Fabletics Capitalizing on the Power of the Crowd to Outdo Its Competitors

The world is changing and so is technology, businesses, and ways of marketing. The traditional methods of marketing relied heavily on products campaign, road shows and use of posters. Modern marketing methods include the use of digital advertising through the mass media and the social media platforms. However, there is one unique new marketing technique that is gaining popularity and is customer-centric, and that is the use of the power of the crowd or crowd-sourced reviews.

Consumer Purchases today are determined by crowd-sourced reviews. Before a customer purchases, a product they first look for crowdsourced reviews, and the more a product has positive reviews, the more the likelihood that the customer is going to buy the product and vice versa. Reviews act as personal recommendations from other clients who have previously bought the product and have the first-hand experience with the product.

Savvy brands such as Fabletics are capitalizing on this concept and for this reasons they have been able to outdo their competitors within less than five years. Fabletics was established in the year 2013 by two friends Don Ressler and Adam Goldenberg. The duo later brought on board Kate Hudson as a partner and brand ambassador of the company’s products. Fabletics boast of rapid growth and has recorded over 235 million in revenue indicating a 200% growth rate since the firm was launched. Fabletics, in addition, has more than one million paying members. Shawn Gold who is TechStyle’s Corporate Marketing Officer attributes Fabletics rapid growth on embracing the use of reviews or power of the crowd.

The company has leveraged on the power of the crowd, and as a result, they have been able to increase customer acquisition, improved loyalty and increase customer retention all of which have contributed to the rise in revenues. Today consumers trust reviews more than anything else, and because of increased digital awareness, online reviews have become a significant part of a consumer’s decision-making process. Customers before making purchases they first research about a business read a couple of reviews and then make their final determination on a product. According to research conducted by BrightLocal Study, about 84% of people trust online reviews and regard them as personal recommendations. The number has always increased every year the research has been conducted. According to Peter Holten the founder and CEO of Trustpilot, people no longer trust the traditional marketing and advertising methods nowadays. There are power, safety, and trust in the opinion and feedbacks from reviews and companies that understand this concept have been successful.

Reviews that are authentic and genuine help boost businesses. They also help improve a company or a product search ranking which in turn captures more customers leading to increased revenues. Business should try to incorporate reviews into product or service offering, and as a result, there will be more repeat loyal customers. Fabletics understands this marketing strategy and does take their customers seriously. They respond to thousands of its customer’s reviews. Reviews have helped Fabletics gain new customers through referrals and more fundamentally has helped them refined their products.

Hudson has played a key role in marketing Fabletics product as she models the clothes and loves being the brand ambassador. For customized athleisure product just visit the Fabletics website sign up and take a lifestyle quiz.

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A Lesson in Fashion from the Academy of Art University

Fashion moves fast: as a rule, what’s vogue today is gone tomorrow. Trends move quickly through a revolving door of glitz and glamour; each season designers inspiration anew from the ever-evolving elements of our reality. From films and fine art to consumer goods, climate change, and other cultural shifts, what’s “fashion” is always emblematic of the time in which it was designed and produced.

 

The Academy of Art University held a runway showcase on September 9, 2017 at Skylight Clarkson Square that gave us a glimpse of where fashion’s rising stars see us today. Located in San Francisco, CA, the Academy of Art University is uniquely positioned to engage in emerging conversations about diversity, feminism, and sustainability in the fashion world. In addition to being one of the largest art and design schools in the United States, it boasts an impressive array of alumni – including actress and singer Raven-Symoné as well as fashion designer (and reality star) Lauren Conrad. Art Spiegelman, cartoonist, is on staff as an instructor. Since 2005, the Academy of Art University has been participating bi-annually in the NY Fashion Week event.

 

September’s runway showcase made political statements as well as fashion statements. It was an internationally-minded event: participants from China and Mexico showed collections alongside local designers from LA and the Bay Area. Each artist’s message spoke to their unique background, but a common interest in finding the right “blend” of traditional artistry and mechanized digitalization united them all. Designers played with proportions (dramatically dragging the hem of a metallic dress, expanding a denim coat to laughable over-size) and layered textiles to evoke the sense of piled snow or billowy clouds. By taking such risks, they succeeded in creating new landscapes across which brand-new ideas can play.

 

Hailun Zhou, Eden Slezin, Dina Marie Lam, Carlos Rodriguez, Saya Shen, Joanna Jadallah, Cana Klebanoff, Rayn Wu, Jelly Shan – these young artists await a fruitful lifetime of creative exploration. After such a successful show at the Academy of Art University, we can’t wait to see what they’ll teach us next.

