Private Sales on Internet: the Case of Vente-Exclusive.Com

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TABLE OF CONTENTS:

INTRODUCTION.................................................................................................................................2 VENTE-EXCLUSIVE.COM..................................................................................................................2 COMPETITORS..................................................................................................................................3 ORDER QUALIFIERS.........................................................................................................................4 BUSINESS AND OPERATION STRATEGIES OF THE FIRM…........................................................4 -General trends........................................................................................................................4 -Specific strategies..................................................................................................................5 OPERATION DECISIONS AT VENTE-EXCLUSIVE.COM.................................................................7 CONCLUSION.....................................................................................................................................7 BIBLIOGRAPHY..................................................................................................................................8

INTRODUCTION
Retailers often produce too high quantities of their products, which is called overstocks. At the end of the year, those unsold products cost a lot of money to those companies, who have to find a way to sell them off. In 2001, a brilliant Frenchman, Jacques-Antoine Granjon, found the solution to that problem: he invented the concept of ‘online private sales’ and created the company Vente-Privée.com. The idea is quite simple: an Internet-based company buys, at a low price, the overstocks of a fashion or lifestyle retailer and organizes a sale via its website. Since the products are from the previous season, the website proposes discounts between 30% to 70% compared to the retailer price. To be allowed to participate to the sale, the potential customer must first receive an invitation from a existing member of the website, which creates a feeling of exclusivity. The purchase and payment of the articles are done via the website and once the sale is over, they are sent to the customer. The Internet-based company takes everything in charge, from the description and the pictures of the products to the delivery of the goods to the final customer. The whole process takes between 1 and 4 weeks, and the customer has the right to send his order back to the e-commerce company if it doesn’t fit him. Vente-Privée.com was the first company to launch this type of business, and has been followed by hundreds of followers on the 5 continents. Among the most famous firms, we can name Gilt in the United-States, Vente-Exclusive.com, Snapstore and Just&Only in Belgium, ShopVIP in the Netherlands, and many others. In the last decade, Internet has become a very important sales channel for many brands. Very rare are the businesses that don’t have their own website. This contributed even more to the development of online private sales. Competition has become intense, and this is why those companies have to differenciate if they want to stay in the race.

VENTE-EXCLUSIVE.COM
Vente-Exclusive.com is a Belgian-based company, created in 2006 and delivering in Belgium, The Netherlands and Luxembourg. The first sales were launched in 2007 and since then, the company has become leader in Belgium, and more generally in the Benelux countries, with more than 1 million members and 47 employees. In 2010, Vente-Exclusive.com has sold more than 500 000 fashion and lifestyle products, which made them reach a turnover of 16 million euros. The market share of the company is about 35% in Belgium, but it is difficult to evaluate because Vente-Exclusive.com is the only company...
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