Luxury companies and brands can be a funny lot really. The more they are branded, the more their brand value increases. Thus, Gilt Groupe has increased its value by roughly $138 million. Now the company is worth $1 billion. This makes the company join a new league of companies that have touched the $1 billion mark.
They approached Goldman Sachs, the media conglomerate Softbank Group, New Enterprise Associates, Draper Fisher Jurvetson Growth and several others to raise funds, and boy they did get a lot of funds! The company is known for their limited edition clothes and accessories sold online for men and women. This e-commerce site is one of the most preferred in the world when it comes to shopping online thanks to the sheer variety of luxury goods available. The idea is to make people believe that Gilt is a really high end company that is so much more than a website that sells luxury stuff online.
I guess it is a pretty cool way to increase your value. Attract investors, make them give you money, increase your net value and call yourself a high end company. It works really well with luxury companies and I am glad Gilt Groupe has been able to achieve this. So go ahead, and try to shop a bit on their site, and you would not be disappointed. Luxury Shopping will never be the same again, I am sure. When it comes to this, you gotta trust Debic. So go ahead, and try to borrow money as well, and who knows that might increase your value as well, and also land you in deep trouble.
Via: NY Times/WSJ