Power of the crowd has been a large hit with people who instead of asking friends or family before purchasing items they instead look at reviews. This is crowd sourced review that consumers place a review on products or services to tell others about their experience. Since this has become a popular way to make decisions on purchases some brands have taken advantage of this to market their products.
One of these brands that have found an advantage with crowd sourced reviews is Fabletics. The brand’s parent company TechStyle corporate marketing officer Shawn Gold said Fabletics since it launched in 2013 has seen growth at over 200 percent with a revenue of $235 million dollars. The consumer reviews helped the growth by driving increased customers to the product and improving customer loyalty. One reason for this change in consumers is because most people now have multiple devices that reach the internet and can research products or services. This includes reading online reviews of a product to help make their potential purchase decision.
Consumer research shows that consumers trust crowd sourced reviews more than they trust traditional marketing and advertising of products. The numbers prove how consumers look for information about products showing an increase of 23 percent rise at least once per month for potential customers reading a review to check products out. Then 50 percent of consumers claim they read reviews on a regular basis and this number is up 51 percent over the previous year. These consumers said if a product or business has negative reviews consumers reading the reviews tend not to purchase the product. The numbers include a 76 percent of the top brands with user reviews have seen an increase of 70 percent since 2014 in reviews. Vibes did a study finding that 65 percent of searches were done looking at reviews, while at the same time 33 percent of searches were in store mobile searches to compare products and prices. What the conclusion was is that customers find more importance in reviews over products and pricing.
Athleisure is part of Fabletics that Kate Hudson with her team has grown the products into a $250 million dollar company in a little over three years. Ms. Hudson became involved with the brand when TechStyle Fashion Group Don Ressler and Adam Goldenberg began developing the athleisure brand. They believed the actress would be the perfect person to bring in to help with the active wear.
Ms. Hudson took over reviewing budgets, social media strategies and designs making it her signature project. The customer service was updated to help assist customers better and for clear communications. This upgrade also ensured the brand keeps proper inventory levels for customers needs.
Fabletics has seen triple-digit growth in 2014 and continued growing at a rate of 43 percent through 2015 and 2016. The retail growth has done well and the brand has 1.2 million members with projected revenue of $250 million dollars. The current plan is to add to their 22 retail stores in 2017 to a dozen more retail locations.
Chances are that you’ve come across Fabletics at this point in your life. You may have tried it personally, heard someone at the gym chatting about it, saw posts on social media, or saw someone wearing stylish athleisure-wear while at the grocery store. Fabletics has created quite the name for itself and continues to grow every single day. Fabletics is basically athleisure-wear or clothes that are cute and comfortable enough that you can wear for running errands or for hitting the gym. Fabletics is a unique clothing line. They provide your typical leggings, sports bras, shirts, and more. But, they’ve put their own spin on things. They have sizing that is all-inclusive, cute patterns, and a business model that sets them apart from the others.
Fabletics is available online. People can browse their website and choose what they’d like to purchase. Fabletics also features a subscription-based model where people can get the latest trends from Fabletics has a discount by signing up through the site. Fabletics now has brick-and-mortar stores where people can try on clothes first. They can see what size and pattern fit their need. Then, knowledgeable staff can help them sign up so that they can get cute clothes that are discounted. Fabletics also has a lifestyle quiz that potential consumers can take! This helps them decide which outfits are best for them. Everyone has different hobbies and therefore needs different types of support from their athleisure-wear. This quiz also helps Fabletics put together outfits that best fit a person’s needs.
According to Forbes, Fabletics is taking on Amazon. For years, the retail giant has been where people online shop to get just about everything. Fabletics is making a dent in that. People are intrigued because they like the ease of shopping online and they like subscriptions because they can get something new each month that they know they’ll like. Fabletics is even growing more with the addition of physical stores. Now, people can try on clothes before they sign up. Fabletics is continuing to add more physical locations. Sometimes people are apprehensive about purchasing things online and Fabletics wants to help put their fears at ease.
Fabletics also helps by having a strong social media game. Facebook is filled with posts of Kate Hudson showing off the cutest styles. The actress turned successful businesswoman is making sure people see her face with Fabletics. She has the utmost confidence in her company and she’s helping them to grow. Fabletics also uses models of all different sizes to show that you can enjoy Fabletics no matter what kind of shape you’re in.
