THE NEW WAY TO MAKE WORLDWIDE E-BUSINESS

Isabelle POLOMACK

• Created in 2001 by Jacques-Antoine GRANJON

• Consist of selling unsold luxury products such as clothes, purses, cutlery…by internet

• Specializing in organization of short time sales events by Internet

• Realize online trailers and create online catalogs for the distributors

• Implemented in Germany, Spain, Italy and United Kingdom

VENTE-PRIVEE.COM: OVERVIEW

• 240 millions of dollar generated in 2006

• 30 000 dispatched orders per year

• More than 850 available products online

• 470 events in 2006

• More than 500 employees

VENTE-PRIVEE.COM: OVERVIEW

• Access to inaccessible products at desirable pricing (-50% to -70% OFF)

• Doing shopping everywhere at anytime with no constraints

• Find excellent quality products with competitive prices

• Discover a new way of doing shopping

• Be recognized as a VIP customer and have some privilege

• Be membership of a private club

• Direct access to the unsold products and their stocks

VENTE-PRIVEE.COM: CUSTOMERS BENEFITS

VENTE-PRIVEE.COM: DISTRIBUTORS BENEFITS

• Get rid of leftover stock

• Widen their distribution network

• Acquire new customers

• Maintain and increase their revenue by direct sales channel

• Diversify their distribution strategy by direct positioning

• Have additional revenue thanks to the private online channel

• No revenue and stock loss

• Fidelize customers thanks to the private club’s membership

VENTE-PRIVEE.COM: OWNERS BENEFITS

• Low operating cost

• Low cost

• Large revenue sources (affiliation, commissions, auctions, subscription …)

• Profitable business model even if an economic crisis appeared

VENTE-PRIVEE.COM: CONSTRAINTS

• Need to find a « godfather » to make the suscription and become a member

• High shipping costs

• Long delivery

• Loss and theft of packages

• Online payment (can be a constraint for some customers)

• Indirect Customer service (external to the company)

• Customers can decide to exclusively consume destocking (discounted) products. This way of consumption can be very destructive for

companies because they can be constraint to sell products at low price exclusively. Moreover, this pricing politic can generate revenue loss at

medium term.

• Customers can decide to not buy offline because of the good online offers

• Internet security system can be pirated and the customers’ transactions can be fraudulently used. Because of this insecurity

system, customers can decide do not anymore buy online products

VENTE-PRIVEE.COM: POTENTIAL RISKS

VENTE-PRIVEE.COM: GLOBAL BENEFITS

According to an interview realised in 2007 with Jacques-Antoine GRANJON, the Vente-Privée.com’s owner, the main keys to success of the company

are:

KEY TO SUCCESS

•The concept’s pertinence•The business model’s viability•The company’s transparency

•The good knowledge of Internet and its limits•The relationship based on trust with

distributors and customers

KEY TO FACE COMPETITION

•Made internal investments (200 data processing systems, 18 design studios…)

•Provide excellent delivering quality (partneship with the best transporteur

•Offer the best quality of service for the call center

•Provide the best mail center’’s performance

KEY TO FACE CONSTRAINTS

•Run an effective juridical strategy to face disloyal/unfair commercial practising

• Keep informed to the juridical evolution of the e-commerce’s reglementation

http://www.journaldunet.com/itws/it-granjon-lecteurs.shtmlRead the article:

VENTE-PRIVEE.COM: GLOBAL BENEFITS

OFFER A NEW DIRECT

COMMERCIAL CHANNEL

OFFER A NEW PLATFORM FOR

SELLING PRODUCTS

MAXIMISE REVENUE BY ACCELERATING

TURNOVER OF STOCKS AND PRODUCTS

PROVIDE AN ADDITIONAL SALES

MEDIA

DOES THE PRIVATE SALES BUSINESS MODEL CAN BE APPLY TO THE

TRAVEL INDUSTRY? Travel Industry Main issue: Take advantage of the more

profitable strategies to face the competitive market

• Since many years, we can note that the travel industry need to get and stay in control of revenues by using business models that can

attract new customers all around the world.

• So, in order to maximise profits, travel companies must to apply a powerful pricing and revenue optimization strategy

as well as they are building customer loyalty.

• Because travel companies have to sell their global stock, it is crucial for them to not loose money or sell at a loss.

• For this main reason, the Private Sales’ business model is nowaday an excellent way for travel agencies to get rid of leftover stock

and generate additional revenue.

HOW WOULD THE ONLINE PRIVATE SALES BUSINESS MODEL CAN WORK

FOR TRAVEL AGENCIES?

TRAVEL AGENCIES ONLINE PRIVATE

SALES OFFLINE TRAVEL

AGENCIES

ONLINE CUTSOMERS

EXCLUSIVE TOUR OPERATORS

EXCLUSIVE HOTELS

HOW WOULD THE ONLINE PRIVATE SALES BUSINESS MODEL CAN WORK

FOR TRAVEL AGENCIES?

BUSINESS MODELS

• Subscription fee or registration fee

• Advertising • Affiliate programs• Infomediary• Manufacturer• Merchant

OBJECTIVES

• Get rid of leftover stock• Increase online traffic

• Generate additional revenue• Enlarge the customers

database• Animate the travel

distribution network• Transform each invitation into

a pruchasing act

TOOLS

• E-mailing• Newsletters

• Sponsorship/Membership• Widgets• RSS feeds

• Community network (Iphone, Facebook, Twitter…)

STRATEGIES

• Create a feeling of dependance to traveling

• Develop impulsive purchasing acts• Offer a Gold Club Membership to

increase customers’ loyalty• Offer personalized travel packages

to customers

HOW WOULD THE ONLINE PRIVATE SALES BUSINESS MODEL CAN WORK

FOR TRAVEL AGENCIES?

EXEMPLE OF ONLINE PRIVATE SALES BUSINESS MODEL FOR TRAVEL AGENCY

EXEMPLE OF ONLINE PRIVATE SALES BUSINESS MODEL FOR TRAVEL AGENCY

‘Voyage-Privée’ is a specializing website in private sales for holidays and luxury trips

http://www.voyage-prive.com/login

Members: 2 millionsPageviews per day: 26,919

Owner: Denis Philipon 2007 Revenue: 21 millions of

Euro

Website created: in 2006

ONLINE PRIVATE SALES BUSINESS MODEL:

KEY TO SUCCESS

• Popular business model

• All kind of industries can use it

•Profitable business model

• Sustainable business

• Scaleable business model

• High success from online customers

• All types of custmers can fond their ideal product and

buy it