Tuesday, August 11, 2009

"Private Sales" Are The Latest Boom For Companies Online


I have only JUST gotten my Internet connection working again, after DAYS without it! It has been misery, I tell you. I was forced to go to a grotty little Internet cafe' to write my last entry. (Mingling with the common folk has never been my strong suit.) In any event, it has just returned, and so here is some "content," as the bots call it.

From my dear friends at Conde Nast:

The magic words seem to be “private” and “sale.” Online retailers such as Bluefly and Overstock have been around for years, without impressive results but the online sample sale format known as the “private sale” has caught on world wide. Today’s Women’s Wear Daily reports that firms such as Vente-Privee, Gilt Groupe, Rue La La and Ideeli are showing impressive growth and are attracting venture funding. The off-price market has been estimated at $29 billion a year; according to analyst Brian Tunick of J.P. Morgan, and it stands to reason at least some percentage of that could move online. (In the apparel world, online retail accounts for about 10% of sales.) The growth (some with millions of members) and success of many of these companies has taken the industry by surprise, and the strategy at most companies is to expand into new categories, such as beauty and home. This fall, Gilt plans to introduce a travel site and wine is also on the to-do list.


Elisa & Bucky the Wonderdog *

* who deeply enjoyed having me at his beck and call without the excuse of work!

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