 

How Fabletics is Revolutionizing the Fashion Industry

Competing in today’s fashion industry is a huge challenge and has been tried unsuccessfully many time in the recent past. To win takes a lot of work and dedication. But to actually revolutionize the industry takes something much more. It requires doing something drastic, such as coming up with an entirely new business model. That is exactly what Fabletics has done.

 

Fabletics is a women’s leisure athletic brand of apparel started by Kate Hudson. Her mission was in essence to get women to become more physically active while feeling comfortable about themselves. Proper clothing was lacking in the market and this is where Hudson saw an opportunity. But this itself is not a guarantee of success. In a world where the likes of Amazon hold 20 percent of the fashion market share, something more is needed.

 

Fabletics employed several techniques to become successful, to the point where they reached $250 million in sales in just three years. They work to engage with the customers by properly understanding what they want and when they want it. This includes social media engagement, an online Lifestyle Quiz (which readers of this article are encouraged to take), use of massive amounts of data, and a unique membership model. The goal is to engage each customer with the end result of having them come into a physical store to buy something (and then retain that customer for life).

 

This last part is something known as the reverse showroom technique. As opposed to the typical trends of standard showrooming – where customers browse for something in a store and then return home to buy it online – reverse showrooming aims to work with the customers online up to the point of getting them to come into the store and buy something. This is the exact opposite of what the Amazons of this world do and is something that, if implemented successfully, can be highly profitable. In the case of Fabletics, it is exactly that.

 

Kate Hudson has been actively involved in this business strategy from the beginning. She is passionate about getting to know each customer and attributes a large part of the company’s success to this. Being a personal ambassador of the apparel is also a key part of the success. For her, launching this business has been no easy task, but she is very excited about the story of Fabletics and continues to be involved in every part of the process – from the design to the sale.

Fabletics Ambushes the Renowned Fashion Brand, Amazon

Kate Hudson is causing a buzz in the fashion world by growing Fabletics in three years. Fabletics is competing with Amazon, which controls 20 percent of the fashion e-commerce market. The company is gradually succeeding with e-commerce companies such as Warby Parker and Bonobos that are defining themselves with enterprise technology, exclusive product, and data science. Fabletics uses subscription mechanic to sell clothes.

 

Fabletics does not focus on the price or quality of goods and services rather it is concerned with the customer experience and last-mile services to determine what is high-value to the modern customer. When Fabletics compare themselves to Apple and Warby Parker, their strategy and positioning seem to be paying-off, particularly for the fashion membership brand. Moreover, the company is planning to open other physical stores that will be added up to the sixteen stores in Florida, Hawaii, California, and Illinois.

 

Distinct Features of the Physical Stores of Fabletics

 

  • Reverse showrooming

 

Fabletics’ reverse showrooming strategy has enabled them to be relied on, build relationships and get more knowledge f the local market through activities and events. The counterparts of Fabletics are being frustrated by showrooming because they allow customers to browse offline and buy their items elsewhere at a cheaper price. Moreover, 30-50 percent of the people who walk into the store are already members while 25 percent gain membership in the store.

 

  • The Importance of Online Data

 

Fabletics acknowledges that it is imperative to show the right content of an item in both physical and digital form to avoid destroying the customer’s brand preference. Online local data helps in stocking physical stores with items that appeal to the customers. Moreover, stores are stocked based on real-time sales activity, store heat-mapping data, and social media sentiment.

 

  • Why Growth is Dependent on Accessibility, Culture, and People

 

Fabletics’ challenges do not stop the company from growing. However, Fabletics’ evolution and the balance of consumer education, lifestyle, and customer experience seem to be benefiting the company. The company is among the data-aware, nimble, and risk-positive brands who understand the requirements of a new consumer, for instance, innovative membership and smart distribution.

 

Kate Hudson’s Perception of the Athleisure Retailer

 

Kate Hudson, who co-founded athleisure retailer of Fabletics, in 2013, views the retail as winning exercise in the fashion market. Since then to-date, Fabletics has grown to $250 million in revenue with sales increasing to 43 percent in 2016. Fabletics succeeded when Kate used her name recognition, the Golden Globe – winning actress, to adopt a Warby Parker e-commerce model and develop an affordable, healthy clothes line that is inspirational to women of all sizes, ability, or age.

