How do you know the recession is really serious? When high-end retailers like Nieman Marcus are forced to compete with luxury e-tailers who are selling designer goods at rock-bottom prices, apparently.
Consumer preferences have changed dramatically given the current economic climate, and it seems that few industries are immune to belt-tightening. Saks Incorporated announced losses of more than $5o million in three months, for example. Meanwhile, e-tailers such as Gilt Groupe, HauteLook and Rue La La are able to sell designer apparel at as much as 80% off--and they've been making a lot of money doing it. Gilt, which was started by two Harvard grads in 2007, expects revenues of $400 million next year. These sites are exclusive, and shoppers see it as a serious business, rushing to buy sale items before someone else. They are so popular that retailers are scrambling to create their own sites with as much allure as these luxury e-tailers.
This article provides interesting insight into the tough economy Americans must deal with. All businesses must be dynamic and change with the times in order to stay afloat and give consumers what they want, a concept that has been illustrated everywhere from automobile dealerships to grocery stores.
2 comments:
I think the idea the e-tailers use of constantly updating their inventory and changing their sale items every 24 hours is a really good marketing tool. The clothing store Zara does the same thing. They do not just change their inventory every season, but also every 6 weeks or so. This way customers are addicted and keep coming back so they don't miss out on what's new.
Its crazy the thought of buying clothes, boats, and wine straight from your iPhone, or even by clicking a button on your T.V. remote. There soon will be no reason to even go to a store unless to try clothes on before we buy them online.
The fact that you have to be a member to the site in order to purchase and see the deals is a very good marketing tool. People will always want nice things, even in a bad economy. Recent articles highlighting business successes all have a dynamic edge to there current strategic plans.
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