How Fabletics has succeeded in leveraging the power of the crowd
Nowadays, consumer purchasing trends are highly determined by the power of the crowd. Most of the consumers search for crowd-sourced reviews before they decide on purchasing products from an online or a motor and brick store. Consumers trust the crowd-sourced reviews to be testimonies from other consumers who have purchased and tested the products. The reviews, therefore, serve as a personal recommendation from other consumers. Some brands are capitalizing on the changing consumer trends in review-centered marketing strategies to push their products to the market.
One of the savvy brands leveraging the power of the crowd is known as Fabletics. Fabletics was launched in 2012 and since its establishment; the company has taken the competition to the doors of e-commerce giants such as the Amazon. In the last five years, Fabletics has grown its annual returns by over 200 percent to hit the $235 million mark in 2016.
Besides, the company has utilized the review-centric marketing strategy to grow its clientele base to more than one million active subscribers. Fabletics originates from Techstyle Fashion Group, the Fabletics parent company. Shawn Gold, the corporate marketing executive at Techstyle credits Fabletics success to embracing the power of the crowd.
The company has grown drastically over the last few years by leveraging the power of the crowd. There is no doubt that consumer reviews play a significant role in increasing customer acquisition, customer retention, and improved customer loyalty.
We are living in a digital area where billions of people can access the internet. A significant number of consumers nowadays shop for their products from online stores, which are much cheaper than the brick and motor stores. Therefore, online reviews play an significant role in the consumer’s decision-making process. A consumer can either purchase or turn away from a product based on comments from other customers.
Most of the consumers research about companies and brands before they can purchase their products. They read the reviews on the company’s websites and other reviewing websites before making their determination.
Figures don’t lie
A recent study on consumer trends reveals that 84 percent of consumers trust online reviews as much as they trust personal recommendations from the people that they know. These figures have been increasing every year since the survey was conducted.
One of the main reasons why consumers look out for online reviews is because trust on brands is at an all-time low. Consumers’ no longer traditional advertising as they used to a few years ago. Since they no longer trust a word from the manufacturers and suppliers, they look for opinions and feedback from other consumers.
Kate Hudson’s involvement in the company
Kate Hudson has been part of Fabletics family from the beginning. Kate Hudson has utilized her influence as an actress to market the company. She is a renowned fashion icon, so it was easy for her to convince consumers to purchase Fabletics activewear.
Although Kate Hudson had no background in business, she embraced Fabletics whole-heartedly. She is determined to make Fabletics the premier e-commerce fashion company. She was thrilled with winning the athleisure brand and she is committed to working harder to push Fabletics to greater heights.