Vente-privee.com is the original founder of exclusive sales events on the internet with over 20 years experience specializing in fashion and stylish homeware. These limited-time sales have led to the creation of a new way of shopping.
Vente-privee.com organizes exclusive designer brand sales in all product categories: fashion, fashion accessories, homeware, sports products, electronics and wine to name just a few. VP has direct partnerships with more than 850 designer brands across Europe, which allows them to offer huge discounts from 50% to 70% off RRP.
To publicize a sale, an email trailer is sent to each member two days before every exclusive sale. From the opening day, purchases can only be made online in a secure environment. Sales last on average for three days.
VP.com has been created in 2001 by Jacques-Antoine Granjon. Now the turnover of the company is more than 610 million €.
The principal and maybe the only source of revenue of VP.com is the margin that they create by selling products.
Indeed, it’s very simple, they buy products from stocks that haven’t been sold to a brand and they resell it by creating a margin.
There are three main actors: The producer, the intermediary (VP.com) and the customer.
In the traditional trade sector, we often find the same business system. Thus, we have the producer that sells its products to the intermediary and then the last one sells it to the customers by creating revenue (margin)
Concerning VP.com, the online business is considerably the same, but the process is different. The intermediary is going first to negotiate with the producer some stocks he wants to sell. Once the stock has been booked – which is not yet sold by the intermediary – this last one will then put on sell on his website even before buying it.
The customer will then buy the product to the VP.com website even before the online business structure bought it to the producer. VP.com will buy then products that have been booked to the producer by adapting his purchases to the customers’ offers. It’s a bit like working in “just in time distribution”.
This way of doing business can solve a lot of problems:
- First for the company owners: this model is very advantageous, because customers pay even before that PV.com has bought the merchandise. Then this kind of business model allows a self-financing by customers. PV.com does definitely not need financing resources. We cannot find this kind of advantage in any other business model.
- Then for suppliers: They destock their last products without attending to their brand image. Thanks to VP.com, which is in charge to set up some video promotions in their selling contracts, brands are keeping a very good image and in the same time they sell their non sold products and they widen their clientele. They can also renew the offer more often. However the advantage of keeping a good brand image can sometimes be degrading in the way it is used by the intermediary.
- Finally for customers: They can find very god quality products, cheaper than in stores by staying at home. Furthermore they have the feeling to be privileged thanks to the subscription and sponsor obligation.
Another industry that could adopt this kind of business model can be the hotel sector. It would be a really good advantage for them to have another platform to sell their room that have not bee sold for the coming week. However it already exists with the central reservation but they are not making any reduction. This business could appear in the yield management and make reduction if the room is not sold for the coming days, but it’s really harder to schedule than a stock of product. We also apply this model to the airline companies or even to the travel industry.
VP.com has a lot of competitors but they came to the market 4 years after them, then VP.com still have the advantage and even if they wanted to catch them, they won’t have the money. Why? Because on a e-business model like VP.com when you’re small you can have a growth which is very correct but when you’re big, the growth can be very big, and you have to invest in order to develop yourself to face the demand. Thus, principal customers, as they are not able to compet with VP.com have repositionned themselves.
24h00.fr is specialized in women clothes.
Vente-privee.com organizes exclusive designer brand sales in all product categories: fashion, fashion accessories, homeware, sports products, electronics and wine to name just a few. VP has direct partnerships with more than 850 designer brands across Europe, which allows them to offer huge discounts from 50% to 70% off RRP.
To publicize a sale, an email trailer is sent to each member two days before every exclusive sale. From the opening day, purchases can only be made online in a secure environment. Sales last on average for three days.
VP.com has been created in 2001 by Jacques-Antoine Granjon. Now the turnover of the company is more than 610 million €.
The principal and maybe the only source of revenue of VP.com is the margin that they create by selling products.
Indeed, it’s very simple, they buy products from stocks that haven’t been sold to a brand and they resell it by creating a margin.
There are three main actors: The producer, the intermediary (VP.com) and the customer.
In the traditional trade sector, we often find the same business system. Thus, we have the producer that sells its products to the intermediary and then the last one sells it to the customers by creating revenue (margin)
Concerning VP.com, the online business is considerably the same, but the process is different. The intermediary is going first to negotiate with the producer some stocks he wants to sell. Once the stock has been booked – which is not yet sold by the intermediary – this last one will then put on sell on his website even before buying it.
The customer will then buy the product to the VP.com website even before the online business structure bought it to the producer. VP.com will buy then products that have been booked to the producer by adapting his purchases to the customers’ offers. It’s a bit like working in “just in time distribution”.
This way of doing business can solve a lot of problems:
- First for the company owners: this model is very advantageous, because customers pay even before that PV.com has bought the merchandise. Then this kind of business model allows a self-financing by customers. PV.com does definitely not need financing resources. We cannot find this kind of advantage in any other business model.
- Then for suppliers: They destock their last products without attending to their brand image. Thanks to VP.com, which is in charge to set up some video promotions in their selling contracts, brands are keeping a very good image and in the same time they sell their non sold products and they widen their clientele. They can also renew the offer more often. However the advantage of keeping a good brand image can sometimes be degrading in the way it is used by the intermediary.
- Finally for customers: They can find very god quality products, cheaper than in stores by staying at home. Furthermore they have the feeling to be privileged thanks to the subscription and sponsor obligation.
Another industry that could adopt this kind of business model can be the hotel sector. It would be a really good advantage for them to have another platform to sell their room that have not bee sold for the coming week. However it already exists with the central reservation but they are not making any reduction. This business could appear in the yield management and make reduction if the room is not sold for the coming days, but it’s really harder to schedule than a stock of product. We also apply this model to the airline companies or even to the travel industry.
VP.com has a lot of competitors but they came to the market 4 years after them, then VP.com still have the advantage and even if they wanted to catch them, they won’t have the money. Why? Because on a e-business model like VP.com when you’re small you can have a growth which is very correct but when you’re big, the growth can be very big, and you have to invest in order to develop yourself to face the demand. Thus, principal customers, as they are not able to compet with VP.com have repositionned themselves.
24h00.fr is specialized in women clothes.
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