Posted: January 6th, 2010 | Author: Lauren Sherman | Filed under: discount shopping, online retail | Tags: Gilt Groupe, Shop The Issue, Vogue | No Comments »
A spokesperson from Gilt got back to me regarding the Vogue partnership. Here’s what she had to say:
- There will definitely be Vogue-sponsored “Shop The Issue” sales in February and March. Vogue hasn’t committed to anything beyond that.
- As Gilt grows, full price sales are something it wants to do, but no definite plans have been made.
Obviously, the big question is: Why bother? Gilt’s already grabbing market share from pretty much every type of retailer, including off-price brick-and-mortar (TJ Maxx), department stores, boutiques and outlet stores.
Well, I think what Gilt may be dealing with now is somewhat of a backlash from designers, as my Twitter follower @EmekaPatrick suggested yesterday. Many boutiques are frustrated with certain designers because they’re producing in-season merchandise for Gilt and allowing Gilt to sell it at a hefty discount while it’s still full price at traditional stores.
Consumers are picking up on this. One boutique owner told me that clients have actually said to him, “I saw this on Gilt the other day for 70% off, why is it full price here?” I’m sure designers are hearing from disgruntled store buyers and have relayed these concerns back to Gilt. I’m also sure it’s not a huge deal for the company as of yet, but as the economy improves and traditional store buyers have more money to spend, Gilt’s going to have to come up with new ways to convince designers to cut them a deal.
That’s not to say Gilt’s original form of revenue will go away. No matter what’s up with the economy, people love sales, even if the product is a couple of seasons old. But in-season merchandise is going to be more difficult to discount down the road. As a frequent Gilt customer, I look forward to observing how the executive team deals with this and other challenges.
Posted: January 4th, 2010 | Author: Lauren Sherman | Filed under: discount shopping, fashion, online retail, shopping | Tags: Gilt Groupe, Shop The Issue, Vogue | 3 Comments »
What may well be its most brilliant marketing move yet, Gilt Groupe has teamed up with American Vogue to hold special “Shop The Issue” sales. The first one happens tonight at 9pm and features See by Chloe, whose safari shirt was profiled by fashion writer Mark Holgate in the January issue of the magazine.
There is very little information available from Gilt–meaning no press release, no blog post–so I’m unsure as to whether or not other designers from the issue will also be featured or if the clothing will be discounted. (I have a feeling that if it is, it won’t be by much. Don’t expect 70% off in-season merchandise here.)
I’ve contacted Gilt and hopefully they can answer my questions. I’ll get back to you soonest.
Update:
The sale is filled with non-discounted items from several labels, including Dooney & Bourke, Giles & Brother and the aforementioned See By Chloe.
The model is doing a lot of Vogue spread-inspired poses.
Gilt is using Vogue’s new feature Steal of the Month as the centerpiece for each sale. That’s a good idea, as long as the designers involved are okay with selling his/her new goods on Gilt.
This biggest news here? Gilt has moved into full-price retail. Yes, it’s still a flash sale, but without the discount, what’s the point? Gilt execs say that traditional retailers don’t understand the flash sale model. Will they be able to duplicate its success while charging full price?
Posted: November 11th, 2009 | Author: Lauren Streib | Filed under: fashion, marketing, publishing | Tags: Angelina Jolie, Bazaar, Elle, Jennifer Aniston, Vogue | No Comments »
Our new contributor Lauren Streib is a Brooklyn-based writer. For the past three years she was at reporter at Forbes, where she covered celebrity earnings and the publishing industry. She’s currently freelancing at The Daily Beast.
For a project today, I pulled the last 12 issues of fashion magazine mainstays Vogue, ELLE, Harper’s Bazaar and W. The cast of cover girls was mostly familiar (Jennifer Aniston, Angelina Jolie, Beyonce) with a few smart surprises (Christy Turlington, Amy Adams). There’s lots to be said about why magazines choose the cover models that they do. But while comparing the rosters across the four titles, I couldn’t get this particular thought out of my mind: What the hell has been going on at Vogue?
When examined over the course of the year, Vogue’s cover cast goes from stalwart Jennifer Aniston to 20-something starlet Blake Lively to first lady Michele Obama to a crew of high-fashion models to does-anyone-even-care-about-her-anymore Sienna Miller. Aside from propping up middling movie stars, what does this magazine stand for? Obama was a nice shot in the arm; not only is she a veritable style star with the required pedigree, but her fame and relevance bolstered newsstand sales to 560,000 (the mag’s average for the first half of 2009 was 384,000). But what does someone like Charlize Theron bring to the table?
Maybe the question is not what Vogue is doing wrong, but what others in the category are doing right, at least from an intellectual standpoint. W, proud of its avant-garde slant and European sensibility, chooses cover subjects that bear a bit of controversy. In 2005, its editors built an entire magazine around Angelina Jole and Brad Pitt while news of the Aniston-Pitt split was still raw. This year, their choices again reek of sex and intrigue. Think Bruce Willis and new wife Emma in bondage. Blake Lively in an itsy-bitsy dress looking like a patriotic pinup. Even Uma Thurman looks like a fashion superhero on October’s cover. W’s list also includes Madonna, Ginnfer Goodwin and Drew Barrymore: Strong, slightly edgy women who embody the W brand.
Same goes for Elle – it’s consistent. Its subjects are look fresh-faced pretty and have Hollywood appeal, and its covers are always tinged with innocent sex appeal. Aniston gets a bustier and Carrie Underwood gets load of bling. Katie Holmes wears a skin tight dress and Megan Fox covers herself up (for once) in white.
But here’s the part that I don’t get. In the first half of the year, single copy sales–which are driven by the appeal of the cover model–were down 3% at Vogue, 12% at ELLE, 13% at Harper’s Bazaar and a whopping 21% at W.
If Vogue’s covers are generally crappy, why do people still buy it on the newsstand? Because readers love Vogue no matter who’s on the cover? Maybe. Or maybe it’s because when things get tough, consumers go with what’s reliable. They go with the most established brand. After all, W is a luxury product; it’s supposed to maintain exclusivity, not mass appeal. And Elle’s sass isn’t necessarily sustenance. Vogue is uncomplicated and predictable. It’s basic black.
Unfortunately, if the most famous magazine in the world continues to misfire, there’s no way it will remain immune to the realities of print media. It will succumb to sagging newsstand sales just like its peers. Which is why, more than ever, the brand needs to refocus. Wintour reinvigorated the magazine when she arrived; it had become staid after Grace Mirabella’s 17-year run. Can she do it again 20 years later? Let’s hope so. Because if it’s going to be the last mag standing, it should have more to stand on.