In 2013, the founders of TechStyle Fashion Groups Don Ressler and Adam Goldenberg wanted a partner to start a stylish, quality and reasonably priced athleisure brand. Kate Hudson happened to be the perfect fit and Fabletics was created. The Fabletics Company did not, however, have a smooth run despite being founded on a good idea, experienced investors and having a celebrity founder. The brand has had its hurdles earlier on after its launch. There was an issue of quality which delayed the start for six months, and the negative press Kate Hudson faced from other celebrities who felt that the brand’s membership model was a scam. Kate spearheaded an effort to make clear communication the brand’s priority which had Fabletics upgrade its customer service department and implement a new data system.
The data system shows what customers prefer on social media, the quantity of product to make and the type of inventory to design. The data collected also helps Fabletics match their customers with the perfect outfit and producing outfits that the customer will like. Today, Fabletics has grown by over 200%, gaining over $235 million in revenue with more than one million paying members. 85% of the company’s sales generation are from repeat customers, and 17% of new customers are from referrals. The company has managed to gain over 30,000 reviews on Trustpilot with an average TrustScore of 8.2.
Shawn Gold, Corporate Marketing Officer of Techstyle Fashion Group (Fabletic’s Parent company), acknowledges a great deal of the brand’s success to encompassing user reviews or the crowd in their strategy. Several studies have shown that consumer reviews have the direct influence in all industries to increase customer acquisition, improve loyalty and customer retention of brands, and this is how Fabletics has been able to leverage the significant impact of reviews in customer purchases to fuel the brand’s rapid growth.
Most customers today live online. As such they will tend to research on a brand before purchasing and take on reviews before making any decisions. The research helps make an effective crowdsourcing purchase decision. Thus an advantage to Fabletics. The brand has addressed and incorporated user reviews into their policies and product offerings, and they do not stop at that. The brand as well takes on to do an active collection, management, and response to thousands of online customer reviews. The Fabletics brand was able to set an increasing pace after its launch through consumer reviews. The reviews helped refine its products, deal with initial issues and attract new customers.
Shawn Gold points out that crowdsourcing also pushes the brand to be transparent and customer focused. They credit reviews for guiding the name on what the customers want, have a taste for and in what circumstances to improve their lives. Fabletics can make profit on this primarily because they end up producing a product that meets customers’ preference and a client can refer new customers to purchase the product. The company is showing rapid growth with the growing; number of retail stores, membership base and successful partnerships.