How Fabletics Has Used the “Power of the Crowd” to Its Advantage

In a world where 90% of people rely on the power of technology to make decisions, business owners have embraced this platform not only for marketing purposes but also for promotional purposes.

According to research conducted by BrightLocal, it was established that around 84% of online buyers trust online reviews the same way they trust a personal opinion from a close friend. This is what many strategists have referred to as the “Power of the Crowd”.

Many companies that have realized the power of the crowd have used this power to their advantage. However, to the few who are not versed with this form of power, they have ended up recording losses and undergoing collateral damage.

According to research conducted by BrightLocal, it was established that around 84% of online buyers trust online reviews the same way they trust a personal opinion from a close friend. This is what many strategists have referred to as the “Power of the Crowd”.

Many companies that have realized the power of the crowd have used this power to their advantage. However, to the few who are not versed with this form of power, they have ended up recording losses and undergoing collateral damage.

One company that has played perfectly into the hands of the power of the crowd is Fabletics. Founded in 2013, Fabletics has recorded revenue of more than $235 million which is equivalent to 200% of the company’s total assets. Shawn Gold who is the Cooperate Marketing Officer of Fabletics parent company TechStyle Fashion Group attributes their growth and success to understanding the crowd.

Fabletics acknowledges the fact that consumer reviews can have a positive and a negative outlook of the business involved. According to this company, consumer reviews can increase customer acquisition, retain consumers, and improve loyalty.

The authenticity of a comment left behind by a client can help in boosting the sales of a business, increase the ranking position of the brand online, and most importantly, enhance the revenue of the product and company in general. As a business strategy, many businesses have leveraged on incorporating reviews into their products as a way of gaining trust from their consumers. Fabletics is obsessed with the reviews they receive from their clients to the extent that they respond to most of the posted reviews from different clients from different parts of the world.

With a wide variety of clothes to choose from, Fabletics is no doubt a one stop shop for all your fashion needs. If you might be stranded when it comes to choosing the best clothes for yourself, you can try out the Lifestyle Quiz to determine the best cloth from Fabletics that perfectly fits you.

Kate Hudson: From Almost Famous to Fabletics

Kate Hudson has been the driving force of Fabletics when it comes to celebrities promoting the fashion brand. In just under three years, Kate Hudson and her team have turned Fabletics from a mere start-up company to a mammoth brand worth more than $250 million. According to Fabletics President Mr. Gregg Throgmartin, approaching Kate to be their brand manager was because they viewed Kate as a down-to-earth individual who was very active in lifestyle matters.

Since day one, Kate has been influential in promoting Fabletics to her large base of followers and avid fans. Most of Kate roles mainly involve the designing of the products and monitoring the number of sales of the newly released products.

Doe Deere: Turning Dreams into Reality

Doe Deere grew up in Russia and at seventeen moved to New York. She had several dreams as a child. She advocates chasing all of them even if they may change. When she first moved to New York she pursued her dream of being a musician. She learned some entrepreneurial skills and eventually moved to makeup. Deere has always been business minded. At thirteen she made temporary tattoos popular by wearing them and then selling them at school.

 

Deere believes you have to feel strongly about your business and really believe in what you are doing. Selling tattoos only worked because she believed they were cool and wore them to prove it. Life is short and you should follow your passion no matter what it is. If you are a musician and you decide you want to get into makeup instead do it! She is very passionate about her makeup line. This not only makes her a happier person but it makes her customers believe in her product.

 

Bright colors were something Deere gravitated toward. This earned her the nickname Queen of the Unicorns. She noticed makeup companies were not really selling anything for people who loved neons so she started a line of her own. She was surprised to see how many people out there enjoyed a similar passion and were grateful for something different. Because of this, her product thrived.

 

Most makeup is all about fitting in. Blending into what society believes women “should” look like. Lime Crime is all about the opposite. Every woman should be able to express herself for who she truly is. She should be able to use fashion, hairstyling, and makeup as a form of expression for who she really wants to be. For the Queen of the Unicorns, this means dying her hair bright colors such as pink, blue, and purple and wearing lavish outfits and makeup to match. You should be able to do whatever you want!

 

Lime Crime wants you to “express yourself unapologetically“. They make unique products such as their blue Unicorn lipstick so that you can freely advertise whatever mood you are in. On top of that their products are top of the line and completely vegan and cruelty-free.

 

Doe Deere has worked hard to establish a unique and solid product that she and her customers will love. Find out more at her website.

Fabletics Success with Reverse Showrooming Strategy

Ingenuity, intelligence, and creativity are leading factors that contribute to company success. Fabletics has been in a position to meet the challenges that come with today’s market. The current savvy consumer doesn’t appreciate product quality and affordability. Today’s consumer appreciates product design and customer experience that come with products. Companies that want to get in the e-commerce fashion industry have to compete with fashion giants. One of the leading fashion giants in today is Amazon. A company that wants to succeed in the e-commerce platform has to compete and beat Amazon.

 

The quality and price previously designed high-value brands. However, the advent of the internet has created a shift in the economy. A company that is affordable is no longer competitive enough to guarantee success. On the other hand, services such as brand recognition, customer experience, and stellar services contribute to success. Many companies that have understood this have achieved huge success. Fabletics is an example of a company that has created a winning strategy. The company has created a membership business model to improve customer experience.

 

Fabletics has also succeeded by focusing on a reverse showrooming business model. A showroom model is where customers view products and purchase elsewhere at a lower price. Many retailers that sell their clothing items expensively suffer from huge losses due to showrooming. The online marketplace where customers can view and compare products has encouraged showrooming. However, there are companies that have succeeded in creating a business model based on reverse showrooming. Fabletics reverse showrooming is possible through the company’s membership model. As a member, one can purchase company products at extremely discounted prices. The results are that customers that view products from Fabletics purchase from the company. Additionally, customers who view products from other brands purchase from Fabletics at lower prices.

 

Kate Hudson is one of the founders of Fabletics. She is also in charge of the company’s marketing and advertising strategy. Through her efforts, Fabletics has cut out competition by creating products that are cheaper. The company has always invested in data collection strategy. It collects information to assist in making decisions regarding customer preferences. The creative data collection methods maintained by the company has enabled consumers to gain a grip on subscribers. It has even attracted more subscribers that visit the stores. Kate Hudson argues that local customers that purchase from offline stores often opt for online purchases. Customers that shop online enjoy the shopping experience that comes with discounts.

 

Taking a close look at Fabletics, you will realize that the brand has succeeded in showing elements of brand recognition, exclusive design and customer satisfaction. Fabletics entered the e-commerce fashion industry in 2013 as a huge risk. The company has changed the modern shopping experience and became successful. According to the general manager of Fabletics, the company is successful because it has offered a new version of high-value products. The membership strategy has allowed the company to offer services that are second to none.