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But They Had A Cool Office, So That Was Nice
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For about 5 minutes, Sophia Amoruso's Nasty Gal clothing line and stores were the toast of the trendy business world. That was only a few years ago. Now, they're bankrupt, and the reasons, enumerated in this article, are instructive for any trendy business. The real problem seems to be that the business was all built around one woman's aggressive self-promotion, and it also seemed all designed not to really sustain a business so much as to build her personal brand -- in other words, make her a celebrity. Which worked for her: There's a TV series coming based on her story, and she's an Executive Producer. And it didn't help that they burned through their cash with marketing and sales didn't keep up; they'd spend tons on ads via "influencers" (which really rarely works) and people might buy once, but never return. Meanwhile, she left Nasty Gal in shambles, and it's being sold off out of Chapter 11. Another key: "Nasty Gal’s mostly young staff focused heavily on the creative side instead of the business side." It's amazing how businesses discount the value of experience, because the young/trendy know way better than "old" people who have been there before. I've dealt with that and it's still a thing no matter how many times the same disaster scenario plays out. (Los Angeles Times)
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