Fabletics: Business-Genius

The retail world has changed a lot thanks to the power of the crowd. In truth, the crowd controls more than just the retail industry, but nowhere else is their power so strong. Companies will spend millions trying to undo one negative review if it gets enough attention from the public.

One brand not struggling to overcome negativity is Fabletics. There are a number of jealous sources trying to bring down the activewear powerhouse. Regardless of their attempts, Fabletics continues to grow and succeed, growing more than 200 percent over the last four years. Much of that success is credited to the power of the crowd.

By using user reviews as a form of advertising, Fabletics is leveraging a great marketing advantage. Customers take a lot more into consideration these days before buying anything. By having thousands of honestly positive reviews, Fabletics is improving customer loyalty and increasing customer retention.

All of this means that Fabletics can grow faster than other companies. It’s not easy building a $250 million business in a world where one bad review can destroy everything. That’s why it’s more important than ever that companies focus on maintaining strong relationships with their customers. When customers feel special, they trust the brand.

Fabletics understands that better than anyone. Most of the brand’s focus is on making every member feel special. That’s how it attracted 1.2 million members in just four years. Fabletics also has over 21 million social media followers. To date, Fabletics has members in eight countries.

The true business genius at the company is Kate Hudson. Unlike most celebrity entrepreneurs who get brought in to be the face of the company, Hudson actually works hard to keep the company afloat. She’s there every week going over sales numbers and coming up with creative ways to reach more customers.

That creative also extends to the 18 retail stores nationwide. Rather than just open hundreds of stores everywhere, Fabletics wants to keep those relationships strong. Each store hosts events and specials to attract local members and non-members to their stores. They use those events to get to know the local markets better.

Fabletics also combines members’ online shopping cart with what they look at in the store. It’s a way of adding a special feature that helps the customer shop easier and teaches Fabletics something about that member.