- Luxury products: prospect for high margin
- Fashion products are not standard thus allow for better margin
- With the investment Reebonz can afford a price war until competitors die off
- Aims at building brand loyalty
Finance
| 
brand, capital, competition, flash, intel, investment, loyalty, luxury, margin, price, reebonz, sale
- The sales team loses sale skill, leads to redeal addiction.
- Conflict between business development department and servicing departments (production, customer service, supply chain, logistics).
- At least 100% capacity is utilized during deal leading to overload, distress, attrition, accelerated depreciation, process change, and even company culture.
Shift from actively serving customers to responding to waves of customers.
Overloaded customer service leads to deteriorated service quality.
Dominated by mass + low margin products and lose the opportunity to sell sophisticated + high margin products.
- Lose transparency of pricing structure, leading to loss of trust from customers and potential customers, and even company employees. Marking up then reducing price make the company "forget" the original target price. Intra-company information diffusion worsens this.
- High inflation leads to appreciation of supply costs. The company may get stuck if the groupon service provider refuse to increase selling price. Worse, groupon service providers are good in Search Engine Optimization and potential customers can easily search for expired price list.
- The customer segment directed from groupon mostly includes deal hunters. If the product / service is not essential they will not return to pay full price.
- Brand dilution. Unable to sell mid-end and hi-end products.
- Lack of experience in running deal leads to tricky situation when following consultation of groupon salesperson (pricing, maximum number of vouchers to sell, terms, deal duration). Interests of merchants and those of groupon salesperson are not always aligned.
- Peer pressure: running deal seeing competitors’ deal, leading to industry deterioration.
Flash sale is the next trend that follows Groupon cloning in Vietnam.
Till now I have the information of 3 services.
- Brandsfavor.com, founded by the same owner as the online T-shirt service Fakoon.com
- Rumor of one by MJ Group
- A confirmation of one by Ngan Sau
What other services do you know of?
Business
| amazon, ashford, bergdorfgoodman, bloomingdales, bluenile, flash, flashsale, gilt, hautelook, ideeli, myhabit, onekingslane, overstock, recession, ruelala, saks, sale, spending
- A big part of Innovation is about selling, not just inventing.
- Innovation needs brainstorming and brainstorming needs rules:
- Defer judgment
- Stand on shoulders of giants
- One conversation at a time
- Focus on the topic
- Rational and wild
- Creativity is not innovation. Innovation is built upon creative assets.
- There is no clear path or clean solution. Get your hands dirty composing, editing, reviewing, developing it.
- Innovation occurs at the intersection of previously unconnected and unrelated planes of thought.
- Prototype a lot, fail often, and fail early.
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