Erin Lichy, star of The Real Housewives of New York City, has never been one to shy away from controversy. But her recent revelations about the harsh realities of the fashion industry have left fans and industry insiders in shock. On the January 20 episode of Jason Tartick’s “Trading Secrets” podcast, Erin opened up about her failed handbag business, shedding light on what she described as unethical and exploitative practices in overseas manufacturing.
At the height of her handbag venture, Erin poured upwards of $100,000 into the business, only to see her dreams crumble under the weight of insurmountable costs and logistical nightmares. While she acknowledges her lack of industry experience played a role, Erin’s stark comments about her experiences with overseas factories have painted a darker picture of the fashion world.
“You get screwed on minimums in Asia,” Erin revealed, referring to the large order quantities often required by manufacturers. “And then you start making it in New York, and you get screwed on labor costs.” Despite her efforts to support local production, Erin struggled to find a sustainable balance.
One of Erin’s most shocking claims involves her visits to overseas factories. “They’re not the way that they say they are,” she stated, hinting at a troubling gap between the advertised conditions and the reality on the ground. “They’re not run properly. Not all of them, but the one that I went to.”
While Erin refrained from naming specific factories, her comments raise questions about the ethical practices of many manufacturing hubs. For an industry that often markets itself on luxury and exclusivity, the hidden labor conditions behind the scenes tell a starkly different story.
Erin’s discomfort with overseas production ultimately led her to pivot to local manufacturing in New York. However, the shift brought its own challenges. “You have to go buy materials from Italy that are transported to New York, and then you pay the broker fee on top. And then that costs a lot of money, and then you can’t make it up in the markup,” she explained.
Her decision to abandon overseas factories was rooted in more than just cost concerns. “It was a moral choice,” Erin noted, emphasizing her commitment to ethical business practices despite the financial sacrifices involved.
Erin’s revelations add to a growing conversation about transparency and ethics in the fashion industry. With consumers increasingly demanding accountability from brands, Erin’s story underscores the urgent need for stricter regulations and greater oversight in global manufacturing.
But it also highlights the difficult choices faced by small business owners. Without the backing of a major corporation or significant capital investment, navigating the complex web of production logistics can feel like a losing battle.
Despite the financial loss and emotional toll, Erin remains resolute. “I ended up selling the name, but on the other hand, it was the best learning experience of my life,” she said. Her journey has informed her approach to her current venture, Mezcalum, which she co-founded with her husband, Abe Lichy. This time, she’s taking a different route, raising capital and working with strategic partners to ensure a more sustainable and ethical business model.
Erin Lichy’s story is a cautionary tale for aspiring entrepreneurs and a call to action for the fashion industry to address its deep-seated issues. Her candid revelations about unethical factory practices serve as a stark reminder that the true cost of fashion often goes far beyond the price tag.
As Erin rebuilds her business empire, her experiences stand as both a warning and an inspiration, proving that even in failure, there are lessons to be learned—and truths that need to be told.