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Understanding

An article in the Journal du Net include sales to private sector


private sales online phase of the changing face of
multiplication of actors who attempt replicate the success of Vente-privee.com, which won both the concept that Internet brands, the search for differentiation is at work in 2006.

March 15, 2006

Surinvitation, Club-Private, Linvitedesmarques, AchatVIP, EspaceMax, Dealtonic ... The list of actors who invest in the market for private sales online is growing for over a year. A total of thirty players was launched in pursuit of Vente-privee.com, which in 2001 gave birth to the sales events on the Internet. With 2.2 million members, 3.5 million unique visitors and 20,000 parcels per day, the subsidiary enjoys ORed a nice head start. But the market estimated at around 100 to 150 million euros annually arouses desires of new players who hope to qualify quickly under the number two market for private sale on the Internet.

Why such a boom in online private sales? The explanation is simple: the demand is there. Customers will indeed leave more and more tempted by the bargains that these sites offer ad hoc and limited in time on branded products and the concept of an online community privileges. On the other hand, private sales sites also meet the membership marks which see their model in a way to quickly sell their unsold, while keeping their inventories available on the Web and their image. Indeed, to announce the opening of sales, a trailer sites complete line of thirty seconds, using the latest technologies to stage their products.

Specialized market stocking brands and working with large areas of destocking as Mistigriff, Vente-privee.com has taken place at the intersection of these two requests. "Our concept is to provide online access, anywhere in France, the opportunity to enter it each morning in the warehouse brands, "said Jacques-Antoine Granjon, president of Vente-privee.com. But if prive.com-Sale is originally an actor specializing in stocking, this market is currently invested by the players more general e-commerce.

actors of e-commerce take a position on private sales
With a website since 1997, Téléshopping, a subsidiary of TF1 launched in September 2004 a site called SurInvitation.com sales events relying on its Internet structure (read the article in the 11/01/2006). PMCs Distribution, a small company that had made his first steps on the Internet in 2004 on the niche perfume reduced-price closed the online store to devote himself to the launch of its private sales site, Club-privé.fr in March 2005. MISTERGOODDEAL which offers a permanent inventory reduction, fine series on its Web site, passed on him no end of May 2005. "The events we organize on-line sales via flash worked particularly well," explains Guillaume Clavel, CEO MisterGoodDeal.com. Linvitedesmarques.com has emerged via a site distinct to offer products outside its usual catalog without confusing the message of the sign. Were also thrown at the private sale, via his website called LDLC Dealtonic.com (Read the article of 12/12/05), La Redoute, or compare with ADSL-facile.com AchatVIP.com.

also Area Catherine Max, an actor of the physical world of the private sale made its first steps online last November. "If the customer showrooms Area Catherine Max comes more naturally to the west of Paris, the site offers us the opportunity to reach clients all over France, which represents a significant area of development for our business," said Bertrand Thoral, Director of Espacemax. com. To catch up, the company relies on its experience with brands and the synergies between its physical model and on the Web. Indeed, the company does not offer the same products or similar brands in its two showrooms and on the website. "The Web requires a minimum depth of product, while in our showrooms, we can afford to present only a few sizes per product. Showrooms are particularly well suited to luxury brands who do not want to be too exposed," the Site Manager Espacemax.com.

diversification of product lines and categories
Faced with this multiplicity of players online product offerings for sale on these sites tend to diversify in terms of product categories. Fashion and accessories are the products most often found on sites of private sales, the sector with the largest inventory of unsold due to a rapid turnover of collections. But actors also open their offers wide variety of categories such as home furnishings, products from hi-tech toys ... until Delbard feet of roses that have recently sold on Sale-privee.com . "To differentiate ourselves from other players for which the loan-to-wear may constitute 50-60% of their offerings, we intend to focus on product categories such as decoration, toys, or high-tech says Laurence Demarescaux, Purchasing Manager Dealtonic site.

Diversification categories but also of product ranges. If Espacemax.com has the will to stay positioned on luxury, some actors open their sales to more common brands. "We offer quality products with brands that have a resonance for the audience that we seek, namely women aged 25 to 40 years," said Philippe Colliat, director of marketing and development Teleshopping (Surinvitation.com). On the other hand, some e-tailers who engage in private sales do not necessarily offer the products of retrieval, which reflects a drift of the concept of private sales to a model nearest sales flash that allows them to boost online shopping, but restricted to a small number of customers. The border

weakens between private sales and sales
Flash "Private sales allow the sale of players online to create highlights, to enliven their customer base and revitalizing impulse purchases at different times of the year on low periods, "said Sébastien Lemire, commercial director of Emailing Solution, which launched in February a turnkey tool for managing private sales. Travel-sncf.com example tested private sale last November, by limiting access to subscribers to the newsletter.

In this paradigm shift, the line between sales and flash this new type of private sales is becoming more tenuous. The difference that remains is related to the mode of recruitment of members, who normally goes by that sponsorship. However, in their growth phase, some auction sites have private open enrollment their customer base, achieved through recruitment campaigns, e-mailing or banner ads on specific sites. This is particularly the case Dealtonic give the registration code to its client base of LDLC and Espacemax.com which also relied on its customer base. Linvitedesmarques.com or club-Prive.fr did not put their hand on the other barrier to entry as a registration form. A private aspect is tenuous, given that some members recruit downline in discussion forums.

Publishers considering the gradual closing of access
However, this vagueness should quickly fade. To maintain their private aspect, the sites will mostly restrict access. Espacemax.com affirm already close access to gradually stop working until an invitation system. Vente-privee.com, which has currently 2.2 million members, plans to close the site within weeks by limiting same sponsorship. This course to retain the users feel part of a club privileges, but also to retain membership marks.

"We make a sale online per week, single brand or multi-brand. We do not want to increase the number of online sales in the short term because we do not want to fall in line. For our website we carry out important work in-house as an editorial writer on graphic presentations of products and brands in order to respect the image and brand positioning with whom we work, "said Bertrand Thoral, site manager Espacemax.com. Similarly, if sales-privee.com offers 400 sales a year, brands do not achieve more than an annual or biannual sale. "It is important not to position itself as a competitor to the distribution networks of retail trade," said Jacques-Antoine Granjon, president of Vente-privee.com.

Moreover, early this year, given the increasing numbers of private sales sites, the primary actors are working on new projects to ensure their differentiation. Vente-privee.com is planning to launch in Europe later in the year 2006. For its part, will inaugurate prive.fr Club-March 20 a new economic model : Products will be offered at cost price, a reduction from 30 to 40% extra in return for which members must pay 2 euros for participating in a sale. A card for 20 euros will be available to participate in all sales made during the year. The company will provide a marketing service tracking sales in real time marks, and the ability to collect customer information and conduct surveys. Surinvitation.com prepares his side a redesign of its site and its positioning for late May. Under competitive pressure, the market for online private sales between a phase of transformation.
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