Crowdsourcing Consumers Trust the New Way to Shop and Fabletics


Crowd source reviews are increasingly changing the way consumers are making purchases because of the reviews. Consumers trust the reviews they read much the same as they would a personal recommendation from someone they know to make their final decision about purchases.

 

One of the brands that have seen more than favorable sales because of these reviews is Fabletics, which has grown over 200 percent since its launch in 2013. This equates to over $235 million in revenue and over a million paying customers. TechStyle Fashion Group corporate marketing officer Shawn Gold said a portion of the band’s success is due to the reviews, or recently referred to as the crowd. TechStyle is the parent company of Fabletics. The proof that consumer reviews can increase customer’s sales Fabletics has shown that and it is happening across all industries.

 

Part of the reason this is happening is because more people are using the internet more for all parts of their lives including reading reviews before making purchases. That is why reviews have become a significant factor since people more often are researching businesses before making purchases. Crowdsourcing is making a difference in this and the proof is in a recent BrightLocal study data showed 84 percent of people trust internet-based reviews the same as they would a personal recommendation. This is a percentage that has been increasing every year and further, the study showed that 60 percent of people seeing negative reviews did not use the business or make a purchase. Vibes in a study for holiday shopping found 33 percent of in-store mobile searches were to compare prices, while 65 percent of searches were to read reviews or for more information about a product.

 

Actress Kate Hudson is the face of Fabletics since their founding in 2013. TechStyle Fashion Group founders Don Ressler and Adam Goldenburg thought about starting an athleisure brand and Kate Hudson’s name was the first they thought of to represent it. Fabletics president Gregg Throgmartin said Kate Hudson was very involved from day one.

 

Ms. Hudson took on the project reviewing budgets, determining social media strategy and continues to be involved in the design process. Kate Hudson works with the team to keep the styles fresh and reviews sales numbers weekly to know what clothing is selling and what sales aren’t up.

 

The goal of the company was to have the best product and it delayed the launch of the products six months to get good quality and they are fervent about quality Mr. Throgmartin said. Ms. Hudson made communications about the product clear and the sales model. In 18 months Fabletics had a top rating from the Better Business Bureau and satisfied customers.

 

In 2014 Febletics had triple-digit growth and it grew at about 43 percent in 201-2016. The company projects it will see $250 million in sales in 2017. What the company recognized Mr. Throgmartin said is the rapid growth is data-driven. Data runs the business with customers responding on social media that lets them know the quantity of product they need to manufacture. It also lets the company know the type of designs with the technology that lets them collect data.