So so so many of you have DM’d or commented asking a lot of questions about what happened to our rug line – why am I not on the site anymore, and do some of our rugs have a new name? It’s been confusing, so here goes!
Well, I’m no longer collaborating with them – they cancelled the collaboration. After 2 lines with Rugs USA (2 years), the second one in particular selling very well, they made the decision to break it off.
I don’t totally know, but there has been leadership change and financial shifts. Different CEOs get to change the direction of the company under their watch to meet their goals (usually under pressure from their board of directors, debtors, and investors). Essentially, financial shifts changed their marketing budgets, and collaborations are always part of the marketing budget, so we are always vulnerable to this when there are large leadership changes (this isn’t the first time this has happened). Pretty standard business, honestly. The line was doing very well, but Rugs USA needed to make some changes, and so I’m sure a lot was on the chopping block, including their influencer/designer collaborations.
Kinda. Again, when we heard about the changes at the top, you always wonder if they’ll retain the relationship – its their call and again, I’ve been through this before with new CMO’s at other brands. Different visions = different strategies. At first, we were told about the marketing personnel changes, then bigger marketing shifts. I knew could happen. A week later, decisions were made.
Sure. We worked really hard on these, and the revenue was great for EHD – myself and the team. We were really proud of them, and the entire process was a super positive experience. Had it been fraught, we would likely have had a different reaction, but it was really great, so we are sad to not work with them anymore. But I also know that businesses have make hard decisions at times (all the time, really). Zero hard feelings – it’s just business.
Nope. The sales were high. But listen, Rugs USA brought a lot to the table, including in-house designers and a massive population of people who shop from them regardless of them knowing me or not. It was great marketing for us. I get the need to cut costs in hopes of retaining more of the profit. I’ve done similar moves in the past when I was in had skyrocketing overhead – you hope you can do the same volume with less costs (and sometimes you totally can). I have no insight into their business beyond what I read in a Wall Street Journal article. Everyone is vulnerable and hard decisions have to get made at times, so I really do understand the reaction, and only time will tell if that was the right thing to do.
No! We learned so much, met such awesome people (their marketing team was so incredible – totally changed the brand to be way more design forward, cool, stylish), and my team got to develop and flex different muscles. Plus, we made money, so it really was a win, regardless of how it turned out.
Yes!… As of today. Because it was such a success, we feel confident that we can work with another company we love and produce as good, if not better, rugs for us and you. We have a lot of revenue streams, thank goodness, so this is just one that is down for a bit, but we are genuinely excited to find the right partner and give it another go.
I designed (and already shot) my brother’s river house to highlight these rugs. It’s going to be in a big magazine spread (with rooms you haven’t seen yet), so not making any money off of that design and marketing work on our end is a huge bummer. Sure, we can link to them and make a tiny affiliate commission (usually 3-5% of the retail cost, depending), so we’ll still link to them. But when you literally design a house based around your own designs, excited to show people how good it looks in this home that you’ve spent 4 years working on, and then it’s no longer your line…well, yeah, that’s a bummer. I still stand by the rugs – they look so good in my brother’s house, and I’m not changing them out.
Yep. People are extra confused by this but If they paid for the shoot and the production of the rugs, they own usage (even if it’s in my home and named after my kids or my maiden name – Starke!). So if you see photos of them at the mountain house or our house, it’s all legal and on the up and up!
Kinda? We can still use affiliate links when we feature the rugs here or on social (links that pay out the influencer a tiny percentage of the sale price from the retailer, at no cost to the consumer). So we’d be silly not to link to the rugs when we feature them on past or my brother’s project, but it’s not the royalty that we used to get, it’s pretty minimal. I still think they are great rugs, and right now they are on a massive sale (they might be discontinuing them, which is why they are on such a huge 40% off sale).
Man, it’s fun to see them all together like this.
I’m seriously so proud of my team for their hard work on this, especially Jess, who helped lead the design process. The line did really well, we had a ton of best sellers that we loved, and again, we learned so much about the design and manufacturing process. RugsUSA was a fantastic partner, the design and marketing team particularly rad. And listen, running a business, especially a business rooted in digital marketing, we have to be fluid and willing to pivot pretty quickly (lord, we know how much TikTok and AI are disrupting otherwise historically solid platforms – ha, I use the word “historically” very loosely). It requires us to be nimble, not sensitive and also to have a lot of different revenue streams, so if a solid one (like this) gets cut in one day, we are totally fine. It’s always a great reminder to stick to our core values and audience, and while growing forward is great, growing bigger comes with its own risks. A huge thanks to all of you who bought the rugs, love them, and cared enough to ask.
