Gilt Groupe is an online retailer based in the United States. Gilt Groupe stages online 'flash' sales, offering women's, men's and children's designer apparel and accessories, designer home goods and high-end travel destinations at discounted prices in a limited time sale format, typically 36 to 48 hours.The company was launched and founded in 2007 by Doubleclick co-founder Kevin P. Ryan, early eBay executive Alexis Maybank and Louis Vuitton and Bulgari merchandising executive Alexandra Wilkis Wilson. The company launched women's clothing and accessories in November 2007, men's in April 2008, Gilt Groupe Japan in February 2009, Gilt Fuse in August 2009 and a travel site named Jetsetter in September 2009
Mr. Ryan said Gilt was on track for a major round of fund-raising in the first half of this year and he’s considering a public offering in 2012. I.P.O is when company's issues common stock or shares to the public for the first time.Gilt’s last financing round valued the company at almost $500 million; the next round is expected to be significantly higher.
“Gilt would be a tough deal for most of the traditional retailers; our valuation is higher than Barneys now,” Mr. Ryan said.
The company, based in Manhattan, is one of the largest flash sales sites on the Web, with revenue on track to hit $500 million this fiscal year. Like its American competitors HauteLook, Ideeli and Rue La La, the site offers time-sensitive sales on fashion and home goods. It has recently branched out with newer sites, like Jetsetter and Gilt City, to include hotel sales and local deals.
Mr. Ryan says Gilt feels comfortable in its market position, given its size and the significant costs associated with running a flash sales site. It is said that 40 percent of the clothing that Guilt sold was made specifically for it. Conclusively, its new branches are growing: Jet Setter and Gilt City make up 20 percent of the business.
On another hand, the company is starting to move away from its source of revenue of discounted goods and services. Gilt has started to sell full-price hotel rooms on Jetsetter and it will start to offer full-price men’s clothing in July.
“You can’t grow at that growth rate forever,” Mr. Ryan said, when asked about the meteoric rise of its revenue. “At some point, every single site has to slow down.”
BUT DO WE WANT IT TO?
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