Consumers are more likely to buy products that are popular in their social circles. They trust crowd-sourced reviews just like personal recommendations. Marketers are increasingly adopting review-centric strategies to leverage these crowd-sourced review trends. Fabletics, an online fashion retailer employing disruptive marketing tactics, is harnessing the power of the crowd to achieve tremendous success.
The brand launched four years ago. However, it is taking the market by storm to the point of competing with big industry players. It has rapidly grown to realize a more than two hundred percent rise in revenue.
According to Forbes, the company’s innovative marketing style is giving Amazon, the global retail giant, run for its money. In what marketers call revere-show rooming techniques, Fabletics can bring new customers and retain them with ease, something that is unsettling big market players.
To show for this technique, Fabletics has attracted more than a million subscribers. The firm is a subsidiary of Techstyle Fashion Group, an online subscription fashion retailer with multiple divisions.
Fabletics is driving growth by embracing user reviews. Positive consumer reviews have the power to grow sales as well as enhance customer loyalty. Online reviews have become a significant factor in the decision-making process for consumers. More than half of consumers will research a brand online and read available reviews and testimonials before making purchase decisions.
In 2013, the founders of TechStyle Fashion Group came up with the idea of starting a reasonably priced and quality athleisure brand that was stylish as there was none then. They partnered with Kate Hudson who got involved with the brand right from day one. She was hands-on, got involved in the design process, and worked closely with the team to ensure their styles stayed fresh.
Kate also spearheaded efforts to make clear communication a priority, something that has set the company apart from its competitors. The company implemented a new data system to facilitate proper inventory at all levels. An upgrade in the department of customer service was also done. This was in response to the emerging needs of customers.
These interventions yielded a top rating for Fabletics from the Better Business Bureau in 18 months. There was also an improvement in their customer satisfaction score. Their commitment to quality and customer satisfaction resulted in quick growth with their 2017 sales projected to reach $250 million.
Adam Goldenberg started his first business in 1997 when he was only 15 years old. Goldenberg’s company, Gamer’s Alliance, Inc., was a network of gaming sites. He successfully sold the company 2 years later to Intermix Media and then at just 17 years old became their Vice President of Strategic Planning. 3 years later he became their Chief Operating Officer which places him as the youngest COO that has ever served in the position at a publicly traded company.
While Adam Goldenberg was working at Intermix Media he became friends with Don Ressler. They have gone on to co-found a number of companies together after Intermix was acquired by News Corporation in 2005. The first company they founded was Intelligent Beauty with each serving as co-Chief Executive Officers. This company on Crosscut.vc developed and operates companies in the field of personal care, beauty, and fashion. They also co-founded Dermstore.com. Adam Goldenberg continues to serve as the Director of this company which sells high-end beauty products through its online site.
In 2010 Goldenberg and Ressler co-founded their biggest success yet; JustFab. This is an online fashion retailer that provides quality, fashionable clothing to its members at affordable prices. JustFab added a number of subsidiaries since opening and in 2016 they changed the name of the parent company to TechStyle Fashion Group reported on Twitter. In order to have the ability to quickly respond to fashion demands as well as offer exclusive products the company produces the clothing that it sells. Adam Goldenberg and Techstyle Group also use a membership model so that they are able to offer personalized services to their customers, offer fashions that are individually targeted, and at half the price that their competitors charge.
One of the things that Adam Goldenberg strongly believes in is that in order to sell fashionable clothing online it needs to be fun, inviting, and offer a sociable experience. This concept has been behind all of the companies they have created, starting with Intelligent Beauty.
Adam Goldenberg has commented, half joking and half serious, that when he started out in the world of fashion he didn’t know the difference between a peep toe and a Mary Jane. However, when he looked at what the fashion companies were offering customers there was a huge opportunity to provide something different. In order to create their vision Adam and Don brought in the best in the industry and the rest has been history at http://vator.tv/news/2015-05-12-whats-it-like-to-be-a-unicorn.