Retailer Gilt Sees iPad App Driving Fashion Sales

Executives at Gilt Groupe, the fashion retailer known for its online-only sales of high-end items, had expected to do well with their iPad app, but they were surprised by some of the results after the device was introduced.

A screen shot of the Gilt iPad app.

On April 4, a day after the device debuted, 2.4% of Gilt’s sales came from the iPad, a higher portion than expected, said Gilt founder and chairman Kevin Ryan and Chief Executive Susan Lyne in an interview. The company also said that although women comprise its core constituency, iPad users seem to be mostly men. Within the first 10 days, sales of men’s products drove 63% of iPad-generated revenue, the company said.

The free “Gilt for iPad” app, one of five that were highlighted in Apple’s app store, has high-resolution images of products with “pinch and zoom” technology, quick navigation, and an easy shopping cart drag-and-drop feature.

“Look at this—it’s like you’re wearing this dress,” said Mr. Ryan, zooming in on the draping of a shimmery silver frock.

Since its launch in October 2009, 160,000 iPhone users have downloaded a similar iPhone app, called “Gilt on the Go.” A week after the iPad was introduced, both devices accounted for around 10% of sales. Thousands have downloaded the iPad app—the company wouldn’t say exactly how many—but executives said that the share of iPad-mediated sales has been rising throughout the month.

The focus on mobile commerce follows a year in which online luxury goods sales were a bright spot in an otherwise dismal market. Bain & Co. partner Claudia D’Arpizio estimates that online sales of high-end products rose 20%, even as sales overall fell 8% globally in 2009.

The 2-and-a-half-year-old Gilt, which is expected to generate $400 million in sales for the 2010 calendar year, says that mobile shoppers are an increasingly important demographic. To lure them in, the company offered a $10 credit for the first 10,000 iPad users who registered for membership through the app. The company says it has long surpassed that number.

This week, Gilt began trying something new: hosting sales targeted only to iPad and iPhone shoppers. Apple lovers were treated to an exclusive men’s sneaker sale with products priced between $78 and $88. A spokeswoman for the company said it was a success and that Gilt is going to host another mobile-only sale within the next few weeks.