Vente Privee business model

www.vente-privee.com/

Description of their business model

In “vente privée” there is “vente” (sale) and “privée” (private target).
They sell brand articles online at low discounted price (stock of articles bought at low price from luxury suppliers)
They are mostly in textile articles but also in others like wine, plants, food for dog,…
Their success is really to convey the feeling of Exclusivity around the goods sold and private selection of their target, private community of customers,
They organise sale through events (occasional, flash)
They like to give also an impression of “must benefit from it now since you are the privileged !”
Their members can sponsor new members and obtain X € on next sale
Their invitation can be through e-mailing
They do not show any need to do publicity, instead they recruit a few customers who will eventually recruit others and so on.
By surfing on impulsive sale they can transform new customers into distant e-buyers.
They have a strong privileged partnership with luxury brands
They were pioneer in this business model and are now attracting many others
They do not have a real market segmentation
They have no shops as such but just stock warehouse with delivery operation.


Benefits of the model
Customers
They have interesting reduction in price for branded products
They choose their exclusive articles online and receive their articles at home

Luxury suppliers
They get rid of their unsold stocks of article (seasonality problems or change, fashion trend which did not work, color unsuited,…)
The luxury suppliers are not embarrassed with unsold articles or bad image through sale operation.
They exploit a new channel of distribution to reach customers conscious of their brand image but not willing to pay full price..

The company
Make a lot of clients through the “bouche à orreille” phenomenon, sponsor or online registration
No great marketing efforts
Make interesting profit margin on valued brand products through volume sales
Infrastructure cost is minimized (ex no shops but only stock deposits and website and web masters)


Target customers
Those invited by a friend and colleague
Those registered online at the site after having heard the good news
Those invited by online ecommerce company working with and for the vente-privée company, partners of the company or the vente-privée company itself
Those who have heard in discussion forums and blogs about the phenomenon and who happen to obtain some sponsorship code


Article on the company

Vente-privee is going abroad (Spain, Germany)
Vente-privee has reached 100 millions € in six month with 290 employees, 260 sales event, and is launching in Spain and Germany in September, is acquiring one more logistic center (20000 m2) in addition to their existing 30000 m2. Vente-privee is aware of competition but is betting on its experience of “destockage”. They work in direct with the luxury brands while others work with wholesales and as real shops. Brands are becoming more conscious that place where their articles are sold is important and that exclusive partnership will probably be the solution. Vente privee says that they are helping brands to keep the reputation of their image, to sell a lots more through them than on regular sale operation and finally that they are bringing the stock directly to the customers.
http://www.journaldunet.com/0608/060821-granjon.shtml

Vente-privee is broadening its public
http://absolufeminin.nouvelobs.com/mode/mode0065_041.html

Vente-privee is defending his success story in justice against followers
http://www.lexpansion.com/art/134.0.139855.0.html

Additional business opportunities
It seems that there is no limit to the type of products that can qualify for vente-privée as long as the brand is a known one.
Ex Selling cars online through vente-privee. Peugeot is experimenting the phenomenon.
http://www.journaldunet.com/0701/070118-peugeot-vente-privee.shtml


My comments:
It is important that vente privee keep the its sale or rather continue to give the impression of “exclusive”, “secret”, “selected”, “once in a while phenomenon”,… because its success has been built on those values and perception. If the phenomenon gets too much copied or common to the public, then it will be probably the downfall of vente privée and alikes since there will be no difference between them an a regular ecommerce company.