Amazon is Falling to Fabletics

Many Business insiders think it is absolute suicide to take your business and go against the giant Amazon. This Juggernaut internet retailer has been able to dominate the e-commerce scene for the past decade. Many business analysts say that to succeed in space current market, you need to team up with Amazon rather than taking them on head-to-head. While there is indeed some truth to this statement, it does seem that Amazon has some chinks in its armor. Kate Hudson, and her company Fabletics, have identified some of these weaknesses and have exploited them to their advantage.

One way that Kate Hudson and Fabletics have done this is by leveraging the power of the crowd. Today we live in a networking world. The impact had had on business has been significant. In times before this, one would just walk into a store and buy what product they found. Today, people take reviews seriously and always search for the best product. People are much more apt to follow the suggestions of their friends then they are advertisements. Kate Hudson understands this and has used the crowd to Fabletics advantage.


For the first year, Fabletics dedicated their time to focus on the consumer, responding to customer reviews, answering customer questions, and making the consumer the number one priority of the business. This has resulted in the amazing things for the company. It is reported by several third-party sites that Fabletics has one of the highest consumer ratings in all of online e-commerce. This has led to them gaining customers at a rapid pace compared to what Amazon can do.


One area where Fabletics is strong in is the area of the repeat customer. Leveraging the power of the crowd and the trust they have created, Fabletics began using an internet subscription service to increase sales. The customer could select either a monthly, quarterly or annual subscription. What Fabletics did not anticipate, was that customers would become so enthralled by their products that they would begin purchasing additional ones beyond what the subscription offered. This would play in their favor when they decided to open retail stores.


Over the past decade, retail stores have felt the might of Amazon. A trend that has been occurring for some time is showrooming. Showrooming is when a customer enters your store with the intentions to scout products that they will later purchase online for a better price. They pretty much just use your store to examine the product. Fabletics reversed that because of customer loyalty. When they opened retail stores, they found that 50% of those visiting were already Fabletics subscribers. Of the 50% who were not, 1 out of every 5 of them signed up for a subscription before leaving the store.

Such loyalty all has to do with Fabletics leveraging the power of the crowd. Most businesses, Amazon included, are incapable of building such loyalty. However, since Fabletics catered to their crowd, the crowd will now support Fabletics for the rest of its days.

Leave a Reply

Your email address will not be published. Required fields are marked *