2018 has been an extremely difficult year for Lularoe, the California-based MLM that sells a variety of women’s clothing including leggings, dresses, and tops. The company is facing multiple lawsuits alleging that the company is a pyramid scheme and that it sells low-quality fabrics with a predatory inventory return policy. We don’t know for sure how many LuLaRoe distributors have left the company in the past few months, but Social Media and sites like Better Business Bureau are filled with stories of unsellable inventory, shifting return policies, and distributors renouncing their positions with the company. So, when executives began teasing a new line of dresses earlier this year, Lularoe distributors were hoping for a needed morale, and sales, boost.
Unfortunately, the turnaround will have to wait. On July 24th, Lularoe finally launched the Dani line, a new sleeveless dress that looks great—until you try it on.
Late last year, LuLaRoe fumbled another high-profile launch of a line called Noir. For years, distributors begged for black versions of LuLaRoe clothing, especially leggings, citing huge customer demand. Eventually, LuLaRoe relented and launched its Noir line, but in the wrong season. The products were geared for Spring and Summer, but the launch occurred in the Fall 2017, causing overstocking and low sales of what should have been a huge sales boon.
The company has yet to publicly address the controversy of its Dani line, but in communications with employees, executives have characterized the issue as an isolated manufacturing issue. For LuLaRoe distributors’ sake, let’s hope the company’s launch of an upcoming denim line goes better.
It should also be noted that a big part of the Noir failure was that the company allowed top sellers to essentially game the system – those closest to Home Office were able to put in larger orders or got advance notice/better numbers in the “lottery”, leaving nearly all consultants unable to order more than a couple of scattered pieces here or there.