French luxury e-commerce leader, vente-privee.com acquires Theatre de Paris
After diversifying from fashion into selling music online and concert tickets, French luxury e-tailer vente-privee.com has recently consolidated its commitment for the arts with acquiring Theatre de Paris for 6 million euros, one of the iconic venues for theatre and concerts in the French capital. The company intends to produce events and sell tickets online. Today, vente-privee.com is selling toys, music, high tech as well as travel products. The company has reached a record numbe of 18 million members in 2012 and plans to further diversify its offering. Vente-privee.com has mastered the concept of online sales for a limited duration, becoming the largest e-commerce player in France and gaining ground in Spain, Germany and gradually. other European cities.
In 2012, vente-privee.com launched in the U.S. through a partnership with American Express. Reuters reports today, the US operations have not met expectations and vente-privee.com plans to slow down expansion in the United States to become profitable as soon as possible in the highly competitive market.
Founder and Chief Executive Jacques-Antoine Granjon told Reuters the U.S. market was challenging, as consumers there are used to deep discounts from a variety of players, ranging from flash-sale websites to factory outlets and discount chains.”We will be more cautious with sales growth in order to be profitable more quickly,” Granjon said.
“America has an enormous potential but we must keep our costs under control. It is going to take time, it is difficult. We will tone down our ambitions in terms of expansion pace,” he said, without providing further details. Vente-Privee achieved sales of $25 million euros in the U.S. last year, a small fraction of its European sales, and aims to double that figure this year. The U.S. unit should be profitable within two years.