Fabletics is an American retail company which was founded in 2013. The company is focusing on the manufacturing and distribution of athletic sports wear for women, and even if they are still new to the industry, Fabletics managed to grow into a multimillion dollar business in such a short period of time. The company was co-founded by several people, including American actress and model Katie Hudson. She is also serving as the current brand ambassador of the company, being the face of Fabletics since its establishment. Katie Hudson believes that the unique approach of their business combined with quality products being sold to their customers is the reason why the business managed to generate $250 million revenue in just five years. Katie Hudson added that another reason why the company succeeded is because of word of mouth advertising.
Word of mouth advertising is considered to be the most powerful form of advertising. According to research, people tens to believe their friends and families whenever they discuss a particular brand. The decision of an individual when purchasing a product depends on the recommendation of someone he or she knows. In the world of marketing, word of mouth advertising is proven to be highly effective, translating to income generation for some successful brands. With Fabletics, what happens is that satisfied customers who managed to do transactions with their website often share their experiences to their friends and families. They are saying how easy it is to use the website, and how awesome the collection of products are. Meanwhile, friends and family members who have heard a positive feedback about the product from Fabletics would then visit their website, and check the products by themselves. If the new customers loved the transaction, they would then refer Fabletics to their own friends and families. This marketing method spreads easily compared to other forms because of the fact that it uses each individual network of friends and families of a particular person.
Fabletics managed to harness the potential of this system by installing a series of review and testimonial spaces on their website. Based on another study by a prominent research center, people who are purchasing goods from the internet tend to look at the product review first. If a product has more positive reviews, people will tend to purchase it. However, if the product is reviewed badly, it could not be sold. The research also revealed that those who are purchasing products online tend to believe the testimonials written on a product, even if it comes from a stranger, because according to the researchers, inside the internet, the voice of a stranger commenting on a product can have a similar effect to a friend or family member giving advise to an individual. Fabletics used the research in order to further their dominance in the online retail industry, and so far, the company is succeeding in their business method. Fabletics is hoping to reach more customers in the future, and they are promising to provide more quality products to their customers, which would benefit everyone.