Fabletics Uses Technology and Power of the Crowd to Define Success

Fabletics, the fitness wear brand from Kate Hudson, has written the success story with technology and power of the crowd. The brand was considered to be the early identifiers of the power of the crowd and looked for ways to leverage from the reviews of customers. Interestingly, all the major brands are making a shift in their marketing plan, by understanding the consumer behavior, to a review-centric approach. Fabletics started this approach since it founded in the year 2013. It grew significantly over 200% during the course of time, and it currently boasts on a revenue of $235 million. Interestingly, the major contributor to this large success is none other than the review-centric approach of the brand.

 

The active wear brand understands that customer reviews have the power to ensure increased customer acquisition, customer retention, and improve loyalty or LTV. It is found that the customers are more focused on various aspects of the products, and they see reviews as an important source of information for their decision-making process. It should be noted that a recent study revealed at least 84% of the consumers believe online reviews quite similar to a personal recommendation. Also, more than 50% of the people research out regarding a business at least once in a month. Interestingly, more than 50% of people confirmed that they read reviews regularly.

 

It is now concluded that authentic and genuine reviews help the brands to grow business with improved search rankings, more sales, more revenue, etc. Both Fabletics and its parent brand, TechStyle, have identified that reviews can also drive valuable repeat customers. This is the reason, Fabletics work hard to collect, respond, and manage the online customer reviews. It should be noted that the brand has more than 30,000 reviews on the leading independent review platform, Trustpilot. Interestingly, at least 85% of the business of brand comes from repeat customers, and almost 17% of the new customers are coming through referrals from existing customers. The brand is on a mission to add more channels for reviews to expand the power of crowd further.

 

Interestingly, the brand is on its way to add more star power and already partnered with Demi Lovato to introduce her fashion brand under Fabletics. Lovato expressed a positive outlook about the brand and confirmed that she is excited to join hands with the active wear brand. It should be noted that the firm was founded by Don Ressler and Adam Goldenberg, the founders of TechStyle Fashion, by joining hands with Kate Hudson. Kate actively took part in the evolving of the brand. She took care of social media strategy, designing process, sales numbers, and more.

 

Though they faced few bitter experiences initially, Kate rose to the occasion and identified that the communication is the key. The brand upgraded the customer service and implemented new data system. That gave a bounce back of the brand in the market. It clearly utilized the technology and data-driven approach. The firm collects personalized preferences from the customers and provides outfits of their choice. The Lifestyle Quiz that each customer has to fill while registering with its subscription process gives insights about customers’ choices to the brand. Fabletics encourages people to fill out its Lifestyle Quiz to get their personalized outfits.

Fabletics Is The Latest On The Fashion Scene

Today fashion has taken on a new meaning. Earlier it was the fashion for party clothes or office wear. Now there is the fashion for workout clothes too.

 

Fabletics realized this too, and they have gone ahead with the idea. This is a brand that is fronted by Kate Hudson. She is an inspiration for women the world over. Kate is into active wear and fitness herself. Hence she is the co-founder of Fabletics. In fact, all clothes available under this brand have been chosen by Kate herself.

 

Fabletics has been brought about by JustFab Inc. In a short time, it has reached epic proportions in sales as well as brand value. In fact, this brand has taken on the e-commerce giant Amazon head-on.

 

The founders behind Fabletics realized that there was a gap between luxury workout wear and affordable clothes. Hence Fabletics is filling in that gap. This brand is for the high-end segment. These people are into fitness like never before. But they would like to remain fashionable while working out. While money may not be a consideration, but value for money is.

 

This is why Fabletics is making use of reverse showroom technique. They are not inviting people to visit their store or their site. They are simply asking people to try on their active wear and decide on their own. This is the kind of flexibility that the high-end segment is looking for. No one wants to be pushed into making a purchase any more. They want to take a decision themselves based on their personal experience.

 

When anyone visits a Fabletics store or site, they are asked to fill in a survey form. This has some basic questions about the person and her lifestyle. It would be questions about her body shape and size besides her taste in clothes. Next will be questions about the kind of workout she does and the place she prefers for doing her workouts. Based on these inputs, the store decided on an outfit for her and sends her to try it on.

 

Now the person is offered a VIP membership. The outfit sent to the person gives an idea about the quality of wear being offered. This also indicates the kind of confidence the firm has about its offering. They are well aware that the quality is so good that the person will take the VIP membership immediately. Next, highly attractive bargains and offers are given to those who take VIP membership. Hence people readily opt for this offer.

 

Now, people visiting the site or physical store are already VIP members of that brand. Hence very few are actual walk-ins. Since people have already been impressed with the quality, they only need to make a purchase as per their requirements. Even here the brand helps them. There would already be an assortment made based on the specifications of the customer. Hence a lot of time is saved for the customer in picking and choosing clothes for their next workout session!

Fabletics Is What’s Next As It Edges Near Amazon

Kate Hudson’s Fabletics is unlike any other sportswear company. That’s because Hudson and her team devised an open method of purchasing high quality sports apparel with a subscription. This is an ingenuous manner of purchasing the same look as apparel from name brand manufacturers such as Lululemon, Nike, Under Armour and Reebok; without the “ouch” factor price tag attached.

 

Their online subscription base is what’s helping to launch Fabletics into another dimension of retail greatness. Fabletics is moving in the same direction as eCommerce giant, Amazon. Going from online only to actual retail space. To compete with Amazon is certainly no small feat. So, how did they do it? Well, just ask the Senior Vice President of Fabletics, Dustin Netral. Dustin had this to say in response to the expansion plans of Fabletics, “Serendipity of shopping is important to us but the brand is built on combining global fashion trends with user preference data to elevate satisfaction, we add in new ranges and do subtle tests all the time.”

 

Perhaps, Netral was being a tad bit conservative about the growth factors involved in the surge of Fabletics subscribers. But, we all get it, because women everywhere want the clothing Kate Hudson wears in the Fabletics ads. Fabletics profitability has nothing to do with Hudson’s looks or her body.

 

Increasing profitability is based upon the popularity of Fabletics. Women happily put workout clothes on to both look good and “workout.” As opposed to purchasing clothing and letting the apparel sit tidily folded in dresser drawers or hanging in some closet. Fabletics subscribers want to look “fabulous” in their workout gear and this inspires them to engage in physical activity.

 

Make no mistake about it, Fabletics has the infrastructure to take a big chunk out of Amazon’s 20% choke hold on the eCommerce market. In one year’s time, Fabletics posted a 35% gain, adding to the $250 million business it has done in three short years. Let’s not forget the Fabletics’ premise, how they got into the apparel business and why the concept works.

 

The business premise of Fabletics is matching online subscribers with activewear that fits their lifestyles. Fabletics offers their customers “convenience subscriptions.” For a small monthly fee, subscribers create their own look, mixing and matching pieces. This unique approach gives Fabletics a competitive edge in the “Athleisure” marketplace.

 

But, rather than put emphasis on the appeal of the brand name look, Fabletics believes in offering “high value” to their subscribers. As the General Manager of Fabletics, Gregg Throgmartin puts it, “Our membership model is what allows us to offer personalized service and on-trend fashion at half the price of our competitors. It’s just a lot easier to make people happy when you know who they are and what they want.”

 

Fabletics is set to open additional retail stores. Currently, there are 16 retail stores in Las Vegas, throughout California, Florida, Colorado, Maryland and New Jersey, to name a few of the locations.

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A photo posted by @fabletics on