Privalia

There was simply no market or, if there was one, it was tiny. This was because it was a new product for a new market. Brands built up surpluses from previous seasons and they wanted to get rid of them. At the same time, there was a critical mass of customers who were willing to buy at cut-price for these products. There was no physical or virtual place where brands and customers could match supply with demand. There was a growing number of outlets and small street markets but no structured market capable of channelling the volume needed. Two young Catalan entrepreneurs, one with experience in consultancy and the other in the fashion market, saw an opportunity. Internet facilitated the creation of a secondary market for major brands' surpluses from previous seasons and there was a growing number of customers interested in buying these products at a bargain price. To satisfy this latent demand, they came up with the idea of an online outlet.