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  1. 1. IEMI-MBA-EBM-Delphine 09/10/2009 <ul><li>Vente-privée sells branded products at reduced prices to its customers. </li></ul><ul><li>The sale-period of a particular brand products lasts 2 to 5 days, from 7 a.m. to midnight weekdays and from 9 a.m. to midnight on weekends. </li></ul><ul><li>Customers are in fact members, who should referred to an already member to register. Registration is cost free. </li></ul>
  2. 2. HOW VENTES-PRIVEES FUNCTIONS Vente-privée Brands Customers 1. Vente-privée reserves stock by the brands 2. During sales, customers buy items from the reserved stock to Vente-privée 4. Vente-privée delivers the items to the customers 3. Vente-privée pays the reserved stock to the brands. The brands deliver it to Vente-privée.
  3. 3. PROBLEMS THIS MODEL SOLVES FOR <ul><li>CUSTOMERS </li></ul><ul><li>No need to go to an offline store </li></ul><ul><li>(there are online sales </li></ul><ul><li>+ home delivery) </li></ul><ul><li>Affordability of the brands </li></ul><ul><li>Ease to check what’s for sale </li></ul><ul><li>(no messy shelves!) </li></ul><ul><li>Access to year-long sales </li></ul><ul><li>no need to seek for sales’ </li></ul><ul><li>announcement, they arrive </li></ul><ul><li>via emails </li></ul><ul><li>SUPPLIERS </li></ul><ul><li>get rid of stocks in surplus (thus </li></ul><ul><li>reducing storing and inventory </li></ul><ul><li>costs) </li></ul><ul><li>lower ad costs (VP sends emails </li></ul><ul><li>to prospective customers, </li></ul><ul><li>creates video clips and pictures) </li></ul><ul><li>benefit from VP’ brand image </li></ul><ul><li>receive feedbacks on customers’ </li></ul><ul><li>tastes </li></ul><ul><li>BUSINESS’ OWNER </li></ul><ul><li>No stock trouble </li></ul><ul><li>disponibility of the money </li></ul><ul><li>benefits of other brands’ image </li></ul>
  4. 4. CUSTOMER GROUPS SERVED Their common points: - don’t mind buying items from previous year trend - able to decide quickly what to buy - don’t need the product before a while - hold a credit card People willing to make a good deal People who can’t go shopping at offline store opening hours People who cherish the feeling of belonging to a private circle People who can’t afford the brands at their normal prices
  5. 5. REVENUE SOURCES <ul><li>IS THE MODEL SUSTAINABLE? </li></ul><ul><li>YES. Surplus stock always occurs, and VP protects itself from direct competition by signing “exclusivity” contracts with the brands. Also, customers enjoy making good deals. </li></ul><ul><li>profit margin per sold item </li></ul><ul><li>sale of customers’ statistical behaviors studies </li></ul><ul><li>advertising </li></ul><ul><li>partnership </li></ul>IS THE MODEL APPLICABLE OFFLINE TOO? Yes. Something similar to VP exists (with the inconvenient of offline stores: crowded, messy shelves after some time, lack of shelf space,… and the advantage: possibility to check clothes fit oneself…).
  6. 6. TWO OF ITS COMPETITORS BrandAlley at BrandAlley too organizes private sales for its members, who need to register but do not need to refer to an already members to access the site. BrandAlley has partnerships with over 200 brands. The brands’ list is reachable without being a registered user. Ideeli at Ideeli is accessible only to its members, who need to be invited in order to join in. Ideeli offers products not yet available in stores: exclusive and pre-sale products, often at privilege prices. The brands are luxury ones. Ideeli also organizes some online charities.
  7. 7. <ul><li>TECHNOLOGY </li></ul><ul><li>For the members: </li></ul><ul><li>Internet access </li></ul><ul><li>an email address </li></ul><ul><li>a credit card </li></ul><ul><li>For the owners: </li></ul><ul><li>- A place to receive the goods, sort them quickly and pack them </li></ul><ul><li>- efficient delivery channels </li></ul><ul><li>BUSINESS </li></ul><ul><li>strong partnerships with brands </li></ul><ul><li>strong use of existing delivery systems </li></ul><ul><li>HUMAN VALUES </li></ul><ul><li>feeling of being privileged </li></ul><ul><li>desires to buy branded products at lower prices </li></ul>IS IT SCALABLE? Yes. It is possible for Vente-privée to partner with more brands or to increase the number of members. But logistic means will have to be in accordance.
  8. 8. IF I OWNED IT, I WOULD… INCREASE CUSTOMERS by using the same process as it is a condition to keep the feeling of belonging to a privilege circle. EXPAND REVENUE SOURCES by creating a please-find-it service: a member tells VP he is looking for a particular branded item; once VP finds it within a given period – and at a “reasonable” price, VP takes a commission on the sale. DEVELOP THE BUSINESS by continuing to expand it in other countries. Also, as local brands seem to be more successful locally, I would attract customers on foreign brands through “foreign country week” sale.
  9. 9. SOME SUGGESTED POINTS TO IMPROVE <ul><li>NAVIGATION : Show the number of models still available per category during the sale (For example, the category “bags” host 8 models, 6 of which are already “sold out”, so a “2” should stand next to “bags”). This does not show how many items VP has reserved per model. But it allows customers to quickly see whether a category still has some products for sale, and it eases the ability to check a model has become “available” again. </li></ul><ul><li>PACKING : “The size of the box depends on the volume of the command”. In the reality, it is the depth of the box that depends on the volume of the command. The length and the width remain the same, whatever the volume of the content… </li></ul><ul><li>CUSTOMER RELATION : It seems that customers perceive the after-sale customer relation service not as as efficient as it could be. </li></ul>