Lulu Avenue

Charles & Colvard announced Lulu Avenue in October 2011. JCK reported that the moissanite maker was creating "a new in-home sales model for the created gem", run by a new division called Charles & Colvard Direct. Kevin Raulston, who had more than 17 years in direct selling, joined to lead it. The plan was to test market in key US cities through the rest of 2011 and open nationwide in January 2012.

Charles & Colvard was based in Morrisville, North Carolina, and its stock traded publicly, so Lulu Avenue's progress showed up in its annual reports. In 2013 the Lulu Avenue site called itself "the world's only direct sales boutique Trunk Show Company featuring Moissanite". It paired the stone with an exclusive designer line, Lulu Avenue by JudeFrances, and seasonal fashion jewelry. Sales grew quickly. Charles & Colvard's 2015 annual report said Lulu Avenue's sales rose 250% that year.

“This new business model is an important step forward for our company. We believe that home parties present an ideal opportunity for such interaction with potential customers.”

George R. Cattermole, chairman of the board, Charles & Colvard — JCK, October 2011

Lulu Avenue sold women's jewelry in two price bands. Most pieces were fashion jewelry made from base metals and non-precious stones. Charles & Colvard's filings say the majority was custom designed for the company and changed with each catalog season.

• Necklaces and pendants: statement chains, layered link necklaces and drop pendants with colored glass and crystal.
• Earrings: hoops, drops and chandelier styles in gold and silver tones.
• Bracelets: chain bracelets, bangles and leather wraps with metal clasps.
• Rings and charms: stacking rings, cocktail rings and charms for pendants and earrings.
• Moissanite fine jewelry: rings, studs and pendants set with Charles & Colvard moissanite.

Moissanite was the headline. It is silicon carbide, first found by the French chemist Henri Moissan in 1893 in a meteor crater. Charles & Colvard grew it in a lab and cut it like a diamond. The old Direct Sales Aid profile put moissanite pieces at about $200 to $1,500, depending on the cut, carat weight and setting, while most fashion pieces cost far less. Later catalogs added collections such as the Survivor Collection, a Vault Collection and a Moissanite Outlet.

Sellers were called Style Advisors. They held trunk shows in homes, ran virtual trunk shows, sold one-to-one and took orders through a personal e-boutique on luluavenue.com. Orders went into a back office system, and a third-party logistics company shipped the jewelry to the Style Advisor or straight to the customer. All of the business was in the United States.

Starter Kits

New Style Advisors bought a starter kit of sample pieces. Early on, the old Direct Sales Aid profile listed an Essentials Kit at $199 and a Business Builder Kit at $399, both with catalogs, trunk show invitations, order forms, a neck form and a website. By 2013 the company offered three Love Knot kits: Essentials at $199 with 19 pieces, Business Builder at $399 with 36 pieces, and Elite at $999 with 48 pieces. The company valued them at $900, $1,300 and $3,700 at retail.

Pay

In 2013 the company's make-money page listed a 25% commission on retail sales, an extra 5% personal sales volume bonus, and 8% to 15% on the sales of a Style Advisor's team. Hosts earned free jewelry and half-price pieces. The old Direct Sales Aid profile said hosts could earn 10% to 20% of their show sales in free jewelry and buy up to four items at 50% off.

In February 2016, Charles & Colvard decided to explore selling its home-party business. Its annual report said the board judged the move to be in the best interests of the company and its shareholders. On March 4, 2016, it signed an asset purchase agreement with Yanbal USA, the US arm of the Latin American direct seller Yanbal. Yanbal paid $500,000. It received a $250,000 credit toward existing jewelry stock, the catalogs and packaging, and the Style Advisor and customer lists. It could use the Lulu Avenue name only until July 31, 2016. Charles & Colvard kept the Lulu Avenue and Love Knot trademarks.

“This agreement allows Charles & Colvard to focus its resources and efforts on its core moissanite business. We believe Yanbal USA will be a great partner for our loyal and committed Lulu Avenue style advisors and we wish them great success.”

Suzanne Miglucci, president and CEO, Charles & Colvard — JCK, March 2016

The Lulu Avenue site changed soon after the licence ran out. By September 8, 2016, its home page said that Lulu Avenue, "a former division of Charles & Colvard, Ltd.", was "closing its direct sales division and liquidating its inventory", with everything marked down 85% while supplies lasted. By March 2017 luluavenue.com redirected to the Charles & Colvard store. Today the old domain points to an unrelated business. Moissanite jewelry is still sold by Charles & Colvard, but not through Style Advisors. If you miss the trunk-show format, live jewelry companies such as Paparazzi and Silpada still sell through independent sellers; see Paparazzi on Direct Sales Aid.