In today’s consumer market the power of the crowd, which are crowd sourced reviews are what is determining what consumers are buying. Consumers read the personal recommendations by people they are not connected personally with and trust the reviews enough to help decide what they will purchase. One of the brands that get reviews in this medium is Fabletics and since its 2013 launch, the company has grown 200 percent. This growth brings the company to over $235 million in revenue with over a million paying members.
TechStyle Fashion Group the parent company of Fabletics corporate marketing officer Shawn Gold gives the reviews credit for the fast growth of the company since he believes they drive increased customer gains. Gold said the reviews also improved loyalty for all brands.
Online reviews are a big part of the decision making process for businesses since consumers are becoming more dependent on the internet and a recent study proves the point. This study was a BrightLocal study that shows people trust reviews at 84 percent, which is as high as a review by someone they know personally. The founder of Trustpilot CEO Peter Holten Muhlmann half of the surveyed customers at least once a month do research over the internet for a business. That figure is up 23 percent and in the surveys, 50 percent of customers say they use online reviews often. Further, 60 percent of the customers said negative reviews changed their mind about using a business.
The L2 research firm found similar results with 76 percent of the top brands found on review sites. Then the product page drives purchases with the number of brands having an increase of 70 percent in the past several years.
Vibes another firm that did a study found that 65 percent of in store mobile searches were for reviews, while only 33 percent of the searches were comparing prices. The firm concluded customers are more concerned about good reviews more than they worry about prices.
The TechStyle Fashion Group founders Adam Goldenberg and Don Ressler thinking of starting athleisure brand thought in connection with it the perfect person to represent the stylish and reasonable price athletic wear was Kate Hudson. Ms. Hudson became involved right from the start after being approached with the brand. She is still involved in the design process and the team to ensure athleisure remains exciting and Ms. Hudson keeps her eye on sales weekly to know what in the clothing line sells and what clothes are not selling as good. The rapid growth of the company resulted in Ms. Hudson making efforts to upgrade the customer service department and a new data system to keep better track of inventory. This kept the most popular clothing from being sold out without more merchandise being added to replace the items. This was a good business move by Ms. Hudson that resulted in favorable reviews.
Kate Hudson, when asked whether she would like to be known for her acting or as a businesswoman she answers being an actress, is where she is happiest. But she is proud of the clothing line and her participation with the company.