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"In addition, its core discount-fashion business is coming under pressure from the recovery in the luxury business." Interesting, I hadn't thought of gilt as b
by showerst 15y ago
"In addition, its core discount-fashion business is coming under pressure from the recovery in the luxury business."
Interesting, I hadn't thought of gilt as being counter-cyclical until now, but it definitely makes sense.
I wonder how companies like they and wine.woot will survive once luxury brands aren't hurting so much.
Will they keep these deep discounts around to build buzz, or cut the cord?
- strmpnk 15y agoFrom what I've heard from the company, the merchandizing for the fashion business has been under pressure for quite some time. Their early growth was mostly limited by having goods on hand. Now the lack of product distinction and lower margins are making it a tricky business to run. Personally, it was a great concept that's been successful many times, but I do find this valuation a bit too close to something like "round up to the nearest billion" to make sense. Further, they've wasted a lot of time lining up their technology to make the new product sites work well and internationally (i.e. serving up in Japan was a mess organizationally). It's quite silly to see them posture like this but I guess it comes with their ridiculous attitude over there.
- daniel1980fl 15y agoagree. lookup any "deals" sites stats - cheapstingy, slickdeals, even groupon is getting less and less uniques... whether the economy is really recovering, or even worse its sucking people up so hard that they simply stop buying even cheap stuff they can't afford anymore!
- daniel1980fl 15y agomost likely they will lover the quality of product while keeping same low price. in other words, cheap garbage for little money.