The RealReal Will Not Repeat Mistakes Made By Others

When you typically think of consignment shops, the first thing that comes to mind are bargains. The second thing that comes to mind is low-priced shopping. The RealReal has changed that though, with their average shopper spending over $430 per purchase. Since inception this was done by focusing on on-line sales.

Consignment shops have found in the past the their overhead of maintaining a brick and mortar location can chip away significantly at their profits. This is why The RealReal started as an online business. It has recently opened a physical location in New York city to aid in the marketing of the business.

So, why won’t The RealReal run into the same issues that confronted its predecessors? Why is the company’s owner so sure that rent and expenses won’t overwhelm their profits? One of the biggest reasons is they are capitalizing on pop-up opportunities. These locations are known as pop-up because they are usually opened with very little notice. They require less interior build out of a retail space than typical stores as they are not intended for long-term use. Instead of customizing their stores, they keep the space in a similar condition as it was when they leased it and leave the expensive modifications up to future tenants after they leave.

Not only is The RealReal selective in its locations, it is selective in its staff. Those that work at the store are familiar with valuing products and how to market them. Twenty percent of the clientele sells items on consignment and half of those also purchase items. Selective inventory is a key when you do not have a large volume of storage space, as is efficient marketing.

With these pop-up shops, it will be interesting to see how much the composition of The Real’s costumer base changes. As of now it is close to a four to one ratio for female to male items purchased. These items can range from perfumes, jewelry and clothing for women to similar items for men focusing on high end jewelry. 2018 will be a key year to determine The RealReal’s path.

Kate Hudson’s Fabletics Could Actually Catch Amazon

When you talk about any clothing retailer being able to compete with the Amazon giant, you really have to look at the numbers to understand the huge effort going on here. Amazon is not messing around in this market, in fact, they are pulling in 20 percent of all online apparel sales despite there being thousands competing for every dollar. Kate Hudson’s Fabletics is not afraid of the big bad wolf, they have been comfortably passing the competition and selling nearly $250 million in women’s active-wear and workout apparel over the last few years. These numbers have certainly gotten the attention of Amazon, something not many clothing retailers can claim.


When you talk to Hudson about how her athleisure brand has grown so popular in such little time, she talks about reverse showrooming and her membership package. These are not anything unique, in fact, these are sales techniques most companies are already using with limited success. So how does Kate Hudson’s Fabletics make them work to the tune of $250 million in sales? All you have to do is look at the sales process at the Fabletics stores in your local mall to get that answer. Here you will find women shopping the latest arrivals in workout apparel on their breaks, trying on everything in the store, getting their memberships, or taking the Fabletics Lifestyle Quiz.


Part of membership perks include those items you try on at the mall getting uploaded to your online profile. Since you know the apparel fits you perfectly at the mall, you can take your time online and stuff your shopping cart with just about anything you like. Unlike shopping at retailers like eBay or Amazon, you are not guessing about the sizes and waiting weeks for the clothing to arrive before you ship it back and try to get the right sizing. At Kate Hudson’s Fabletics, you know it already fits, you just shop the extensive online inventory and enjoy other perks.


When it comes to buying clothing online, may women buy on impulse. If you visit Amazon and you are not sure about the sizing, then you buy a single piece and you wait. When you have to return it, you really are taking away from that impulse, and it starts to feel more like a chore. That is not how things work at Fabletics. The real attraction here is knowing that when you do find the size that you like in the mall, you can rush to the online store and start filling up your e-commerce cart.


Part of the perks members of Hudson’s Fabletics receive include free shipping, a personal assistant’s help, and even discounted apparel pricing. Women are discovering that they can get the latest in stylish workout apparel delivered right to their door without having to worry about quality, sizing, or pricing. Amazon is going to discover that their membership plan of charging $79 just for discounted shipping doesn’t stack up to the way you are treated as a loyal customer at Kate Hudson’s Fabletics site.

