Advantages of “Virtual” discounts of famous brands

In my previous post I’ve introduced to you a brief description of websites like Privalia or BuyVip that deal with online sales of famous brands.

Here I just want to list the most important advantages that companies can obtain using this type of online sales:

1. It’s a strategy that allows quick and profitable monetization of stocks: the margins, in fact, are quite high, certainly higher than those achievable by other methods of management of stocks

2. Opportunity to reach a greater amount of consumers that don’t have the possibility to buy the specific product through the usual channels. In fact there are consumers that have difficulty in finding designer clothes or luxury brands or just find them at higher prices.

3. No overlap with the traditional distribution network, thanks to the very short duration of the campaign without damaging the image of the brand.

4. Attention on the creation of a strong relationship with the final consumers. The major players in the industry invest a lot in the creation of trailers and shooting of the products that are offered online: websites are usually pleasant, friendly, accessible, engaging, highly interactive, designed for a sophisticated and demanding audience.

5. Mailing list:  this websites have devoted much effort in collecting a mailing list, even if all the e-tailer insist on the importance of “word of mouth. Who is invited by those who have already tried the service or by companies affiliated with the service (Born4Shop, for example, can count on partners such CartaSi, Fastweb, Sole24Ore, TicketOne, RCS, Gay.it) enters for free. Other website, such as Piustyle.com charges an amount of 15 euros on the first purchase. By contrary, to feed the crowd to its site, Privalia focuses on activities of viral marketing on the web through games and competitions that can capture the interest of the people of the Net: this strategy has allowed to intercept about 40 thousand new members. Currently, one third of the Privalia’s community comes from the “member get member”,that rewards those that have invited other potential buyers. The concept of “community” is central to this E-Business, so that some operators have even created their own blogs.

6. Creation of blogs: this tool has the aim of establishing direct contact with members and increases the transparency of services and operation of the portal. Every visitor has the possibility to voice his views and suggestions and sharing them with other members and with the company.