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Gilt Groupe: Desperately Seeking a New Business Model How Discount Luxury Sites Struggle in the Economic Recovery Era

Author

Listed:
  • Nikolai Ostapenko

    (University of the District of Columbia, Washington, USA.)

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.

Suggested Citation

  • Nikolai Ostapenko, 2021. "Gilt Groupe: Desperately Seeking a New Business Model How Discount Luxury Sites Struggle in the Economic Recovery Era," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 7(1), pages 17-22, November.
    • Handle: RePEc:mgs:jibrme:v:7:y:2021:i:1:p:17-22
    DOI: 10.18775/jibrm.1849-8558.2015.71.3002
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    More about this item

    Keywords

    Branding; Discount sales; Distribution; Luxury products; Online retail;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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