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Tech2ipo comment: Gilt Groupe is an excellent limited-time group buying company, and its unique model has been mentioned by Tech2ipo many times. Gilt Groupe's resource advantage obviously lies in its accumulation of rich brand manufacturer resources. Its core capability lies in its hunger marketing capabilities. Its approach is very typical: (1) It targets female consumers, especially boring female consumers, who have high spending power and desire to consume but lack the pleasure of consumption. Nowadays, it has begun to spread to men, children, gifts and other fields, but the data shows that most of the people who pay for them are women. (2) Group buying products are luxury goods and brand products, which are valuable, but the discounts are huge. For women who consume emotionally, this is simply a huge temptation, and hunger will burst out in an instant. (3) Limited time group purchase. Set a threshold, cause instant spread, instant rush to buy, and give everyone a buzz and topic outside of sales. (4) Hunger marketing in the communication link. They're even going the hunger marketing route with email subscriptions, not once a day in the traditional sense, but two or three times a week. At the same time, make full use of the power of social media such as Facebook to attract more eyeballs and saliva. These have whetted everyone's appetite. It always attracts everyone to come back to the website to satisfy their curiosity. I hope that domestic group buying websites can learn from it, and marketers in other industries can also gain something from it.
Gilt Groupe made its fortune by organizing limited-time group buying events, and now they've found a business of their own. According to Silicon Alley Insider, Gilt Groupe received $80 million to $100 million in investment from private equity investors. The investment, which will value Gilt at $1 billion, shows the group-buying market is still at a fever pitch and is disrupting traditional e-commerce sites like Amazon. This transaction has also become one of many transactions last week. Nordstrom paid $2.7 to buy HauteLook.
To date, Gilt Groupe has raised more than $80 million in several rounds of investment from investors including Matrix and General Atlantic. During this fiscal year, their expected investment is $500 million. If this idea comes to fruition, their valuation will rise to twice the amount invested.
Gilt Groupe is one of the newly emerging e-commerce websites. As long as you become a member of the website, you will receive emails from the website every day without having to log in to the website. The email will tell you what specials are available every day. What's even more amazing is that the specials on the Gilt Groupe website are all luxury goods and famous brands. The discounts on some famous brands are as high as 30% off. Therefore, unlike many group buying websites whose emails are regarded as spam, its user loyalty is very high, and even the emails can be forwarded many times. It is one of the few good examples of word-of-mouth marketing.
Gilt Groupe offers huge discounts on luxury brands for men, women and children. The duration of each session is 36 hours. All transactions are conducted on the www.gilt.com website. The Gilt Groupe website allows users to experience the fun of snap shopping and attracts a large number of loyal users.
Gilt Groupe was founded in 2007 by Kevin Ryan, Dwight Merriman, Alexis Maybank, Alexandra Wilkis Wilson and others. They compete with other rivals in this field in France, such as Vente-PRivee. In this market, it is not easy to squeeze into this field and obtain good opportunities. Their other opponents include Rue La La, One Kings Lane, Zulily and Ideeli.
Thanks to sites like Groupon and Living Social, the group buying market seems to be booming. Even Amazon purchased BuyVIP last fall to use as their own group-buying site.
This article is compiled from VentureBeat, the original address.
Translation source: tech2ipo Please indicate the source link when reprinting.