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Fabletics: Crowd-Sourced Success

Fabletics: Crowd-Sourced Success published on

It’s fairly obvious these days consumers have all the power. Arguably, that’s always been the case but not really. Traditionally, consumers had to rely on company-produced advertisements that only told people what the company wanted people to know. Recently, a shift in consumer behavior gave all the power to the crowd.

These days, consumers use customer reviews to determine their final purchases. The most shocking part of this new trend is that people trust random online reviews more than they trust company advertising. As society becomes more intertwined with technology, online reviews grow in popularity. One study showed that people trust online reviews as much as they trust personal recommendations from friends.

Online reviews boosted the success of many companies. Newer companies, who have more tech-savvy executives, achieved the most success. Fabletics is one of those companies. When Fabletics launched, activewear was relatively new, and that market was already dominated.

Thanks to user reviews and a number of other strategies, the brand grew over 200 percent in its first four years. Last year, the company was estimated to be worth over $250 million. So far, sales seem to be continuously increasing, as the company continues to attract more monthly members and social media followers.

Most of those Twitter followers follow Fabletics because of Kate Hudson. Ms. Hudson is a co-founder of the brand and a heavy player at the company. She’s more than the pretty celebrity earning paychecks from a sponsor. Fabletics stands for something to her.

For her, it stands against America’s obsession with unhealthy habits. For a long time, America’s struggle with health and fitness, but now, more people are becoming health conscious. In particular, millennial show the most dedication, and they’re also the biggest consumers of activewear. They love being able to wear the same outfit to the gym and around town.

Hudson and Fabletics rely heavily on the information they get from sales numbers and customers. They use a lot of data to try to predict what their members will want in the coming months. It’s a risky strategy, but it pays off with at least one hot item selling more than they expected.

It gives them the opportunity to create products for every month. There are hundreds of styles on Fabletics, so it’s nearly impossible for any woman to not find something she likes.