Who can slay the giant businesses of Amazon, eBay, YouTube, and Google? If you ask business experts, then the answer is nobody. The safe approach is to use these businesses as allies and allow their already established platforms to grow your business. Kate Hudson decided not to listen to the experts, and she has been able to create a business that is worth over $250 million. This has allowed her to step up and go toe to toe with none other than Amazon.com.
Amazon is known as an e-commerce juggernaut and controls 20% of the market that directly impacts Kate Hudson’s business. However, Kate Hudson’s Fabletics has discovered several ways to compete with the giant.
Kate Hudson’s first step was to guarantee repeat customers. Facts show that she has done rather well with 85% of Fabletics sales coming from repeat customers. This was accomplished in two ways. Number one, Fabletics used a monthly, quarterly, or yearly, subscription model for customers. Once a customer had a subscription, they would receive clothes custom made to fit their daily routine and empower them to be more. Number two, Fabletics custom-made clothes for each of their customers. That is not something you could get at Amazon.
Kate Hudson’s next step was to spread her reach through retail locations. Using Hawaii, California, Florida, and Illinois as her starting grounds, Kate Hudson was able to open 16 retails stores. Many more store openings are on the horizon.
Kate Hudson’s last step was to reverse the tendency to showroom and make sure that loyal customers were coming to her location. Hudson did this by partnering with local businesses to run fairs, expos, events, and Fabletics activities. This connection with local customers and businesses increased loyalty to Fabletics tenfold. Now Hudson sees that over 50% of those walking into her retail store are already ardent Fabletics fans. Of the 50% who are not, one out of every three will be a loyal customer by the time they leave the store.
I encourage everyone reading this article to take part in Fabletics’ Lifestyle Quiz. The quiz is aimed at helping those who do not know how to get started to choose the right clothing for their needs. In just six questions, the quiz will examine one’s daily routine and personal goals and then select the clothes that most empower you on a daily basis.