We will take a look at www.vente-privee.com/ - a really innovative business model. Please prepare for class:
1. a description of their business model
2. how does the model benefit
-customers
-luxury suppliers
-the company
3. Who are the target customers, how do you know?
4. research, read and link to an article on the company
5. what additional business opportunities do you see?
Post your thoughts on your blog..feel free to develop a PPT or presentation to express you point of view.
If you are not already a member, you will need an invitation...please email me and I'll send one.
4 comments:
Vente privée.com, is a private club on line, which organize in exclusiveness for its member ship occasional sales of a different brands, with an important reduction around (30% off to 70% off), compared to the prices in the shop.
Members of Vente Privée, receive by mails regularly the invitation to the private sales, the advantage of this site that they can by directly on line without moving, products of a prestigious brands at prices which can go up to 70%. These sales are limited in time (from 2 to 4 days). The payment, entirely protected, takes place by bank card. The principal mode of adhesion to this Private Club passes by sponsorship...
Vente privée is created in 2001 just after crash Internet; it is the pioneer and site of reference of the sales deprived with nearly 2 million registered voters. The frequency of the sales is extremely high what justifies well its success. On average you can find 2 to 3 sales per day. The negative point : the delivery periods are long, on average 2 to 3 weeks but for reduction of more than 50% and you have 7 days to return the product if it is not appropriate to you.
As I said before this company is created at the end of 2000, the concept is simple: sale products with important discount, the range of products put on sale is very broad (cosmetics, clothes, equipments…). available on the Web for a very short period (24 to 36 H), the site announces reductions from -30 to -70% (competitive prices),compared to the price of origin, which is posted for each article, as affirms Xavier Court, one of the cofounders of the site "In the facts, we are a discounter, but it is not the image that our customers have, because we invest enormously in the development of the product, mainly for a luxurious brands which we put on sale». The staff is 400 people, 120 work on development department of the brand. We have 18 studios photographs and videos, 45 Web-designer. Our site must be used as big screen to our brand-partners ". To reinforce this image, the site works like a private club, from which the access is accessible only by sponsorship from a member has already registered. The occasional sales are announced a few days in advance by a one minute (bande-annonce) which shows the products put on sale. If customers are interested, they must be registered to reach the sale which starts at 7.00 AM. For the famous brands like the Dupont pens for example, what happened that the site is saturated from the first minutes of sale. With more than 2, 5 member million and 1, 2 million customers, the profit is indeed considerable.
The success of vente -privee.com is due to its partnership belonging to important brands en the market; those are the best customers or provider. When brands don’t sale all the products as expected and have an important stocks of unsold goods, they call Vente Privée to buy these products with an interesting price in order to sale them again! This is why the products are sold off of 30 à.70% and can reach 90% of the value of origin.
These famous brands avoid to sale off their articles (articles not soled) on the Internet with the risk of seeing their image degraded forever. However they are attracted by the innovator concept of vente privée which buy these articles cheaper than their original price and presents them in esthetic image. In fact the company has eighteen photo studios, and work with a lot of a mannequins, graphic designers and professionals of the music in order to make the product more desirable. For instance, vente privée proposed 480 events in 2006 and aims at the thousand for 2008! The business model seems lucrative and profitable comparing other websites launched recently: 70 new only in 2006, but no one one of these competitors exceed some millions as a turnover.
Really a very interesting MKT Solution, Vente Prive was created some years ago but it is actually one of the Succesful Marketing web pages in Internet, specially in France.
One of the most original ideas was to give the opportunity to buy with them, only to people who knew somebody that previously bought or at least knew what "VENTE PRIVE" means.
Actually, everyday we recieve a lot of span mails that of course we don't open scared of virus or simply because we are sure that there is nothing interesting inside.
VENTE PRIVE asures that a mail sent is a mail open because they are your friends,your relatives or somebody you know who sents the invitation that is neccesary to buy, of course if somebody from your influence wants to share this kind of things with you, for sure it is interesting.
This is one of succesful ideas, then, you can enjoy with the luxury and design articles you can buy half of their price, even less and also that is sent to your house.
they make easy and cheap, something everbody needs and coming from the beginning that you should trust, something you like makes you part of it.
