The world has been changing at a rapid rate, and consumers’ behaviors have not been left behind with it. “Power of the crowd” has become so important a factor in decision-making that brands have taken notice. A customer today will trust crowd-sourced reviews just as much as they would a personal recommendation from a friend. According to an article on the Huffington Post, Fabletics is one of the brands that have leveraged the power of the crowd.
Since its launch in 2013, Fabletics has made a growth of over 200%. With revenue of $235 million and over a million paying members, it seems as though Kate Hudson has literally struck gold with this one. This growth has been attributed to taking advantage of reviews in today’s customer journey. It is no secret that today’s digitally savvy consumer trusts reviews. Before making a purchase, the consumer will research the company online and read reviews before finally deciding to purchase. Customers now value reviews over pricing. They want quality but won’t trust the traditional advertising methods employed by brands.
Trustpilot is one of the largest review sites in the world. Fabletics has over 30,000 reviews on Trustpilot and maintains an 8.2 TrustScore. This is because Fabletics actively collects, manages, and responds to thousands of customer reviews online. Crowdsourcing is beneficial to the brand because it forces the brand to be transparent and focus on the consumer. It is important to put yourself in the consumer’s shoes and make changes by truly listening to them in order to improve their lives. To sell to the consumer, you need to speak the consumer’s language.
A little way back in 2013, Don Ressler and Adam Goldenberg (the founders of TechStyle) had the idea to start an athleisure brand. They wanted something stylish, affordable, and maintained a good standard of quality. They wanted to change the dull, overpriced workout wear scene but needed a partner to actualize that dream. Kate Hudson was the first person that came to mind because of her fun nature and active lifestyle.
From the very get-go, Kate Hudson was heavily involved. From picking a social media strategy to reviewing budgets, Kate was going to do more than just smile and wave. Up until now, she is involved in the design process ensuring that the designs remain up-to-date. She goes through numbers every week and knows exactly what is selling and what is not. It’s important for her to endorse only things that are authentic to her. Imagining Kate running around with her kids or working out in the Fabletics gear is not a stretch when you think about it. She has to believe in it to endorse it.
Hudson was at the frontline ensure that there was transparency in communication. Fabletics upgraded its customer service department and even got a new data system to ensure that the inventory levels are always up to date. The company has grown these past four years rapidly, and they don’t intend to slow down for the next several years.