In this world that is ruled by the top juggernauts, it is hard to get your business noticed. It seems these giant corporations have the monopolized the market share for several sectors. However, this has not stopped Kate Hudson’s new enterprise, Fabletics, from taking Amazon head-on.
Many business analysts were surprised at this move since Amazon already has a 20% market share in the fashion e-commerce sector. However, with her bold approach, Kate Hudson has been able to increase Fabletics’ estimated worth to $235 million in just three years. This increase is a 200% growth since its founding. She was able to take on Amazon and increase her business’ value by perfecting reverse showrooming.
Showrooming has been the curse of most brick or mortar businesses. Showrooming is where people browse a product they are interested offline, only to go online and order that same product for a lower cost elsewhere. Under Kat Hudson’s guidance, Fabletics was able to turn this trend around and use reverse showrooming to their advantage.
To make reverse showrooming work, Kate Hudson and Fabletics had to build relationships with the community through various events and activities. These connections allowed them to get to know the local markets and dealers before opening a store. Through this building of relationships, 30-50% of the people who walked through the doors of one of Fabletics’ retail locations was already a customer. 25% of those coming in who were not yet customers were subscribers to Fabletics by the time they checked out.
The reason such a large number of people become subscribers after visiting a store is that Fabletics is obsessed with their customers. They are in it for you. Fabletics actively collects, manages, and responds to thousands of online customer reviews a day. They have accumulated over 30,000 reviews on Trustpilot and hold an average TrustScore of 8.2. This obsession can be seen statistically in the fact that 85% of their sales come from repeat customers.
Kate Hudson said that she was heavily involved in Fabletics since day one. She personally reviewed the budget, consulted in social media strategy, and implemented clearer communication. Kate is a hands-on owner. She has been clear that she plans on being involved for the foreseeable future. She is in this for the long haul. This passionate commitment is why Fabletics has received such a high customer satisfaction score around the worldwide web.