Jaclyn Hill, one of YouTube‘s top beauty vloggers with over 6 million subscribers, recently quietly shuttered her struggling loungewear brand, Koze. This comes on the heels of multiple controversies, including accusations of design theft. However, rather than transparently address issues with fans, Hill has doubled down on concealment and rebranding tactics.
As an industry analyst studying influencer brand failures, this case presents several cautionary lessons for content creators seeking e-commerce success. After extensive research into Koze‘s downfall, I‘ll analyze missteps made and provide recommendations around crisis transparency.
Jaclyn Hill and Koze: The Rise and Fall
Jaclyn Hill, 31, rocketed to YouTube fame over a decade ago as an upbeat makeup tutorial vlogger. She cultivated a passionate fanbase with her signature style: high-glam beauty looks served up with down-to-earth relatability.
However, Hill‘s path has included some turbulence:
- In 2019, her self-titled cosmetics brand made national headlines due to lipsticks arriving unusable with holes, lumps and plastic balls embedded inside
- Multiple failed product launches diminishing brand trust
- Accusations of shilling questionable diet teas
With a tarnished reputation in the beauty space, Hill pivoted to lifestyle in September 2021 with Koze – a DTC (direct-to-consumer) company selling blankets, pillows and loungewear.
Per Hill, Koze represented a $75,000 personal investment and a commitment to redeeming herself as an entrepreneur.
The brand received initial hype but quickly ran into challenges:
- Mediocre product reviews complaining about quality
- Confusing, oft-delayed shipping timelines
- Minimal marketing efforts post-launch
By June 2022, Koze‘s hype had clearly fizzled. Its Instagram following stagnated around 48,000 followers. Hill removed links to Koze from her YouTube and Instagram profiles. Behind the scenes, the company appeared to enter liquidation mode.
What finally forced Koze‘s closure? An even bigger scandal was brewing for Hill tied to her side jewelry business.
Design Theft Allegations
In December 2021, Hill unveiled a jewelry collection under her self-named Jaclyn Roxanne brand. Its centerpiece: lariat necklaces nearly identical to ones made by popular designer Lana.
The resemblance was instantly called out online as fans posted side-by-side comparisons. Lana fans and owners flooded Hill‘s comments demanding she pull the collection.
Hill quickly took to her Instagram Stories in defense writing, in part:
“I started working on my lariat necklaces after the initial launch of my hoops and nameplate because I truly feel like Lana made the lariat style trend again…”
She went on to claim admiration for Lana and insist she‘d never intentionally copy the designer. But for many, this rang hollow. Critics alleged Hill was hoping to bank on Lana‘s celebrity following with lookalike pieces at lower prices.
By June 2022, Hill‘s jewelry fiasco was still making headlines. So how does this tie into Koze‘s fate?
Industry insiders I‘ve spoken to believe the persistent PR nightmare motivated Hill to cut losses with Koze. However, rather than publicly announce its closure, she quietly initiated a rebrand…
Koze‘s Quiet Rebranding
It started in January 2022 when Hill began removing traces of Koze‘s most purchased item – the Cozy Throw blanket – from the site.
- The $65 faux fur throw was renamed "Cuddle Me Throw by Jacqueline Roxanne"
- Product images were swapped to remove Koze branding
- Mentions of the blanket were scrubbed from Koze‘s website, marketing materials and social channels
For example, photos of Hill wrapped in the then-Cozy Throw were featured prominently across Koze‘s website and Instagram when the company launched. But current visits to the site reveal the throw has been digitally edited out of all creative assets.
Moreover, Koze‘s Instagram has shifted away from any lifestyle, home or loungewear content. In recent months posts have only highlighted the lone product: the ex-Cozy Throw.
So what compelled such sudden rebranding measures? One theory is Hill wanted to retain control of Koze‘s one saving grace – its bestselling blanket – while abandoning the rest.
