Fabletics’ Winning Strategies Include Crowdsourcing and Data-Driven Approach

Kate Hudson's online brand, Fabletics is defining success in the activewear segment of the fashion industry using a number of tools. For people who wanted to grow significantly in the online ecosystem, the success story of Fabletics is truly inspirational and imparts many lessons. The main contributor to the brand's success story is its crowd-sourced reviews, and most tech-savvy brands are shifting their strategy to it. It is understandable that people love purchasing products based on the reviews or recommendations of people whom they know. The prominence in reviews have helped the brand significantly, and it received a growth over 200 percent during the last three years with the revenue currently standing at close to $250 million.



The online brand understands that the reviews of customers can improve improved loyalty (LTV), customer acquisition, and customer retention. In today's world, online reviews play a vital role in the decision-making process of the customers. It should be noted that the study conducted by BrightLocal showed more than 84 percent people believe online reviews. Interestingly, more than half of the people research a brand once in a month. Also, more than 50 percent of people love reading reviews. It is also observed that positive reviews play a significant role in search engine rankings as well and increase the revenue from the products. Fabletics follow the customer-centric approach, and the brand manage, collect, and respond to many thousands of customer reviews. It should be noted that the brand has almost 30,000 reviews with an average score of 8.2 on Trustpilot, a prominent independent review site.



The star-studded brand collaborated recently with pop star Demi Lovato as well and brought her line products to the brand's online store and offline stores. Lovato appreciated the business model including the product lines of Fabletics and said, "It inspires and empower women." It should be noted that the TechStyle Fashion's Adam Goldenberg and Don Ressler collaborated with Kate to start an athleisure brand in 2013 since they found there was no stylish, quality-driven, and reasonably priced athleisure brand, during those days.



From the day one, Hudson took active participation in the overall process of Fabletics. She reviewed the social media strategy, designing process, sales data, and chose the Fabletics products for her personal use. Though the brand faced few initial glitches, Hudson led its rebound and put communication as a priority. It added new data system and scaled up its customer service department, and it became a top brand within 18 months. The brand's collaboration with its parent firm, TechStyle Fashion, helped it to drive efficiency in many processes with the help of technology.



The data-driven approach of Fabletics helped it to offer customized products. It collates information from various channels, including social media, and creates products according to their needs and priorities. Fabletics offers a subscription program to its customers to provide individualized products. Interestingly, people who register with the brand would have to take part a Lifestyle Quiz with questionnaires related to their priorities in fashion – to design specific products for them. The brand encourages everyone to take part in its Lifestyle Quiz to get the products of their choice.