Gilt's impressive performance.

Abstract: Gilt, the US luxury e-commerce and Flash-purchase website, announced last week that former Citigroup executive Michelpelusso (Michelle Peluso) will be CEO of the company next year, as co-founder of the CEO Kevin Ryan (Kevin Ryan) Will be the main board of directors.

Gilt, the US luxury e-commerce and Flash-purchase website, announced last week that former Citigroup executive Michel Pelusso (Michelle Peluso) will be CEO of the company next year, as co-founder of CEO Kevin Ryan (Kevin Ryan) Will be chairman of the company's board of directors.

Analysts said Gilt hired an experienced CEO to prepare for its 2013 IPO.

The company, which was founded in November 2007, accumulated $230 million trillion in May 2011, with a valuation of $1 billion trillion, now operating only in the US and Japan, which has been profitable in October 2012 and is expected to break 600 million dollars this year.

Gilt's impressive performance is how to do, what are the aspects of domestic and foreign peer learning?

1, hunger Marketing: Buy products for many luxury goods, the value of expensive, but a huge discount for the perceptual consumer, this is simply a huge temptation, hunger will explode instantly. In addition, set the time threshold, causing instantaneous transmission, instant snapped up, and in the time outside the sale, to everyone relish the word of mouth and topic.

2. E-mail promotion: At the beginning of Gilt's 2007-year group purchase site Groupon, creative goods flash site Fab and other promotional transactions through e-mail and sales of the site are not available. Gilt through e-mail to attract registered users to increase the number and provide coupons to stimulate consumption.

3, business model: Gilt has the wind investment industry in the field of electronic commerce rarely see two characteristics: rapid development and strong user profitability.

4, vertical, vertical, vertical: Gilt at the beginning of development, only positioned in the sale of some of the top designer samples and not for sale, along with the expansion of the scale, has expanded to male apparel, children's clothing and food products, household goods and tourism products and other fields.

5. Prudent internationalization: Gilt currently operates only in the US and Japan and has not yet decided to expand locally outside the United States. Gilt has considered opening an office in Brazil, but if it takes 20 million to 30 million dollars to open a market from scratch, Gilt co-founder Kevin Ryan said it could expand its international business through acquisitions.

6, constant trial and error: Gilt in the vertical field of expansion at the same time, according to market conditions, compression and adjustment business. In January 2012, Gilt laid off 80 to 90 people and cut two executives, shutting down 6 regional offices in Seattle, Dallas, Atlanta, Santiago, Houston and Philadelphia, and plans to sell its high-end tourism products Web site jetsetter and so on.

Gilt Successful vertical field

1, men's clothing, children's clothing and products and household items: March 2008, that is, gilt 4 months after the launch of gilt mail registered users of the proportion of men have accounted for 25%. Within the next few months, the gilt website began to expand into children's clothing and products, as well as household items.

2, high-end group buying business gilt city:2009 end of the year, Gilt began to learn from Groupon to launch a luxury-centric group purchase service Gilt city. In 2011, Gilt City grew steadily, and the company decided to increase its investment and add more cities. Gilt subsequently acquired the group buying website Buywithme. In the first quarter of 2012, Gilt's group buying business Gilt city revenues rose 84% from a year earlier, and sales for the "network Monday" Day grew 89% per cent from 2011.

Gilt failed vertical Field

1, high-end tourism products jetsetter:2008 end of the year, began to consider luxury hotels and experience as the focus of the gilt model to expand to the tourism industry. 2009, Gilt launched a vertical brand Jetsetter to sell tourism products. In October 2012, gilt plans to sell its high-end tourist-flash website Jetsetter at a price of 30 million to 50 million U.S. dollars, initially the company plans to sell the site at about 100 million dollars. Currently, Jetsetter only accounts for less than 10% of the total gilt revenue.

2. Men's Luxury Retail park & bond:2012 September, Gilt announced the integration of its men's luxury retail website Park & Bond into an independent male vertical website.

3, food products gilt taste:gilt will be the food website gilt Taste the number of employees reduced to 4.

The development course of gilt

In November 2007, the "Flash purchase" website focused on luxury goods was gilt, and gilt had successfully obtained 15,000 initial users before the launch.

In December 2007, gilt financed 5 million dollars through matrix.

2008 gilt revenue reached 38 million U.S. dollars, previously expected revenue of 5.5 million U.S. dollars.

In August 2009, Gilt financed $43 million through matrix and private equity General Atlantic, and again financed $35 million from the same group of investors 9 months later (May 14, 2010).

In May 2011, Gilt won 138 million dollars in a new round of financing, financed by SoftBank, including Goldman Sachs. Gilt's valuation reached $1 billion trillion before the round was financed.

In 2011, Gilt lost about 50 million dollars a year.

In January 2012, Gilt laid off 80 to 90 people, accounting for about 10% of the company's total staff. At the same time, Gilt also announced the reduction of two senior executives. In addition, Gilt said it would close its 6 regional offices in Seattle, Dallas, Atlanta, Santiago, Houston and Philadelphia.

In 2012, Gilt's revenues were expected to exceed $600 million trillion, with October's revenue rising by more than 40% per cent year-on-year. The gilt has been profitable in terms of tax depreciation and amortization before the profit (EBITDA) standard. The year before and after the Thanksgiving revenue growth of more than 60%, November revenue of 70 million U.S. dollars, which is gilt monthly revenue record.