Fabletics Takes Workout Clothes Shopping To New Horizons

Fabletics is owned by the online retail giant, JustFab. This brand is fronted by Kate Hudson. Even though it has been around for just a few years, it is already being seen as a direct competitor to retail giants such as Amazon. There are many reasons behind this.


The main reason is that Fabletics is another name for good quality workout clothes. There have been no compromises here. Since this is being marketed as a high-end brand, hence quality is of paramount importance. These are expensive clothes but these are being labeled as value for money.


The brand is well aware that busy and well-to-do people opt for such workouts. Hence Fabletics is focused on that segment. Next, they are making use of reverse showroom technique that appears to be working out well for them. Typically customers visit a site or showroom first. If they like the stuff, they buy it. In case they like the deals and other offers, they decide to opt for membership in order to save money. This is the last stage.


In case of online shopping, customers are browsing a lot. But that does not mean that they will purchase too. Rather, they browse; select what they want, and then purchase online or offline depending on where they can find the stuff at the lowest price.


In case of Fabletics, they are focused on making the customer their members first. Hence once people visit their site, they need to go through a lifestyle quiz. The site tries to understand their preferences this way. In fact, even if a person visits their physical stores that exceed 17 in number today, their purchases will be updated on the site too. This way Fabletics is trying to know the customer’s preferences. After the survey has been done, that person receives a free gift from Fabletics based on their preferences.


The customer will try on the free gift and will be ready to take on the VIP membership in order to avail of the exciting offers and rebates. This way the customer becomes a member even before the browsing has started.


In order to enhance customer shopping experience, Fabletics will offer clothes based on the customer’s preferences. This is like providing personalized service to customers, both online and offline.


There is a monthly subscription fee to be paid for the VIP membership. But this is offset by the exciting rebates being offered. Also, any new trends entering the store get communicated to the customers soon enough. This way they are not losing out anything.


Still, this does not mean that customers have to buy something each month. In fact, they have the convenience of not paying monthly fee for those months in which they do not plan to buy anything. All that they have to do is to inform the site well in advance about their plans for the month.


This is a business strategy that is working out very well for Fabletics. They are now focused on opening out more physical stores throughout the country.

The Brown Modeling Agency; Transforming the Fashion Industry

When people hear about fit modeling, they think about hours at the gym and diets, however, this modeling type is not to be confused with fitness modeling. Fit modeling is whereby you as the model determine the size of the clothes you will wear. This means that you go in, they measure your waist, hips and bust and they make clothes to that specification. This is the factor that endeared Justin Brown and his agency to the masses. He worked through college doing fit modeling, and earned $100 an hour at it. After college, he decided to put his skills as a model trainer to help other models make it to the big time or act like pros for his company.

He states that his responsibility was making sure that the models fit somewhere by the end of the day. About a third of the models that came to him were placed, which is commendable for his age at the time. When he moved to Austin and started his own development agency, he wanted to fulfill one goal, managing the expectations of the models that came to him. Fast forward a few years and now he is launching his headquarters in Austin.

His agency, which is the lovechild of the company that he previously owned, the Wilhelmina Brown group is making the mark that he believed he would make when he was a dreamy eyed 21 year old. He is now competing with the few top agencies found in Austin, Texas. He states that unlike places like Dallas which are more conservative, Austin looks for a cool vibe and models with more piercings and tattoos seem to attract more attention.

Another event that captured the attention of many across the industry was the formula one party and launch that happened in November 2015.The party was well attended and marked a new era in the world of modeling. When the actors and models were asked about the agency, they said they liked that they weren’t lumped into categories but were instead encouraged to find what worked for them and express it.

The other recent event where Brown showcased his prowess in the industry was the 4th of July party that happened by the poolside in Austin, Texas. The party included pool games, drinks and entrees and a lot of time and opportunities for the models to mingle and network.

These are the experiences that set apart this agency from the others in town. Brown believes that the best way to keep his models and the clients they work for happy is creating these events from time to time and allowing them to unwind. The growth of his company is enough evidence that he is doing something right with his business.