Brazilian music @ BAM yesterday

Posted via email from florentpeyre’s posterous

Hey MonkeyBrain…

Brilliant site from the highly buzzed Seth Godin‘s empire that make you spent the day arguing on stupid (or passionate) debates.

Just like Squidlit (you’re getting paid to do book reviews), The Ever Project (aggregations of topics around “what’s the worst”, “the biggest ever” etc.), Squidwho (mashups and aggregations around fan pages), Hey Monkey Brain uses the Squidoo engine to power the site.

Squidoo is a content aggregation engine that lets user create “lenses” i.e. ways to look at a specific subject (let’s say, you’re a huge fan of laptops bags, you’re going to create a page around these bags and, obviously link to the pages where you can buy these bags). Heavily viral and engaging, the site launched less than 2 years ago is already close to 10m UVs worlwide and close to 5m UVs in ComScore. This growth has been achieved with very little SEM investment (if you check Spyfu, you get to an investment under 100 grands a year – check here).

The whole team is under 10 peoples, mostly technical and including Seth himself.

You can find an pure ecommerce application of the concept in France through Zlio which lets its users create personnalized shopping pages.  So let say you’re a huge fan of Saint Therese of Lisieux, you’ll create a page that will aggregate all of the products available on this well-known catholic saint (see the page here). The more targeted is the subject, the biggest conversion rate you’re going to achieve and the more money you’ll make (Zlio users get a rev share on the affiliation revenue).

Seth’s model enables users to choose between keeping the money or giving it to a charity.

Knowing how much transformation rates are affected by the contextual relevance of the pages, Stylefeeder (a recommendation engine, mostly focused on fashion) applied these teachings by letting the user drives the type of products that he might be interested in. Stylehive has the same goal but emphasize the social aspect of shopping to get there.  And is approaching it through a visual recognition application.

For now, there’s still no clear winner on the social shopping space but that could evolve very quickly knowing the pressure that all of these companies have from their investors (to the exception of Squidoo).

Here’s ComScore’s chart showing Squidoo constant growth over the course of the last 14 months:

Traffic for Squidoo on ComScore - last 14 months

Morrell Wines Auction or how the crisis is affecting everyone…

Morrell Wines, the well-known wine boutique on Rockfeller Center, is organizing auctions every couple of months (see the auction site here – the next one is in February). 

I started looking around to buy there since 2006 but the LBO years were not good for my personal wallet as much as it was for the international financiers who where driving these prices up and crazy. 

If there’s some good news with the depressed stock market and dwindling 401k is that it impacts pretty hard the auction market from art (see this WSJ article) to wine. So here I am, a bit hangovered from a Friday excessive wine-loving night, getting ready for a “not-for-my-wallet” depressing auction. 

But good news, most of the lots went unsold and very few of them were even in the recommended range from Morrell. They ended up sending to their most valuation customers an after-auction catalog with the unsold lots presented for acquisition at a slashed price (see the mail at the bottom of this post).

I’ve attached the PDF file of these lots here: MORRELL november15passedlots_revised  f. Great bargains there.

On my own, I secured at a 50$ price tag 6 bottles of 1988 Pichon Longueville Baron (bad year but grat wine) as well as something like 8 old californian for 60$ total. I’ll tell you if that was worth it when i receive the bottles…

In the meantime, start saving for the February auction!



From: []
Sent: Sunday, November 16, 2008 11:27 AM
Subject: Revised (and correct) Morrell Passed Lot List Attached

Dear Bidder, 

Attached you will find a list of lots that did not sell in yesterday’s auction. They are currently available for purchase at the Reserve price listed on the document, plus our normal 18% Buyer’s Premium.

These lots will be sold on a first come first sold basis, so if you are interested, please contact me as soon as possible.”

Total Prestige or the bad taste of the too-rich

Another Life?

I was reading the coverage from PaidContent regarding the recent funding of Total Prestige, a social networking site aimed at the richest (see full post here) and was curious to see what it looked like.

Obviously, since they currently have only 650 members (a good or bad sign), I don’t have access to the back-end site, only the demo (anyone out there?).  Other than the classic cheap 80’s pictures and cliches very St Tropez meet Dubai, the value proposition wasn’t very clear. It comes with an “online magazine“, which is a cheap version of the Robb Reports, Dealmakers and Traders Magazines, by the way all on the block currently. You can always spend some time in luxurious places after you buy fractional ownerships of Richard Nillson’s “Residence Superieur” (sic).

The fact that Rose only injected $1m there is an indication of the limit of the new project.

