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Fresh off the heels of a $1.2 actor annular of funding, the furniture-focused e-commerce site Deal Décor is today announcement its official civic launch. The company, which we already referred to as a “Groupon for Furniture,” to be fair, isn’t absolutely a cheat of the Groupon business model. That is, it’s not about application group-buying to advance merchant coupons. Instead, it’s about application group-buying to ability factory-direct deals in adjustment to action consumers a 30%-70% accumulation on appliance and added home goods.
Like abounding new e-commerce startups today, Accord Décor is about application the Internet to abrade the acceptable accumulation chain. Unlike quasi-competitors One Kings Lane, Gilt Groupe or Ideeli, the aggregation doesn’t accommodate discounts on aerial allowance retail items nor does it run beam sales. The business archetypal actuality is that the startup works anon with factories to acquisition which items are the best popular, again tacks a bit of added aggregate on the end of a assembly run. Those items are again awash online at discounted rates. It now alike has an appointment in China, on the factories’ doorstep.
Last fall, the aggregation ran a baby pilot affairs in San Francisco for two weeks, and concluded up affairs about 65 exclusive sofas for $399 apiece. This was the aforementioned account Amazon had for $706 and Walmart had for $829, for allegory purposes. That daybed is accessible now for $499 as Deal Décor launches civic (excluding Alaska and Hawaii). The aggregation has additionally teamed up with a new administration partner, HomeDirect, which additionally does the civic administration for Pottery Barn, Crate & Barrel, and Macy’s. That change has aloft commitment fees from $33 to $49, but Deal Décor is not authoritative profits off of delivery, alone sales margins.
In San Francisco, the aggregation partnered with a few bounded coffee shops to affectation the daybed on sale, acceptance barter to see the account in absolute activity afore purchasing. According to co-founder Craig Sakuma, who started the aggregation with Gregory Lok, (together, both accept retail acquaintance at Home Depot, Target, Home Decorators Collection, and Williams Sonoma), around 20% of barter who bought had aboriginal arrested out the account in being at one of these locations. But that aforementioned advantage won’t be accessible alfresco the Bay Area as Deal Décor goes to barrage beyond the U.S. That shouldn’t be a problem, the aggregation believes, because abounding consumers are adequate affairs items online these days. Sakuma also adds that they’ve already apparent 90% of cartage to their armpit from alfresco the Bay Area, alike above-mentioned to the official launch.
Going forward, Deal Décor affairs to action a new artefact every week, with affairs to advertise a array of items including a kitchen island, for example, and alike a dining set. The aggregation is additionally planning to activate absorb chump acknowledgment into approaching assembly runs, by absolution consumers vote or “like” items to announce their affairs intent. As for whether Deal Décor could anytime become an e-commerce armpit with a beyond online store, Sakuma says it’s “too aboriginal to tell.”
“We’re accessible to that idea, but a lot of that depends on what consumers appetite and whether our factories are able to abutment that assortment of orders,” he says. “Time will tell…but we don’t appetite to cede the amazing deals we action customers.” In adjustment to action those deals, the armpit still needs to drive appeal to a abate cardinal of items than an online abundance would, he explains.
Last month, Accord Décor appear $1.2 actor in allotment from a big agency of angel investors, including Rick Thompson, Founder of Playdom and Flycast; Ed Cluss, above CEO of InfoGear; Mark Stevens, Managing Partner, Sequoia Capital; Brad Koenig, above Managing Director, Goldman Sachs; Shawn Bercuson, above VP, Business Development, Groupon; MJ Elmore, Managing Accomplice Institutional Venture Partners; Russ Fradin CEO of Dynamic Signal; Saeed Amidi, CEO, Plug and Play Tech Center; and Jim Mclean, Venture Partner, Crosslink Capital.
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