How Fabletics CEO Gained a Competitive Advantage Over Amazon

Fabletics is a company that more than a million people are familiar with. This is an athletic clothing company for women that has spread throughout the United States, Australia and Canada in a little less than seven years. That is quite impressive for a company that only caters to women. Another thing that makes this company impressive is the fact that it has been able to lure customers away from one of the largest online cyber stores in existence. Fabletics is competing directly against Amazon, and it appears that Fabletics is on the way to gaining a serious customer base within the next five years.

 

There is one thing that’s going to prepare Fabletics to lead more than anything else, and that one thing is the creation of more brick-and-mortar stores. In the past this was not something that entrepreneurs chose to do when they started on a business. Amazon started out as an online bookstore and continued to expand. This company sells a plethora of different products that range from skin care to electronics. The CEO of this company never made any decisions to build any physical stores. The main reason for this stems from his ability to capitalize on the e-commerce distribution chain which totally eliminates the cost of running a physical store.

 

Fabletics started as an online business, but now there are close to a dozen stores. Kate Hudson has a different mindset than Amazon CEO Jeff Bezos because she knows that people want to try her products on. It is true that many customers will buy outfits online without trying these garments on, but there are tons of other women that simply will refuse to buy anything before they have a chance to go into the fitting room and see how it looks. That is why she has made an executive decision – along with partners Don Ressler and Adam Goldberg – to bring more physical Fabletics stores into existence.

 

When you decide to compete with a business as huge as Amazon there has to be an alternative strategy to gain a competitive advantage. Amazon is a cyber store. Fabletics is also a cyber store with a few physical stores in existence. One of the best possible ways to compete with a company that has this Amazon type of consumer base is by reaching out to customers that Amazon cannot reach. This is the offline crowd the only shops in stores.

 

It is true that online shopping is easier and convenient, but there are millions of people that have not embraced smart technology at all. There are millions of consumers that do not have internet connections in their home. There are millions of customers that are just waiting for a physical store in order to do their shopping. This is where Kate Hudson is tapping into her competitive advantage against a company like Amazon. She is being proactive and building stores to get the customers that she would have no other way of getting access to.