Reports surfaced that Koze brought in $460,000 in sales in 2021 but had yet to turn a profit. The blanket almost certainly drove the bulk of revenue.
Hill likely surmised she could capture remaining interest in that singular product while cutting losses associated with Koze as an entity.
But the rebrand only summoned more controversy. Consumers and industry spectators grew increasingly suspicious of Koze‘s confusing changes and lack of transparency.
Lessons for Influencers From Koze‘s Downfall
While Koze and Hill have gone silent around the brand‘s status, it’s likely done for. So what can we glean from this saga?
Koze‘s story highlights pitfalls facing influencer brands including:
- Prioritizing hype over substance – Koze leaned heavily on Hill‘s fame rather than competitive quality or value. Once the thrill faded, weaknesses were exposed.
- Failure to define or commit to a brand identity – Between loungewear, home goods, jewelry and unclear partnerships, Koze‘s direction was muddled.
- Scaling too fast amid quality concerns – Supply chain and manufacturing issues signaled Koze wasn‘t ready for rapid expansion.
- Lack of authentic community engagement – Koze relied more on one-off transactions over fostering loyal advocates.
However, the ultimate misstep may have been Hill‘s evasive approach once trouble hit.
Rather than publicly acknowledge struggles, she initiated hasty rebranding – signaling shame, denial or dishonesty around Koze‘s issues.
For influencer companies facing pitfalls, the worst thing one can do is go silent. Just look at the growing backlash against Koze the longer questions go unaddressed.
Today‘s consumers demand radical transparency, not passive deceit around matters of public record.
The Need for Radical Transparency
In crisis management, obscuring the truth rarely works long-term. Yet, many influencers fall into this trap believing confession of failure will irrevocably shatter their image.
But the opposite is often true. Owning up to setbacks – be they product quality flubs, customer service blunders or even company closures – can engender greater trust and connection with one‘s community.
Take fellow YouTuber Jeffree Star who, despite no shortage of feuds and scandal, retains loyalty among fans. His secret weapon? Embracing controversy through raw, uncomfortable honesty.
Meanwhile silent avoidance breeds fertile ground for rumor, suspicion and resentment to grow.
Hill‘s approach to bury Koze controversies rather than discuss them openly has likely only amplified vagueness and eroded consumer goodwill.
For direct-to-consumer brands, nothing matters more than safeguarding trust.
So what should struggling influencer entrepreneurs like Hill do? Practice radical transparency.
This entails timely, proactive communication across multiple channels like:
- YouTube video directly addressing the issues in detail
- Instagram Stories inviting authentic fan dialogue
- Emails to customers explaining challenges & remedies
- Press releases clearly announcing major changes
And if matters ultimately end in company closure, handles that the same way by:
- Publicly announcing shut down
- Offering refunds on unfulfilled orders
- Thanking fans and the team for understanding
It’s rarely advisable to leave folks guessing, as Hill is learning with Koze.
Authenticity – not avoidance or concealment – wins long-term success.
The Future of Influencer Marketing Hinges on Integrity
Koze‘s troubles reinforce growing influencer marketing fatigue consumers feel today. From ill-conceived product launches to shady brand partnerships, mishaps erode years of built-up community goodwill.
Thankfully, a new generation understands cultivating true advocate tribes matters more than extraction via quick campaigns. The focus has shifted from racking up shoot-and-run affiliate commissions to nurturing symbiotic, mutually-beneficial connections with supporters.
Because at its heart, influencer marketing isn’t about money or fame but rather an exchange of value. Savvy creators recognize their content alone is insufficient to sustain loyal followings indefinitely. Reciprocation is critical.
This manifests via products that deliver substance, business practices furthering transparency, accountability admitting when things go wrong – as they inevitably will.
Hill and her peers would benefit tremendously from embracing this community-centric ethos. It holds the power to rectify current distrust while ushering in a new era of creator-fan partnership.
Because the commodification party ends. Real relationships are forever. And it’s time we influencer architects renovate foundations to support structures built to last.