Thursday, August 20, 2015

Zulily QVC

Zulily management is not credible, and so its veracity here can be challenged too.  But as to their model....
The reason for the decline has been a reversal in Zulily’s fortunes. Founded in 2010 as a retailer of toys and children’s clothes, Zulily grew to top $1 billion in annual sales last year as it expanded into adult apparel and home goods.
Zulily offered deep discounts thanks to an unusual business model that allowed it to hold little inventory. It orders goods from vendors only after customers purchase them, takes two to three weeks to deliver and doesn’t accept returns.
Well, Amazon accepts returns.  Gets orders before it ships and can ship fast.  QVC is in essence a marketer to those with a bit of credit left on the card, and is snapping up zulily to get a younger set of QVC future customers.  As there is hyperinflation in mal-credit (it only buys what people can't use, ought not buy, or don't need), the kind used to support QVC and zulily, will they survive?

Alibaba has bought in.  Expect failure.

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