High end designers try their hardest to keep their wares out of bargain shops (i.e. you won't see Hermes at TJ Maxx). I don't see how Gilt convinced the fashion world to allow them to sell the high end stuff at a discount. Companies like Overstock said 'We'll take all the unsold inventory in your warehouse and sell it dirt cheap since it's costing you money' but the items that Gilt is selling are much higher quality and they already faced a lot of competition from BlueFly.
As a newbie startup, what tactics did Gilt use to convince the fashion industry that they would be successful without cheapening their brands?
