These days it is the power of the crowd that ultimately determines what consumers will spend their money on. Instead of allowing advertisements to dictate what they buy, the consumers of today put their trust in crowd sourced reviews.
Savvy brands such as Fabletics are using this shift in consumer behavior to quickly grow their companies like never before.
Since launching in 2013 Fabletics has grown by more than 200%. They now have over one million paying customers and have managed to bring in $235 million in revenue in 2016.
By embracing user reviews Fabletcis was able to become one of fastest growing internet stocks we have every seen. And according to Shawn Gold, Corporate Marketing Officer of TechStyle Fashion Group, its all due to the power of the crowd.
Consumers Really Trust User Reviews
The consumers of today live increasingly digital lives. They are either spending time on their favorite social media platform or they are reading reviews about the latest and greatest gadgets on various online review sites.
Because we now spend more time on social media, the everyday consumer views what their social media followers say as something they should listen. That’s why online reviews are becoming more and more significant in the decision making process.
According to a study done by BrightLocal, 84% of people trust online reviews as much as a personal recommendation from someone they know. Even more interesting is the fact this number continues to increase with each passing year.
The sad reality is consumers no longer trust traditional advertising. Peter Holten Mühlmann, Founder and CEO of Trustpilot, says that trust is at an all time low. And because of this consumers now find power in online reviews. Smart brands like Fabletics not only understand this, but they are leveraging it to get their products and services in front of the masses.
Kate Hudson and The Fabletics Brand
When most people think of Kate Hudson they think of a very down to earth celebrity who is easy to approach. It was these characteristics that made Don Ressler and Adam Goldenberg want to team up with Hudson for the Fabletics athleisure brand.
According to Gregg Throgmartin, the president of Fabletics, Hudson represented everything they wanted Fabletics to be. So when it came to figuring out who to partner with, she was the first person that came to their minds.
Since day one Hudson has played a major role in the day to day operations of the company. She is involved in everything from reviewing the budget to coming up with an effective social media strategy.
The great thing about Kate Hudson is she doesn’t get behind something unless she truly believes in it. Fabletics is the type of gear that should would actually wear herself. It is because of her authenticity that she has been able to help Fablectics grow into a household name in only 4 short years.