Over the past year, the flash sale industry has experienced a series of significant changes. Take, for example, zulily being purchased by QVC, and Fab moving away from the model entirely.
Now, Gilt is announcing a shake-up to its business strategy: The eTailer is opening Gilt By Appointment, a physical showroom that allows members to browse inventory by appointment only. But is this initiative enough to inject new life into the flash sale model, which has been wavering for several years now?
The RTP editorial team shares their thoughts:
Debbie Hauss, Editor-in-Chief: I definitely agree with RSR’s Nikki Baird, who stated that the flash sale segment may never be the same, or get back to its glory days, but the model definitely has some attributes worth hanging on to and building upon. The winners will be the companies that can offer unique, valuable products, services and promotions. One of my current favorites is WTSO.com (Wine Till It Sells Out), which offers great wines at very reasonable prices, but for a very short period of time. This model has motivated me to buy more wine than I might otherwise. Also, if you buy 4 bottles shipping is free, so that’s what I usually do.
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Alicia Fiorletta, Senior Editor: The economic recovery is definitely making price less of a focus for most – if not all – consumers. But that doesn’t mean that they still don’t love a good deal! The power of daily deals and flash sales, in my opinion, enhances when the selection is curated and the sales are personalized. I think Rue La La does a great job personalizing emails based on past behaviors and preferences, as does zulily. I also think there’s room to incorporate more high-touch service – as Gilt is doing – and compelling content that dives deeper into the brands, designers and what makes each item unique.
Rob Fee, Managing Editor: Shoppers remain hungry for deals, so I still think that the flash sale concept has some legs – especially as larger, more established retailers begin to run with it. However, by tweaking the concept a bit, some retailers might find more long-term success, especially within specific niches. Caskers.com is a site I’ve used in the past to purchase hard-to-find whisky for gifts. Each day, I receive an email that offers access to items that I can’t find locally, albeit at full price. Like a traditional flash sale site, stock is finite. Once the item sells out, it’s often gone forever, which encourages customers to quickly complete purchases.
Glenn Taylor, Associate Editor: As a company-wide model, I don’t see flash sales as a long-term, sustainable option. The appeal of constantly changing inventory at low price points simply hasn’t been able to provide positive financial results for most of the flash sales companies in recent years. However, as a concept that gets utilized to various degrees depending on the retailer, flash sales still have elements that can be implemented into regular e-Commerce models. Daily deals certainly have their place during special events, and promotions for alternative brands can drum up lots of hype for new products.
Brian Anderson, Associate Editor: I definitely think retailers can find success with flash sales if the customer experience is unique. The Humble Bundle, for example, offers a handful of video games a week. However, shoppers can choose how much they pay for the bundle of games, and can also divide up the money to decide how much money goes to the game developer and how much goes to the weekly charity. It’s the little things like this can get shoppers to buy into something they might be on the fence with in the purchase decision.
What are your thoughts on the flash sale model? Is it experiencing a revival, or is it a fad that will soon die out?
