The Successful Business Model of Fabletics that Gives Priority to the Voice of Crowd

Fabletics is one of the fastest growing online brands, especially in athleisure section, since it founded in 2013. Many businesses study its business model as it could generate significant sales and revenue in a quick span of time. It is confirmed that the power of crowd has played a major role in this great feat. It considered customer voice as the key parameter for the business considering the changing consumer behavior of checking online reviews before making new purchases. Various researches have identified that customer reviews can ensure better customer acquisition, customer retention, and improved loyalty or LTV across the industries.


Interestingly, some of the findings of those researches are pointing businesses to where to focus. A study conducted by BrightLocal showed that at least 84% of the consumers believe the online reviews and considers it as similar to a personal recommendation. Peter Mühlmann, the CEO of Trustpilot, confirmed that people are no longer trusting the advertisements of brands and traditional marketing. Also, the product trust is at an all-time low, and people love to get the words of other consumers before making a decision. Additionally, more than 50% of the customers check the reviews at least once in a month. Also, at least 60% of the consumers responded that they do not wish to buy a product or brand that has significant negative reviews.


76% of top brands opined that they get better sales with the help of customer reviews. It is also revealed that positive reviews can play a significant role in the page ranking in search engines as well. Fabletics and its parent firm, TechStyle Fashion Group, have clearly utilized the changing customer priorities effectively to drive business for the brand. It should be noted that Fabletics has more than 30,000 reviews on the independent review site, Trustpilot; it also has an average review score of 8.2. The firm has already confirmed that it has set plans to intensify the customer review efforts and personally monitor customer comments in the internet ecosystem.


It was in 2013, Adam Goldenberg and Don Ressler, the founders of TechStyle, identified that the industry lacks an activewear brand that is reasonably priced, high-quality, and trendy. They decided to tap this opportunity and collaborated with Kate Hudson. By the end of 2013, they established the brand and gave much importance to customer service by considering communication is the key. After few initial setbacks, the brand started flying after 18 months, and it also got an excellent rating from Better Business Bureau.


The founders gave greater prominence to technology for offering better customer experience. The data-driven product choices for the customers are not only ensuring customer satisfaction, but it also adds long-term customer relationship. The firm has devised a subscription plan for its customers that comes with a Lifestyle Quiz. The Lifestyle Quiz is designed to get the customers’ thoughts, interests, and choices in fashion. It helps the brand to supply personalized products to each of its customers. The brand invites everyone to complete the Lifestyle Quiz to get the products in their mind.