Ideel

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Ideel[1]
Company typeSubsidiary
IndustryE-commerce[2]
Founded2006; 19 years ago (2006)
Headquarters
New York City
,
United States
Key people
Lisa Kennedy[3]
Saurabh Sharma
Alain Demour
Simon Black
Sarah Liebel
Cecelia Myers
ProductsApparel & Home
ParentGroupon
Websitewww.groupon.com/occasion/ideel

Ideel, formerly ideeli,[3] is a flash sale based online retailer based in New York City.[4][5]

History and Operations

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Founded in 2006, its $77 million in revenue in 2010 led Inc. to rank it as the fastest growing company in the United States for 2011.[6] In August 2012, Ideeli moved from Soho to the 45th floor of the New York Times Building.[7] It has raised $70 million in venture capital funding.[8]

Ideel's business model is based on acquiring excess or sample merchandise and selling it quickly at very steep discounts to their members. Sales typically last less than 48 hours.[9] In 2014 they rebranded themselves as a source for affordable designer clothing.

In January 2014, Groupon bought Ideel for $43 million.[10] At some point the name became ideel, dropping the final 'i'.

Business Model and Competitive Landscape

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Ideel operated a flash sale business model characterized by invitation-only membership, time-limited sales events, and a focus on delivering designer fashion at significant discounts. Registered users gained access to daily and weekly sale events that typically began at set times, with merchandise available until either the event’s end or until stocks sold out, often within hours. To create a sense of urgency and exclusivity, Ideel relied on aggressive digital marketing through email, mobile push notifications, and social media, encouraging members to visit frequently and act quickly in order to secure limited inventory.[11]

This model positioned Ideel alongside peers such as Gilt Groupe, HauteLook, Rue La La, and Beyond the Rack in the competitive flash-sale landscape. Each of these platforms implemented curated selections of fashion, home, and beauty products, leveraging steep discounts and member-driven access to attract price-sensitive yet brand-conscious consumers. Ideel’s core differentiation was in its event-based site structure, prominent countdown timers, and frequent use of surprise giveaways.[12]

Initially, the flash sale model benefited from a surplus of designer inventory following the late-2000s recession, offering brands a discreet outlet to clear excess stock without resorting to traditional retail markdowns. However, as the sector matured, several challenges emerged. The supply of high-quality surplus inventory decreased, and mainstream retailers intensified their own discounting efforts, eroding the exclusivity and value proposition of flash events. In this environment, Ideel—and its competitors—faced increased customer expectations for faster shipping and better service, while also contending with operational complexities, high customer acquisition costs, and diminishing margins.[13][14]

By the mid-2010s, the flash sale sector had largely moved away from its original promise of regular, exclusive, and deeply discounted designer deals, with many former competitors either acquired, repurposed, or closed.[15][16] Ideel would follow suit in 2014, being acquired by Groupon.[10]

References

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  1. ^ "Groupon's flash fashion site, Ideeli, rebrands as Ideel, rolls out loyalty program". VentureBeat. 14 August 2014. Retrieved 3 January 2019.
  2. ^ E-commerce
  3. ^ a b "ideeli Becomes ideel". MarketWatch. Retrieved 3 January 2019.
  4. ^ Tedeschi, Bob (November 17, 2007). "Ideeli sounds alert for discounted luxury items". The New York Times.
  5. ^ O'Donnell, Jayne (November 17, 2011). "Ideeli flash-sale site sells high fashion for less". USA Today.
  6. ^ "Ideeli -- New York, NY -- INC 5000". Inc. Retrieved July 18, 2012.
  7. ^ "Ideeli's Times has come". Crains New York Business. Crains. 13 June 2012. Retrieved July 18, 2012.
  8. ^ "Flash Sales Site Ideeli Raises $41 Million". Tech Crunch. 28 April 2011. Retrieved July 18, 2012.
  9. ^ Buchanan, Leigh (23 August 2011). "The Fastest-Growing Private Company of 2011". Inc. Inc. Retrieved July 18, 2012.
  10. ^ a b Clark, Evan (14 January 2014). "Groupon Buys Ideeli for $43 Million". WWD. Retrieved 14 January 2014.
  11. ^ Weber, Harrison (2014-08-14). "Groupon's flash fashion site, Ideeli, rebrands as Ideel, rolls out loyalty program". VentureBeat. Retrieved 2025-12-22.
  12. ^ Reddinger, Paige (2014-08-14). "Ideeli Becomes Ideel, Undergoes Rebranding". Daily Front Row. Retrieved 2025-12-23.
  13. ^ Cocotas, Alex. "SPECIAL REPORT: Flash Sales Will Be A $6 Billion Market By 2015". Business Insider. Retrieved 2025-12-23.
  14. ^ "Flash-Sale Site Shifts Its Model (Published 2011)". 2011-08-14. Archived from the original on 2024-01-14. Retrieved 2025-12-23.
  15. ^ Monnier, Elie (2015-01-22). "The Rise, Fall and Future of Flash Sales in the Retail eCommerce Landscape". www.orckestra.com. Retrieved 2025-12-23.
  16. ^ Ransom, Diana (2015-12-16). "The Rise and Fall of the Flash Sale Business Model". Inc. Retrieved 2025-12-23.


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