The vente privee boom
More and more sites that provide vente privee are emerging on the net. The main principles of their functioning are: selling of the big brands for reduced prices (discounts up to 80%) within the limited amount of time (normally not more than 48 hours, though may be up to 1 week).
For being able to participate in these sales, the person should be invited on the site by his/her friend (parrain), who is already registered on the site.
Normally these sites sell clothes, though while this business model is developing , there are more and more other proposals you can meet : food, wine, products for animals and even cars.
The pionnier of the vente privee system was the site vente-privée.com, which operates since 2001 and is really a leader on this market, with the annual revenue exceeding 200 mln Euros, which is constantly growing.
The huge popularity of these sites (more than 70 in France now) is explained by the business-model, which is very lucrative. The system of vente privee is attractive for company itself, for luxury suppliers, and, of course, for customers.
Luxury suppliers benefit from the possibility to sell theis unsold collections (stock-house) very fast (increasing the speed of turnover of the capital) without spending money on advertising, storage and logistic. The big brands work more and more with small limited series which require a constant destocking. For the image of the brand it is rather damaging to expose the devalued unsold clothes in the boutique for a long time. So, this other source of selling its stock-house through the vente privee sites serves like a huge support for the producer.
The brands also profit from the transforming of the care for the stock-house to the third party (vente privee site). For example, vente-privée.com has at its disposal 18 photo-studios and a team of models, graphists and music professionals to provide a top image for the goods, represented on the site.
On top, for the brand it is an extra advertising availability. The customers of vente privee sites get acquainted better with the brand (its style, designs) and one day may wish to buy something in a real boutique.
The company benefits, as it charges some fee on the goods it sells. So, without producing anything and without spending money on operating a shop (as opposed to a phisique boutique), the site makes good profit operating like a mediator.
The customers benefit as they can obtain the top brands for a reasonable price. On top, it can save a lot of time, as it is much faster and more convenient than rambling through a number of phisique boutiques. Everything is rather simple here : several clicks, a number of the credit card and the client can get the dreamed object for a good price.
Though there are some disadvantages as well on these sites : first of all, each sale is very limited in number of articles and in time provided for making a deal. In the same time, the amount of participants, willing to get a product is huge and is growing all the time. That is why, sometimes it occurs that the desired object, that the customer sees on the announce screen, is not available any more in the moment he/she wants to orders it.
Second disadvantage is usually the time it takes to deliver the ordered object. It happens as normally the sites of vente privee dont have any stock at their disposal and should order thelmselves the desired products from the supplier.
That is why, the site vente-privee.com created two big stocks now and can minimise its delivery time.
The target customers of the sites like vente-privee.com are : young people (20-35 years old), who got used to utilize internet in many ways (this kind of customers occupies the biggest portion of buyers through internet as they are more advanced and more internet-oriented than the older generetions) ; business people (for whom the main advantage of it - is time saving). Potentially any person that is interested in fashion for reasonable prices is a client for the vente privee sites.
Nowadays the number of clients of any internet shop is groving rapidly, involving more and more diversified groups of people.
Vent privée.com
What a good idea !
Finnaly we can find a luxury brands on half price.
Firt of all the site is very nicely designed and it attracts our attention.
I was supprised when I assigned myself for purchasing just because they show me an emaising video film about the summary of sales proposed for that day.
Little short video, very fashion, design, you feel that the company wants to work with professionnal material and wants to be sure that the sales will be succesfull and profitable also for them.
Very very sucessul marketing even if it’s creation was 6 years from now.
This site works like a private club, it can be accessible only by sponsorship from member who are already enregistred
This attitude give us a feeling that we are realy a special customer and really PRIVEE.
There is no risk for purchasing and there are many explications about delivery and if we are souranded with some problems they answer to us quickly.
I THINK THAT IT IS A WIN WIN COMBINATION!
Vente privée allows to the company to sell all their stock and the clients are happy because they can acheive luxyry brands in half price.
Honestly i am not afraid for the futur of this comoany.
They are so innovative and it’s strategy is not only to earn money but also to impress their customer.
The club will stay selective and this site will stay selective about the products proposed.
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