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9Oct/17Off

Why Fabletics is Leveraging Review-Centric Marketing Approach

Successful brands are customer centered; always providing high-quality products or services at reasonable costs while responding appropriately to new consumer behaviors. Consumer trends are dynamic, and with the advent of the internet, new consumer trends are always emerging. At present, “user reviews” is the much talked about trend regarding online shopping. Online buyers search and compare user reviews before deciding on whether to purchase products or acquire services. Positive reviews encourage customers to buy a company’s goods or services while negative reviews discourage them from dealing with a company. Consumer goods companies such as Fabletics that responded to this new trend are scaling the heights of their respective industries.

Fabletics is a relatively new company in the fashion industry having been established in 2013. The company was founded by Kate Hudson, Don Ressler, and Adam Goldenberg. Fabletics is focused on providing high-quality athleisure clothing. So far, the company has performed impressively well in the competitive activewear market dominated by well-established brands. Fabletics credits its marketing strategy, review-centric, for its growth. According to Shawn Gold, corporate marketing officer of TechStyle Fashion Group, Fabletics’ growth is as a result of user reviews, or the crowd.

Beginning in 2013 to date, Fabletics has grown by over 200%. The U.S based company now has operations in over six countries including German, France, Canada, Spain, Netherlands, etc. The company also ships its merchandise to Australia. Fabletics initially focused on women products, but the company now caters to men’s activewear needs. Fabletics’ revenues are approaching $250 million as the company prides itself on over one million paying members. For a 4-year-old company, the growth is mind-boggling.

Online user reviews are part and parcel of a modern consumer’s shopping decisions. A BrightLocal study concluded that online users not only search for user reviews but also a majority of them trust user reviews. The trust that online users bestow on user reviews is the same trust they have towards products or services recommended by family members or friends. Peter Holten Mühlmann, Trustpilot’s Founder and CEO, suggests that modern consumers have nurtured a distaste for all traditional forms of marketing and advertising; they prefer the safety, trust, and power wielded by user reviews.

Forward-thinking consumer brands are embracing a review-centric marketing approach. L2, a research firm, conducted a survey that revealed a trend by many consumer goods companies to include reviews on their websites and product pages. Another related study revealed that while online users desire to acquire products at low cost, many of them search for user reviews more than they look for price comparisons.

What is in for consumers brands that have embraced a review-centric marketing approach? Positive reviews are likely to result in improved search engine rankings, more revenues, and more customers. Also, positive reviews encourage repeat clients and lead to better customer retention.

Fabletics products are available through their website, Fabletics.com, and their physicals stores spread across America. Kate Hudson has been at the forefront of promoting the company’s products and recently she welcomed Demi Lovato to be part of the company’s brand ambassadors.

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