Private shopping club
Encyclopedia
An online private shopping club is a members only shopping club, where members can buy goods at high discounts.
Private shopping clubs organise sales events for its members that typically last 2 to 6 days.
Because they are private a user has to be invited and only after sign up users can see the goods and services on offer) they protect the brand owners distribution channels
, brand and price point
s.
True private shopping clubs source their products only directly from the brands and don't buy liquidation stock from retailers.
To become a member, one needs to be invited by another member or get waitlisted to get membership. Membership is free. There are a number of eCommerce websites where users have to sign up to be able to buy products at high discounts. Popular examples are overstock.com or ebay.com. However, they don't fulfill the by invitation only criteria and therefore are not classified as private shopping clubs.
Private shopping clubs operate across various categories (fashion, travel, electronics etc.) and segments (Premium brands, bargain basement, Gen Y
, Gen X
, etc.).
In 2009 the leading US shopping club Gilt Groupe
raised 40 million in funding from General Atlantic and Matrix at a valuation of $400m.
Russian online shopping club KupiVIP.ru raised $20 million in funding in venture funding led by Accel Partners and joined by prior investors Mangrove Capital Partners, ARLAN, Direct Group.
Private shopping clubs organise sales events for its members that typically last 2 to 6 days.
Because they are private a user has to be invited and only after sign up users can see the goods and services on offer) they protect the brand owners distribution channels
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
, brand and price point
Price point
Price points are prices at which demand for a given product is supposed to stay relatively high.- Characteristics :Introductory microeconomics depicts a demand curve as downward-sloping to the right and either linear or gently convex to the origin...
s.
True private shopping clubs source their products only directly from the brands and don't buy liquidation stock from retailers.
To become a member, one needs to be invited by another member or get waitlisted to get membership. Membership is free. There are a number of eCommerce websites where users have to sign up to be able to buy products at high discounts. Popular examples are overstock.com or ebay.com. However, they don't fulfill the by invitation only criteria and therefore are not classified as private shopping clubs.
Private shopping clubs operate across various categories (fashion, travel, electronics etc.) and segments (Premium brands, bargain basement, Gen Y
Generation Y
Generation Y, also known as the Millennial Generation , Generation Next, Net Generation, or Echo Boomers, describes the demographic cohort following Generation X. There are no precise dates for when the Millennial generation starts and ends, and commentators have used birth dates ranging somewhere...
, Gen X
Generation X
Generation X, commonly abbreviated to Gen X, is the generation born after the Western post–World War II baby boom ended. While there is no universally agreed upon time frame, the term generally includes people born from the early 1960's through the early 1980's, usually no later than 1981 or...
, etc.).
In 2009 the leading US shopping club Gilt Groupe
Gilt Groupe
Gilt Groupe is a shopping website based in the United states, offering its members merchandise, clothing, home decor, delicatessen food, travel and activities. Gilt Groupe was founded in 2007 and has 3.5 million members...
raised 40 million in funding from General Atlantic and Matrix at a valuation of $400m.
Russian online shopping club KupiVIP.ru raised $20 million in funding in venture funding led by Accel Partners and joined by prior investors Mangrove Capital Partners, ARLAN, Direct Group.