Wednesday, March 23, 2011

It's 2:30pm! Start Shopping NOW!

In my opinion, the best afternoon pick me up after a busy morning at work is a visit to a few of my favorite online sample sale sites. Gilt GroupeHaute LookFashionism and Rue La La just to name a few, have undeniably altered the e-commerce apparel market. Sites such as these invite shoppers into an exclusive online enclave that thrives on the thrill and impulse of catching a limited time deal. With deep discounts, free membership and expansions into beauty, home, lifestyle and travel, flash e-tailers have concocted a formula that keeps consumers religiously coming back.

In the past month, HauteLook was acquired by Nordstrom for $180 million further establishing the company as a major e-tailer.  The future is here, bringing with it innovative expansions in e-commerce.  Major retailers are trading in bricks-and-mortar for bricks-and-clicks capturing billions of dollars in additional sales as people spend increased amounts of time online.

In the short term, flash e-tailing provides a great way for wholesalers to get rid of excess merchandise and increase online brand presence.  As a regular flash sale shopper I enjoy having convenient, discounted access to brands, products and services that I normally wouldn't be able to afford.  However, as a fashion business professional, I wonder how these companies ultimately affect the bottom line.

Some designers feel pressured to participate in these flash sales to keep up with competitors citing these "fire" sales as harmful to brand integrity and long term positioning.  One designer writes "To participate in this model is to condition existing and future customers to demand deep discounts. If you don't give it to them, they will go somewhere else."

What do you think? Does flash retailing hurt designers?  Are the discounts worth it?

By the way, check out this uber-cute LBD I bought today on Gilt Groupe by frock! by Tracey Reese. Tres chic, no?

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