Social shopping websites such as Gilt.com, Hautelook, RueLaLa and Woot are the hot new thing in retailing, combining limited time sales with fashion and home goods from top luxury designers and unique boutique brands.
Pam Danziger, president of Unity Marketing, calls the new social shopping sites "the very definition of 'sticky'". Shoppers are sent emails inviting them to check back daily to take advantage of deals that only run for a day or two.
According to Ms. Danziger, social shopping sites combine some of the best aspects of online and brick and mortar retailing.
"They offer the thrill of the hunt, the challenge of visiting time and again until the perfect item is found, and the satisfaction of landing a deal. Plus they are destinations of choice for the smart, savvy shopper," she said.
According to a new report from Unity Marketing, How the Affluent Luxury Consumer Uses the Internet and Social Media, one-third of affluent consumers with an average income of $239,300 have visited a social shopping site in the past three months, compared to only seven percent in 2007. Young affluent consumers, those under 45 years of age, are the biggest social shoppers with 43 percent reporting they use these sites.
"Social shopping sites are going to continue to grow in popularity among the affluent market, especially among young affluents. They offer young affluents shopping experiences that they enjoy: quick action, limited access, and value pricing," said Ms. Danziger. "For luxury marketers targeting young affluents, these are the places to be."
Discussion Questions: What are your thoughts on the growth of social shopping sites such as Gilt.com, Hautelook, RueLaLa and Woot? Do you think this is a model that established luxury retailers may adapt for their own purposes?