The power of the crowd has become an increasingly important factor in determining consumer decisions in recent years. Increasingly, consumers are reading product reviews and trusting such reviews almost as much as they would trust a recommendation from a person that they know. Many companies and business organizations have taken advantage of this new consumer behavior and are creating more review focused marketing campaigns. One such company is Fabletics, which has experienced exponential growth as a result of this marketing strategy. Since it was founded in 2013, Fabletics has grown by over 200%, gaining over one million paying members and making more than 235 million dollars in revenue. The company has only been able to achieve such exponential growth by embracing the reviews of today’s consumers. Positive reviews have the ability to enhance the acquisition of new customers, the loyalty of customers to the brand and the retention of existing customers.
Several reasons have made consumers trust reviews so much in recent times. The first of these is that users have developed a general mistrust for traditional media. This applies mainly to the marketing and advertising campaigns carried out by such media. The second factor is that people spend a considerable amount of their time online. Therefore, they interact to a great extent with people on the internet, almost as much as they do with real life members of society. Thus, online reviews have become trusted nearly as much personal recommendations from trusted sources. User reviews have also become a standard feature for many company websites. Most businesses carry on their websites, often sieving out the bad reviews and leaving the positive ones to drive consumer traffic to their sites and to purchase their products.
Kate Hudson has moved from the list of almost celebrities to become a successful entrepreneur, owning a 250 million dollar company. The athleisure startup Fabletics has grown over three and a half short years to become a 250 million dollar company, and this has increased Ms. Hudson’s reputation in Hollywood and beyond. Fabletics was founded in 2013 when Don Ressler and Adam Goldenberg, founders of Techstyle Fashion Group became convinced that there was an acute lack of a real athleisure company in the market. What existed were exploitative sports clothing lines and businesses selling highly expensive clothes and attire to women. Fabletics was founded, and it has grown exponentially since.