Sunday, November 20, 2011

Jewelry Startup Reinvents Direct Selling for the Digital Age (Mashable)

The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark. If you would like to have your startup considered for inclusion, please see the details here.

[More from Mashable: JumpTime Changes How Online Publications Measure Content?s Value]

Name: Chloe + Isabel

[More from Mashable: New York Times Launches Fashion App for iPad]

Quick Pitch: A fashion jewelry company reinventing the direct sales model online.

Genius Idea: Chantel Waterbury, a seasoned corporate merchandiser whose 15-year career has spanned the jewelry divisions of both Target and LVMH, got into the business in an unusual way: through selling knives. At 18 years of age, she began direct selling as a way to fund her college tuition.

"I developed so much confidence from being successful at that," Waterbury recalls. "I was truly making what I was worth, and that was an awesome feeling."

Direct selling is a big business: In 2009, it accounted for $117 billion in sales worldwide, of which roughly a quarter was generated in the U.S. These days, Waterbury says, direct selling programs -- think Mary Kay or Avon -- largely cater to stay-at-home moms. These women tend to host parties at their neighbors' houses, showcasing and vending products to their friends and their friends' friends, from which they earn a commission of up to 50% on each sale.

But Waterbury believes there's opportunity outside of that demographic. With so many students racking up loans to pay for tuition, and so many others unable to secure full-time employment after they graduate, she believes it's the perfect time to bring a direct selling program to 18 to 28-year-old women -- particularly a program that allows them to leverage the social networks they've built organically online. This May, she launched an online fashion jewelry business called Chloe + Isabel that does just that.

It works like this: The company designs, produces and markets a range (currently about 200) fashion jewelry pieces priced between $18 and $200. Interested sellers, or Merchandisers, can sign up to create their own online boutique where they can curate and sell Chloe + Isabel jewelry on a 30% commission. Merchandisers also have access to the company's online library of training videos, as well as insights and trend reports. The startup is currently working with lifestyle blog Refinery 29 on a campus ambassador program to recruit new Merchandisers.

In August, Chloe + Isabel raised a $3.25 million seed round led by First Round Capital and Floodgate Fund, with participation from a number of notable angel investors including SV Angel's Ron Conway, Flickr co-founder Caterina Fake and actor Ashton Kutcher. The startup raised another $8.5 million in a Series A led by General Catalyst Partners earlier this month.


Series Supported by Microsoft BizSpark

The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark, a startup program that gives you three-year access to the latest Microsoft development tools, as well as connecting you to a nationwide network of investors and incubators. There are no upfront costs, so if your business is privately owned, less than three years old, and generates less than U.S.$1 million in annual revenue, you can sign up today.

This story originally published on Mashable here.

Source: http://us.rd.yahoo.com/dailynews/rss/tech/*http%3A//news.yahoo.com/s/mashable/20111118/tc_mashable/jewelry_startup_reinvents_direct_selling_for_the_digital_age

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