Fabletics is the brand that is perfect for women that are working out. It is the clothing line that women in fitness are patronizing. What Kate knows about her fan base is that these women are going to fluctuate in size. She is selling fitness clothing to women that are working out. Once they start working out it is obvious that they are going to lose a little weight. Kate Hudson realizes that an order for her business to thrive she has to have stores in position where women can buy new workout gear when they have lost the weight. She knows that she has to ability to gain repeat business from consumers because their weight will change as they get in shape. That is why she is adamant about bringing physical stores to consumers. The Fabletics brand is very popular right now, and the consumers that are able to go to stores will be able to try clothes on.
This is very important for all of the consumers that may be losing a tremendous amount of weight over time. They want to be sure that the clothes that they are buying or going to fit properly for their workout routine. Fabletics has grown in an amazing way over the years, and more people are going to find out about this brand now that she plans to open as many as 100 stores in the next five years. This is a significant amount of growth for a company that was not even known to the American public 10 years ago. It also shows that Kate Hudson has a strategy and a goal-oriented task of expanding her brand on a global scale. She is not going to be content with simply focusing on the American market. That is why there is a website that caters to consumers in Australia. There’s also a Fabletics site that is connecting customers and Canada with the Fabletics brand. This shows that she is thinking on a worldwide scale in her desire to branch out.
The Fabletics brand is definitely one that is reaching a young crowd because many young consumers get all of their information from the Internet. They are looking at ads online and seeing other people that are commenting on this brand through Instagram and Facebook. What Kate Hudson is now trying to do with physical stores is get the older crowd of consumers that have not embraced online shopping yet. There are still lots of consumers that purchase goods but they do not have a connection into the social media world. Kate Hudson has already been able to attract a large majority of customers this way, but she knows that she is going further with social media. She has to dig in deep and get consumers that are still watching television more than they are browsing the internet. This is a middle-aged and older crowd of women may only patronize her Fabletics brand if they have a physical store to go to.
Online shopping is a thriving business. The fashion industry has not been left out. Most of the retailers that operate in brick and mortar stores have opened up stores online. Online shopping gives an exclusive shopping to customers. Customers shop online with great flexibility. The online marketplace can be customized to fit each client uniquely. Fabletics is an example of one such online business platform. Customers that subscribe to Fabletics have first to fill out a questionnaire. The information provided gives the website an understanding of an individual’s tastes and lifestyle choices. The business model has been incredibly successful. Fabletics has generated millions of dollars in a short span of three years.
The history of Fabletics
Fabletics came about as a result of it’s a gap in the activewear marketplace. Founders of the company are Kate Hudson, Adam Goldenberg, and Don Ressler. Goldenberg and Ressler achieved success with JustFab. They wanted to replicate the same success with a company that focused on athletic wear. To ensure that the brand had a rapid kick off, they asked for help from Kate Hudson. Fabletics needed a celebrity and started to take off. Kate Hudson has pushed the brand to high levels of success. Hudson got into activewear after finding out that most of the exercising clothing out there were not comfortable enough. Fabletics created clothing that is fit for both exercising and hanging out with friends.
Fabletics has succeeded because it focuses on a modernized business approach. The company collects statistical data about customers. It makes use of these data to match with the needs of a client. While physical stores are getting out of fashion, there are still customers that prefer shopping offline. Fabletics has catered for these shoppers through starting online and offline shopping destinations. The availability of the two shopping places created a platform that matches everyone’s shopping preferences. The company collects its data from selected sites online. Questionnaires from members and social media reactions are some place the company gets real time data.
Fabletics has not had a journey without challenges. The company has faced stiff completion from online giants. However, the company was able to satisfy customers through lifestyle experiences, customer education, and lifestyle. According to TechStyle Fashion Group corporate marketing officer, Fabletics has grown mainly because it has a creative team. The company has focused on critical aspects of business success such as price, quality, and advertising. For advertising, Fabletics has an in-house media. The firm makes good use of her brand ambassador and founder, Kate Hudson.
Kate Hudson is has a growing social media presence. Her social media pages have total followers amounting to 5 million. When she picks a clothing item and posts, many people come ready to purchase. Many women idolize her dressing and fashion. People are willing to buy her items so as to look like her. Many women feel that they are in style when they dress like Kate Hudson. The result is that Fabletics has benefited from celebrity advertising. Amazon doesn’t have the advantage of this publicity.