When A Clothes Company Goes Out Of Fashion
A return policy change turned people against a popular multi-level marketing company.
When Lularoe launched in 2013, the multi-level marketing company was the toast of the industry. It tapped into a niche market, leggings, and brought it into the mainstream. Women around the country wanted to be on the ground floor; they knew the company would be something special.
Facebook and Instagram feeds were filled with customers showing off their ‘one of a kind’ leggings. The free marketing helped fuel an almost unprecedented sales growth.
Because of the sales growth, the company decided to add more items to their collection. By 2014, it was decided they would add shirts and dresses to the product line. The new line increased sales, as expected, and helped propel more women to sign up to be consultants.
Lularoe needs to have an increasing number of consultants; that is how they fuel sales. Not only by expanding their distribution channel but also each starter kit costs $5,000.
With clothes sales accelerating at a rapid pace, more people began to sign up as consultants. It was a trend that seemed to solidify Lularoe’s place as a preeminent fashion house. The numbers made the company a desirable place for investors to park…
