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Why Rue La La's Business Model is so successful?

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Rue La La’s Company Overview


Rue La La is an innovative and engaging online retail platform that specializes in offering high-end designer brands at discounted prices. Founded in 2008 and headquartered in Boston, Massachusetts, the company operates as an exclusive, invitation-only online shopping destination, providing its members with access to private sale boutiques that are open for a limited time. These boutiques feature an eclectic mix of upscale fashion, home décor, and travel experiences. Rue La La's mission is to deliver the most engaging and inspiring lifestyle experiences, curating coveted offerings of the world's best brands and products. The company has established a reputation for its unique business model, which combines exclusivity and scarcity with an exciting, ever-changing inventory. Business Model: Rue La La operates on a flash-sale business model, offering limited-time sales of designer products to its members. The company partners with premium brand vendors, who provide inventory at a discounted price. Rue La La then creates a boutique event, which typically lasts 48 hours, showcasing these items. This model allows Rue La La to offer a constantly changing selection of high-end products, creating an element of surprise and excitement for its members. The exclusivity of these events also encourages quick purchasing decisions, as items are often in limited supply and only available for a short time. Revenue Model: Rue La La's revenue model is primarily based on the sale of goods. The company purchases inventory from vendors at a discounted price and then sells these items to its members at a markup, generating a profit from the difference. Rue La La also earns revenue from shipping fees. Additionally, the company has an affiliate program where it earns commissions by referring its members to partner websites. This multi-faceted revenue model allows Rue La La to maximize its earnings while providing its members with access to high-quality, discounted products.

https://www.ruelala.com/boutique/

Country: Massachusetts

Foundations date: 2008

Type: Private

Sector: Consumer Services

Categories: eCommerce


Rue La La’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, fun/entertainment, provides access

Functional: quality, variety, informs


Rue La La’s Related Competitors



Rue La La’s Business Operations


Curated retail:

Curated retail guarantees focused shopping and product relevance; it presents a consumer with the most appropriate options based on past purchases, interactions, and established preferences. It may be provided via human guidance, algorithmic recommendations, or a combination of the two.

Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Discount club:

The discount club concept is built on perpetual high-discount deals utilized as a continual marketing plan or a brief period (usually one day). This might be seen as a reduction in the face value of an invoice prepared in advance of its payments in the medium or long term.

Ingredient branding:

Ingredient branding is a kind of marketing in which a component or ingredient of a product or service is elevated to prominence and given its own identity. It is the process of developing a brand for an element or component of a product in order to communicate the ingredient's superior quality or performance. For example, everybody is aware of the now-famous Intel Inside and its subsequent success.

Membership club:

Belonging to a group, either individually or collectively. Certain memberships may charge a fee to join or participate, while others are free. Others have particular skill criteria that must be met before membership is granted. Members are entitled to specific benefits or advantages, but not all members may enjoy the same rights and privileges. Another method is taken by a members-only luxury lifestyle management business that offers concierge services such as vacation reservations, restaurant suggestions, and event access.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Fast fashion:

Fast fashion is a phrase fashion retailers use to describe how designs travel rapidly from the catwalk to catch current fashion trends. The emphasis is on optimizing specific supply chain components to enable these trends to be developed and produced quickly and affordably, allowing the mainstream customer to purchase current apparel designs at a reduced price.

Reseller:

Resellers are businesses or individuals (merchants) that acquire products or services to resell them instead of consuming or utilizing them. This is often done for financial gain (but could be resold at a loss). Resellers are well-known for doing business on the internet through websites. One instance is the telecommunications sector, in which corporations purchase surplus transmission capacity or take the call from other providers and resell it to regional carriers.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

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