Online retailer Cocosa is set to launch a full price site in 2013, a second major steer from its original private sales business model in six months.
It’s thought that the etailer, which was acquired by former Harrods owner Mohammed Al-Fayed last July, will continue to sell luxury fashion and accessories at discounted prices, running this model alongside a full price one.
Cocosa’s current site, which originally launched in 2008 as a private sales membership-only site, opened up to the public last October. The decision was thought to boost Cocosa’s numbers – at the time it had 500,000 registered members. According to web analytics firm ComScore, this had translated into 104,000 unique visitors on the site in December.
Rob Feldmann, chief executive at private sales etailer BrandAlley said that a site with two separate aspects – discount and full price – would shift Cocosa to a model more aligned with Net-A-Porter and The Outnet.
Feldman said: “The challenge will be that it is starting from virtually nothing – the business is relatively small if you look at the number of unique users – and it will take the etailer years to get to compete with some of the bigger players. However, Al-Fayed does have very deep pockets so can certainly invest and buy great product but it is hard to see where there is space for the brand in such a competitive market.”
For Sarah Curran, founder of pure play etailer my-wardrobe, saturation within the pure play market over the last 12 months will make the climate for any business entering the market challenging.
“A number of players have tried to break into the market – whether they are leading department stores or independent pure-plays – but they haven’t had the impact expected due to underestimating the enormity of an online proposition.”
Cocosa confirmed it will launch a full price site this year but said it has no further comment.