Fabletics is one of the fastest growing companies in the United States. The online retail company was co-founded by Kate Hudson, and since its establishment in 2013, Fabletics managed to transform into a million dollar business, being able to rake in around $250 million in revenue. The company is still considered to be in its startup phase, but it is already facing head-on with giants like Amazon, which currently controls more than 20% of the online retail industry. Fabletics is selling stylish and athletic garments targeted to women of all ages and sizes, and they are the only online retail company which requires their customers to become members in order to make a purchase. Fabletics is operating their online store through their website, and they also have physical stores which are starting to pop up in key American cities.
One of the reasons why Fabletics keeps on growing is because of how it presents itself to the customers. They enabled a feature in their website which allows their customers to leave a review or any comment describing how their transaction went. Their physical stores also encourage their customers to leave a review about their experience with Fabletics. This strategy developed after the company decided to conduct a study focusing on how reviews posted online would affect their business. According to the research, it was revealed that if a product or a company has too much negative reviews, people will try to stay away from them and they would never buy the product. It was also revealed in the study that people trusts the opinions of others online, treating them as a testament coming from a close friend or family member. It is very important for businesses to monitor the reviews about them online because it will spell their success or imminent doom. After Fabletics found out the result of the study, they focused on building a positive reputation online so that they can gather more customers. This approach of using the public’s opinion about the company or a product is called the power of the crowd. This power influences the people on their decision regarding a product, and it can be used by businesses to their advantage if they worked hard on getting good reviews.
Fabletics encourages their customers to become honest and share how their experience shopping with Fabletics went. If the customer has any unpleasant experiences with the company, Fabletics will do everything that they can to compensate for the customer’s bad experience, offering discounts and other freebies. This gesture coming from the company’s management creates a positive reputation for Fabletics, and it resulted to the number of their members and customers to spike. Fabletics explained that the recent spike in the number of their customers is because of the effective method that they are implementing, which is the power of the crowd. According to them, new customers who shopped at Fabletics would share their experiences with close friends and family members, and due to word of mouth advertising, more people are coming into their website and their physical stores to shop.