Gabby and Hezi Leibovich have been operating their discount retail and group buying websites since 2006 and have the details of approximately 1.1 million Australian consumers in their combined business databases. Now, one month on from having secured a capital injection from Consolidated Press Holdings, the pair is set to unveil BrandStreet.com.au in July. The new site will be dedicated purely to fashion apparel, shoes and accessories and will operate to the Catch of the Day model, that is one branded item will be available on the site per day. Each item will be heavily discounted by up to 70 per cent and available only for 24 hours. The model is designed to clear excess stock and consumers are notified of offers via email. The Leibovichs and the head of BrandStreet operations, Marissa Maddalena, have been testing fashion offers on the Catch of the Day website since March 30. Companies including True Alliance, PAS Group, Gazal and Pacific Brands have taken part. “We sold 14,000 of Bonds underwear over a 24 hour period... We did a Mossimo sale with Pacific Brands and sold 8000 units. The last footwear event we did was 9000 [units],” Maddalena said. The site is not designed “to fight the retail channel”, Gabby explained, but rather provide a way to discreetly offload garments that have failed to sell.
“We want to work with everyone whether it's retailers or distributors or importers of branded goods... all they do is they sell us the item. It's a simple trade. Pick an item: 'this is a shirt, I want to get $10 for it and I've got 1000 [units]'. Thank you very much, here's $10,000. We'll put our small margin on to it and move the stock. No commissions, no shipping charges.” He added BrandStreet's point of difference to competitors such as BrandsExclusive will be its consumer database, initially to be drawn from the 750,000 customers signed up to Catch of the Day and the close to 400,000 to Scoopon. Gabby expects Brand Street to grow at a rate similar to Scoopon, which launched one year ago. The BrandStreet investment is part of a broader expansion for the Leibovich's empire, with the duo also to launch niche sites for discount groceries and wine by the end of 2011.
“We've done it all, we know how to execute, we've got the warehousing, we've got the systems and right now we've also have the supplies. The market is a lot more ready now than it was three or four years ago or even last year,” Gabby said. Erin O'Loughlin
