Ventesprivees.com is a website created in December 2000, which works according to an exclusive club affiliation model.The e-business is one of the most important French web success story, showing results deserving the giants of the e-business: more than 3,6 million visitors in the first quarter 2006, 2,4 million members, thousands of sales a day for a 250 million euro benefit last year!
Ventes-privées.com is a subsidiary of Oredis, a wholesaler since 20 years, and the inventor of the special on-line sale. The Director of the company, Jacques-Antoine Granjon, invented the concept: The unique combination of exclusivity, selection, price, and value-added merchandising.
The registration to ventesprivees.com is totally free but requires the sponsoring of a friend to be able to go into the "customer's circle" of the site.
By this way, customers have the feeling of being privileged.
In association with big brands, ventesprivees.com organizes special limited sales, with a last time period around 2 to 3 days, in the course of which products are discount from 30 to 70 %. Brands, rather expensive, diestock their unsold articles in unbeatable price.
Members can directly buy goods on the website without having to move to the shop. The payment is made by credit card.
By this way, customers have the feeling of being privileged.
In association with big brands, ventesprivees.com organizes special limited sales, with a last time period around 2 to 3 days, in the course of which products are discount from 30 to 70 %. Brands, rather expensive, diestock their unsold articles in unbeatable price.
Members can directly buy goods on the website without having to move to the shop. The payment is made by credit card.
Problems that it solves:
For Customers
-It allows customers to have access to branded goods at very interesting prices. (Example: a Dolce & Gabana t-shirt at 35e instead of 150e).
-The access to this website: customers receive invitations directly by e-mail; it is an easy way to get informed of all the sales and chose the one they want.
- Members can directly buy goods on the website without having to move to the shop. The payment is made by credit card.
-They find various products which customers don’t usually buy especially towards the price.
-It allows customers to have access to branded goods at very interesting prices. (Example: a Dolce & Gabana t-shirt at 35e instead of 150e).
-The access to this website: customers receive invitations directly by e-mail; it is an easy way to get informed of all the sales and chose the one they want.
- Members can directly buy goods on the website without having to move to the shop. The payment is made by credit card.
-They find various products which customers don’t usually buy especially towards the price.
For Partners
By destocking their products on Internet, luxury brands have the guarantee not to see their goods lost in stocks as it often happen in the real world.
By destocking their products on Internet, luxury brands have the guarantee not to see their goods lost in stocks as it often happen in the real world.
For the Owner of the business
The owner reduces financial risk; the company doesn't take possession of any closeout inventory.
The owner reduces financial risk; the company doesn't take possession of any closeout inventory.
The revenue sources:
-Partnership with brands.
-Getting commission for each online sell: The stocks of unsold articles of the brands spend few times in the warehouses of ventes - privée.com. If the margin is reduced for the reseller, so are the expenses. Ideally, products are even sold before arriving in warehouses. The generated cash is important, customers paying immediately, while products are delivered later.
-Partnership with brands.
-Getting commission for each online sell: The stocks of unsold articles of the brands spend few times in the warehouses of ventes - privée.com. If the margin is reduced for the reseller, so are the expenses. Ideally, products are even sold before arriving in warehouses. The generated cash is important, customers paying immediately, while products are delivered later.
It is a unique model for the web
Sustainable?
Ventes-privees.com is a successful Business Model. According to the increase of the number of monthly sales, the success comes from the fact that this Business Model is an innovation. Knowing the orders in advance also allows to finish the stocks .
Due to its power, Vente-Privee.fr is the only actor able of making daily sales of more than 30.000. Many brands signed a contract of exclusivity with ventes-privées, which strengthens the power of the website.
However, the e-business company has to manage the variety of 450.000 annual references and face daily orders about 30.000 in rush hour. The challenge is to constantly adapt its plan and its logistic tools, to the demand, to be sustainable.
Due to its power, Vente-Privee.fr is the only actor able of making daily sales of more than 30.000. Many brands signed a contract of exclusivity with ventes-privées, which strengthens the power of the website.
However, the e-business company has to manage the variety of 450.000 annual references and face daily orders about 30.000 in rush hour. The challenge is to constantly adapt its plan and its logistic tools, to the demand, to be sustainable.
1 article which describes the strategies and growth of the company:
http://www.businessweek.com/globalbiz/content/jan2008/gb20080111_222659_page_2.htm
http://www.businessweek.com/globalbiz/content/jan2008/gb20080111_222659_page_2.htm
Examples of businesses now using Ventes Privées, within their websites.
- BMW set up "The BMW Short-lived Offers" on the web site www.lesoffresephemeresbmw.fr.
From November 27th until December 8th, 2007, the Internet users can acquire vehicles of the brand by benefiting from privileges (a total cover in terms of reparations, a 48 month guarantee, and 60 000 km is available for only 1 euro more).
- Achat VIP, Surinvitation, Club-privé, Linvitedesmarques, EspaceMax, and Dealtonic became the principal challengers of vente privée.
- Having a web site since 1997, Téléshopping, the subsidiary of TF1 launched since September, 2004 a website of limited sales called SurInvitation.com.
- BMW set up "The BMW Short-lived Offers" on the web site www.lesoffresephemeresbmw.fr.
From November 27th until December 8th, 2007, the Internet users can acquire vehicles of the brand by benefiting from privileges (a total cover in terms of reparations, a 48 month guarantee, and 60 000 km is available for only 1 euro more).
- Achat VIP, Surinvitation, Club-privé, Linvitedesmarques, EspaceMax, and Dealtonic became the principal challengers of vente privée.
- Having a web site since 1997, Téléshopping, the subsidiary of TF1 launched since September, 2004 a website of limited sales called SurInvitation.com.
7 commentaires:
Good start...particularly on problems solved.
but needs future growth models.
Revenue-does VP sell advertising to the suppliers?
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