Loogic English

Revenues of Buyvip in 2008: 28 million Euros
Revenues of Privalia in 2008: 22 million Euros
Revenues of Vente Privee in 2008: 23 million Euros

Doesn´t it seem strange that the three main Online Outlets that operate in Spain have very similar revenues? Considering that Buyvip operates on an international level and the figure presented is from global revenues, it´s fair to think that the figure is actually lower and closer to Privalia and Ventee Privee.

How can it be that all three have such similar revenues?  and why don´t any of them publicize their profits? It seems that the race between the three “big ones” is to obtain the maximum users possible and the biggest sales figures. However, on the inside, what surely should be of concern are the profits. Unless their goal is to create more jobs than to earn money.

My impression is that the sales figures are so similar because these private online shopping clubs have similar users, in other words, one user most likely makes purchases on all three sites, including some others. Also, let´s keep an eye out for Vipventa that still hasn´t publicized their revenues, only number of users which isn´t too bad.

The other interesting point to consider is why there are such pronounced highs and lows in the traffic of these sites, as seen in the graph above?

Today we came to know that the sales of cars in January of this year have fallen by 41.6% to 59.385 units, the lowest level since 1996. Without doubt, the automobile sector is going through a critical period, in line with the real estate sector. Reducing costs and improving the effectiveness of the advertising campaigns are now a priority for companies in these sectors. On the internet, perhaps they have the best option for both the things, the advertising on the internet is cheaper and can be more focuse to reach the target public. I can personally confirm this situation for the case of two clients from these sectors with whom we are going to start working.

In this line, comes a new portal developed for one of the most important domain names in Spanish, Coches.com, which was a property of Chris Chena and now belongs to the company Autodescuento. According to Carlos Blanco, the domain might have been sold for somewhere between 800 and 900.000 euros.
We talked of Autodescuento when we came to know of the investment by Marek Fodor and now we can see that this company is betting everything on this sector, with the idea that a chunk of the business of selling cars will migrate to the internet. Concesionarios.com and Financiatucoche.com are the other two websites of this company that we hope to pay more attention to from now on.

With respect to Coches.com, I think that it has a very good focus. Above all, I liked the search engine and the page that shows results with the filter system, and it has given me some interesting ideas for a project that we are developing.

 

The race between the private shopping clubs is starting to become frantic, not only in traffic but also in investment figures. A few days ago we were analyzing the figures of VipVenta and came to know of an investment of 10 million in BuyVip. And now comes the news of a new investment in Privalia.

This third round of investment participated by Nauta Capital is of 4 million euros, which brings the total amount of investment in the company to 7 million euros.

To this increase in capital, the original investors La Caixa and Luis Martín have also participated.

With these figures of investment, existing competition and growth figures, I understand that it shouldn’t be long before we see consolidations in the sector that is without doubt turning into one of the main protagonists of the internet in the last two or three years.

Seen in OjoInternet.