Online Fashion Retailer Privalia boosts its Flash Sales Business with IBM Smarter Commerce
Jan. 24, 2013 – Privalia, the online leader in fashion “flash sales,” with operations in Spain, Germany, Italy, Brazil and Mexico, is working with IBM to boost its expanding online sales business through mobile and social channels to meet the dynamic needs of its 11-million digital consumer base. Privalia organizes online flash sales, a phenomena that offers personalized, limited-time offers to consumers at attractive prices.
Privalia is using software from IBM’s Smarter Commerce initiative to connect with the growing marketplace of digital consumers who prefer to buy across online, mobile and social channels. Smarter Commerce provides intelligent automation of marketing, sales, customer service and procurement to help chief marketing officers, chief procurement officers, sales, e-commerce, supply chain and customer service executives do their jobs more productively and efficiently.
Venture-backed Privalia organizes short, single-brand campaigns lasting between three to five days. Registered members are invited to shop based on expressed personal preferences. The flash sales model that Privalia represents is helping smaller retailers gain a competitive edge while appearing more exclusive. For a limited time, boutique items at special discount prices are displayed on the Web site. This can be a more effective sales method than conventional Web sites that may be viewed as cheapening a brand’s value or in the case of brick-and-mortar stores, where a lesser-known company is lumped in with major, household names. Flash sales provide retailers with an easy and profitable way to sell excess inventory and club members are able to obtain brand-name products at affordable prices.
Lucas Carne, Privalia’s co-founder, points out that “for a technological investment of nearly two million euros, it was crucial to find a multi-channel solution that gives us the maximum modularity and enables us to continue innovating, a key to our success. Being able to work with a trusted partner such as IBM was critical to our decision.”