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Gilt Groupe CEO Kevin Ryan on the outlook for daily deal providers such as Gilt Groupe and Groupon.
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Well Nutting is coming out just moments ago as was we've been reporting revenue coming in lower than expected and -- -- -- -- to drop enough trials trading attend the daily deal model itself survive in the long term is that a fat or can companies survive by doing it.
Perfectly joining me -- out of fox this is exclusive interview.
-- group CEO.
Kevin Bryant.
I would have to say that right now and we followed your company since the early days.
It's doing extraordinarily well but what is the trick because you see with Groupon which could have sold itself to Google for seven billion dollars.
Is -- -- right now.
Is -- saturation that will hurt all of you guys.
We'll look at picking coupons case we have that we can lose sight of the fact that they are a business that sold over six billion dollars worth of products on their site is here it's only their third or fourth there's huge -- they recognize about two and half billion that.
And it's already profitable.
And that they built up in a very short period of time so they're using huge business there mean that's enormous now having said that it's gotta find the true valuation and growth does start to become a problem to grow it promised not to growth over last year is the forecast for the growth next year until I think of trying to get term that's aren't hurt them.
So every year a couple of people stop using it and then have to replace them it's -- people know about the company that it's -- place that growth.
What about the value for the businesses who put out these deals these discounts because I get the sense that consumers use them.
But doesn't mean that's gonna generate loyalty to that business because there's so many deals out there that you really just jump from one to the -- We also don't forget that there are fewer -- deal providers to date in the were a year ago.
To the market is consolidating dramatically we estimate that over 50% of the players a year ago are already out of business which you're gonna see as you always doing the Internet.
Is you'll end up with a couple of large players in different segments were in the high end group finds more than mass market.
I'm gonna have a couple players they're gonna be successful it'll be -- big business.
Gilt -- there's -- spot there in the room lot lot there there are some other areas that that do similar to what you do but.
You expanded to gilt city and then -- pull factor rains a little bit.
Was it just growing too quickly or you've figured out this isn't working you pull the plug on certain things it was -- we found that there were cities did it didn't make sense that have local sales for people there are so we closed down some cities like which cities -- -- like Seattle.
And we replaced that with national deals so actually.
-- city for us now is our fastest growing US business so we're growing much faster -- Groupon is in the local daily deals space so but often much smaller base so.
Were probably I think we'll release 40% this year.
Going forward so we're feeling feeling good about that -- -- we have we have I think less churn in general and a lot of focus on the quality and the high in nature of the offers an is that the -- you see the most potential mean as you look forward what areas which you like to expand more into.
So I think it has more potential and growth just because it's starting -- a smaller base our women's business which is hundreds of billions of dollars are men's business -- a hundred million dollars.
Are going to be growing as fast as that but as long we have a leadership position each area and and have steady growth which is what it is important to me sustainable growth I think we're -- while -- Your guys stick -- noon or five minutes to noon we all get the email this is what we're gonna have Judith -- earrings or -- -- I have to kick company candles.
And you wind up -- -- -- saying I need to know I want that I don't look back at what.
It is that part of -- and then when you look at your partners yeah Kevin.
Your partners must look at things differently because they're not doing the old stuff last season means some of the stuff is kind of got caught yet.
Is that a demand that you look fire yet here's yet it is we we look we only -- -- on the site if we think it's really attractive to customers and so it's gotta be great for wheat and we spent our day actually I'm seeing saying no defense saying look it's not the right fit for us.
He's that's very important when you think of our consumer at all times if we can do that will have a great business IPO have to -- -- having affairs analysts I ran up well.
But IPO everybody wants in on your investors want to now and people who might be watching this closely to -- -- at some point you know media a year from now it'll make sense to go public so nothing has changed air but -- no time soon.
Here you can see you look their pros and cons of going public entity group -- living.
Some of the cons of being public this group -- it may be very early for them to go public when you've got businesses in forty countries.
So I think we want to make sure that were ready.
That the markets are ready -- right now the markets are not bad don't forget.
There's some can be doing badly but there are tons of companies -- -- we got to go but what if a Google came along Mexico looks they offer to buy Groupon and and would you consider that vs an IKEA.
That's always yeah that's always an option on the table and I think any business you have you should consider both options if I'm more likely to go public but you never know we'll -- Very good stuff Kevin running.
I guess -- great to see you -- just.
