Feeling zero Guilt over Gilt...

What do you think about when the word "sample sale" comes up?

Personally, I'm instantly hit with a series of images:

People (mostly women who've snuck out of the office) jamming into a temporary space on the 6th floor of some building in the fashion district. Elbows are flying, the aisle is the fitting room and a great find usually comes after digging through 3 large bins. Oh, and the sign on the door reads "Cash Only". Returns? Yeah, right....

For those of you who know what I'm talking about, you are the exact audience that Gilt Groupe(www.gilt.com), an e-commerce company, is targeting. The site launched in 2008 and has revolutionized the way we think about sample sales. The basic idea is that the website (which is member's only) provides users with daily sample sales which are specific to one designer and last about a day. The sales all start at exactly noon. The featured designers are both established (Calvin Klein) and trendy (Steven Alan)

Suddenly, it's as easy as turning to the internet at noon everyday to see what's for sale. The images are clear, the functionality (can you say ZOOM) is outstanding, the search capabilities (by size, color, style) all well thought out --- and they allow returns!! Moreover, the company has done a fabulous job with the marketing and administration of the site. The marketing team puts together videos so that members get a sense of the designers that will be in the upcoming sales - though none of the actual items can be seen. Most importantly, because the sales "open" at exactly noon and items sell out quickly, it's an and incredibly strong incentive for users to log on everyday to check it out. There is a sense of urgency. They dont want to miss out.

And it seems to be catching on. According to compete.com Gilt's monthly uniques have grown from approximately 100K in May of 2008 to 500K in May of 2009 - and remember, you have to be a member to log on (membership is gained by invitation from an existing member).

Of course, once someone finds a good thing, others are likely to follow. Users can now log on to several sites attempting to replicate the Gilt Groupe model - www.ruelala.com, www.editorscloset.com, etc. The question now is whether the market is big enough for all the competitors and whether Gilt can use its first mover advantage and unique positioning to maintain an edge.

As far as I'm concerned, they're all worth trying out!! Happy Shopping.
-Karis