Privalia is an online fashion outlet with operations across Spain, Italy, Germany, Brazil and Mexico. It holds the leading market share in all of these markets and offers flash sales for premium brands, with discounts of up to 70% off retail prices. Privalia organises short, single-brand campaigns, that last between three to five days, where registered members are invited to shop via an email message and/or mobile alerts. In 2011, Privalia announced the purchase of the online German fashion outlet Dress for Less, setting its presence in Germany.
Founded in Barcelona back in 2006, in just nine years Privalia has managed to multiple its revenue by 100. Today, Privalia enjoys over 24 million registered members worldwide, an income of more than 400 million euro, and offers more than 3,500 brands, with over 7,300 new products every day.
Privalia is highly mobile-focused and actively participates in social media. This has resulted in a strong digital presence, which has led to more than 60% of its sales coming from mobile devices.
Privalia’s product assortment is dominated by mass market and premium brands, such as Zara, H&M, Diesel, Tommy Hilfiger and Ralph Lauren, to name but a few. Apparel is currently the most popular category, taking up to 33% of all purchases, followed by shoes (19%) and sporting goods (13%).
Privalia is already the leading fashion outlet in four of the countries it operates in, with fashion being a top online category in all of these markets. Exposed to a potential market of 500 million shoppers, more than 18,000 new members visit Privalia every day, around two times a week.
Privalia holds an extremely competitive position, especially in Latin America, emerging as the main international market, with more than 75% of its sales coming from Brazil.
One of the reasons for Privalia’s success across the different markets it operates in, is its strategic approach of using local sourcing teams and local distribution centres in each country, with 70% of the sales coming from this local selection.
Registering on Privalia is quick and easy, and sellers have different options for integrating to the marketplace: using Privalia’s B2B interface, a seller’s own system, or via a marketplace integrator.
Companies selling on Privalia have an easy and profitable way of selling the remaining items in their product lines, making the marketplace an attractive alternative for slow-movers and left-overs. Retailers just need to ensure product availability, a minimum of 40% discount on their website product prices, as well as provide customer service and B2C logistics. In terms of product presentation, sellers can choose to be found only by product search or to have a dedicated brand store.
Apart from its flash sales campaigns, Privalia also offers a drop-ship programme for ecommerce brands and retailers. For this programme the shipping process is handled by the seller, and Privalia is only an intermediary with a percentage commission. In order to participate, sellers are required to offer at least 50 products with a minimum discount of 30%, an order confirmation within 24 hours, customer service response within 24 hours and delivery between two and five days.
This programme represents an additional sale channel for merchants and is extremely appealing to sellers, since they are able to control their prices and distribution, and could enjoy stable and easy to manage product volumes, as opposed to the Flash Sales model.
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