The sales of glasses brand Carolina Lemke, collection by reality star Kim Kardashian, failed in Israel. The collection was sent from Israel back to the United States, Calcalist reports.
Three months ago, Castro group began collaborating with Kardashian ahead of marketing the glasses brand in the United States.
Castro paid Kardashian $6 million in cash, of which $1 million was paid last December. In addition, Kardashian received 10% of the options in the American subsidiary of the Israeli Group. In total, Castro invested $30 million in Carolin Lemke marketing in the United States.
Castro hoped Kardashian would also affect sales in Israel and increase them by 15% -10%. But since the beginning of the year, brand sales have grown by only 8%.
Kim Kardashian, who have 141 million followers on Instagram, managed to bring only 90,000 followers to the Carolina Lamke’s page.
Castro admits that cooperation in Israel has not worked well, but claims that the sales of the Kardashian collection are as expected in the US and that the cooperation with Kim will continue.
In addition, out of 100,000 pairs of glasses designed by Kardashian, only 20,000 couples sold in Israel. The remaining inventory was sent to the United States in the hope that they would be sold there. But even American consumers were not enthusiastic about Carolina Lemke’s glasses collection and Castro had to return all 300,000 glasses of the brand to Israel, according to Calcalist.
Kim Kardashian was expected to arrive in Israel to promote the brand in March 2019. Unfortunately, the trip was canceled due to rockets attack on Israel a week before her arrival.
he cancellation of the visit caused the company an additional loss of NIS 6 million, which included removing the billboards that leaked to the media ahead of schedule. Cancellation of a NIS 2 million party planned for her visit. As well as canceling the rental of a luxury suite at the hotel, a car, and related expenses at a cost of NIS 2.5 million.
As a result, Castro has decided to focus on the campaign with Kardashian in the United States only. “It’s true that I’m disappointed with Kim Kardashian’s sales in Israel, but I’m pleased with Carolina’s activity in the United States,” Yossi Gabison, one of the group’s founders told Calcalist. “In the United States, Kardishan has brought us 900,000 people registered on the Carolina Lemke site while 32 million people have been exposed to the site. This week we will be releasing a new collection of Kim Kardashian both in Israel and in the United States.” Gabison, added that this week he will fly to the United States to negotiate the extension of the contract with Kardashian for another two years.