
The recession, a phone-hacking scandal and several months of cold weather women almost seem the perfect ingredients to build a successful website. But BrandAlley, the fashion retailer discount online, think TK Maxx without hearing apparently chaotic, managed just that.
The website, which now offers towering Vivienne Westwood wedges and wellies Hunter at less than half price, was once part of News International. But this year was bought by former executives NI after found himself a margin group media manager with the arrests of journalists and the closure of News of the World.
News International has launched BrandAlley in 2008 as part of an expanding business portfolio, with Rob Feldmann, former head of mergers and acquisitions firm owned by Rupert Murdoch, at the helm.
But as the arrests mounted and former head of News International that James Murdoch has stepped down, BrandAlley found himself on the periphery of the company's plans, which had included offering discounts and incentives to its sequel new paywall subscribers.
Feldmann said: "with all that happened with News International – the takeover and the problems they have had in the United Kingdom – it was not only a BrandAlley priority of management."
With the multimillion Pound buyout complete, the business is supposed to get from home to NI Wapping to start a new life in West London.
Feldmann has found that even if rich people can afford luxuries like a Chanel handbag, the desire to hunt out a bargain is common to all income groups.
At the same time great discounts even make brands more
Shopaholics. BrandAlley – and rivals like Cocosa and wash, the discount to Net-a-Porter – taps this rich seam of offer end-of-line stock directly from brands with discounts up to 80%.
Feldmann is keen to distance the company from comparisons with TK Maxx where, he believes, the workshop can be a "total disaster". Keep appearances as a chic, high-end retailer, your company is undergoing an offensive marketing, not just plastering ads in fashion magazines and the tube, but also by sponsoring a garden at the Chelsea flower show this week.
Feldmann said: "the recession has caused people to be much more careful with their money and even if they could afford an expensive bag, they're much smarter with the way they spend.
"Even though we had GDP growth of 0.3% of loans people aren't going to fall, they are going to have more money in their pockets and they are going to continue to be sensible with how they spend their money."
During the mass market websites like Marks Spencer are & focused on providing next-day delivery, Feldmann says that if a buyer can get a Mulberry bag at a discount of 50% will be willing to wait three weeks for delivery.
The arrangement is a win-win for designer discount websites such as BrandAlley and haute couture houses, because instead of sitting on extra stock, occupy valuable space in warehouses or sitting unsold on the tracks for sale, BrandAlley can sell thousands of goods for sale flash day four at reasonable prices.
Last month an agreement with SuperDry sell end of line stock seen 18,000 items sold through BrandAlley in four days, while a batch of 5,000 sunglasses Ray-Ban at 50% off moved in three days.
And while rival dealers blame the weather for sluggish sales – Next, Debenhams and Marks Spencer & are all accused to cold in recent months-BrandAlley welcomes rain in may or an Indian summer in September.
Melissa Littler, marketing director and co-owner, said: "women can really play in our favor.
"We sold more jumpers during the snow in March we made during the autumn. Bad weather means we can go to shop, ask if they have any stock left over from last winter and are delighted to have sold because it is not possible for them to get in stores. "
Brands previously had few choices for moving extra stock. He would put on the sales racks in the stores, running the risk of attracting shoppers away from items at full price, or sell to third-party retailers who do not deal with the top-end brands with the deference the brand-owners usually believe is warranted.
Feldmann said: "I went into the store TK Maxx and Hammersmith was a total disaster. If I was a CEO with my Commons there would be horrified. "
BrandAlley's success seems to be growing. With a turnover of 33 million pounds this year – growth of 14% compared with last year – the company is on track to break even this year.
And rain on Friday in London, highlighted the company's love of bad weather in several ways, as his garden at Chelsea, who won a gold medal in the category of cool garden – got a well-earned watering.
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