Industry News

Stories in this section:
Driving Growth: People or Brands?
Company Spotlight: Primerica
Industry with Heart: Signature HomeStyles
Young Company Focus: B's Purses
Thailand: A Rising Power

Young Company Focus: B's Purses

For a style-conscious woman, part of the appeal of designer clothing and accessories is exclusivity-knowing you're wearing something "one-of-a-kind." These days, though, designer duds are everywhere-from Target to T.J. Maxx-and chances are no matter how much you spend on a designer label, you'll eventually see someone else wearing the same item.

Three moms in Kentucky decided to solve this dilemma by launching a designer-handbag company and making the customer the designer. B's Purses, co-founded by Sandra Masters, Lisa Henderson and Susan Guillen, gives women the opportunity to create their own custom handbag by selecting from different shapes, trims, colors, hardware and personal monograms-all in a fun and relaxed home party setting.

In 2004, Susan was creating handbags in her basement and selling them to friends and family when she met Lisa and Sandra, who both possessed savvy business skills-Lisa had a direct selling background and Sandra had experience in operations. B's Purses was soon born. "Susan, Sandra and I discovered that we all had the same dream of starting a business," Lisa says. "We knew that there was a niche for this-nobody else was doing custom-made purses-and that direct selling would be a good way to get our product out there, and get it out fast."

An Instant Hit

Susan's sister, Angela, was the company's first representative, and B's Purses' inaugural home party was held in Louisville. "We sold $5,000," Lisa says. "We were shocked! We knew after those first parties that this was going to be a huge hit. I think we had our first 30 reps in our first 30 days, and we only expected about 25 reps for the year." Initially, Susan had planned to sew all the purses herself. After that first party, though, the three realized there were too many for her to sew and found an outside manufacturer. Still, the early days of the business were a little chaotic. "For the first month, Susan was running the production side out of her house and out of a little office," Lisa says. "Sandra was running operations and getting the purses shipped to the people who ordered them, and I was getting consultants signed up at my house. It was an absolutely hysterical scene. We were working 24 hours a day, 7 days a week."

From left, B’s Purses Co-Founders, Sandra Masters, Lisa Henderson and Susan Guillen

That early hard work paid off. In just two years, B's Purses has racked up $2.5 million in sales and attracted 1,000 consultants across the country. In 2005, B's was named "Emerging Business of the Year" in Kentucky. "We spent our first two years experiencing explosive growth, just trying to keep up, sell the bags and get representatives to sell them," Lisa says. "Luckily, we work great as a team. We all have our departments that we head-Sandra is in charge of operations, I head up marketing and PR and Susan has design and sales-but we all contribute opinions and advice."

From the four basic purse styles originally offered, B's expanded its line to include accessories, luggage and baby items-more than 25 products that change every spring and fall. And with the customizable features-hardware, fabrics, monogramming and lining-the possibilities are endless. The decision to make every bag to order, rather than mass-producing them, allows B's to react quickly to changing styles, Lisa says. "We get to move with the trends, whereas if you're mass-producing a product, you don't have a whole lot of wiggle room. If we see a change in trends when it comes to color or style, we can keep up. People who mass-produce don't want to have inventory left over."

To facilitate growth, the three women recently brought on a group of investors and were able to make some significant improvements to the company's infrastructure. "This year, we really focused on operations. We have a brand-new Web site. We have a brand-new back-office system that's totally state-of-the-art. We have everything that makes a solid foundation for any direct sales company, which helps us compete," Lisa says.

Celebrity Connection

Though still in its infancy, B's Purses has attracted quite a bit of media attention, appearing in magazines including Us Weekly and In Touch. In November 2006, B's was featured in a Time magazine article about where to shop online. The company's handbags have also found their way into the hands of celebrities at The Grand Slam for Children, a gala event hosted by The Andre Agassi Charitable Foundation; the EXTRA Awards Lounge prior to TV's Emmy Awards; and at an event celebrating the music industry's Grammy Foundation Leadership Award. And, the company was the subject of a segment of Stripped, a Style Network TV show that reveals how beauty products are made.

"The producer attended one of our parties in Colorado," Lisa says. "She wanted to do a show on us, especially since all our products are made in the USA-we don't go overseas. It was absolutely incredible, and it's been running for a year now. We've gotten so many representatives as a result. The amazing thing was that they didn't put our phone number or Web site on the show, and we still have had so many calls."

Speaking of celebrities, Lisa says B's No. 1 representative is none other than Trista Sutter, who starred in TV's The Bachelorette. "Trista is absolutely a party machine!" she says. "She lives in Colorado, but she travels all over the country hosting parties. It's just amazing!"

A Product to Love

In the final analysis, though, it's not media attention or celebrity representatives that sets B's Purses apart. "We're trying to be on the cutting edge of fashion, which I think girls in this generation really value," Lisa says. "A lot of girls want to be hot and sassy and chic. And our girls, when they call to be representatives, are so excited about the product. It's not just a job to them, and that's why we have girls joining on a daily basis. That makes us feel great, because we have something out there that they're passionate about. They absolutely love what they sell, and that makes all the difference."