Fabletics has made a long journey to success during their short time in the industry. The athlesiure brand didn’t always have success but they found a way to leverage the power of the crowd which caused an explosion in sales. The opinions of the consumers is extremely important. Don Ressler and Adam Goldenberg did not know this when they founded the company in 2013. The two men wanted to create a clothing line that would be suitable for active people looking for style. The clothing itself is a combination between athletic and leisure. The men wanted to partner with a celebrity that would represent their company well. They ended up deciding on Kate Hudson. Kate proved to be an amazing choice. She was there for the company and helped them get out of a series of issues that occured.
Fabletics wasn’t always the $250 million company that they are today. In fact, they experienced quite a few setbacks during their first few years in the industry. The issues started to occur when customers noticed that inventory listings were inaccurate. Essentially, the most popular products were sold out but listed as in stock. The problem was a result of a malfunction in the inventory tracking system. Customers began complaining but felt that their complaints were unheard. The customer ratings on Fabletics soon began to decline. The sales were declining and the company was losing customers. Kate and the company knew that they needed to make some changes.
The first thing that the company changed was their inventory tracking system. They made sure that the updated system would properly track their products. They also focused lots of time to their customer service team. They made sure that they helped customers more and made them feel more important. By listening to what the customers had to say, the company was able to change accordingly.
The changes proved to be very helpful for the success of Fabletics. The changes that they made were very impacting on the customer rating. While customer rating is not everything, it proved to be quite important. A recent study analyzed what consumers had to say on the matter. 60% of those questioned stated that a bad online review of a company or product would cause them not to use or purchase it. They also stated that they were very trusting of online reviews. People even said that an online review was comparable to a personal recommendation from someone they knew.
Fabletics used the technique of leveraging the crowd to find success. They were able to make changes that ensured their success. Kate Hudson was very impacting on the success of the company. She stuck through it and has found great success.