Fabletics Leading the Way With Crowdsourcing

Online shoppers, as well as traditional shoppers are technically savvy today. The world of buying and selling has been transformed with the power of the internet and the education of the customer. Crowdsourcing has become the new buzz world in the retail world. The power of reviews and customer input has changed the way companies do business. Fabletics, a company started in 2013 has learned the importance of review driven websites and customer focused approaches.


Companies who recognize the latest trend in review centered websites are succeeding. Fabletics, co-owned by Kate Hudson, is growing at an amazing speed. This active wear company has increased by more than 200% since it started which equals out to over $235 million dollars and more than 1 million members.


Fabletics has capitalized on the secret of membership to support customer loyalty. This company uses surveys to get to know the customer and then sends special orders to fit their needs each month. The importance of positive reviews is not lost on Fabletics as they promote the customer feedback as one of the most important parts of their website.


How does leveraging the crowd work? Fabletics, along with other successful businesses know that positive reviews can drive increased traffic, customer purchases and improved customer loyalty. Customers today lead digital lives and respond positively to this type of marketing. 84% of customers say that they trust online reviews just as much if not more than personal recommendations from people they know.


Traditional trust of brands or companies is at an all-time low, as shoppers read and believe the reviews on the website. This crowd feedback is a crucial element in business success. One half of those customers surveyed research a business at least one time a month. 50% read review feedback regularly which is up 50% from a year ago. An amazing 60% said that a negative review would probably cause them not to use a company or buy a particular product.


Crowdsourcing or leveraging has shown the most dramatic growth in the factors affecting customers. Companies, such as Fabletics, who are growing have a plan that addresses the need to leverage the crowd. They capitalize on promoting surveys and published results that potential customers have easy access to. In a recent holiday survey, online users said that only about 33% were affected by price comparisons while a huge percentage, over 65% were searched for customer related reviews. This trend shows that customers value reviews over price differences!


Fabletics knows that leveraging the crowd drives revenue and customer loyalty. This company is focused on being transparent and customer focused and it is working for them. The online company is growing and following up with more and more traditional brick and mortar stores. Trustpilot, one of the biggest review sites has 20,000 new reviews each day. Fabletics recognizes the importance of having its name and products in positive reviews on such sites. With 85% of sales coming from repeat customers, companies have to use every resource to leverage the crowd.

History behind the Fabulous Fabletics

2013 is the year when the world graced a new entry into the line of gym fashion by the name of Fabletics. As the brainchild of Adam Goldenberg and Don Ressler, Fabletics has been able to witness a lot of growth over the past couple of years. However, Fabletics growth only got felt after the entry of Kate Hudson, who before her arrival was an actress.


In the four years that Kate Hudson has been a member of the Fabletics team, she has relatively improved the production and distribution process at the corporation. In so doing, productivity has been at an all-time high making Fabletics outshine its competitors in less than five years.


Although Kate joined Fabletics in 2013 with no prior experience on how to run a successful business, she has been adjusting and learning on the job. Through her genius mind, Kate Hudson with the assistance of Adam Goldenberg and Don Ressler has been able to leverage the power of the crowd, making Fabletics profit margins to exceed the $25o million mark.


By giving clients all that they desire, Fabletics has been able to attract some interesting sentiments from its consumers, helping sell the corporation and its products to the rest of the world. By using the reverse showroom technique, Fabletics popularity has grown through the roof. Ever since Kate Hudson moved to Fabletics, the company has been able to enjoy continuous streams of success mainly because Kate has overly concentrated on investing in the needs of the brand’s customers.


As a result of giving women who form the vast majority of Fabletics clients what they need, the company has been able to see better days. Quality and fashion have always been the hallmark of Fabletics; two attributes that have made the brand succeed in a highly competitive market. To date, Fabletics is renowned for launching its athleisure brand, a fashion line more appealing to women. Through its activewear, Fabletics has given its female customers an opportunity to look great in the gym as well as in casual events. All the above successes would have never become a reality if Kate Hudson was not there to help Don Ressler and Adam Goldenberg make sense out of their many ideas. By acting as the perfect partner, Kate has taken Fabletics from a small brand to a company renowned the world over.


Since Kate Hudson is a highly approachable person, she has been able to bring on board dozens of customers through her real talk. By relying on social media, Kate has guaranteed Fabletics a continuous stream of success day in, and day out. Kate Hudson, one of the co-founders of Fabletics, has proven to the world just how confident she is about the kind of attire her company produces. From time to time, Kate has gotten spotted running to the gym in her Fabletics attire. For that reason, she has made people confident in purchasing a thing or two from Fabletics only after they have taken the lifestyle quiz.

How Fabletics is Succeeding in the Highly Competitive Fashion E-Commerce Sector

Succeeding in fashion e-commerce when Amazon controls 20% of the sector is not easy. However, that is what Kate Hudson has managed to do. Her company, Fabletics, has grown its value to $250 million in just three years. The company has been able to ride the ‘activewear’ wave combined with a subscription mechanism to make sales.


In the past, high-value brands were defined by quality and the high prices of their clothes. However, in the current economic situation, that does not guarantee success. Instead, things like brand recognition, exclusive design, gamification, and last mile service are playing a significant role in the success of brands.


Thus far, Fabletics’ strategy has paid off. They plan to open physical outlets to add to their existing stores in places like Florida, Illinois, and California. According to the firm’s general manager, their success is attributed to their ability to reimagine a high-value brand.


The Reverse Showrooming Model


Among the secrets to the firm’s success is their reverse showrooming strategy. With the model, about 30 to 50 percent of all the people who walk into their store are already members. Besides that, the company ensures that about 25% of everyone who visits their stores leave as members. With this model, when a customer tries on a piece of clothing, it immediately goes into their online cart.


Another reason why Fabletics has been so successful is that they harness the power of data. They take care to guard the customer’s brand journey by stocking their physical stores with what people in the area want. They also use global trends, social media sentiments, and consumer preferences to stock their stores.


The company also focuses on people, culture, and accessibility to drive growth. Thus far, Fabletics has experienced growth of about 35% year on year. According to Corporate Marketing Officer of its parent company, TechStyle Fashion Group, growth has resulted from quality products that are offered at fair prices, a great creative team, and an official spokesperson.


Fabletics is among a new breed of companies that are data-aware and unafraid to take risks. Whether it is the fast purchase option or smart distribution, such companies are not without their challenges. In 2017, you cannot build a successful brand without thinking of a strategy to counter Amazon. However, companies such as Fabletics have figured this out.


About Fabletics


Blogger Teri Hutcheon describes Fabletics as a fitness apparel company owned by Kate Hudson. If you join the VIP membership, you will get the first outfit at only $25. The best part about is that you are not obliged to pay for anything on months that you do not want to purchase any product. If you join the VIP membership, you will get a 2 or 3 piece outfit at $49 to $59 a month.


When you sign up, the company gives you a survey to discover your styles. After that, outfits will be picked for you each month.