Describe how the web( ) is used by a real corporation - Assignment Example

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Usefulness Of Gilt Groupe For Real World Organizations The Gilt Groupe is online website that allows its users to shop online for different garments and accessories offered by different labels. The organization is located in the region of United States and it operates by purchasing the offerings of different brands at discounted prices and then adds a markup on those offerings and sells those brands to different customers. The organization does not only operate through a website, the organization has even developed software for smart phones and this software allows consumers to make purchases through their smartphones. The website offers various discounts to its customers and only those customers can access these discounts who have subscribed with the website. There are various ways in which the website can be helpful for various brands located within and outside United States.
Real world organizations such as Saint Laurent and various other organizations can benefit from Gilt Groupe in several ways. Gilt Groupe website is similar to the local small sized retail stores that are located in various areas. These stores purchase various products from different manufacturers at discounted prices and then they sell these products directly to the customers. In return the manufacturers selling their products derive many benefits including advertisement benefit, research benefit, cost cutting benefit and targeting benefit. The organizations that connect with the Gilt Groupe website can obtain same benefits from the website (Ostapenko 64).
One way through which high end brands such as Saint Laurent can use the Gilt Groupe website is that such brands can directly reach their target market without compromising the image they had developed over the years. The members who are subscribing with Gilt include individuals who are educated and at least have a bachelor’s level degree and belong to higher income earning groups (The Business of Fashion 1). Brands such as Saint Laurent sell their offerings at very high prices and the customer base of Gilt are the main target markets of these brands.
Another benefit that brands including Saint Laurent can benefit from Gilt website is that they can reach a higher consumer base and can easily attract new consumers that had been previously shopping with their competitors. The target market that is catered by Gilt mostly includes those consumers who are very brand loyal and only purchase from a certain brand. But organizations such as Saint Laurent can sell their products through the Gilt website and even gain the attention of customers who are loyal to their competing brands (Ostapenko 63).
It has become very essential for all organizations to have both online and offline presence. In order to create an online presence companies tend to develop their own website. If these companies start selling their products through Gilt, they will be able to reduce their cost of online operations (The Business of Fashion 1). The burden of this cost will move on the shoulders of the managers of Gilt website. Another benefit that Gilt has to offer to different brands that are advertising with Gilt is that Gilt can provide research services to these brands. It can help the brands in identifying consumers who have accessed the products that are being sold by these brands. It can even help the organization in identifying why customers accessed their products. For example: a product that might belong to the brand of Saint Laurent may be selling at a discount at Gilt. Gilt may help the brand in identifying the age and the demographics of the customers who have accessed the sale advertisement.
Works Cited
Ostapenko, Nikolai. Online Discount Luxury: In Search Of Guilty Customers. International Journal of Business and Social Research 3.2 (2014): 60 - 68. Print. <> The Business of Fashion,. The Rise, Stumble And Future Of Gilt Groupes Business Model - The Business Of Fashion. N.p., 2011. Web. 1 Dec. 2014. <>Read More
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