Ideeli Inc. is a New York-based flash selling and online shopping business. Paul Hurley, a lifelong capitalist, created it in 2006. His aim was to build a marketing channel after realizing that e-commerce was not only trending but also stealing market share from brick and mortar companies. Ideeli reached a million customers in 2009, and their steady rise was apparent after being rated the fastest growing organization by Inc. 500. The organization's projected revenues for the same year is revealed to be $100. On October 2012 Robert J Rosenblatt became the new effective CEO who curbed the menace of limited space by moving to 31,500 square foot offices inside the New York Times buildings. Ideeli has later then progressed gradually to this moment with 4.5 million members (Vault, 2017). By 2015, it had acquired OrderUp inc. for $ 69 million dollars. The subsidiary is an on-demand online and mobile food ordering company.
The product and service
The company is a membership only retail that serves a mass affluent market of sales like women’s and men’s clothes, accessories, house wares, apparel among others. Idelli’s brand partners in conjunction with their photo studios post their products online for their members.
Business model
Principally, Ideeli operates a B2C (business to consumer) business model. Adoption of the flash- sale model appeals to most potential customers. In fact, most of them are eager to take in overstock. Mr. Hurley learnt the model from shopping clubs in Paris and decided to implement the approach. It’s driven by high speed sales with a volume limit on their products.
Core value proposition of the company
Ideeli sends deals to their clients on their website or their personal social network platforms on consistent basis which increases their revenue per customer and lowers the overall cost. Target market or audience
The company caters for customers on pursuit of luxury goods but don’t have enough cash for designer items. Middle class people who sign in as members, are the targeted customers. Geographically, the company’s largest market is Canada and then it is followed by Europe. It earns over 40 percent of its revenue outside North America.
The revenue model
From the 4.5 million registered members, every sale made garners revenue for the company. Furthermore, the entity offers clients an option to pay $7.99 a month for them to receive notifications on sales up to an hour earlier than non paying members.
Competitive environment
Ideeli best-known independent competitors are Gilt Groupe, Rue La La and Haute. However, Rue La La and Haute were acquired by larger companies in 2009 and 2011 respectively (Vault, 2017). Multinationals such as Amazon have dominated the international market because they have higher capital and equity funding which consequently translates to higher revenue.
Competitive advantage analysis
The company’s mass affluent and inspirational demographic is larger than that of its competitors. More so, the industry support multiple companies in retail this has utterly made an enormous green field for Ideeli Inc. As a result, specialization in flash sales has made the entity to have unfair advantage (Vault, 2017).
Product promotion
Idelli designed a blog for fashion-conscious clients that is updated on a weekly basis .This blog points on fashion tips sales news and latest design. In addition, the management has raised their discount bar up to 80%. More importantly, Ideeli alerts its customers through Facebook, fashion blogs and through email marketing. As an incentive, it rewards its loyal and high-end customers with Smartphones.
The company’s success ratings
The company has helped millions of customers get hold of luxury clothes and accessories at discounted prices. Its revenue by 2010 was registered $77.7 million with a growth of 40,882% in 3 years besides being ranked: 1 in 2011 Inc. 500 (Vault, 2017). E-commerce has brought about exponential growth that will continue possibly even becoming a billion dollar company in the near future.
References
Vault. (2017). Ideeli Inc. Banking and Reviews.
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