Business model risks raise doubts for Purple Style Labs

The prospectus reveals that 77.7% of the gross merchandise value (GMV) of the flagship "Pernia's Pop‑up Shop" comes from women's apparel. This heavy reliance makes the company vulnerable to shifts in consumer taste, misreading fashion trends, or weakened demand.

Additionally, the firm received a notice to terminate a licensing agreement with Pernia Kurashi and associated vendors, putting certain brand rights under scrutiny. Such legal uncertainties add to investor unease.

The company’s expansion strategy—opening new stores, entering overseas markets, and partnering with premium fashion brands—carries execution risk. Many designer products are priced independently and agreements are not exclusive, allowing designers to sell on rival platforms or directly, which could erode Purple Style Labs' pricing power.