Facebook's like button helps crowdsource fashion trends

Online shopping is one of the most intriguing sectors to analyze. With fashion brands already creating a sense of community among shoppers, it’s a natural progression to extend the appeal online.  Online retailers have begun integrating Facebook’s ‘like’ button into their websites.  Urban Outfitters has used the ‘like’ button as a crowdsourcing tool to determine what’s hot and suggest clothing options to consumers.

UO records the number of ‘likes’ each piece of clothing receives and gives visitors the option to browse by the most liked. Shoppers get to show off to their Facebook friends how trendy they are, followers get help making fashion decisions, and UO receives exclusive data on the most popular clothing styles as they evolve, instantly.  This data is used to identify future designs and promotions. The company has managed to increase its sales by 25% per year since 2005, and Forbes estimates that UO’s revenue will be over $400 million by the end of the year.

There is one downside to UO’s crowdsource suggestion system to consider. Urban Outfitter’s ‘like’ system runs on an assumption that their audience wants to buy what other people like, which may not be true for their hip, vintage crowd. Regardless, this method of crowdsourcing is gaining pace at popularizing itself, and has reached many retailers including Levi’s and ASOS, who were among the first.