DailyCandy to Launch Sample-Sale Site

October 30th, 2009 · No Comments

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DailyCandy is jumping into the online private sale phenomenon and will next month launch e-commerce with the introduction of a members-only site, Swirl, Sample Sales by DailyCandy.

The new site will host three sales a week on Mondays, Wednesdays and Fridays. Each sale will last 72 hours, and include both established and up-and-coming names in apparel and accessories like Leifsdottir, Leigh + Luca and Lauren Merkin. While the two sites are positioned as separate entities, DailyCandy editors will choose the goods sold on Swirl. Swirl will soft launch Nov. 16 to a group of DailyCandy subscribers, and officially launch in January.
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“We have an immensely loyal following,” said DailyCandy founder Dany Levy of the company’s 3 million subscribers. “They trust us with the things we recommend.”

Private online sale sites have been one of the most popular growth sectors of retail in the few years. Sites such as Haute Look,Gilt Groupe, Ideeli, Rue La La and others have acquired thousands of members and attracted significant investment. I personally have shopped at most of these online sites and have had some fantastic finds (Robert Rodriguez pants for $20).

DailyCandy has some advantages over its competitors in launching e-commerce with a built-in network of subscribers to market the sales to and a trusted editorial voice to hand-pick designers. However, one disadvantage it faces is that the Swirl sales are only three days a week — Gilt, Rue La La and similar sites offer deals daily, and some offer products beyond fashion, including travel, electronics and home goods.

“This is like putting the Oprah factor into something,” said NPD Group’s Marshal Cohen. “In fact, it’s more educational than promotional. The value DailyCandy will bring to the party is they’ll educate their community. They’re going to have experts help their consumers make decisions.”

So why did DailyCandy wait so long to launch e-commerce? “Everything we do, we research very carefully, and want to be in the right place at the right time,” said Levy. “Editorial is a very different animal than retail. For us to claim we could do it [too soon] would have been a sad mistake.”

dailycandy_logoDailyCandy will also roll out new verticals through its newsletter and Web site. This week, it launched a weekly gift newsletter, ShopTalk, and will expand its beauty content early next year. Beth Ellard, DailyCandy’s senior vice president, general manager, is eyeing further growth opportunities around more content for moms, kids, deals, local activities, entertainment and weddings.

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