Fabletics Perfects Crowdsourcing

Online shoppers, along with traditional shoppers are technically aware today. The business of retail and selling has been changed with the influence of the internet and the views of the customer. Crowdsourcing has become the new trend in the retail world. The power of reviews and customer input has changed the way companies view business. Fabletics, a company founded in 2013 discovered the significance of review featured websites and customer focused models.


Companies which have tapped into the latest trend in review centered websites are prospering. Fabletics, co-owned by Kate Hudson, is growing at record speed. This activewear business has grown by more than 200% since it began which means over $235 million dollars and an increase of more than 1 million members.


Fabletics has designed its website on the foundation of membership and customer loyalty. The company uses surveys to become familiar with the customer and then sends customized orders to meet their needs each month. The relevance of positive reviews is not mysterious to Fabletics so they highlight the customer feedback as one of the most prominent parts of their website.


What makes leveraging the crowd work? Fabletics, along with other reputable companies know that positive reviews can mean increased traffic, high-end purchases, and lasting customer loyalty. Customers today lead lives built around technology and they respond well to this type of marketing. 84% of customers say that they value online reviews more than personal references from people they know.


Traditional trust of companies and even well-known brands is at an all-time low, as shoppers search and hold true the reviews on the website. This crowd feedback is an important aspect of business success. One-half of those customers questioned, say they research a business at least once a month. 50% read reviews regularly which is up 50% from last year. An astounding 60% said that a negative review would cause them to reject a company or buy a specific product.


Leveraging the crowd has shown the most pronounced growth in the way shopping affects customers. Businesses, such as Fabletics, are growing and establish a plan that meets the need to leverage the crowd. They concentrate on promoting surveys and published reviews that potential customers have easy navigation. In one recent holiday survey, online shoppers said that only about 33% were influenced by price comparisons while a huge percentage of 65% searched for customer based reviews. This statistic indicates that customers value reviews over price variations!


Fabletics recognized early that leveraging the crowd increases revenue and customer loyalty. This activewear company is dedicated to being transparent and customer focused. These priorities are working for them. The online company is excelling and following more and more brick and mortar stores. Trustpilot, one of the biggest review sites produced numbers of 20,000 new reviews each day. Fabletics recognizes the relevance of having its name and products in positive reviews on such websites. Repeat customers make up 85% of daily business so companies have to use every resource to leverage the crowd.

Fabletics Unique Marketing And Merchandising Power Moves

Fabletics has become the trendsetter for new enterprises looking to take the market by storm by managing their sales scheme without a middle agent. Traditionally, the middle agent dominating the commercial scene is Amazon. Startup businesses or persons looking to reach a large number of clients quickly hop onto Amazon for its dependency on both quests. The downside of selling through the portal however comes from deductions made on every sale. Amazon takes out 20 percent from the seller’s return on each single item on display. Another minute drawback is that the seller does not have a strong marketing platform that they can easily tweak when necessary through the site.


Fabletics founders, Don Ressler, Adam Goldenberg and Kate Hudson have managed to run a gigantic fashion business off of Amazon by picking up unconventional marketing schemes that set it apart from its competitors. One of those power moves is the reverse showroom technique which allows them to display to customers the exact outfits in physical stores as in the online store. The core reason for that set up is the observation that most people tend to walk into stores, check out attires but opt to purchase the same exact merchandise from a cheaper source. Fabletics has countered the urge to deviate from their brand by ensuring that every customer who walks into their store acquires at least an interest to open an online account that if not immediately open one. Fabletics offers first time VIP members a huge discount on their first purchase and free shipping for an entire outfit.


Another notable power move by Fabletics is the use of data analytics to predict the performance of future merchandise. Kate Hudson personally keeps a tight grip on the firm’s daily financial operations and a clear vision of what it will take to keep the revenues consistent and growing. Fabletics’ statistics engines record the items most preferred by clients, the customers’ shopping habits and the most requested attire sizes to give the administrators a clear picture of what to process in bulk.


Kate Hudson comes off as a passionate entrepreneur to her partners as well as outside observers like Demi Moore. Her first involvements led to a contract of siphoning funds from the partner firm Techstyle Group, and ultimately growing Fabletics’ marketing power. Kate is the pioneering brain behind customers taking style tests when they first sign up to help the system keep a track of their attire likings.

What Can Be Derived From The Success Of Fabletics?

Kate Hudson’s online workout fashion shop Fabletics has created a sensation in a short span of time. Though the firm established in 2013, every year it saw a growth rate of 35 percent or more. Also, every month there are thousands of additional customers are joining the website. The website has got a capitalization of $250 million within three years. It is found that the firm is giving increased customer engagement through its platform. The industrial experts confirm that the products have an appealing fashion sense and great value while considering with other products available in the market. What makes Fabletics so special? What strategy made it very popular?


High Quality, High value, and Stylish


The products are mostly high quality with a style that can attract everyone. Interestingly, the customized products are designed to taste one’s fashion priorities. The products which are designed for workouts are actually body fit and give a great comfort while wearing it. It has a wide range of products for skinny people, average body type or obese. When it comes to quality, the products are soft and expands and contract according to the body type of the person. Most of the outfits are with solid colors with stylish cut-outs. Also, the outfits are not getting faded even while using for long-term. In terms of value, all the outfits are almost 30 to 40 percent less price comparing with similar quality and stylish products available in the market. For example, the leggings offered by Fabletics is priced around $50 whereas similar quality products from Lululemon or Beyond Yoga would charge $80+.


Reverse Showrooming


A new concept of showrooming which includes online store as well as offline stores in major cities. Fabletics use this strategy due to many people are finding comfort in checking the product physically and then ordering it from online at the lowest price. Fabletics provide an option to check the products in its offline stores and search it on the internet to find similar products with the lowest price, which will obviously lead to Fabletics online store with more variety of products than listed in the physical showroom. This helps Fabletics to ensure 100 percent customer satisfaction and a great engagement with them.


VIP Membership Plan


In order to make people getting according to their fashion priorities and to get products at discounted rates, a subscription plan has been started by the online retailer. The VIP Membership plan charges $49.95 per month, and it would come as a credit for the customer, and he can make use of it for purchasing the outfits along with free goodies. Also, the VIP members get the products at discounted rates up to 50%. The amount is automatically charges from the customer every month, but if she wanted to skip a month, she has the option to be not paid for that month. As soon as signing up for the VIP Membership, a questionnaire regarding the choices of products needs to be filled. This helps the retailer in providing customized products for each customer according to her preference.




With excellent products, brilliant business strategy, and increased engagement with the customers through a membership plan, Fabletics is creating a storm in the fashion industry. Recently, it started selling outfits for men as well, as it is looking to expand its customer base.