We’ll keep shopping from Rugs USA when we need a great affordable rug for now. :) Onward and Upwards!!
Unless Otherwise Noted:
*Styled by Getteline Rene
**Photos by Mark Weinberg
Thanks for this informative post! My question is, to what extent was your team involved in actually designing the rugs? Did you design and they just execute? Was it more they were inspired by your aesthetic and designed rugs based on that? Did they have these rugs designed already and you more so named and promoted them?
We set the art direction, vibe, look and feel, etc and their team create the first round of patterns based on that. This is typical – their in-house designers have the programs and know their manufacturing restrictions inside of their target price point. We would mock some things up, certainly, but it was for sure a collaboration and I really appreciated their in-house designers who tried to read our minds and did a great job of interpreting our vision. They brought a lot to the table, for sure!
Wow. This explains why I could find your rugs on their site recently; their collaborations tab was gone. I did find them but something felt weird. Something bigger and better is just around the corner ❤️
Although it’s business as you mention, it still must carry quite a sting. Your collective creativity and design ideas are in these rugs, and had such great success, continue to be proud of that!! Here’s to more collaborative lines and continued integrity within your business and team.
Thank you for sharing, and I’m so sorry that things took this turn, but I’m confident EHD’s rug line adventures will continue. Emily, just a suggestion as you consider partnerships: have you thought of working with a business school? You’d be a great guest lecturer in any MBA program. And then take your different lectures and put them together in a book about your experiences navigating (1) broadly, the fashion/design industry, and (2) even more interestingly, the ever-evolving influencer-driven marketing industry. I would buy and read it in a heartbeat, and I’d give a copy to my company’s CEO.
You know, what i have considered is a substack that is more BTS of this WILD business. Lots of years doing this, lots of mistakes made (this one isn’t one of them, BTW – its just business that you can’t control). But thank you :)
I have your color-blocked rug from the first line and was just looking for your rugs, thinking to buy a second one. I couldn’t understand why I couldn’t find them. It’s a loss to be sure. I appreciate your transparency and I suspect it was harder on EH than you could or would say. I’m sorry you had to go through that.
Ah thanks :) I’m glad you love the rug!
Thanks for sharing how the whole process works. I purchased two sizes of the same Emily Henderson rug for two different, high-traffic rooms. You should be proud of your hard work…they look fabulous!
Thank you!!!!! that honestly makes us feel GREAT. Talked about it on the team call today (your comments). So thank you :)
Well dang. So much hard work and then … gone. I understand the whole new CEO thing but hope your next deal will have more favorable royalty terms. Seems like Rugs USA walks away with all the upside and little downside.
I think just different visions require different strategies at different times. These marketing campaigns are expensive so I get wanting to reduce the overhead. And who knows, maybe the bottom line will improve!
We have the Elliot in “Rust,” which is actually the prettiest pink-y brown, in our room and we LOVE it. Such high quality, so soft underfoot.
I LOVE that rug and color :)
Bummer. But when a door closes, etc. Here’s to better times
Such a bummer. I absolutely live your rugs, and they filled a huge gap in the market. I just put one in our guest room actually. Thanks for creating them, and I am so sorry it turned out this way.
thank you :)
Thanks for the background! I was legit looking at your website over the weekend (btw the search and stuff is allllllllll messed up….) and couldn’t find much about the collab on the rugsusa website, so makes sense now!
Aww bummer! I bought the Starke broken stripe in olive for my kids’ bedroom about a year ago and it was the perfect choice. Sorry to hear about things but glad to have a bit of EHD in our home.
Your move Loloi!! ;)
Thank you for telling us what happened – it was all so confusing and stopped me from going ahead with a couple rug purchases because I assumed they were going out of business.
So weird for them as business to make such a drastic change and not say a word about it to their customers. Not a good way to build trust. The whole thing seems very short-sighted.
And on a related note – as I’ve been rug shopping I’ve been sorting through the different types of rugs. Might be a good topic for a post – types of wool and the differences between hand-tufted, hand knotted and hand-loomed are some of the things I’ve been researching.
