The thought of competing with a giant like Amazon is something that most people would not even consider doing. Amazon is a world giant in the e-commerce industry, and it is no news that it controls a fifth of the fashion market online. Kate Hudson has done the unthinkable, decided to deal with the problem directly, and brought a business that is worth 250 million dollars in a span of about three years.
Fabletics is the name of the establishment that is rapidly becoming a major player in the fashion industry. This company utilizes a subscription feature to sell its merchandise, which consists of clothing to its esteemed customers around the globe. Succeeding in such a tricky business lane calls for a right combination of strategic policies and that is what steers Fabletics. The brands sold by this company are very popular, and the selling procedures are very simple and convenient to the buyers.
The modern business dynamics are taking a different path. This can be seen by the fact that price and quality are not enough to guarantee success when selling merchandise. Several other aspects of the experience of the customer, brand recognition and exclusivity of the brand come into play and largely influence the sales.
The strategies employed by Kate Hudson’s Fabletics have paid off, and they have been compared to those of Apple and the likes. Their membership is huge, and they are expected to open up more physical stores this year. These physical stores will help Fabletics boost its market coverage and sales in the process. Kate and the rest of management envision continued surge in revenues.
Fabletics is growing a lot and challenges are imminent. Venturing into new territories is a good thing but also means that the company faces off with new competitors. Achieving the balance of customer experience, education and obtaining the right data is key, but with increased coverage, all that becomes harder and harder. Let’s give credit where it is due, and Fabletics have surely done a good thing, and their strategies can be used as an eye opener for many startups.