Abstract
Gilt Groupe is a favorite website for luxury bargain hunters spending their lunch breaks with style. The company, founded in 2007, already has a well-established reputation and is expected to generate close to $1 billion in annual sales by the end of 2012. Its online platform uses the “flash sales” method, offering limited-time availability of high fashion, travel, home décor, and culinary bargains to its members. Membership, originally by invitation only, is now open to all. The idea of moving “sample sales” online was first realized on a European website, Vente-Privee.com, which now has more than 13 million customers. Following Gilt’s introduction in the United States, flash sales skyrocketed and led to the launching of many new sites, which have proved popular both with consumers seeking impressive discounts on uber-luxury goods, and with exclusive brands wanting to unload their unsold stock quickly
Highlights
Gilt is an interesting case study of a successful, trend-setting player in the ever-challenging fashion industry
Gilt Groupe is a favorite website for luxury bargain hunters spending their lunch breaks with style
This research examines the state of the discount luxury market in the U.S economy and analyzes Gilt’s marketing and operations strategies in this lucrative yet complicated market segment
Summary
Gilt is an interesting case study of a successful, trend-setting player in the ever-challenging fashion industry. This research examines the state of the discount luxury market in the U.S economy and analyzes Gilt’s marketing and operations strategies in this lucrative yet complicated market segment. The biggest barriers to entry are the lack of available luxury inventory, which affected Gilt as well not long ago, and the desire of the most desirable brands to work only with carefully selected and well- established discount websites. The consequences of these barriers are evident in Gilt’s business strategy, as the company constantly tries to innovate by rapidly expanding and enhancing its online offerings and mobile platforms. Journal of International Business Research and Marketing, vol 7, issue 1, pp. 17-22, November 2021
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