Physical stores still come in the first place when we look at the world of retail, but online purchasing habits are becoming more and more preponderant in the fashion segment. In fact, fashion has always been one of the most avant-garde sectors in terms of innovation and experimentation, both at creative inventiveness and marketing strategies level.
Are all online fashion retailers to be trusted?
According to Forrester Research, a US market research firm, online penetration in the fashion segment is almost double compared to the total market. In fact, for fashion, online purchases amount to 27% of total sales, compared to 18% of retail sales in general. Moreover, more and more consumers are buying online: 58% of the total online shoppers have purchased a product on the web in 2018, half of which is the clothing, shoes or accessories segment. But as always, when a market explodes, the meteoric rise and fast growth of the business hike comes before regulations and controls are put in place. And this is the time where some unscrupulous companies try to speculate on customers who are not yet acquainted with an immature market. And so here we come to know about fraudulent companies, in their business model towards their employees, or services and products provided to customers. The case of the now notorious Lularoe caused a sensation, which jumped to the headlines for the unfair behaviour that led its management to have to answer for the alleged improper in front of a judge. The aforementioned company has set up a pyramid business model, which is a business model that gets its proceeds not from the sale of products to buyers outside the company, but from the purchase of these by the "fashion consultants" affiliated to the Lularoe. The fashion consultants of Lularoe complained that after an initial period of easy earnings, the proceeds of which were mainly derived from the commission on the purchase of new Lularoe products by their subordinates, things started to crack.
Bloomberg’s research into LuLaRoe finds LuLaRoe guilty of fraudulent commissions scheme!
According to Bloomberg, Lularoe has had to adapt to the Federal Trade Commission regulation, that doesn’t allow commissions based on recruits orders. In fact, that kind of policy may encourage affiliates of the company to purchase products they won't be able to sell, and Lularoe for years paid consultants commissions based on their recruits’ wholesale orders. After adjusting to the regulations, Lularoe's revenues have fallen away vertically.
The quality of the products supplied to the fashion consultants has quickly collapsed, and they have witnessed deliveries of boxes full of failed leggings, mould-smelling shirts, and abraded fabric: unsellable items. The Lularoe management policy in taking back unsold goods has become increasingly restrictive, leaving fashion consultants loaded with failed merchandise, already paid with their savings, to pile up in their homemade warehouses.
After hearing such stories, some questions arise. How can we prevent the bad faith of certain companies from expanding exponentially? How can we prevent rapacious businessman to spread like wildfire on the online world, trying to dupe their customers by offering a bad service and stepping away from the moment of truth, the testing of the quality of the service and products by clients?
BritainReviews: Importance of customer reviews!
Fortunately, when needs arise, adequate responses often come to light as well, and the web is self-regulating itself to stem the proliferation of unfair behaviours with a control system that empowers consumers and clients: the system of control through reviews. By now, if a company behaves incorrectly, it has a short life.
Consumers, irritated, will put it back in place leaving reviews that will translate the behaviour implemented by the company into long-lasting written words. And of course, the virtuous behaviours will be rewarded too, so the gratitude of a satisfied customer will often turn into a positive review and an encouragement to fellow customers to trust a certain product or service. Of course, the terrain of online reviews platforms can be insidious too.
Not all review providers are totally impartial and transparent. For this reason, as in everything, before trusting blindly it is better to inquire. And on BritainReviews we are pleased to offer a platform where customer reviews are completely unfiltered, whether positive or negative, and no company has a say in moving the balance of its reviews towards the positive and the negative in unorthodox ways, but only with trying to offer the smoothest service and the best quality to its customers. With regard to fashion online shopping stores, you can have a look at the reviews of Zaful and Boohoo.