27 Nov



I decide to do my WC plan about Privalia, a private club of online sales, because over a year ago I am a member and I follow them on Twitter and on Facebook and I know much about this company.

Then I will explain for those people who haven’t ever bought anything online from Privalia what is it, how it works, what are the social media and internet applications they use and some information and videos of the company.

This firm of Catalan origin is defined as  “a private club which organizes online, exclusively for its members, spot sales of products from leading brands with discounts of up to 70% relative to the price of the stores. ” 

Nowadays this online store offers discounts of 500 fashion brands in some countries such as Spain, Italy, Brazil and Mexico.

It works as a low cost of the fashion world” according to the literal words of one of its two founding partners, Lucas Carné.

This phenomenon extends to the top international brands such as DKNY, Calvin Klein, Miss Sixty, Nike, etc.

Today, at the headquarters of the company – in the Pouble Nou of Barcelona- there are around 140 employees in order to meet the expectations of more than half a million members in Spain. In Italy, the first country in the international assault , have already exceeded 150,000 members, through it’s commercial headquarters in Milan. Most of the customers are female.

As Lucas Carné said:

“Privalia practically lives of women, on the contrary of internet users which most are men. In Privalia more than 70% of buyers are women. They are young women(20-35 years) with a medium or medium-high social and economic level, with studies, workers and internet users. Is the people who use internet every day at home, at work, and buying online, especially services, leisure… And our offerings.

Most Privalia customers live in the urban centers such as Madrid, Barcelona, Valencia, Sevilla and Bilbao. They like to wear fashionable, and although they are comfortable to wear something outlet prefer not notice. It is better to find surplus stock and opportunities that no one has used before; this is one of the facets that Privalia takes advantage.

The business model is relatively simple: this website is a retail of certain brands of clothing, jewelry, shoes, accessories, etc in which only members can access their attractive prices (in some cases are up to 70% off respect to a regular store) for a short period of time (three or four days). Indeed, one of the immediate challenges of Privalia is that the members become in direct customers. In fact, a 10% of members buy during the first month, when a year ago the figure was only 1%. It has much to do the consumer confidence in online payments. As Carné said:

” Actually it’s more easy to clone a card in a physical setting than not by virtual payment gateway.”

Once the user has accessed the window by which you are interested, choose the items (model, color, size, quantity …) as in any online store.

A level of performance of the act of buying:

  • Free Shipping on first order, or orders over $ 50.
  • Within a maximum of 17 days you have your order at home.
  • They are governed by the Retail Trade Act, as any other retailer on or offline.
  • Returns are permitted, if they do not meet or find flaws in the product. No problems, within 10 days.

In terms of business philosophy and marketing portal:

  • You can only access it making you partner by filling out a simple questionnaire, you give them all the information needed to make a purchase, which allows a step simplify the act of shopping online.
  • There is a good invitation system, so that any member has an incentive to invite their contacts and acquaintances. They are incentives such as, “if you invite at least four partners and one of them is a partner, both you and he get a voucher worth twenty euros in the next purchase.” But beyond the marketing in attracting new users, Lucas Carné put a special emphasis on his product:

“If there is a good brand, a good choice, a good discount and the right price, our work is a success. If any of these four components fails, the sale does not have the same result.”

  • In terms of product offered, brands that are exposed in the windows are first-rate, and are exclusively chosen for the target portal.
  • The fact that the products are only available for a short period of time complies with the billing increase within a short period of time, due to the sense of urgency among consumers. It’s a perfect strategy, in my opinion, both access to the web and shop windows, to force a public sale indecisive.
  • The newsletter, almost daily, send an e-mail to members with / the new / s storefront / s that are available. A reminder level is correct, but commenting with other partners, when there is a daily mail can perhaps be a little intrusive.

The site started with funding of 400,000 euros, with investment and La Caixa, through its Entrepreneur XXI programs, as Lucas Carné explained.

However, in late November 2007, Carlos Blanco investors reported that they had increased investment in 2.5 million more, a sign of the success of this initiative.

The company uses internet applications and social social networks such as Twitter and Facebook to promote themselves.

Apart from having a website, Privalia has it’s own blog too. There are more than 110.000 monthly visits worldwide. You can see the latest news and updates, the brands, offers and discountscontests where you can win prizes and trips, trends, etc. It has an excellent support for branding campaigns.

You can download from iTunes the application of Privalia Mobile. Now, there is a new version more complete for Ipad.

On Facebook you can find Privalia Fan Shop which has exclusive offers only for fans. They have more than  half a millon fans worldwide.

You can follow them on Twitter, it’s a good way to keep in touch with the members and post the latest news about everything related with Privalia. For example they post the different fashion brands they offer every day. Customers can give their own opinion, ask questions, say that their new purchase has just arrived, etc.

According from statistics data, customers repeat the purchase. Very few customers have bought once in Privalia. The 80% have repeated, most of them with acquisitions of every 15 or 30 days. The system can engage but the delivery time is twenty days. That means that the waiting can seem eternal if we want to use or wear it as soon as possible.

Most Privalia partners believe that buying by Privalia is a good way to save money and time and you don’t have to wait for sales. They think that is not as addictive as going shopping, so there is no chance of compulsive buying.

Privalia in this report shows the original and modern workplace, integrated in a way that does not appreciate the labor hierarchies typical to other companies, as well as meeting points for workers. Privalia landed the last year in the sale of travel under the banner Privalia Travel, where it competes with other private clubs as Voyage Privé, Singulari, Viavip, Viajamus, Destinity or Santa Monica.


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Publicado por en 27 noviembre, 2012 en Class activities


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