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Posts Tagged ‘Zappos’

Two Brands, Two Strategies, One Company

December 2nd, 2008 No comments

Black Friday and Cyber Monday have come and gone. The holiday crunch has arrived.

As I mentioned previously, consumers are looking for deals this season. That poses a challenge for premium brands that don’t want to discount. One brand, Zappos.com, sells shoes at a discount through its other brand, 6PM.com, to maintain its premier image.

I sent a comment request to Zappos, but did not get a reply in time for the previous post. However, Graham McCulloch, Senior Buyer, Zappos.com, did get back to me last week and elaborated on the topic. Here’s what he had to say:

“Zappos.com is a premier brand and customers choose to shop on Zappos for the premier service. Price is a secondary consideration. In order to maintain the integrity of our brand, we chose to funnel the vast majority of our markdowns through 6PM.com.

6PM.com is price and selection driven. To offer these prices to our customers, we have shorter customer service hours, a $6.95 flat rate ground shipping, and a 30-day return policy.”

On the other hand, Zappos has 24/7, 365 days-a-year live customer service, a 365-day return policy, free overnight shipping and free return shipping. (That is astounding!)

McCulloch further mentions that 6PM.com customers want value, while Zappos’ customers want the newest, most diverse assortment of footwear, apparel, and accessories on the Web.

As you can see, the difference between the two brands goes beyond pricing. Zappos and 6PM have two completely different online strategies, and that give its marketers far more reach than either brand could alone.

Holiday Discounts for Premium Brands

November 20th, 2008 No comments

Discounts abound at eretail sites this holiday season. The New York Times dubbed the price slashing “holiday price wars” in an article today. The article’s desperate tone underlines what many of us already know: the holiday shopping season is going to be rough.

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