Fabletics Engineers Reverse Show Rooming Technique to Achieve Exponential Growth

Today, Amazon has the largest share in the fashion e-commerce market. The company controls a 20 percent share alone. It is, therefore, evident that succeeding in the fashion industry on an online platform is no easy job. However, Kate Hudson’s Fabletics business has stormed the market and grown to a net worth of 250 million dollars in three years. The most basic question would be how did Fabletics do it? Well, the company uses an online platform where customers can subscribe to get their brands on a monthly subscription. Mixing the uniqueness with convenience and membership in the company’s platform ensures you have customers for life.

 

In the recent past, high-value brands have been defined by the quality and price of their goods. Today, considering the state of the economy, the combination of price and quality no longer gives the competitive edge as in the recent past. To achieve success and guarantee a large customer base, investing in customer satisfaction and experience, exclusive design, and gamification is proving to be among other combination that influences the modern customer.

 

As of today, Fabletics has over sixteen stores that are open in Hawaii, Illinois, Florida and California just to mention but a few. With the likes of Apple and Warby Parker, Fabletics strategy and positioning have set them to succeed in the fashion membership brand.
 

When asked the secret to their success, Gregg Thogmartin, the general manager of Fabletics says it’s about building a modern and re-imagined brand. He stated that their membership platform allows the company to offer personalized services to each and every customer. The model has also enabled the company to provide a customized brand to its clients at almost half the price of their competitors. Thogmartin said that it’s easier to achieve customer satisfaction when you have an idea of what their preferences are and what they need.

 

To achieve, Fabletics have employed three ways. They have adopted and encouraged reverse showrooming. As a result of reverse showrooming, 30-50 percent of the people who walk in their stores are already members and 25 percent subscribe from the stores. By use of online data, Fabletics mostly stocks a larger percentage of the designs preferred by the local members. Moreover, the use of social media sentiment, store heat mapping, and real-time sale contribute to stocking behaviors of the company. The company has focused on accessibility, people and culture to ensure they meet the demands of their customers. Consequently, it has resulted in growth and provided a competitive edge in the market.

 

The idea behind the company was to satisfy a gap in the active wear marketplace. Extensive research showed that all the Luxury brands didn’t offer quality gear at an accessible price range. With this in mind, the three joined forces to create a brand that has grown exponentially since its inception in 2013.

Everything you need to know about Don Ressler, Fabletics, and JustFab

Don Ressler serves as the current CEO of Fabletics. He has a long experience in e-commerce because he started his career at a very young age. Don is the mastermind of multiple startups that have proved to be highly successful. His first company was Fitnessheaven.com. He built the company and sold it to Intermix Media. He worked at Intermix Media in a new section known as Alena Media. The company performed incredibly well under his leadership until News Corps purchased it. Don Ressler decided to leave Alena Media after feeling that their new managers on Brandettes were ignoring them. He went forth to explore new opportunities.

The amount that Ressler raised after selling FitnessHeaven.com assisted him to start other successful business startups. Don Ressler’s first business venture after Alena Media was Intelligent Beauty. The firm started as an online marketplace that sold cosmetics and skincare products on Crunchbase. The company ran for about two years before venturing into weight loss products. Ressler gained massive experience in advertising throughout this period. He learned how to build an internet brand, market it and make it a success.

Don Ressler and Adam Goldenberg have been business partners for a long time. The two became entrepreneurs and got into business at a very early age. Goldenberg started his first company at nineteen years old. He sold the company and worked as the Chief Operating Officers. E-commerce business has been highly profited for the two business people. Intelligent Beauty was established in 2006 and led to the opening of other business platforms. Don Ressler’s experience with Intelligent Beauty has seen him gain a big name in the health industry.

Fabletics is just the latest venture by JustFab. Fabletics specializes in selling activewear. The brand has done very well in the fashion marketplace. It now competes with technology giants like Amazon in sportswear and activewear fashion. The kind of clothing sold by Fabletics are customized and highly fashionable. Don Ressler serves as the co-founder and Chief Executive Officer of Fabletics and JustFab on LinkedIn.  He believes that every woman should have access to the fashion clothing they want.

The Fabletics brand started as an online business venture. The brand is now expanding into brick and mortar store under Don Ressler’s leadership at http://www.huffingtonpost.com/2012/06/25/for-intelligent-beautys-a_n_1624707.html. He is advancing the company through the vision of Kate Hudson.