Gilt Groupe: By Invitation Only Case Study
By: Alliciyia George, Yasmaine Magee, and Kylah Jones
Company Background:
Gilt Groupe, a luxury retailer invitation-only sample sales website focuses on creating a fast, exciting shopping experience online. They provide access to today’s top designer brands at up to 70 percent off. It began when Kevin Ryan recognized a market opportunity where he could start online flash sales in the United States and introduce consumers to a new and exciting e-commerce experience. He then created a team with co-founders: Alexandra Wilkis Wilson, Alexis Maybank, Mike Bryzek and Phong Nguyen that were dedicated designer expertise and technical masterminds. (source:http://www.businessinsider.com/gilt-groupe-story-2015-2).
Co-founders Alexis Maybank and Alexandra Wilkis Wilson loved shopping designer, invitation-only sample sales in New York City. They would drop everything, even sneak off work to go to sales that attracted fashionistas wanting to snatch designer apparel at great discounts. The founders decided to create a new way of selling luxury goods that attracted customers who had never bought luxury products before when they created Gilt Groupe.
Development of the Idea:
For consumers like Alexis and Alexandra, sample sales weren’t just shopping they were events. To savvy, fashion-conscious New Yorkers, a Louis Vuitton or Hermes sample sale was a drop-everything-and-run proposition. Once there, you basked not only in the bargains, but in
Francesca’s collections attracts many different demographics, but their target market include fashion conscious females between the ages of 18-35. They are mainly college educated and have a moderate to large disposable income. Their customer has a taste for classic items mixed with ethnic inspirations and seek exclusivity and disassociation from others. In a geographic perspective Francesca’s is widely available nationwide in a variety of formats such as free standing and shopping malls. They possess 283 locations in 41 states and continue to grow rapidly.
Marshall Field’s designed a personal shopper assistance program called Tip to Toe shop (107). These assistances helped put together an entire outfit, with pieces collected throughout the store (107). Shoppers didn’t even have to be in the store to benefit from this program (107). One customer was so pleased with her shipped ensemble, that she invited her personal shopper to her husband’s inaugural ball (107). The staff would also help customers with a short budget, find good quality attire that was not couture (105). In result, shoppers benefitted largely from the staff at Marshall
As two separate companies, they have established a different approach towards the market, however with the right research and evaluation, Rousteing and The Bay have beautifully managed to make both sides collide with success. They have managed to design ready-to-wear for different target groups, for example, women’s outerwear shoes, men’s business attire, jewellery, as well as the latest Balmain Army collection inspired by Rousteing himself. They have made the price range of the products in the listed categories reasonable and affordable for premium quality clothing, accessories and footwear for both genders that are quality and price conscious. Also, in Toronto and Vancouver, The Bay has launched a showroom called “The Room” that features some of Balmain’s hottest but not-so-retail-friendly designer clothing from Rousteing’s runway collection. With the stratospheric prices, these items are obviously in display for the more sophisticated young female adults that completely disregard the price tag when they see something they genuinely adore. However, this was also an intelligent way for Rousteing and The Bay to promote their collection by giving the people of middle-class families to feel and take a closer glimpse of some high-quality handiwork. This makes the women of the demographic target market want to know what else Balmain has in store at The Bay, that is of similar quality, but with a more affordable
Human Relations in Business – Maja Barnes’ Case Study 11-2: So, Is This How You Learn Leadership?
The new technological advances have made it easier for even small time stores to come out with some unique idea like designing your shoe online. For an example, Customix offers 3 billion
Company G 's main focus is to help shoppers by giving an item that enhances their personal satisfaction, as well as an item that is anything but difficult to acquire, utilize and be consolidated into their day by day schedules without bother.
Gilt Groupe, a luxury retailer invitation-only sample sales website focuses on creating a fast, exciting shopping experience online. They provide access to today’s top designer brands at up to 70 percent off. It began when Kevin Ryan recognized a market opportunity where he could start online flash sales in the United States and introduce consumers to a new and exciting e-commerce experience. He then created a team with co-founders: Alexandra Wilkis Wilson, Alexis Maybank, Mike Bryzek and Phong Nguyen that were dedicated designer expertise and technical masterminds.
Yenisley Garcia Delgado “Groupon Inc.: Daily Deal or Lasting Success?” Groupon was followed by “The Point” which started in 2008 by co-founder and the Chief Executive Officer Andrew Mason. Three years after graduating from the University of Northwestern studying music Mason became frustrated when trying to cancel a cellphone contract. Then he realized that he might not be the only one in the same position and started developing a Web Platform that would “use social media to organize collective action’.
With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The buying behavior of final consumers, individual and households who buy goods and services for personal”.Groupon consumers mainly responses to:
Elie Saab ,when first entered the Market with a workshop in Beirut ,were known as a haute couture brand. That is, manufacturing custom clothes ordered by a specific customer with a high quality and expensive fabric , mostly targeting celebrities. After a while due to the changing trends across the world, they launched first RTW collection in Milan focused on the idea of affordable luxury brand that did not require the customized service. Another product line, wedding dresses were classified neither Haute couture nor RTW. They were sold through Boutiques. Another step for brand’s product strategy was to expand product variety to fragrances and accessories and signed a cosmetic license contract. Aside from fashion industry, Elie Saab formed alliances to develop signature hotels. Designing super yacht which are distinctive examples of luxury was included in the Business model.
“Outlet shopping is perhaps luxury’s greatest ploy to get its goods into the hands of anyone and everyone,” (Thomas, Pg. 246). “But outlet shopping is the antithesis of the flagship, the antithesis in fact, of luxury itself.” (Thomas, 2007. Pg. 247) Columnist Karen Heller explained to Thomas after visiting Woodbury Common Premium Outlets in New York, “The clothes were marked down, picked over and repeatedly pawed, the opposite of how they were originally displayed. Their power to enchant seemed minimized, even at a third the price, smashed together like produce in a storage hold.” Thomas explains how luxury merchandise is purely just that, leftover “luxury” products: overproduction. No longer does luxury embody the experience of pampering nor does it signify class and wealth. Some
Zappos.com, established in 1999, has rapidly become a strong competitor in online apparel and footwear sales. With the original corporate vison of offering the absolute best selection in shoes; the vision has evolved over the past several years to include the goal of being the retailer that “provides the absolute best service online -- not just in shoes, but in any category” (Zappos, 2014). The online retailer stocks millions of reasonably priced footwear products; carrying thousands of hard to find brand named shoes, handbags, apparel and accessories via the company website and 7,000 affiliate partners. In recognizing their rapid success, Zappos credits it to their commitment to the customer, stating,
With concern to 26 to 45 years old consumers, we believe that a personal shopper service and made to order service might be useful solutions in order to have their loyalty giving them specific services that only luxury brands do. In fact, that way they can get the most out of their luxury buying experience. To finish, we also suggest the creation of events during which the can purchase new collections in advance, generally the day before the collections are officially out in stores.
When first spotting Victoria’s Secret, customers see a luminous and vibrant entrance of pink and white stripes. Victoria’s Secret captivates consumers casually walking through dimly lit Empire Mall. Victoria’s Secret immediately draws eyes inward. Fixed in the middle of the entrance is a sign with an enormous font shouting, “FREE Travel Tote.” Victoria’s Secret displaying a sign like this is not uncommon. It drives consumers in. Free things are as appealing to shoppers as rain is in a desert. As customers begin to
Mr Price Group is a retailer that focuses the value fashion markets. More than 80% of revenues are realised through cash sales which results in the company being less susceptible to the cyclical nature of the retail industry and also not reliant on credit to drive sales (Mr Price Group Ltd, 2016).