1. Visit www.hautelook.com to learn more about this online retailer. In what ways does it provide value for manufacturers and consumers?
2. Do sites like these create conflicts between manufacturers and retailers within the traditional channel of distribution?

Thanks to today’s shaky economy, many luxury goods are going unsold and are piling up in storerooms. However, this creates an opportunity for a whole new breed of online sellers, such as Gilt.com, Ideeli.com, and HauteLook.com. Within six months of launch, HauteLook.com had more that 100,000 members and was growing 10 percent per week. These members-only sites announce limited-time “flash sales” of designer goods discounted up to 70 percent. You can get $250 Rag & Bone jeans for $118 or Nina Ricci sunglasses for a fraction of the retail price. But you have to act fast because sales typically last only a few days, with digital clocks ticking down the time. Gilt.com reports unloading 600 dresses within six minutes and members buying within 45 seconds of logging on! Some sites offer free membership, whereas others are by invitation only. For $100, Ideeli.com offers members cell phone invitations to private sales.