Says the Wall Street Journal, the global financial crisis is wreaking havoc on high-end fashion brands. With less disposable income in their pockets, consumers are not only spending less on fashion, but are also spending more time searching out bargain buys online. Smart fashion entrepreneurs have swooped in on frugal fashionistas with a new fashion business idea – the fashion flash sales website. The most successful fashion discount site by far is Ideeli, recently named the Fastest Growing Private Company of 2011 by Inc. Magazine.
What is a fashion flash site?
According US news channel, ABC News, the slump in fashion sales in retail stores has led to a stockpiling of millions of dollars in unsold inventory. Online discount retailers are cashing in on the business opportunity this presents – purchasing unsold inventory at low prices and then selling it online, at hugely discounted prices (sometimes up to 70%). Says ABC, fashion flash sales websites pulled in some $300-$600 million in 2010.
How does Ideeli work?
Every day at midday, Ideeli offers its 400 million members a fresh sales launch. Sales last around 40 hours, with designer fashion items available on a first-come, first-served basis. Ideeli bargains are hidden behind a wall, so shoppers cannot browse the sales without registering as a member, first.
Rapidly-expanding Ideeli is one of New York City’s largest employers of models and conducts photo shoots 24/7, putting up a new ‘shop front’ on its website every single day. The hard work is paying off – so far this year, Ideeli has raked in $77.7 million in revenue – not bad for a company founded in 2007.
With online shoppers in South Africa already supporting discount shopping sites like Groupon, will the fashion flash sale website take off here? While nothing quite like Ideeli is currently available in South Africa, media giant Naspers seems to be getting in on the act, recently launching 36Boutiques – not strictly a flash sales site, 36Boutiques offers occasional flash sales, alongside standard collections. Are there any entrepreneurs out there keen to take on the fashion flash sales challenge?
For more inspiration…
Check out these fashion flash sales websites:
- Image Courtesy of Ideeli
