Private-Sale Sites Grow in a Struggling Economy
The success of private-sale sites like Gilt Groupe, which holds daily members-only sales of off-season luxury items, have led to imitators hoping to emulate the success of a business model that’s catching on with recession-strapped consumers.
Private-sale sites let shoppers experience the cachet of owning luxury items without paying full price. Their Web-only setting eliminates the public guilt of making big-ticket purchases down a down economy. And the short time in which items can be reserved in shopping carts means customers have to click fast, enhancing the allure for some.
One of the newest such sites is One Kings Lane, which focuses on furniture and other housewares. Like the Gilt model, it sells luxury goods from two or three brands a day at 50 percent to 70 percent off original prices.
