One of the biggest things driving consumer purchases nowadays is the power of the crowd. People read crowd-sourced reviews of products before making a purchasing decision. Successful brands make use of this by building their marketing strategies around these consumer reviews. One of the brands that has been doing exactly this is Fabletics. Fabletics, which was established in 2013, is already earning $235 million in annual revenue and has over 1 million people signed up as members on their retailing website. Executives at Fabletics credit a significant amount of their success is placed on how much they value user reviews and the role it plays at their company.
User reviews play three critical roles for Fabletics. The first is that it helps them sell more clothing to their members. It also helps create brand loyalty when people are able to leave feedback about what they purchased for other customers. Finally, it helps drive customer retention which is critical for a brand that is based on customers coming back often. Fabletics also uses a Lifestyle Quiz to help create a relationship between the brand and the consumer. When a member makes their first purchase they are encouraged to complete this quiz which helps to identify what clothing they find appealing. From then on the member is shown clothing which they will like based on the results of the quiz.
By heavily relying on other customer’s reviews people are essentially crowdsourcing their purchases. One study shows that people put a lot of trust in online reviews. 84% of people now trust an online review as much as they would trust the opinion of a friend on their purchases. Genuine and honest reviews help a company earn more revenue and extend their brand’s reach. They get better search rankings which results in more customers and thus more revenue.
Fabletics was the creation of the actress Kate Hudson. At an event in Beverly Hills, she recently launched her first collaboration with another celebrity. Demi Lovato says she is inspired by Fabletics and wanted to be part of it herself. She appreciates that they offer clothing for all ages, sizes, and shapes of women which isn’t very common in the fashion industry. She helped to design her clothing which is now being offered for sale on the Fabletics website.
Executives at Techstyle Fashion Group saw a business opportunity for affordably priced women’s activewear. They teamed up with Kate Hudson as they knew she was someone that loves to wear activewear all day long. She decided there was a great opportunity presented in selling women’s activewear which was not just fashionable and high-quality but was also affordably priced.
Kate Hudson is heavily involved in Fabletics and does not serve the usual celebrity role of just putting her face on the product. She digs into the sales figures and is heavily involved in what types of clothing they sell on the website. She believes in being authentic to herself and creating an authentic line of women’s clothing.