Transcription
Next into the tank is a fashionable business designed for the social media generation.
[Music] Hi, I'm Hillilary. I'm originally from Pittsburgh, PA, and I'm the founder and CEO of the Style Club. I'm seeking 500,000 for 20% of my company. The Style Club is the first multi-platform young shopping network. With all the media that's accessible and mobile shopping at its all-time high, the shopping behavior of the younger consumer has changed. It's all about the experience. Let me show you how the style club works today. You can go on to our website and see some of our super hot music videos featuring our style influencers.
[Music] So, our customers can shop everything directly on our website. They can also shop it in our major retail stores or they can shop it on our app. Users can go onto our app and they can shop it all right there with just one click of a button. It's that easy. So, which one of you sharks wants to help make the world more stylish again and join the club?
You're in major retail? Yes, we're in Urban Outfitters. Oh, wait. Hold on. I know you guys are looking at all of this stuff thinking, "I want one of those." I got something for you. Okay. Yay. Thank you. Here you go, Lori. Here's your card. I get red. You get red. Thank you very much, Hillary. Here, I'll help you put it on, Lori. Thank you. Thanks. Appreciate it. It says boss babe. Oh my god, you look so cute. Yeah. What does this jacket retail for? Love. That retails for $60.
So, how did you start the business? I originally started by creating video content. How long ago was that? About a year ago. Oh, you've only had all of this for a year. Yes. What's in Urban Outfitters? Our baby collection. And then Love Club will be going in next. How many urban uh outfitters are you in? All of them. How did you get that done? One year flat. They came to us um because we have a very strong social following. Um and we work with all these major influencers. What type of influencers? Bloggers, celebrities. We reach over 200,000 uh followers, but our uh influencers have over 50 million.
How do the sales break down, Hillary? What are the total sales? And then show me the biggest items. So the total sales that we've had to date is around 400,000. That's around 40,000 units. That's how much of that is in retail. How much is online? All of it right now mostly is in retail. So how long has that been? It's been 3 4 months. That's much better than 400,000 a year. Those are just stock. We're thinking 400,000 a year. It's been 400,000 in 3 4 months. Correct. Okay. Only at that one chain, Urban Outfitters, right now cuz we gave them exclusivity. And that's why we're really here so that I can exclusivity. Ouch. Ouch. Ouch. No other retailer can carry,000 in but it's also continuing. So we have POS all the way up to summer 2017.
And so Hillary, out of all these items, are there one or two that are that are the biggest sellers? Yes. So our babe hat, which one? This right here, our babe hat, this is our number one seller. Of the 400,000, how much of that is in the babe hat? probably around 300,000. I'm curious. Love hats. $300,000 in sales in that hat alone. Yes. Why is that hat? Bring that hat over. What's interesting? That's a $400,000 hat. There's a lot of hats that look like that. So why is that your number one seller? I'm always watching what's happening online or what girls are wearing and sharing. I thought babe was insulting to a young woman today. No, it's empowering. So are you. Well, I mean I You know why? Nobody ever calls you that anymore. It's a good thing. Now, did they buy all those hats from Urban Outfitters or did you sell direct? Well, we we sold it all to Urban Outfitters because we had to give them an exclusive. So, you can't even sell this hat online. No, you cannot right now. Nothing's selling online. Everything's going through Urban Outfitters. Correct. Mhm.
So, there's a concept in investing called diversification. That's how you protect your Heiney when poop happens. Kevin, you're so wrong. You were so Let me finish my thought. I'm going to help you a lot. You're all in to one channel. That's your big bet. You've got a big bet with Urban Outfitters. It's too risky. I'm out. Incredibly impressive sales in a very, very short amount of time. What's the bigger plan? Are you going to sell online? Are you going to go to other retailers? The bigger plan is to really build out our direct to consumer. We really want to build out that app where it's that video shopping app making it extremely simple for people to to watch and shop all in one place. You're asking for $500,000 on a baby baby business. It's way too much money for me to have confidence to give you that kind of dough. It just doesn't make any sense. There's no room for a partner in this deal right now. So, I'm out. Well, we're on track for 1.2 this year. Listen, I have a big dream to make this happen. And I know that if we build out this online channel, this direct to consumer, and because these customers are, you know, very attached to me, we can make this happen. You have a major retailer, very cool, very popular retailer, and you're in and they've already given you big purchase orders and you've already proven your success. I think you should try to just keep making things and funneling it to them. Have them keep expanding you. I don't see this as an investment for me right now because my I have a completely different thought on on the way that you should go. So, I'm out, but I'd be a customer. You're cool. Great way to start a business, but you have to change your entire strategy. And that's what you need the money for. For 500,000, I want a little more proof. I just wish there was more data. To me, you're a pure startup looking for half a million dollars. I can't see it. I'm out.
Hillary, there's good news for you, Hillary. You're here on a unique day in Shark Tank history. There are six sharks. You still have 33 and a3% chance. Two sharks are still looking at you to actually get a deal. And those two are down there. I was inspired by a company called Cross Colors that came out. They went to $100 million, but they were mainly in one chain called Merrygoround. And when Merrygoround went bankrupt in one year, they were gone. But I have an offer for you. I like what you're doing. So, I'll give you the $500,000 and I will I'll ask for 33 and a3%. Okay. All right. Well, that's an offer. Thank you.
So, I've had experience here with the Red Dress Boutique, right? And they came in doing the same thing, selling on social media. don't buy it until it's already sold and their biggest challenge was online. We had some challenges because they were growing so quickly, but we've gotten through them and now they'll do $14 million plus this year. But here's my offer. Okay. I don't want to team with anybody, right? What I gather, you need expertise and tech, but more importantly right now, you need financing for inventory. Yes. So, I'm going to structure it so that it's $500,000 as a line of credit. Okay? So, but I'll discount the rate so it's at 8% as opposed to the normal factoring which could be 10 12 or more. Okay? For 22%. Damon, I really appreciate your offer, but Mark, you have a deal done. Congratulations. Thank you. Yeah. Lucky. Yes, ma'am. Nice meeting you, Hillary. Congratulations. Keep designing. We're going to kill it. All right. Are we Are you coming with me or what are we doing? We're going to stay there in that position for the next 4 hours.