For ages, companies in the consumer goods segment have been trying to outdo each through traditional marketing techniques such as advertising. Also, well-established companies with a vast reserve of funds have dominated the consumer goods market with startups having no chance to compete against them. However, with the advent of the internet, many businesses moved their activities online where a level playing was established, and startups such as Fabletics are threatening to tilt the scale in their favor.
Although Fabletics (an activewear company) was established barely four years ago, the company’s founders—Kate Hudson, Don Ressler, and Adam Goldenberg—are proud of their startup. Fabletics has grown into one of the most talked about activewear brands with activities in the U.S, Canada, UK, Germany, and France among other countries. The company started off as an activewear brand for women, but now it has a line for men. Fabletics boasts of over one million paying members, and its revenues are nearing $250 million. Pundits estimate that the company has developed by over 200% since it was founded. What is Fabletics’ secret?
Fabletics is a company founded by forward-thinking individuals with experience in the fashion industry. Although many things could have driven the company to its current growth phase, review-centric marketing approach certainly features among those things. Corporate marketing officer of TechStyle Fashion Group (a company associated with Fabletics), Shawn Gold, has attributed Fabletics’ success to embracing “user reviews” or what he terms as the crowd.
What are user reviews? Many online users have come across user reviews when they are searching for a product or service. These are written evaluations developed by delighted consumers or disappointed customers who have experienced a company’s services or products. Positive user reviews, written by happy buyers, are what every online seller should strive to achieve by developing superior goods or services. Fabletics sells high-quality activewear clothing that has received overwhelmingly positive reviews. The fact that Kate Hudson and Demi Lovato among other renowned individuals promote Fabletics products is doing the company a favor. Many buyers know these people, and they trust their opinions of the Fabletics’ gear. Also, Fabletics’ products are tailored for each of their customers; Fabletics’ “Lifestyle Quiz” is meant for their potential clients to find their perfect Fabletics’ gear.
Surveys have overwhelmingly supported the link between positive reviews and increased sales. For example, a BrightLocal study established that buyers trust online user reviews of a product or service. When an online user reads a product or service review, he/she feels like they are being talked to by someone they know and trust. Once a positive opinion of a product is formed, it is hard to sway a consumer even if a competitor, whose products have received negative feedback, lowers the price on their product.
Many companies have gone the Fabletics way: adopting a review centric marketing strategy. Reports indicate that there is a 70% increase in the number of businesses using product reviews on their websites since 2014. A positive business reputation is likely to increase sales, encourage repeat customers, and improve customer retention among other benefits.