Flash sales giant Gilt Groupe acquired an interior design home décor and design oriented site Decorati. For those not familiar with the flash sales concept, it is a relatively new type of online shopping experience where high quality merchandise is offered at dramatically reduced prices in limited quantities and limited times (typically 24 hours). Many of the flash sales sites are oriented towards private, invite-only group members to create a sense of exclusivity. Several of the sites specialize in merchandising categories like fashion clothing or, in the case of One Kings Lane, furnishings, fabrics, and other home décor related items. There are a lot of flash sales sites but few as big as the Gilt Groupe.
Decorati was started a couple years ago by interior designers as a trade-oriented social networking site, offering professional advice and services to match consumers looking for designers with designers in their growing database. Decorati also provides information on furnishings, fabrics, and pricing.
Having worked in the design industry for a number of years, it is clear that this is a very fragmented industry with many levels of wholesalers and showrooms representing few lines. Much of the industry is closed to the public and oriented toward trade sales. Decorati is trying to help break down some of the barriers to working in and buying within the industry.
Gilt sees an opportunity to combine their flash sales model with Decoratis’ social networking, in concept, a very forward thinking move and similar to social shopping sites like Groupon or Kaboodle. The acquisition is being hailed by both companies as revolutionary in the industry and I am not completely convinced.
I like flash sales sites and am members of a few. Flash sales are really oriented towards impulse purchasing. There is pressure for quick decisions as you usually have limited details about what is coming up the next day. There is not a lot of planning and not a lot of time to think. The model is really the opposite of how good design usually works.
As a designer, I spend a lot of time with my clients understanding their needs, working on design solutions, and finding the perfect products for each project. Good design can be quick, but it should never be rushed.
What this industry needs is an improved product and acquisition process. Interior design still relies on print catalogues, faxed purchased orders, and outdated product availability information. I think web commerce can do a lot to improve the information flow and purchasing process and Decorati was partly about improving this, as is Gilt. I’m glad to see these two groups trying to solve difficult problems and hope they can help innovate.
I don’t believe that this acquisition will hinder our industry and I am not worried that this is a new competitor for professional interior designers. For instance, a while back I had a few clients that were members of DirectBuy. They had access to designer brands but had no idea how to pull a room together or what type of fabric to put on a chair. Having access to what designers have access to does not make one a designer. It will not give one the ability to see how to pull a look or room together based on the love of a lamp during a sale.
I hope that this deal brings innovations to improve merchandising/purchasing. Ultimately this will probably compliment the interior design industry not necessarily replace it. Congratulations to the entrepreneurs at Decorati for their success.
