Flash sales
Transcript of Flash sales
Lori, Alexis, ChrisSection 007
What happens when you order
Flash sales sites must have adequate information technology systems to keep track of all this information
Information Systems Triangle
Information Collected
• Contact Information • Relationship Information • Transaction Information • Financial Account
Information • Mobile Location
Information
Use of Data
• Provide customers with offers for products and services from participating merchants, including offers based on variables such as stated and anticipated customer interests, personal characteristics, or location;
• Evaluate eligibility of customers for certain offers, products or services;
• Evaluate the types of offers, products or services that may be of interest to customers;
• Track redemption of GROUPONs and perform other analytics;
How this Industry Started
This industry was pioneered by woot.com an internet electronics retailer in 2004.Its slogan is "One day, one deal" Although its original focus was electronics, it quickly branched off into other markets such as clothing and household products. As a front runner of flash sales, woot.com disrupted the market, which has since changed the landscape of internet commerce. Their unique business strategy formed a competitive advantage and paved the way for longevity and success.
Is It Worth It?
Pros• Steep
discounts• Many
options/ varieties
Cons• Use of vouchers• Quality/relevance
of product• Difficulty of
refunds/ penalties
Flash Sales: Electronics
Although flash sales started in the electronics industry, its impact has stretched far past its origin. This business strategy has filtered into many electronic online retailers such as amazon, newegg, and tiger direct. While these companies aren't solely based on the flash sale model, they implement closeout deals, tremendous discounts, and limited time slots in their daily deals. This is an example of how flash sales has permeated and adapted into an extremely tough industry such as electronics.
Travel Deals
Some examples:• jetsetter.com• livingsocial• groupon• Expedia ASAP• spire• sniqueaway• vacationist
"Seventy percent of the people who buy from us tell us that they had no intention of traveling," he says. CNN travel
Clothing
Offers discounts on designer clothes, shoes, and hand bagsOccurs when vendors have an overstock of some items that they want to get rid of
Examples:Rue La La Gilt GroupHautelook Ideeli Sneekpeeq
RueLaLaMember only website, Have to be invited to
someoneIf you invited someone, you get a $10 off
once they make their first purchaseSome products have limited times, open for
one day, or one week Have this new tab called “Locals,” go into a
store and shop at a discount only if you are a RueLaLa member
One Kings Lanehttp://youtu.be/yuYitLWDxKc
Discussion Questions
How do companies achieve competitive advantage?
What will happen when recession is over? What are some challenges that flash sales companies face?