Editor’s note: This article was first published in April 2011, and its figures are from that time: expected 2011 turnover of 400 million euros and more than 800 employees worldwide. Privalia’s size and ownership have changed since.
The business idea developed by the founders of Privalia can now be called a resounding success: they expect turnover of 400 million euros this year, 2011, and already employ more than 800 people around the world.
Privalia describes itself as a private club selling top-brand clothing online, and it has already become one of the most remarkable business phenomena of recent years.
José Manuel Villanueva and Lucas Carné, the founders of this club, knew how risky their ambitious project was and were well aware that it could crash. Even so, they took a gamble on what they saw as a latent consumer need.
The secret of their success is acting as an intermediary between producer and consumer. On the one hand, they help clothing brands clear their stock at the end of a product’s life cycle; on the other, consumers can buy top-brand items at big discounts of between 50% and 70%.
These entrepreneurs are confident that online commerce will keep booming and that the trust of consumers who shop online will keep growing.
Online commerce and the clothing business are two supposedly saturated sectors with little room for innovation, but as we can see, there is always room for entrepreneurs with fresh new ideas.
Further reading
- The 15 commandments of the entrepreneur
- The mindset of an entrepreneur: Donald Trump
- Business ideas for this year
- The most profitable businesses
Featured image: Pete, Public domain, via Flickr.
