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Jilly_in_VA

(9,963 posts)
Wed Sep 15, 2021, 07:29 PM Sep 2021

'It's very culty': the bizarre billion-dollar downfall of fashion company LuLaRoe

Roberta Blevins first heard about the leggings in the fall of 2015, in a post by a fellow member of a motherhood-themed Facebook group. They were loudly patterned, buttery soft, interesting – clothing functional for chasing around young children, accommodating of changing bodies post-birth, and cute enough to be socially acceptable outside the home. The woman who advertised the leggings said she bought them wholesale from a company called LuLaRoe, and sold them for double the price.

Blevins was intrigued. She was struggling with the alienation of young motherhood and looking to supplement her family’s income, and LuLaRoe offered an alluring, soothing promise: sign up to be a retailer, and you could run a successful virtual boutique out of your home while still being present for your kids.

LuLaRoe seemed to offer “this built-in community, where I knew I could have an instant friendship”, she told the Guardian. As Blevins recalls in LuLaRich, a four-part Amazon docuseries on the beleaguered multi-level marketing company, LuLaRoe women added her to Facebook groups, texted her, invited her to parties that doubled as fashion sales, and showered her with encouragement. By March 2016, Blevins paid $9,000 to become a LuLaRoe consultant and receive a starter package of clothing to sell.

At first, things went well – she was enthusiastic about the clothing, and made money selling LuLaRoe on Facebook out of her home in suburban San Diego, California. But Blevins quickly felt the strain of the company’s precipitous growth, owing to its emphasis on recruiting new “consultants” – people on the “downline” whose start-up costs traveled up the ranks as “bonus checks”. By the end of 2016, what had started in 2012 as a homespun business selling maxi skirts out of the trunk of a car by two Mormon grandmothers had reached over $1.3bn in sales with over 60,000 consultants – and faced lawsuits alleging that LuLaRoe founders Mark and DeAnne Stidham misled retailers and ran a pyramid scheme.

https://www.theguardian.com/tv-and-radio/2021/sep/15/lularich-lularoe-amazon-docuseries
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One of my former co-workers was into this; thank goodness she now is not

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'It's very culty': the bizarre billion-dollar downfall of fashion company LuLaRoe (Original Post) Jilly_in_VA Sep 2021 OP
My wife bought a lot of Luluroe a few years ago AZSkiffyGeek Sep 2021 #1
I have purchased a lot of their clothes but usually on Ebay helpisontheway Sep 2021 #10
One of my choir pals was into this for about six months. luvs2sing Sep 2021 #2
Sounds like a company with a solid product that blew it by going MLM... TreasonousBastard Sep 2021 #3
It appears it also got religious as well PatSeg Sep 2021 #4
The owners are cradle Mormons obamanut2012 Sep 2021 #6
Smells like UpInArms Sep 2021 #5
Exactly. I as trying to remember the name of that scam company. Hoyt Sep 2021 #7
The Prime documentary is shocking AZSkiffyGeek Sep 2021 #8
I started watching it tonight PatSeg Sep 2021 #9

AZSkiffyGeek

(11,004 posts)
1. My wife bought a lot of Luluroe a few years ago
Wed Sep 15, 2021, 07:33 PM
Sep 2021

Never got sucked into the MLM part, although I wonder if she would have had I not been so opposed . I think she mostly was picking the remains of people getting out, at deep discounts. She loved the clothes she got.

helpisontheway

(5,007 posts)
10. I have purchased a lot of their clothes but usually on Ebay
Thu Sep 16, 2021, 04:56 AM
Sep 2021

and FB marketplace. I purchased a few items full price because I liked the design. I love their clothes (mainly the Carly dress and maxi skirts…leggings were so comfy during quarantine). I have not had any issue with the quality of items mentioned in the documentary.

luvs2sing

(2,220 posts)
2. One of my choir pals was into this for about six months.
Wed Sep 15, 2021, 07:40 PM
Sep 2021

I think she made a profit because she had a ton of sales and then got out. I have a few pieces that are amazingly attractive and classic that I still wear, and I have a frickin ton of those leggings that she just gave me because the whole order was ridiculously small, and I was her only birdlegged friend. I think not being able to return that order was what made her get out when she did because she was still selling like crazy. And those weird patterned leggings are just fine as underlayers for winter walking.

I’m definitely looking forward to seeing this show.

TreasonousBastard

(43,049 posts)
3. Sounds like a company with a solid product that blew it by going MLM...
Wed Sep 15, 2021, 07:41 PM
Sep 2021

Why do successful people throw it all away with schemes like this?

Just let them sell the stuff and forget about downlines.

obamanut2012

(26,067 posts)
6. The owners are cradle Mormons
Wed Sep 15, 2021, 08:05 PM
Sep 2021

Which is why their original maxi skirts were popular made their business take off.

AZSkiffyGeek

(11,004 posts)
8. The Prime documentary is shocking
Thu Sep 16, 2021, 12:48 AM
Sep 2021

The CEO practically thinks he’s the reincarnation of Joseph Smith. Reminds me of the NXVM documentary in some ways.

PatSeg

(47,386 posts)
9. I started watching it tonight
Thu Sep 16, 2021, 03:45 AM
Sep 2021

and I'm almost done. It reminded me of the NXVM series as well, though I think this one is done much better. This couple actually had a good business going in the beginning and then they got too greedy. They remind me of exploitive televangelists.

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