“Virtual” discounts of famous brand

Online sales are a new opportunity for companies to monetize inventory without damage their personal image.

The strategy used by websites like BuyVip and Privalia is simple: they send a warning e-mail in advance to the potential buyer (consumer that has already subscribed himself to the website). They advise that the next   day at a specific hour they will begin selling a set of proposals brands (very famous brands) at a discount, ranging from 30 to 70%, since these inventories may be part of a previous season. The short duration of offers, from a minimum of two to a maximum of five days, along with the discount benefit, play a decisive role stimulating emotional purchase and impulse: you can buy the object of desire just with a click of the mouse, and within ten days the merchandise you bought will come to your home. The product, in fact, is taken directly from the supplier (this also allows considerable savings for the client), conveyed in the stores of the website, packaged and then shipped by courier.

There are many players in this emerging market in Italy. First real national pioneers as Born4Shop and SaldiPrivati or Piustyle.com (launched by an entrepreneur with a long experience in managing inventories of branded collections and active also in Spain and Belgium). Second other players already established in other counties that are trying to replicate their strategy in Italy. This is the case of a giant like Vente-privee.com (510 million euros in turnover 2008), but also names like BuyVip or Privalia. There are of course many other players but I think they are currently too many for a market so small, specialized and relatively undeveloped like the Italian one.

What do you think?