The fashion observer

Gilt Private sales. Photo courtesy WSJ

> ” Online retail startups that specialize in “private sales” of discount designer apparel are gaining traction in the U.S. and, armed with fresh venture capital, plan to branch into new businesses.

The companies, including Gilt Groupe, RueLaLa and HauteLook, have built a following with virally marketed, daily “members only” sales of limited merchandise. Short, intense sales — often just 36 hours — along with constant updates on which items are out of stock create a sense of urgency and excitement to buy.

Membership is free and generally requires little more than a name and email address. The sites gather members largely by word of mouth, limiting their audiences. Gilt now has 1.2 million members.”

You can read the full article ” Designer bargains for the invited ” at Wall Street journal site