How Fabletics Leverages The Power Of The Crowd

The power of the crowd is driving the sale of consumer goods nowadays. Before buying a product people increasingly read the reviews of other buyers of the product. Studies show that people rely on these reviews and trust them as much as they would the opinion of someone they personally know. There are brands that capitalize on this by creating marketing strategies built around these product reviews.

Fabletics is an example of a company that relies on the power of the crowd to sell their products, in this case women’s activewear. In just the first three years of the company’s existence they have garnered more than one million members and $235 million a year in revenue. The CMO of Techstyle Fashion Group (of which Fabletics is a subsidiary), Shawn Gold has said that his company very much supports user reviews. He credits this marketing strategy with a lot of Fabletics success.

One study, by BrightLocal, found that 84% of people use and trust online reviews. This survey has been conducted on an annual basis and each year this number has been increasing. The CEO of Trustpilot Founder, Peter Holten Mühlmann, has said that people no longer trust traditional advertising. People believe online reviewers much more than the marketing departments of companies. He went on to further state that those companies who know this fact are able to leverage it to their benefit.

The reviews that help companies generate revenue are those which are authentic and genuine. Most people can spot a fake review rather easily. When companies make it easy to leave and read reviews by genuine customers they see consumers continue to come back to them for further business again and again.

As for Fabletics, they have said that crowdsourcing is a huge benefit for their brand. They have also said that it has led to them being very transparent and has increased their focus on customers and their experiences with their brands. This is especially important for a brand like Fabletics which is membership based. As an example of great customer service, new members fill out a Lifestyle Quiz which helps Fabletics know a lot more about them. This allows Fabletics to customize their products and services for each customer in order to give them exactly what they’re looking for.

Fabletics is a result of a partnership between Techstyle Group and actress Kate Hudson. Hudson is a very active person and wears activewear all day long. One day she was wondering why the clothing that was available for exercise wasn’t very affordable for most women and wasn’t very fashionable. She solved both of these problems with Fabletics where there is a host of very fashionable lines of clothing sold at about half the cost of their competitors.

Kate Hudson recently introduced a new line at Fabletics that was done in a collaborative effort with pop singer Demi Lovato. Lovato commented that she loved Fabletics and appreciated how cute the clothing was plus everything that the company stands for.

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