Kate Hudson has unveiled yet another brilliant business strategy. In just four years, Hudson has managed to turn Fabletics, her athletic apparel company, into a $250 million success story thanks to her fearless approach to selling fashion. The newest strategy is known as the reverse showroom. This method uses physical stores to generate more e-commerce revenue.
The technique was created by Apple and Hudson has managed to make it work for her fashion business. In an age when more and more people are doing their shopping on their phones, Hudson has managed to make physical retail work in her company’s favor.
Fabletics stores use online data to stock each store based on region. If sports bras are more popular in New York and hoodies are more popular in California, Fabletics stocks each store accordingly. The goal of each Fabletics store is to encourage shoppers to join the online VIP membership program. Following the subscription service model, the VIP membership program allows customers to receive a workout outfit in the mail on a monthly basis by paying a small monthly fee.
Fabletics selects each outfit for each VIP member by having them take a lifestyle quiz when they sign up to the program. This gives Fabletics data regarding each member’s unique fashion preferences.
Teri Hutcheon joined the membership program because it seemed like an easier way to maintain her workout wardrobe. Before Fabletics, Teri would spend plenty of time and money shopping for new workout gear in order to accommodate her busy exercise schedule. With the membership program, however, Fabletics does all the hard work for her and she gets to enjoy her monthly shipment of a cute new workout outfit each month.
Bloggers Heather and Joanie joined the membership program because they couldn’t resist the value. The $49.95 monthly fee is incredibly affordable considering the high quality of materials used to make each Fabletics apparel item. The ladies are still members today.
This reverse showroom strategy is a success, recruiting more VIP members than ever. When shoppers walk into a Fabletics store, they are educated about the membership program. So far, about 25 percent of customers have become VIP members online. A little less than half of the customers are existing Fabletics VIP members who purchase additional items while they’re in the store.
To learn more about Fabletics and start receiving your new workout outfits in the mail each month, visit the brand’s website to fill out the lifestyle quiz.