I really think its just a different way of doing business, with varying degrees of success :) That’s a great idea for a post!
I feel like EHD x Annie Selke would be a good collab! Different price point, but I could see it :) You guys did such great work, I’m sure another brand will be hungry for the opportunity. And I appreciate how candid you are about the business side of things!
You know what, I LOVE THEM and always have. We are talking through all the options and while I know that the price point is a lot higher, my goodness their wool rugs are so good.
It’s too bad for them…
What a fantastic attitude!
Bummer. I pretty much only considered or limited my search to Rugs USA designer offerings. It gave more identity to and validated the styles. .Another poor corporate decision. Sort of like HGTV that does not know there market.
Emily – this is why I have been a devoted fan for 6+ years. Not only do you provide excellent content, you are such a cool human being! You are so full of grace, compassion, and kindness and I want to spend my time (including my digital time) with people like you.
Thanks for this thoughtful update and for showing us all how to be more gracious, even as we work through disappointment and continue to steadfastly pursue our goals. You are a gem.
ah, thank you!!!! what a nice thing to read. I really, really, really appreciate it (and you reading). xx
Aw I love seeing them all together too. Well done on the design and major kudos for this transparency and fairness. I’ve always loved and eyed that brown thread version of your fav.
I’m so bummed! LOVED the rugs! In fact I recommended to my daughter that she buy one for her living room and it looks fantastic in there! Good design is good design. I’m keeping my fingers crossed for your next collab.
LOVED the way you answered this post. Balanced, thoughtful, and honest.
What a great explanation, I am in retail, and management changes can be lethal, sometimes. You are so right, the board, investors, etch ( Cue Musk)
You probably already know this, but Loloi would be a fantastic fit. Rifle, Justina Blakney, Joanna Gains, they love a trend brand.
Best of luck
Yah I love Loloi. And I think years dealing with corporations has really taught me so much – nothing is personal, its all driven by the bottom line (which I honestly do respect for the most part) and working with people who you are aligned with is all that matters to me. I know that the marketing and design teams were rad and I hope for their success with them or elsewhere.
Explains why I couldn’t find Lauren Liess’s collab, either! Appreciate the update.
I loved her line (and love her and Arvin in general – def follow where they go next).
One thing I’ll always appreciate about EHD is the honesty and transparency. You don’t owe us an explanation but it’s really nice when we get one. Influencing and marketing and collabs can feel secretive and misleading sometimes, but we never get that here. Loved the line, and I hope to see more somewhere else!
This post spoke to me about how to handle yourself in business endeavors. You spoke well of the company and gave a lot of credit to your team. You are an inspiration!
They truly are gorgeous rugs. ❤️
I need to add that I have also been looking at rugs recently and was confused when I couldn’t find yours. I hope a new collaboration comes along soon. Also, YEA JESS!!
Bummed I didn’t order more carpet runners for my stairs before this collab ended! But so happy for you and your team’s upcoming partnerships!
Man, what a bummer! I’m sorry this happened, but it does also make sense to stay nimble and diversify income streams given how wild everything is with generative AI and more changing so much so quickly.
All that said, I’m glad to know it was such a clear revenue stream – I always wondered if collabs like this actually ended up being worth the effort and branding… idk about “risk” but like “positioning” in that you sort of give up control of how you are perceived, after a certain point. Good to know. Wouldn’t be surprised if other collabs (pillows, other furniture, dishes, other ceramics, some kind of magically scalable antiques storefront?) showed up someday. (Maybe one of those Chairish or One King’s Lane type collabs.)
On to the next revenue stream, I guess; but I hope your rug expertise finds a new home! (Bonus points for one I can order over here in the UK, haha.)
Love the transparency, especially since I saw another influencer claim HE DECIDED to start his own rug brand and that was the reason the partnership ended.
Sure.
No, that isn’t what Arvin said. Please rewatch his video. He said the partnership ended and THEN he decided to launch his own line etc….
Can you provide a round up of the current links so we can give you the commission at least? There’s 2 I need to buy. Thank you for this great explainer. I really appreciated hearing about it.
Thank you for such an honest and thoughtful (and illuminating – I’m not in the design world/don’t a business, so this kind of decision-making is new to me) post! I’m glad to hear the EHD team is moving on with such positivity, but man am I am upset on your behalf! However, I am confident that the best is yet to come! Sending you all wishes for deep gratification and fulfillment in your work ❤️