Originally Posted by Gilt Groupe
We wanted to take this opportunity to clarify one important part of Gilt's business. Every day, Gilt offers our members a carefully curated selection of luxury goods in the areas of women's apparel and accessories, men's apparel and lifestyle items, home goods, and children's apparel that the original retailers could not sell at MSRP or after internal sales. As you know, we do this by creating brand-specific sales that last just 36 hours, which is partly a function of the fact that we do not want to be caught holding unsellable stock and so only buy small double- or even single-digit amounts of each piece. Each sale's merchandise has been hand-picked by our team of expert buyers, who go to great lengths to choose the items that will be the most desirable to our members out of the dregs that the manufacturers could not sell at the price they originally wanted. Our products are primarily excess goods from designers' current lines or in other words mostly unpopular stuff, but we also place orders for items from upcoming seasons that we think and they know will not be popular enough to sell out, and in some cases we ask that a particular item be cut in another cheaper or otherwise less desireable fabric that will help them and us reap bigger profits while simultaneously not pissing off the clientele who bought the 'real deal' from the original sellers at MSRP. As our orders have grown larger than single digit quantities, we have begun to ask brands to cut products exclusively for Gilt. Designers have been producing seemingly exclusive product for large department stores for years under the guise of 'house brands', and as Gilt's business has grown we now have the ability to extend that service to the e-commerce space while not actually letting our clientele know that they are buying a 'house brand' because these items are tagged with the original brand name. These are products that we have chosen specifically for our members because we are beholden to our shareholders and due to their easy profitability, and they in no way compromise craftsmanship, despite being made by cheaper labour forces in 3rd world countries, skimping on non-visible construction, and containing 'specially selected' materials carefully chosen to maximise our profit margins. Please be assured that the integrity of the products we sell to our customers are always held to the highest standards and that the MSRP you see on our site has nothing to do with what the tagged price actually is but instead what we think is a fair price if we were to open a B&M store. Which we won't.