Flash Sales of Another Kind...
posted by Lesel, CEO at
10:50 PM , Jan 30, 2011
I recently read a couple of interesting articles about online flash or sample sales. This market is another e-commerce innovation that has seen significant growth over the past few years. Growth hasn't been as significant or as competitive as the daily deal model, but it is certainly notable.
Important players are Haute Look, Ideeli, Gilt and Canada's own Beyond The Rack. The sample sale companies focus on selling high-end, name brand fashion apparel at a significant discount. Nearly 100 new competitors have joined the space in different verticals - travel, kids, sports, housewares and more. As noted in a Business Insider Article, the space has seen a fair bit of consolidation and some existing retail giants are looking to get in the game (like TJ Maxx and Marshalls).
The eMarketer.com article Flash-sales Sites Light Up Ecommerce notes that "there is an opportunity for retailers—particularly those with excess inventory to liquidate—to tap into this market by reaching out to consumers in underserved demographics, branching into unexplored categories and creating an entertaining shopping experience to guarantee repeat visits."
Haute Look has started to bridge online transactions with off-line transactions with some daily deal type gift certificate style promotions as well. Sooner than later, these may come into direct competition with daily deal sites.
