Russians Might Have Tips For Flash Sales Like Gilt Groupe


KupiVIP

In all the confusion over the long-term viability of flash sale sites like Gilt Groupe, guess who’s getting the business right?  Russia.  KupiVIP, Gilt’s equivalent in the region, just received another $38 million in funding.  The business is on track to hit $300 million in revenue this year.

Why so successful?  The Russian model seems to have realized, early on, the power of diversifying.  In addition to its traditional flash sale model, the company also runs a more traditional e-commerce site, ShopTime, along with a luxury goods property, KupiLuxe.  Both of those endeavors are full-priced.

Though it reflects aspects of the Russian market more than the U.S., KupiVIP has also met with success by operating its own logistics in the country, from investing in warehouse space to working on a cash-on-delivery system (they have their own vehicles and delivery people to make this possible).

Now, having raised a total of $104 million, there’s a hint that the company might go global.  Western Europe’s flash sale leader, Vente-Privee, already made its U.S. entry — when will its Russian competitor come this way?


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