Fabletics is an American retailing company that was co-founded by Kate Hudson, and they have been in the business since 2013. They have been partnering with electronic retail websites like Amazon to sell their products. Because Amazon currently controls 20% of the electronic commerce fashion market, Fabletics managed to grow and reported their revenue amounting to $250 million. The company is still considered as a startup, and they are using the subscription mechanic in order to sell their products to anyone who is browsing online. Many people have praised the simple system that Fabletics is using, making it a hit among the tech-savvy netizens. The products that are being sold by Fabletics are comparable to high end brands, complete with the aesthetics and the quality, which is why more and more people are choosing them over the expensive brands. Because of the convenience that they offer to customers who are browsing online, as well as the quality of their products, customers started to flock at their websites and ordered everything on the portfolio. Fabletics capitalized on the word of mouth marketing, and they have succeeded in utilizing this system.
Another technique that Fabletics is looking into would be the power of the crowd, or in simple terms, customer reviews. Based on recent studies about online marketing, researchers have found out that brands with more positive reviews tend incur more profit. Fabletics managed to secure a high score on product reviewing websites, and it has driven their growth to a whole new level. According to studies, people today trusts these reviews, and they are thinking as if a friend or someone they knew posted these remarks. Before purchasing a product, a huge percentage of people would first do a simple research online, and one of the most reliable information that they look for are customer reviews. Positive reviews are far more important than the prices or the specifications of a product, because according to the study, people tend to purchase something that has high ratings rather than products which have a great value for money. Also, the frequency of a product being reviewed makes a direct impact on its search results. The more reviews there are for a product, the more likely it will appear on the top search results in search engines, like Google.
Fabletics is capitalizing on this trend by improving their customer review feature on their website. They believe that through word of mouth and the voice of the crowd, Fabletics will sure go a long way.