Sample Sales This Week (8/16)

Sample Sales This Week (8/16)

Posted 15 Aug 2009

This post is courtesy of www.WWD.com and it is for all of you who have yet to sign up for online sample sales.

Gilt Groupe Website

Photo By Courtesy Photo

Privacy clearly has its attractions.

While online discounters such as Bluefly and Overstock have been around for years without impressive results, the online sample sale format known as a “private sale” has caught on worldwide like Champagne at a wedding, showing impressive growth and attracting venture funding. The hype and froth over firms such as Vente-Privee, Gilt Groupe, Rue La La and Ideeli are reminiscent of the dot-com bubble.

On the one hand, it seems too good – or too gimmicky – to be true. On the other hand, the off-price market has been estimated at $29 billion a year, according to analyst Brian Tunick of J.P. Morgan, and it stands to reason at least some percentage of that could move online. (In the apparel world, online retail accounts for about 10 percent of sales.)

The magic words seem to be “private” and “sale.” The bargains are hidden behind a firewall where only members can see them – although becoming a member is usually not difficult. (Some sites are invitation only, and others will accept anyone who registers.) The sales are up for a limited time, usually 36 hours, and generally focus on only one brand. Returns and exchanges tend to be limited. Discounts can run as high as 70 percent off.

Because nonmembers (and search engines) can’t see what labels are for sale, even luxury and designer brands such as Gucci, Zac Posen and Carolina Herrera don’t mind clearing their excess inventory this way. The deep discounts, the aura of exclusivity and the convenience of shopping online appeal to consumers – who are signing up in the millions to join the sites.

The results? Many items sell out within minutes.

Click here to read the entire article at WWD then sign up for some of the sites. What are you waiting for?