Five years ago, "flash sale" start-ups introduced a new business model into the retail ecosystem: high-end goods, in limited supply, at affordable prices. Led by Gilt Group, Rue La La, and Zulily, these companies played to consumers growing tendency and desire, to impulse buy and changed the way millions of consumers shop on a daily basis.
However, many failed to build long-term loyalty form their user base. If you were a member of one flash-sale site, you were most likely a member of many others. This lack of loyalty forced them to compete on price and product diversity as more players entered the market.
The new business models currently disrupting retail are adapting and learning from the flash sale model by providing a greater focus on loyalty and multi vertical disruption that the flash sale model lacked.
(Source: CNBC)