The Middleton Effect: Why it didn’t work for Daniella Helayel
3 main reasons:
Who can forget Kate Middleton's iconic blue Issa dress when she announced her engagement to Prince William? It almost immediately sold out, and while that would point to a roaring success for the brand Issa, it ended up being its kiss of death. But why?
Infrastructure wasn’t there. When demand it high and you don’t have the proper tools to deal with the onslaught of demand, your product suffers. She didn’t have financial backing to deal with the demand: She brought on an investor who was the sister of Dodi Al-Fayed but initially she was struggling with debt and over stock. There were also management issues: She said she didn’t get along with the new CEO that was put in and eventually left the company two years after the CEO took over.
Recently, Daniella Helayel (Issa's founder) has found a new outlook on life, not looking to point fingers at anyone for the blame of Issa's downfall. She's been quoted in Forbes as saying: "I grew up with Issa, learning along the way – making mistakes and finding solutions I otherwise would never have considered as part of the process. The only way we can face new problems or questions is with an open mind and fresh perspective. This is a new label and a new era; I want to look forward, not back."
Stats on why small businesses fail:
8 out of 10 small businesses fail.
The U.S. Census Bureau reports that 400,000 new businesses are started every year in the USA, but 470,000 are dying. According to the SBA, close to 66% of small businesses will survive their first 2 years. What that means is that only about one-third of total businesses will fail during the first 2 years. The SBA also tells you that about 50% of businesses fail during the first year in business.
Common reasons for failure are are not being able to pay bills, not having the skills to manage your business and not being willing to learn, and not being able to build a winning team.
So does too much publicity always lead to a business's collapse?
Not necessarily. Kate Middleton is also a huge fan of the brand LK Bennett, who have nothing but positive feedback from the experience. A quote from a brand rep reads: "Kate Middleton is an elegant lady, she wears our clothing and our shoes very well, and the American public are infatuated with her, which has definitely helped us, being new to the American market," said Tony DiMasso, president at LK Bennett and former chief operations officer at Jimmy Choo. "The great press we've received because of her has helped people come to the store and see the brand. We've been very well received in the United States and are starting to look at more stand alone locations in the city and in other states, such as Florida and San Francisco."