The majority of the comments I get when I talk about how one might use flash business models (Gilt Groupe, Rue-La-La) are negative. Those of you who share your thoughts tell me that I don't understand how your business works, or that this style of shopping is nothing more than a short-term fad, or that your core customer isn't interested in daily unannounced clearance items at deep discounts.
On Thursday, Saks decided to jump in to the fray (article via SmartBrief via Wall St. Journal).
On Wednesday, Rue La La was sold for a paltry $350,000,000. And by the way, Rue La La promotes another micro-channel via an iPhone or iPod Touch app.
Granted, SmartBargains was part of the deal, but even if it is half of the deal, you're still looking at $175,000,000 for Rue La La. I will be the first to concede that companies have been known to dramatically overpay for a business that fails shortly thereafter. And I will also concede that mobile marketing has largely been all hype and no substance, from a commerce standpoint.
That being said, might it be worth testing your own flash sales micro-channel, just to see if it is something your customer is interested in? Just a test? You'll quickly learn, from a segmentation standpoint, who your discount-focused customers are, and that knowledge alone will help you promote your full-priced business better, won't it? And that iPhone app? That, too, is a data point that allows you to understand which customers are unlikely to respond to traditional direcxt marketing. Isn't that knowledge valuable to your business?
The world is changing.
Ok, your turn. Use the comments section to describe the reasons why this style of liquidation selling is either good or bad.
NaviStone was birthed by Cohere One (Cohere One is now owned by Midland Paper and integrates solutions with NaviStone ). A new privacy-base...
Look at the first four rows of our life table (values of 0/1/2/3). These are the first 12-15 weeks after a customer buys for the firs...
We spent the past two weeks talking about the events and influences that shaped what I call "The Great Eight". My Influence...
If you don't like geeky math, please skip this post, because I am about to show you how the sausage is made! I have eight variables in...