Vente-privee is a very interesting business model, much like bluefly in the United States, only selling a broader range of products. It has two types of customers, the average individual who shops online and the brands that it sells. The beauty of it is that the brands have the option to get rid of their inventory through this company that is willing to take on selling it and the individuals who belong get to feel as though they belong to an exclusive club. These consumers love a bargain and the fact that you must have a membership to have access to these deals.
Vente-privee sells its products at a reduced price and tells customers about sales through email and "bande-annonces".
This way, the company remains in close contact with the customer and even gears those emails toward what the customer has bought in the past. This model is good because it benefits all involved parties very well. The company takes the leftover inventory off the hands of the luxury brands who are done trying to sell it and moving on to other endeavors, while the customer gets the opportunity to buy the product at a discounted price. Vente-privee then gets its share for successfully selling what the original brand could not (more details).
This concept could be effective on a greater level as well. As we’ve learned from eBay, one’s trash is another’s treasure. Therefore, I would think a company could be formed from the loads and loads of inventory left over from any company. In a way, this has already been implemented with sales and clearance sales on web sites, but in those cases it is still the original company who remains responsible for selling them.
Suzie's and Irina's responses about vente-privee discuss how the business model enables the companies (i.e. Diesel, Saint Honore, etc.) to give their respective companies a certain amount of time to sell their latest line, while still allowing those companies to maintain their images in boutiques. And as we learned with the Long Tail, the beauty of this, too, is that it’s ONLINE, so the brick and mortar location, beyond a warehouse, is not necessary.
