The Real Housewives of New York Cityof Erin Leachy She considers her previous handbag business a learning experience.
"I don't see it as a failure, but we lost a lot of money," Litchi, 37, said on the Monday, Jan. 20, episode of Jason Tartickof "Trading Secrets" Podcast "Technically, it's kind of a failure."
Litchi shared that he lost "over $100,000" from the venture (The Bravo star later noted that he "entitled" more than $100,000 to the business, noting that it was "probably" the starting amount.) "We just kept pouring money in," Litchi said.
From Litchi's point of view, the fashion business is "impossible" unless you have a previous background in the industry or are "backed by someone big."
“You suffer the least in Asia, or you suffer the least if you build somewhere overseas. Then you start making it in New York and you suffer like labor costs," claims Litchi. "It's very difficult. We really believe in making things in New York and in our studio. We were making them in China before and I'm very uncomfortable with that for a lot of reasons. felt."
Litchi recalled visiting factories, which he claimed were "not what they say they are." He added, “They are not being run properly. Not all of them, but the ones I went to."
Litchi focused on production in New York but said everything was "slow". He added, “You have to go and buy the goods transported from Italy to New York and then you pay the broker fees. And then it costs a lot of money, and then you can't make it up in markups."
Leachy called the process a "never-ending battle". When asked if he raised capital, Litchi replied, "No, and that's something I've learned never to do again."
Erin Litchi has revealed she's nowhere near home after announcing her fourth pregnancy last month. “I didn't do anything,” Litchi, 37, exclusively admitted to Us Weekly on Friday, Dec. 13, while attending iHeart Radio's Jingle Ball at Madison Square Garden in New York City. The Real Housewives of New York City star revealed that she is "not ready (...)
Despite the business not taking off as he had hoped, Litchi noted that he has "no regrets" in his life.
"I sold the name, but on the other hand, it was the best learning experience of my life," he said. "I never would have known how to build a business the way I'm building it now if that hadn't happened."
Erin took the lessons she learned from the handbag business and applied them to her venture Swami Abe LitchiCo-founder of his Mezcalam. "This time Abe and I went at it with a sales, advisory, capital raising partner," he said.
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