Finally silencing all doubters, Kate Hudson’s Fabletics company is an official success. Since it’s 2013 launch, it has grown by over 200% and earned over $235 million in revenue, with more than one hundred million paying members. Even with the explosion of athleisure wear across retailers and market saturation, the company is going strong. Kate Hudson has always been known for that authentic, girl-next-door appeal and the actress turned businesswoman has brought that attitude to her lucrative athleisure clothing brand.
Their rapid growth is largely due to leveraging the power of the crowd, according to Shawn Gold, Corporate Marketing Officer of Techstyle Fashion Group (Fabletics’ parent company). Kate Hudson and co. have focused on listening to you, their customer. They are embracing consumer reviews in order to provide the products customers want. Those same reviews are also convincing them they’re making the right choice.
Why the shift from traditional marketing and advertising strategies? Like many smart companies, the folks behind Fabletics understand that today’s consumers are more likely to trust genuine crowd-sourced reviews over anything else. The opinion of a fellow buyer carries significantly more weight than a funny commercial. Customers are spending more time online and researching businesses and products before pushing that “checkout” button or choosing a restaurant for dinner. They want to hear about others’ experiences to help them determine their final purchase.
Fabletics is using this crowdsourcing to be “transparent and customer focused.” They feature customer stats and reviews from Trustpilot, one of the world’s largest review sites, directly on their homepage. Potential buyers see right away what other loyal customers have to say about their new athletic wear. Specifics on size, fit, and quality from real people help them have confidence in their own purchase.
The fashion forward athleisure brand is also heavily leaning on customer data to help them make smart choices when designing new products and purchasing more inventory. Shawn Gold says, “If we don’t know what people want, and we don’t truly listen to their tastes and circumstances, it is impossible to improve their lives. Ultimately everything we do is confirmed by the direct opinions of our customers in their own language.”
And it’s paying off. While industry experts are claiming the athleisure trend is dying off, Fabletics saw a retail growth of 644% last year. They plan to have open 12 more stores by the end of 2017 and are projected to reach $250 million in sales.
From the very beginning, Kate Hudson has been more than celebrity spokesperson. She is involved on a weekly basis, whether it’s designing new clothes, choosing a social media strategy, or reviewing sales numbers. Her efforts have always been focused on maintaining clear communication with customers and excellent customer service. Fabletics wants to empower women by providing beautiful quality athletic wear at an affordable price. Sounds like a company to jump on board with. But don’t take it from us, or even Kate. Check out the thousands of great reviews left by happy customers. Then take the Lifestyle quiz to find out which Fabletics gear is right for you!