Another investment probably going down the drain…

Gilt Groupe and the others: battling to get the online sample sale catching up with European markets


Ok so after spending so many hours at the Barney’s Sample Sale twice a year – battling my way through crazy amount of people, trying a suit pant in the middle of the room while keeping an eye on these John Varvatos pants so I’d secured later – the emergence of the online-only sample sales sounded like a great revolution. Nothing new there though since it’s been going on already for close to 10 years in France: for example, check out the absolute leader there (close to 90% market share) at With an estimated valuation over 800m euros (above $1bn), the company was doing close to $500m revenues in 2007 and, given its business model, is clearly cash flow positive. 

Following the appealing model, a couple of startups were created in the US, most of them distincts from each other in terms of market positionnement or marketing tactics. Still an early stage market here, it’s obviously the right time given what’s happening on the economy (after all, one of the best current marketing tactic for KMart and now for Sears is to push a refreshed version of the layaway business model – check out 

The market

Before we actually take a look at the competition outlook, I want to define clearly what I’m meaning by online sample sale: it’s the business of selling online only apparel (clothes, accessories etc.) at discounted prices. The items sold can be part of current or past collections, from well-known or less-known designers and for men, women or childrens. It’s different from the business of using online as a marketing tool for physical sample sales (think any newletter alert for physical sale or any advertisement on websites). It is also different from the business of selling discounted goods on retailers sites (, Saks etc.) or the occasional 20 to 30% off at the end of the collections. 

The companies that are currently struggling to eat each other market shares are (by order of importance / size / credibility

  1. Gilt Groupe – backed by Kevin Ryan‘s Alleycorp and Matrix Partners and now headed by ex-Marta Stewart Susan Lyne. See a full description of the site by Miss Olive there)
  2. Rue La La – backed by the guys behind (Retail Convergence)
  3. Hautelook – no funding info
  4. ideeli – currently funded by the founder and CEO Paul Hurley and Kodiak Ventures
  5. The Top Secret – no funding info
  6. Editor’s Closet – no funding ingo
  7. Regent’s Secret – no funding info

There’s other providers that are smaller but these are the main ones.

Key levers to success

Obviously, the first one is the inventory. How to secure highly desirable inventory (think blue-chip names) at low prices so that you can attract people on the promises of 50 to 70% discounts. Securing the right inventory is both a guarantee of wiping out the competition, positionning your emerging brand at the right level and the promise of securing new designers by becoming reliable. The second one is the logistic. Again here, the audience is coming for the discounts but you’ll get them addicted if you can provide the closest to instant gratification. 

The third one is refunds / returns and any other after sale services. Since you’re going to end up returning 50% of what you bought, either because it was too small, too expensive or you just changed your mind, this part is playing a large role on the return usage metrics.

Far behind are the interface and the website since people don’t care too much about shopping in a beautiful environment when they’re looking for these $50 sweaters from James Perse.

The role of the first 2 criteria is highlighted by the fact that most of the people behind these companies usually have a background around physical sample sale (or ecommerce) and/or logistic expertise. For example, Alexis Maybank from Gilt Groupe, comes from eBay. Regent’s Secret company has been founded through the alliance of a physical sample sale provider and the head of a logistic company etc.


The key potential segments are going to be:

  • Upscale / Low end: where do you position your store. That assumption will very quickly determine the type of inventory you want to secure, the total potential market size and your own projections in terms of sales, revenue per user etc.
  • Customer: to who are you selling. That’s clearly a moving target since most of the actors actually started on the women side (highest probability of scoring sales) to men, accessories, jewelry, travel goods etc. Vente-Privee in France now also sell electronic, wine etc.

On these two segments, see the attached Powerpoint slide showing how these guys are vs each others.

What’s the future?

A couple of heavy hitters are starting to understand the potential of the market. I heard that Net a Porter was working on a project currently called TheOutnet to start a sample sale service for their already upscale audience in UK and the US.

Also, Vente-Privee might be looking at the US market as a potential for additional growth since they are close to saturation in France and already pursuing growth opportunities in Europe. It’s going to be interested to see the founder and CEO speaking later this month at the french LeWeb 08 conference (see the program here). 

Finally, another big threat is obviously the possibility for either the brands or their key retailers, to directly handle this sale channel. Could be by creating dedicated sections on their sites or by creating new brands but if the business is growing steadiliy, they’ll probably start thinking that giving away 50% of the margin is a bit high…

The key issue for the Gilt Groupe of the world is going to be the growth in terms of users. Most of them are reaching to larger media companies to tap their audiences and lower their cost of acquisition. So probably more to come in terms of partnerships for these companies (my guess is that’s the main reason of the appointment of Susan Lyne at the head of Gilt Groupe).

Also heard that Fabrice Grinda was looking into launching such a service for some countries in Southern America (starting with Brasil).

In the meantime, start shopping there and testing, it’s a fun landscape…