Lularoe: Company Analysis

Product Analysis
LuLaRoe is a direct selling company started by DeAnne Stidham and her husband Mark Stidham in California. This US based business sells clothing at wholesale prices to its consultants/distributors, they then go and sell the products to their customers earning a percentage of profit. The mission of the company is similar to many MLM’s, to make a living from a home-based business. “LuLaRoe exists to provide an opportunity for people to create freedom by selling comfortable, affordable, stylish clothing, and offering its Retailers the independence to set their own pace and schedule.” (http://www.lularoe.com/our-story-home) LuLaRoe started with dresses and now they sell all types of women, kids, and teens clothing, everything from

One size that fits up to 10/12 and a Tall and Curvy option that fits up to a 22/24. The leggings also come in kids and tween sizes. When a distributor makes a wholesale order there are 80 units split into the different sizes picked by LuLaRoe, not the seller. The material is a blend polyester and spandex which allows them to stretch to size. Lularoe uses materials and dies that make the product softer and fade much slower than other brands. The pants are described by many as buttery soft and vibrant in color.
The patterns printed on these leggings is where the branding and positioning of the product come in. LuLaRoe only prints a certain amount of each pattern, this makes the demand for certain prints high in demand. Some prints are so sought after that they are held and resold higher than retail price. Patterns are released at different times, many of the popular patterns are the leggings released around each holiday. Some designs are simply one color, while others are intricate designs and/pictures of things like Christmas trees and candy

That kind of growth in direct sales is unheard-of. LulaRoe has no real competition in this market. There are no direct sales companies coming anywhere close to their sales as a clothing distributor. Other regular retailers will struggle to compete with their brand. Just about every store supplies leggings, some are cheap like Walmart, others are expensive like Lululemon, but none of them can compete with the amount of design options LuLaRoe has. Other stores would spend too much money providing all the designs to each store in a range of their normal sizes. It’s just not possible for others to compete enough to make a dent in their