— Posted in Fashion
Reasons for the Continued Growth of Fabletics
In the recent days, it has become popular for people’s decision for buying commodities to be determined by the power of the crowd. Customers are increasingly identifying the items that they will purchase based on the reviews of the larger population. They have had an increased trust on reviews they read as well as personal recommendations from individuals they know. Sharp-witted companies have resulted in taking advantage of the consumer behavior by improving their study marketing strategies. Fabletics is indeed a good example of such a brand. Since the year 2013 when it was launched, Fabletics has seen its revenue grow to $235 million.
The growth is estimated to be about 200 percent. Its paying members have also increased to over one million. The corporate marketing officer of TechStyle which happens to be the parent company of Fabletics, Shawn Gold says that all the success is attributed to the fact that the corporation has embraced the user review. The brand has used the prominence of the reviews to their advantage. Through the customer reviews, it has become possible for various businesses to increase the number of their customers, improve the customers’ loyalty and at the same time retain the customers.
It is important to note that consumers in the current times are leading digital lives. It is this fact that has made the online reviews a factor to influence their decision. Most people tend to do some research about business and reading the reviews before eventually deciding to make their purchase. A study conducted by BrightLocal revealed that 84 percent of individuals trust the online reviews as recommendations from persons known to them. People seem to no longer trust the traditional advertisement. Consumers now feel safe, trusting opinion and feedback from the crowd.
It is back in 2013 that the co-chief executive officers of TechStyle namely Don Ressler and Adam Goldenberg decided to start up an athleisure brand since there was no brand with style and with reasonable prices. All that was in the market were grey workout gear for women, and yet they were overpriced. The needed a partner, no one suited that position than Kate Hudson. She represented what the dual wanted Fabletics to look like. Besides being approachable, Kate Hudson has an active lifestyle. From the very first day, Kate was significantly involved be it in reviewing the budget or even picking a social media strategy.
Unlike other celebrities who do not use their brands, it is common to sport Kate Hudson running around with her kids or even going to the gym in Fabletics gear. Fabletics was founded by experienced investors together with a celebrity. This, however, did not guarantee instance success. It experienced some challenges especially when it was initially established. Kate Hudson was highly criticized on social media by individuals who saw Fabletics as a scam due to its initial membership model. Within a short time, Fabletics upgraded its department of customer services. The commitment to quality saw the company experiencing triple-digit growth in 2014.