Ideeli flash-sale site sells high fashion for less
NEW YORK -- When the buyers working for the discount fashion website Ideeli return from trips to designer showrooms in the "garment district" here, they're often as euphoric as shoppers who have found great deals.
Recently, some of the excitement has been about accessories from hot up-and-coming hair accessories designer Deepa Gurnani and Nine West co-founder Vince Camuto. But it can also just be a few dozen boots from a top designer they're not allowed to mention.
These "merchants," as Ideeli likes to call them, sometimes get calls from manufacturers when stores return merchandise or cancel orders. But, more often than not these days, it's because a brand realizes it's more cost-effective to make extra and knows there's a growing demand for deals on name-brand clothing and accessories.
Enter the growing influence of Ideeli and other sites that specialize in "flash sales." While Groupon and other daily-deal sites typically feature one daily deal in a local market, flash-sale sites have limited-time sales that feature many pieces from one or more designers' lines. Ideeli takes the concept even further and often features sales from as many as 40 designers at a time, selling women's, men's and children's clothing, as well as home goods.
"It's the digital equivalent of an entire store's merchandise being on sale," says Nita Rollins, a digital marketing expert and Ideeli member.
Ideeli's goals are the same as many shoppers' this holiday season: Buyers are looking for the lowest prices on the best products.
"The great recession really, really accelerated our growth," says CEO Paul Hurley. "Brands were more interested in working with us."
Ideeli (pronounced "ideally") placed No. 1 on Inc.Magazine's ranking of the nation's fastest-growing companies this year. The site's three-year sales growth of 40,882% secured its spot and was twice the growth rate of the No. 2 company, Solazyme. Revenue in 2010 was $77.7 million.
The site has almost 5 million members and was ranked fourth among flash-sale sites in unique visits last month, according to Web-tracking company ComScore. Ideeli, which launched in 2007 with five employees, now has 250 and is still hiring.
While there's less luxury merchandise to be had at a discount for the site post-recession, Hurley says there are also far more shoppers in the "aspirational" or "mass affluence" segment the site targets.
Ideeli's members are mostly women and have household incomes ranging from $50,000 to $250,000 a year, says spokeswoman Becky Wisdom. (The site started offering men's clothing last fall.) They are the Nordstrom, Macy's and Bloomingdale's customers who appreciate the wide price range of clothes, accessories and home goods on Ideeli's site, says Ideeli strategy VP Barbara Levy.
These shoppers are looking for really good deals with a "splash of luxury," says Wisdom, noting that prices can go as high as $3,000.
Ideeli says its prices are 30% to 80% off retail prices.
The site has a more midbrow philosophy than higher-end Gilt.com. But Ideeli sprinkles enough high-brow brands — such as Sue Wong and M by Missoni — in with the Tahari and Kenneth Cole to keep shoppers at all levels coming back.
"Judging by their phenomenal growth, Ideeli does indeed seem to have something for everyone," says Rollins, who is a member of several flash-sales sites, including the higher-end Gilt and Amazon's MyHabit.
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