|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
MARCH 12, 2007
eBay's Bid For Celebrity Cachet How it's trying to raise its style profile to fend off online shopping rivals
Alas, no eBay clothes appeared at the Oscar ceremony (although actress Marlee Matlin did wear a silk Chloe cocktail dress from the site to Elton John's AIDS awareness fund-raiser afterward, the company says). White is undeterred. Her mission: to raise the profile of eBay Inc.'s (EBAY ) fashion business, which it flogs on both its traditional auction site and its year-old eBay Express site, where individuals and mom-and-pop retailers sell mostly new items for a set price. Already, eBay's apparel site draws an audience larger than those of competing sites, including Victoria's Secret (LTD ) and Lands' End (SHLD ), according to researcher Nielsen//NetRatings (NTRT ). But the site is under pressure to boost its offerings of new and higher-priced goods to fend off competitors, particularly Google Inc. (GOOG ), that are turning up the heat in the shopping and auction businesses. In 2006, eBay's revenue from its core auction and shopping units grew 24%, to $4.2 billion—helping place the company at No. 37 in the BusinessWeek 50 ranking of best-performing companies. That increase was off from the 36% rate the previous year, though, and the value of clothing sold on the site also grew at a slower pace. As she works tirelessly to raise eBay's fashion quotient, White "brings credibility to eBay," says North American head Bill Cobb. A former New York Times style reporter and Elle magazine editor who joined eBay in 2003, she is a regular at runway shows, hunting down designers willing to sell their creations on the company's site, if only for a short time. In 2004, White homed in on Proenza Schouler, a fledgling brand that was starting to crop up in fashion magazine spreads. In the deal, the label offered more than 100 items exclusively on eBay's auction site for 10 days. Almost all the items received bids, and 30% sold, for a total of $7,127. "It's all about building buzz among fashion influencers," says White. White snagged a handful of designers, including Stephen Burrows and Douglas Hannant—favorites among New York socialites—to provide new dresses for eBay's pre-Oscar showing at the Four Seasons. Those brands, like many high-end labels, aim to get in front of regular shoppers who probably wouldn't buy their pricey gowns but might spring for some less-expensive accessories. "The value of our relationship with eBay is about exposure," says John R. Miller, managing director of the Stephen Burrows brand. Post-Oscar ceremony, eBay is keeping the clothes, hoping to get them onto more celebrities down the road. The eBay strategy is similar to that of discounter Target Corp. (TGT ), which under the slogan "Design for All" casts itself as a purveyor of chic clothes and accessories. That strategy buffed Target's image, setting it apart from other discount retailers. But some observers doubt that eBay can ever build a substantial following among fashionistas. "That's a bit of a stretch," says Forrester Research Inc. (FQRR ) analyst Sucharita Mulpuru. "EBay is hindered by its image of being an auction site for used items. That weighs down its efforts to be aspirational." Indeed, most eBay users are far more likely to buy or sell $40 Liz Claiborne (LIZ ) bags than $1,000 dresses. So not surprisingly, the bulk of White's work is aimed squarely at Middle America. She frequently appears on the Today Show, recently offering suggestions for how to spruce up a tired-looking wardrobe (think new shoes and maybe a short trench coat) and how teen girls can dress to look trendy, but not trampy, in clothes found on eBay. White also pens a blog on the eBay site giving practical clothing tips for real-world scenarios such as "meeting the parents." Among the advice: "Find a middle ground between wild and wallflower." It isn't a bad description of where eBay would like to be.  By Louise Lee
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2007, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
