firstly, Fabletics came about during a time when customer trust was at an all-time low. The consumer saw the corporation as a heartless steel giant that only cared about making cheap products at cheaper costs. Kate Hudson came and began telling women they mattered, that they were beautiful, and that they could accomplish anything they set their mind to. Kate Hudson showed how Fabletics was meant to empower every individual woman. By doing this, customers began to trust that Fabletics and Kate Hudson had their best interest in heart and trust in Fabletics increased until over 95% of customers say that trust Fabletics explicitly.
Secondly, Fabletics came about during a time when customer loyalty was at an all-time low. The consumer began to figure if corporations were just going to try and swindle them then they, in turn, would do their best to find the cheapest product wherever they could. This resulted in a phenomenon called showrooming. Showrooming occurs when a customer sees a product online but wants to check it out before purchase. The customer will then go to a physical store, examine the product and purchase it later online. Fabletics stopped this by creating customer loyalty through locally organized exercises and activities. Now, over 50% of those entering her stores are already customers.
If you want to know how Fabletics can help you take their Lifestyle Quiz today.