Ventes Privees

Ventes-privees.com is the site that holds invitation-only closeout sales. This site deals with big marks brands (Givenchy, Longchamp, Armani, Diesel, Electrolux, etc) and offers different products such as clothes and accessoires, wines and champagnes, toys, sports equipment, high-tech, watches proposed by famous and notorious brands

According to the article on http://www.lentreprise.com/3/3/5/vente-privee-com-reussira-t-il-a-s-imposer-comme-reseau-de-distribution-en-ligne_20570.html site, Ventes-privees.com was created in 2001 and has seen a huge growth. This company came with its own concept on the market that made it innovator and leader with the turnover of 510 million euros, 7, 5 millions members in France, and 300 recruitments in 2008. Its concept is simple but at the same time very effective: big brands have the possibility to sell their end of line stocks, via a closed distribution network, without waiting that their distributors sell their own stock. So the sales pass in general by putting together promotional shots and videos featuring fashion models and original music during a short period of time (several days) in different domains (textile and accessoires, deco, etc) at a discount price (from 30%-70%, sometimes 80%).

Vente-privees.com is a Private Sales website that means that only people that have access to the web-site can buy the products. For entering the site it is necessary to subscribe with frenzied invitation-only. In fact, the person who sends the invitation to other people gets a prize ticket for several euros that boosted the company’s development. So only the members can take part in the sales and they are notified in advance about them by e-mail. The time that the customer waits for its products is about 16 days.

Besides, it goes further in the article that from its start-up in 2001 Vente-privees.com has consolidated as a leader. From 2007 it started dealing with mass media. In 2006 it expanded in other countries: Germany, Spain, Italy and Great Britain.

This concept is very useful and advantageous for the customers, especially at the period of financial crisis. It allows them purchasing famous brands’ high-quality items for very low price. For suppliers it allows to sell products set without cannibalizing their distribution network with low margin but with a sure ROI. It will be always the problem of overstock and close-out so this concept is a good solution to them for selling out all the products. Company owners just take advantage of this concept by making high profit.

It is important to notice that this new concept was so tempting that many French and foreign compaies just copied it, and nowadays they count more than 70 competitors. One of them are BrandAlley.com, and Showroomprive.com.

Created in 2005, BrandAlley.com has seen an exceptional growth in 300% between 2007 and 2008 with its 2,2 million constant members. In fashion domain, BrandAlley managed to position very well and differently from its competitors thanks to its concept. It is based on the particularity of offering fashion items, accessories and decoration at a discount price through three pillars:
Ø Permanent brochure that gathers a large choice of items in all fields
Ø The place “Boutique” for brands
Ø Close-out campaigns that are limited in time
This unique positioning on the market allowed BrandAlley to make it notice on the market, to gain the popularity and to grow very fast. Thanks to its immediate success, BrandAlley established in Great Britain in 2008.

Showroomprive.com is also the site that gains much popularity and grows very fast. It is also based on the concept of invitation-only close-out sales. These sales concern famous brands’ clothes for men, women and children, accessories, cosmetics, underwear, home facilities, decoration, etc. The sales are also limited in time and the adherents receive in advance the email about them. This site was created by two entrepreneurs that are professional in on-line media and close-out field and private sale offline. In 2009 they think to make the profit of 60 million euros. And the next year they plan to launch their company in Spain and in Britain.

There are different sources of revenues for Ventes-Privees.com. First of all, it retains its margin from 20%-40% on each selling item. Besides, as it was mentioned before, all the sales are followed by music. And Vente-Privees’ music became so popular that nowadays Vente-privee.com sells a CD of 15 of the tracks on its site. Moreover, they offer paid annual loyalty cards for customers that want to have more benefits.

This concept is so advantageous and enticing that can be applied in many industries such as food, beverages, real-estate, tourism, gadgets, and even automobile.

This concept was applied in wine industry that proves the site Caveprivee.com. This site is oriented for wine amateurs who would like to taste good French and foreign wine at a discount price. In comparison with other ventes privees sites, Caveprivee.com doesn’t offer the close-out sales but on the contrary the products are being researched. The principle is just taking advantage of the moments’ opportunities and to sell good wine at low price.

Diamantunique.com is the only site on-line that offers jewelry and diamants at about 50% discount. This site is also based on the concept of invitation-only and the sales organized by campaings that are limited in time. The products on this site are all certified, it is possible to pay the purchase in 3 times, and they provide a special delivery service and 1 month for the change or return.

CaroOcar.com is also made on the ventes-privees.com concept. This is the site of private sales automobiles offering second-hand cars bargained directly with distributor. The members of this site can take advantage of special tariffs, professional guarantee and a present offered at a purchase. The invitation-only system brings benefits for people who send invitations: if one of their friends buys a car, the first ones gain a present.

After having analyzed this new concept, it is possible to say that due to technologies development this concept will keep on developing, covering more and more audience and expanding in other industries as there was the case with already existing sites for cars, jewelry, real-estate, etc.