If you haven’t heard yet The RealReal is an ever expanding and very popular online luxury consignment store(now with a brick and mortar location in New York.) Julie Wainwright founded the business back in 2011 and since than has raised over $170 million in investments. The company employs very strict measures when it comes to authenticating each item they receive and prides themselves on only selling the best. On average, sellers see a 50 to 60 percent return on each piece they provide for consignment. Though there was talk of the company going public, for now it looks like Julie Wainwright will be focusing on raising another $100 million in investments to keep growing the company.
In recent years many luxury brands have jumped on the band wagon of thrift, so to speak. They realized the potential benefits in sales for them when it comes to such consignment stores like The RealReal. Many sellers who put up their items for consignment on the site will then turn around and purchase brand new luxury items from the same brands. With turnaround time on average being less than 30 days, the sellers don’t have long to wait to get their funds. Since The RealReal not only sells clothes now but also jewelry, watches, art and more; many luxury brands can look forward to the potential benefits of working along side this company.
The RealReal is not the only one of its kind either. Several other sites have popped up with similar themes. Sites such us Thread Up which in recent years has started offering used luxury brand items as well. Over the last couple years, thrift shopping has grown in popularity, not only due to cost savings but also the positive environmental impact of buying used instead of brand new. For now though, The RealReal leads the pack in this industry and we shall see what the next few years bring.
As many business owners and aspiring entrepreneurs would learn, it is possible to compete with a business in the industry that is already established. As a matter of fact, every industry has an established business in it. This company can be one of the largest in the industry. For instance, Amazon is involved in almost every industry including the fashion and entertainment industry. Amazon is in fact one of the largest businesses of the fashion industry. Therefore, any company that is hoping to start up in the industry has to put the large retailer in consideration before taking steps in the fashion industry.
One thing that can help is to look at Fabletics. Brand owners, Kate Hudson and Don Ressler have looked at the industry in order to find marketing opportunities. The next step they have taken afterwards was to think about a great business model that is sustainable and even innovative. This is when they have decided that the membership model is perfect. They have also thought about ways that they can market to their customers. This is when they have decided that they can engage the audience and focus all of their attention on learning about what they like so that they can provide the right products.
One thing that Kate Hudson has stated is that customers are going to buy the products they truly want. The markets have changed from the earlier form where businesses were able to dictate to the customers the products they are supposed to buy. One of the major aspects to this change is that the internet has allowed customers platforms to share their opinions. While advertising can still be effective in spreading awareness of the brand and the products, it is the interaction in the online social media platforms that can truly attract customers.
Fabletics has interacted with women and spoke to their needs beyond providing them with some of the best products in fashion. While women are enjoying their new styles, they are also being encouraged with their goals for greater fitness and health. Fabletics empowers women to look good and feel great about themselves.
Amazon has had a really easy go of it in recent years, especially when we are talking about the sales of apparel online. In that market alone, Amazon is taking in over 20 percent of the sales in an industry that has thousands of clothing companies fighting for the same dollar. Even though Amazon has not been worried in this space for years, one company may be putting pressure on them to work harder. Kate Hudson’s Fabletics has been gaining on Amazon, and in a little over three years has already taken in an impressive $250 million in sales in the same niche Amazon was dominating.
Hudson can tell you exactly why her athleisure brand has been able to apply pressure to the leader in this space. Hudson says the credit comes down to only two basic components, reverse showrooming and membership benefits. These are not new techniques, in fact, there are dozens of clothing retailers already utilizing these techniques. So why is Kate Hudson’s Fabletics seeing such amazing results then? To get the answer, we have to drive to the local mall and visit the Fabletics stores. These retail stores are where the success begins, and it all hinges on these women trying on as many of the workout apparel pieces as they like. Hudson says there is zero pressure from sales associates, they actually encourage shoppers take a lifestyle quiz and try everything on.
Once these shoppers have more time, they can visit the Fabletics e-commerce store and find that all the clothing they were wearing inside the mall stores is now uploaded to their online account. What makes this who sales process work is that since you already know the active-wear fits perfectly, you are able to focus on purchasing. These women don’t worry about the issue of sizing, so they grab all the latest pairs of yoga pants, leggings, or tank tops that are available.
Membership at Kate Hudson’s Fabletics has some other pretty unique perks. The customers who have memberships get free online shipping, discounted clothing prices, and even their very own personal shopping assistant. Your assistant picks one piece of workout apparel based on shopping preference and lifestyle quiz answers, places in your cart the first of the month, and you decide if you love it and want it shipped. Amazon think Prime membership is rewarding, wait until they see what Hudson has planned for her customers.
If you are someone who follows the life of people in Hollywood, you have more than likely heard the name of Kate Hudson in the past. She is the daughter of Bill Hudson and Goldie Hawn. She was raised by Goldie and her long time boyfriend, Kurt Russell. She has an older brother who is also a Hudson as well as a younger sister who is known for roles in the Fifty Shades of Grey movies.
Kate Hudson knew one day when she was doing yoga that her pants were not as comfortable as they should be. She knew that she had to do something or more women would feel the same way. If you are uncomfortable, you do not want to continue wearing the pants or continue working out because you are so uncomfortable. She knew that this would stop a number of people from practicing healthy habits and therefore worked to find a way around this. That is when Fabletics popped into her head.
When you join Fabletics, you are ultimately joining a membership program that will allow you to receive an outfit each month that you are a member. Each month, your credit card is going to be billed and you will receive a new active wear outfit in the mail. If you are a VIP member, you will be able to exchange that item for free for something else that you might like or you can receive free shipping as a added bonus as well. If you like the items that you are sent, you will then be able to keep the item or you may return it for something else that you like better. If you comfortable in the active wear, you can continue on with the membership or you opt to end your membership. You can end the membership at any time and your credit card will no longer be billed. If you enjoy what you are receiving, also know that you can purchase additional workout gear and enjoy more outfits rather quickly. If you purchase additional wear, you can also take part in the sales that are offered each month. It is that simple.
Because of this reason, Fabletics has strived to get more people to try their clothes. That is why it is so easy to become a member of the subscription plan. Try it now for only $25 to start and receive your first outfit right away.