German shopping club Brands4Friends.de has raised a €10 million round of funding. It’s their series C, led by Partech International. Some old friends from previous rounds joined them: Mangrove Capital Partners and Holtzbrinck Ventures both chipped in. In these rough economic times, such a large boost in an ecommerce site is quit spectacular.
Yet when you read Brands4Friends’ story, the financial backing makes complete sense.
Maybe it’s the concept of a shopping club that does it. Fashion victims still want to spice up their outfits with designer brands, yet for a bargain price. Clubs like Brands4Friends, French Vente-privee.com, and Russian KupiVIP.ru are invite only. As soon as you’re among the club of happy spenders, a world of deluxe sales opens up for you. From grand cru wines to a Hermes bag, you can get it for a special, really special price. KupiVIPR.ru recently got a multi million financial boost too.
Brands4friends.de launched in September 2007 and already has 1.2 million online club members – adding 10k users every day. Its current annual revenue run rate is €30 million. I’d say: join the club and start a shopping club for your own country. Successful examples enough.
It reminds me of the business models of 1999. You had a commercial with all those ants buying the same stuff who were better of when buying together on the web (letsbuyit.com if I remember correctly.
Nowadays it probably makes more sense. Anybody know more local ‘clones’ of this concept in Europe?
There are a number of such websites open in the UK now – Brand Alley, Secret Sales, Net a porter UK, Asos Red, and of course the pioneer in this sector, vente-privee.com opened their UK website earlier in the summer.
With financially difficult times ahead these cut price designer website are only going to flourish.
If you want to have a peak at the biggest such website, vente-privee.com, you’ll need a referrer. Feel free to use me djdan8923@hotmail.com.