• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Retailprivate equity

What Avon can learn from direct-selling fashion company CAbi

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
June 18, 2015, 1:04 PM ET
Photograph by Patric Shaw

Conventional wisdom dictates that direct selling is a passé business model, what with people’s busy lives preventing them from being home to greet door-to-door salespeople and a growing preference for shopping online. For evidence, just check out the dramatic sales erosion at Avon Products (AVP).

Yet, one small company has figured out how to make this way of selling work in the hyper-competitive world of apparel: CAbi, a $250 million revenue company that has become the largest direct seller of clothing in the U.S. Its recipe? Using direct selling to give women high-touch service while offering affordability, quality and not overly fashion-forward clothing. It also makes sure that CAbi “stylists,” as it calls its sales representatives, are fully committed to selling its products, and not just looking for some extra cash on the side.

CAbi stylists, who currently number around 3,400, are given training to show customers how to dress better, fit their clothes, and assemble looks — a level of attention the Los Angeles-based company says is the key to making its approach work.

“Retailers only provide that at a significantly higher price point,” says Lynne Coté, CAbi’s CEO since 2013, and a one-time executive at companies like Jones Apparel Group and J.C. Penney (JCP).

CAbi, which stands for Carol Anderson by invitation, offers two collections a year, one for spring and summer, and the other for winter and fall, with average prices of around $100. Its typical customer is a woman between 40 and 45 who also likes to frequent J.Crew, White House Black Label and Loft in search of trendy clothes that don’t break the bank.

The company, bought three years ago from its founders by private equity firms Irving Place Capital and J.H. Whitney, refreshes the collection mid-season twice a year with an injection of 12 pieces that can help CAbi benefit from a hot trend and give stylists a pretext to reach back out to customers. “It’s about making women feel well, not about the hard sell. Women crave that,” explains Holly Parker, a mother of two from Santa Barbara, who started selling for CAbi in 2008.

CAbi stylists collectively put on 60,000 “shows” a year to promote their wares, working with hostesses who provide both their homes and access to their friends (i.e., new potential customers), in exchange for a discount. The stylists themselves can make as much as 33% in commissions.

But they have to hustle for it. One of Avon’s biggest problems has long been the high turnover among its sales reps, as many try it out for a bit before dropping out, leaving a trail of frustrated customers. Among its many missteps, Avon also tried its hand at apparel but treated the category as an afterthought and kept changing the collection’s sensibility, making it harder for salespeople to sell clothes and earn commissions.

At CAbi, there are built-in roadblocks to prevent people who are less than serious about it. Saleswomen have to buy inventory upfront at the start of season to the tune of $2,500 and are on the hook for selling it. If a stylist fails to meet a minimum threshold, she is barred from selling in subsequent seasons. (They are strictly forbidden from selling unsold merchandise on eBay (EBAY) or other similar marketplaces.) And all representatives are required to attend CAbi bi-annual training meetings.

“That’s a significant investment they have to make in the business upfront so typically, they’re a lot more inclined to build a business,” says Coté. The result is an 85% retention rate, rather than a typical 20% in the direct selling business.

CAbi’s modest but undeniable growth stands in contrast to current trends. According to the Direct Selling Association, direct sales of clothing have declined in each of the last three years. In contrast, Coté says the company is growing at 5% a year, modest for a private-equity owned company, but still an industry-beating pace that shows her slow-but-steady approach is paying off.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
13 hours ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
15 hours ago
trump
EnvironmentWhite House
Trump reverses grocery, air conditioning pollution regulations because they’re too woke
By Matthew Daly and The Associated PressMay 21, 2026
2 days ago
target
Retailearnings
Target posts biggest jump in comparable sales in 4 years as turnaround takes shape
By Anne D'Innocenzio and The Associated PressMay 20, 2026
3 days ago
Variational co-founders Edward Yu and Lucas Schuermann pose for a picture
CryptoCryptocurrency
Variational raises $50 million Series A to bring liquidity from traditional markets to blockchain rails
By Jack KubinecMay 20, 2026
3 days ago
A Pizza Hut workers prepares an order for delivery.
LawFood and drink
Pizza Hut franchisee claims $100 million losses from ‘cascading operational breakdowns’ in AI adoption gone wrong
By Sasha RogelbergMay 19, 2026
3 days ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
3 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
16 hours ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
15 hours ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.