After posting the sales agenda for the week, I received a few questions as to what was behind the flashy percentages of these bargainous websites. Luckily, some time ago I wrote an extensive feature explaining it all.
Cavalli Sale
It’s every girl’s dream to flick through a wardrobe full of clothes by Prada, Gucci, Dolce&Gabbana or any other luxurious brand that a mere mortal cannot afford. Unless you’re in on one of fashion’s best kept secrets that is taking the UK by storm.
There is a growing number of places you can go to get as much as 80 per cent off your favourite luxurious labels. vente-privee.com, brandalley.co.uk, cocosa.com, secretsales.com, hautelook.com are just a few hot spots for private designer sales where all you need to do is register, click on a link and start shopping.
“I’ve never thought I could buy a Cacharel skirt for £20”, said Kingston University film studies student and online bargain hunter Veslava Bzimovska.
“All I did was sign up to a few websites and now I always know if there is a big label on sale, as I can access it from my email.”
But brand lovers have to shop quick – these designer clearances start at around 6AM and last only a few hours or days, and as soon as one sale is finished, it goes off the web.
Rob Feldmann, chief executive of Brandalley UK, a privately owned website, revealed how this particular business model worked:
“We have a team of buyers who search out the best selection of products at the best price. For instance if a brand has 100 pieces available from past collections or cancelled orders, the buyers will choose 50 they think are the most appropriate for our members given the weather and the season.”
These specialist websites are different from your ordinary online retailers as they do not store the merchandise in warehouses. Instead, the web-based designer outlets simply reserve goods from the brands. Once a sale is over, the website buys the precise number of products purchased by customers which then go to the logistics centre. From there, the company checks the goods before sending them out to their clients.
The current economic climate and the fashionistas’ lust for designer goods have brought the companies some serious cash. In 2009 Brandalley’s total revenue was £10m in the UK and Mr Feldmann thought that 2010 would see a number three times that size.
“We get about 1.2m unique visitors per month, it’s quite a big website,” he said. “I think the recession has made the consumers very focused on price and on good value.”
Good value means designer products to the British, as according to Mr Feldmann, the website sold much more luxury labels than high street brands. The most successful Brandalley sales included Calvin Klein lingerie which sold 12,000 pieces, 5,500 products from Wonderbra, and 500 Hervé Léger dresses reduced significantly from around £650 to £200.
Another reason why these businesses have grown in popularity is because they are online. Bargain hunters can now indulge in shopping for luxury brands from home or at work. “Shopping at Brandalley compared to shopping at, say TK Maxx, gives you a massive time benefit. You can do everything online and get a prompt delivery. And because we are an online business, we are cheaper,” said Mr Feldmann.
As this business model is relatively new in the UK, it allows companies to expand quickly. Vente-Privee, another privately owned web-based designer outlet, was founded in France in 2001 and is often referred to as the online luxury label sale pioneer.
vente-privee Landing Page
The company launched its UK branch only two years ago and, according to the 2009 results, the UK website had a turnover of £2.7m. It forecasted a further increase by 167 per cent reaching a sum of £7.2m in 2010. The business is growing rapidly, as an average of 1,000 new fashion-savvy costumers sign up on a daily basis forming the current number of over 350,000 UK website members. Vente-Privee also has subsidiaries across Europe, mainly in France, Germany, Spain and Italy. All the branches’ turnovers added up to an impressive total of £610m in 2009 with a predicted growth by 25 per cent in 2010.
Jacques-Antoine Granjon, co-founder and CEO of vente-privee.com, said:
“We have every reason to be very optimistic. In 2009, Germany saw 100 per cent growth and turnover of £38m, and Spain 95 per cent growth and turnover of £40m. With respective turnovers of £8.6m and £2.7m, Italy and the UK also look promising.”
vente-privee.com, brandalley.co.uk and other companies with similar business models have also revised their advertising strategies. Although you might find a few advertisements of these online sales in print and on the web, the companies leave spreading the word to the customers, rewarding them with a little treat.
Members of Brandalley get discounts when they invite a friend to make a first purchase, during which both sides get £10 off. Cocosa offers the same deal with a competitive £15 off to their subscribers, while Vente-Privee gives away £8. When asked if this is a more beneficial form of advertising, Mr Feldmann said: “Yes, it promotes it. The best form of promotion, I think, is a recommendation from a friend.”
Friendly recommendations and generous discounts aside, these flash designer sales have sparked numerous discussions as to whether this innovative business model is going to change the way we shop online and to what extend does it actually save our money.
“Of course it’s a great way to grab a designer bargain. But I end up buying luxury clothes that I don’t really need,” said Ms Bzimovska.
“It’s like I bought that Cacharel skirt for £20. I did it only because it was there and it was Cacharel, when what I really needed was a pair of jeans. I wouldn’t say it saves your money, it just gives you an excuse to continue splashing out but with less guilt.”
With the somewhat cloudy economic climate in mind, it’s up to you to decide what is more important, shopping for clothes or shopping for brands.
PRET-A-REPORTER 