When I saw Covetique had been bought by ASOS I assumed it would be safe. Wrong – as today Covetique has announced it has closed it’s (virtual) doors. Which is especially surprising given it’s recent acquisition of Fashion Bloodhound.
At first blush this is difficult to understand. Covetique was online only and that is what ASOS is about. It also meant Covetique had the advantage of ASOS’ big buying power for everything from couriers to packaging. As well as techie talent and a decent marketing budget. However it clearly hasn’t worked and I am curious as to why.
I know businesses fail for many reasons. But I also know that clients and customers for preloved designer really like a bricks and mortar base. In fact, although online clearly is here to stay, people like to shop. They like to look, feel, try and interact with the sales staff. Shopping is a social activity.
It’s also way more enjoyable to run bricks and mortar and interact with humans. And it’s more profitable. We have online too but it’s a much smaller part of our turnover. Any business needs a website and, if practicable, a way to purchase online, but to take all possible sales (and get all possible items for sale if you resell preloved) you really need bricks and mortar too.
I hope to learn more over the next few days but in the meantime, as people still clearly want to sell and buy preloved designer items – we are still going strong and happy to help!!
If you would like us to sell for you, or if have any questions for us, please call the shop on 01245 250068 or send an email to firstname.lastname@example.org xx