Groupon eyes flash fashion market with Ideeli buy

Summary:The addition of ideeli provides Groupon with a more substantial footing for competing with the likes of Gilt and Amazon-owned MyHabit.

While competitor LivingSocial navigates its way through a major leadership turnover , Groupon is strengthening its assets.

The Chicago-based daily deal site is adding a new arm of flash sales to its repertoire with the acquisition of Ideeli.

Groupon has advertised promotions on discounted clothing, accessories and other sartorial deals previously, but the addition of Ideeli gives the company a much more substantial footing for competing with the likes of Gilt and Amazon-owned MyHabit.

In Monday's announcement, Groupon leadership also suggested that Ideeli's mobile user base is also a major incentive on its part.

Ideeli offers flash sales on men's and women's clothing, shoes and accessories as well as home decor. The brand names are a little less high brow than Gilt, but offer much more mass market opportunity.

But much like MyHabit, Groupon is letting Ideeli maintain its separate website and brand, as well as its headquarters in New York.

With the deal closing today, Groupon paid $43 million in cash.

Naturally, there is a special sale to commemorate the merger with Ideeli offering 20 percent off purchases through tomorrow, January 14.

Topics: E-Commerce, Apps, Start-Ups, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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