How do you compete with Amazon in today’s retail world? Ask Kate Hudson. Her new store, “Fabletics” is giving Amazon and many other on-line stores, a run for their money. To be a contender in retail you have to be unique, offer exceptional customer service and provide a great product. Fabletics has nailed all three.
As one of the few membership based retail organizations, Fabletics has built its reputation on creating relationships with its customers. And its brick and mortar stores are not built to compete with it’s online sales, but rather to encourage them. By analyzing customer data, inventory in their retail stores is customized to the preferences of local customers. After browsing through the story, many customers go home and order online. Fabletics has found a way to embrace this behavior. To them, a sale is a sale. It does not matter how it gets onto the books.
Established in 2013, Kate Hudson has seen her vision become a $250 company in just four short years. The average growth rate is a healthy 35% per year. Fabletics was established to operate within the niche market of ‘athleisure’ wear. Providing quality stylish athletic / work-out clothes at a reasonable cost has driven the company to where they are today.
Another thing Fabletics does well is to make their customers feel appreciated and empowered. They want all women to feel good about themselves, no matter what size or shape. Using a lot of technology, Fabletics is able to capture customer information at several different points and combines this information to provide personalized service, recalling a customer’s profile history when they return to a physical store. Information is captured from their social media site to help them monitor new trends in leisure-wear.
Thinking outside the box has broken the retail market wide open for Fabletics. The membership driven model has attracted 1.2 million customers. Plans are to add another 12 retail stores to the already existing 22 stores. With retail sales increasing 644% in 2016 there is no indications of a slow-down. Even Amazon can’t beat those numbers.