flash sales

Lori, Alexis, ChrisSection 007

What happens when you order

Flash sales sites must have adequate information technology systems to keep track of all this information

Information Systems Triangle

Information Collected

• Contact Information • Relationship Information • Transaction Information • Financial Account

Information • Mobile Location

Information 

Use of Data

• Provide customers with offers for products and services from participating merchants, including offers based on variables such as stated and anticipated customer interests, personal characteristics, or location;

• Evaluate eligibility of customers for certain offers, products or services;

• Evaluate the types of offers, products or services that may be of interest to customers;

• Track redemption of GROUPONs and perform other analytics;

How this Industry Started

    This industry was pioneered by woot.com an internet electronics retailer in 2004.Its slogan is "One day, one deal"      Although its original focus was electronics, it quickly branched off into other markets such as clothing and household products.    As a front runner of flash sales, woot.com disrupted the market, which has since changed the landscape of internet commerce.    Their unique business strategy formed a competitive advantage and paved the way for longevity and success.     

Is It Worth It?

Pros• Steep

discounts• Many

options/ varieties

Cons• Use of vouchers• Quality/relevance

of product• Difficulty of

refunds/ penalties

Flash Sales: Electronics

    Although flash sales started in the electronics industry, its impact has stretched far past its origin.     This business strategy has filtered into many electronic online retailers such as amazon, newegg, and tiger direct.    While these companies aren't solely based on the flash sale model, they implement closeout deals, tremendous discounts, and limited time slots in their daily deals.    This is an example of how flash sales has permeated and adapted into an extremely tough industry such as electronics.

Travel Deals 

Some examples:• jetsetter.com• livingsocial• groupon• Expedia ASAP• spire• sniqueaway• vacationist 

"Seventy percent of the people who buy from us tell us that they had no intention of traveling," he says. CNN travel

Clothing

  Offers discounts on designer clothes, shoes, and hand bagsOccurs when vendors have an overstock of some items that they want to get rid of

Examples:Rue La La Gilt GroupHautelook Ideeli Sneekpeeq

RueLaLaMember only website, Have to be invited to

someoneIf you invited someone, you get a $10 off

once they make their first purchaseSome products have limited times, open for

one day, or one week Have this new tab called “Locals,” go into a

store and shop at a discount only if you are a RueLaLa member

One Kings Lanehttp://youtu.be/yuYitLWDxKc

Discussion Questions

How do companies achieve competitive advantage?

What will happen when recession is over? What are some challenges that flash sales companies face?