There is a level of commitment that one has to have when they are trying to open a hundred stores in the next five years. This is the goal that Kate Hudson has set for Fabletics, and it appears to be a very aggressive goal. What it means for Fabletics is a larger possibility to expand to offer and clothes to people that have never heard about this brand. It is true that this company has made more than 200 million in revenue in the last several years on an annual basis. This is a good thing for Fabletics because it is obvious that there’s more room for growth. What people have started to see is that Fabletics is in heavy competition with other companies like Amazon. Growth strategy are vital to survival at this point. Kate Hudson is taking this road to give her company and edge. A stronger competitive advantage lies in her ability to open brick and mortar stores. This is something that Amazon could not do. She decided to increase awareness about a store that was primarily online, and build and audience through brick-and-mortar stores.
Amazon has already become a giant on the Internet, and there is no need for Jeff Bezos to really take this company to stores and build an offline presence. It would not make sense when one considers all the products that Amazon offers. Jeff Bezos has put money and time into the clothing industry, but only for the ecommerce crowd. This is where the competition with Fabletics comes into place.
Amazon controls about 20% of the clothing market. Many people may not believe this, but it is definitely the way that the clothing industry has evolved. People are looking to Amazon for so many different products, and many of them do all of their shopping on this website. It should be no surprise that this company controls this much of the clothing market because there are outside vendors that sell through Amazon. Fabletics is leading the way when it comes to a specific type of clothing line. This is a company that specializes in athletic gear for women and women only. That gives Kate Hudson a niche market that she can section out. This is better than the broad spectrum in which Amazon is trying to acquire customers that need clothing.
What the 100 stores that are opening Kate Hudson reveals is that she can better focus on other customers that do not even know about this brand yet. There are also women that are going to gravitate towards stores because it gives them a chance to try on clothes. This is something that they just cannot do with Amazon, and Kate Hudson knows that this can be a competitive advantage for her. Most people that have discovered her brand of clothing are well aware that Fabletics has clothing picks that come directly from Kate Hudson. She is establishing herself as someone that wants to build that personal connection with customers.