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Two Luxury Names Expand Their Marketing Collaboration

August 11, 2014
New York Times
by Jane L. Levere

DuJour, the quarterly luxury lifestyle magazine, and the Gilt Groupe, the digital retailer, are collaborating on new cross-promotions and other initiatives, all aimed at making them both more attractive to high-end brands.

Jason Binn, a founder of luxury magazines like Hamptons, Ocean Drive and Gotham, began publishing DuJour in fall 2012, working with Gilt and James Cohen, chief executive of Hudson Media and an owner of Dufry, the duty-free operator. Gilt has a financial interest in DuJour in exchange for Gilt’s promoting DuJour to its members. Mr. Binn had previously served as an adviser to Gilt, founded in 2007 to offer limited-time discounts on luxury goods and services. Gilt works with over 6,000 brands, buying inventory from them and then selling it directly to its members. Michelle Peluso, chief executive of Gilt, said the company became profitable last year.

Subscribers to DuJour must meet at least five of seven criteria, which include a net worth of $5 million, a house worth over $1.5 million, average annual income of over $250,000, liquid assets of $1 million, online annual expenditures of at least $10,000, off-line annual expenditures of at least $100,000 and annual philanthropic donations of at least $10,000.

According to DuJour’s first audit, by BPA Worldwide, the magazine’s subscribers, who pay nothing to receive it, can be broken down into two groups, 250,000 individuals who receive the magazine’s print and digital editions as controlled circulation subscribers, and about three million of Gilt’s nine million-plus members who receive a quarterly email from DuJour with links to its print and digital content. DuJour has sent these emails to select Gilt members since its first issue.

In addition to the audited circulation, DuJour sells about 10,000 copies each quarter on newsstands for $7 a copy.

Mr. Binn said he expected that the audit would “ensure further revenue growth with luxury advertisers for the company.”

Mr. Binn also said DuJour became profitable six months after its introduction and that its advertising revenue from its print and electronic versions had increased up to 10 percent annually since the publication’s start-up.

Slightly over two-thirds of each print issue of DuJour is devoted to national news, while the remainder contains lifestyle coverage of cities like Chicago, Dallas, Houston, Los Angeles, Miami and New York, and, seasonally, of resort destinations like Aspen, Colo.; Palm Beach, Fla.; and the Hamptons. Mr. Binn said 90 percent of the magazine’s advertising revenue was from national advertisers, while 10 percent was from local advertisers.

Starting this fall, when Gilt sends its members an email confirmation of an order, the company will refer them to suggested content on DuJour’s website and provide an opportunity to sign up for DuJour’s newsletter.

In addition, starting this summer, the cities section of DuJour’s website will contain content every two weeks related to a Gilt City sale. Gilt City sales in major American cities offer discounts on services like dining, yoga classes and spa treatments at luxury hotels. If visitors to the DuJour website — which is being revamped this month — purchase a Gilt City offer, the magazine will receive a commission.
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Gilt will run its first print advertisement ever in the fall issue of DuJour, featuring a fashionably dressed young couple seated at a restaurant. The ad copy says, “Gilt. The most covetable designer brands at up to 60 percent off, every day. Gilt.com.” Ms. Peluso said the ad — which Gilt is not paying for — was tailored for DuJour’s audience and its interest in luxury goods and experiences.

The actress Katie Holmes, who appears on the cover of DuJour’s fall issue and promotes her new film, “The Giver,” in the accompanying article, will curate a sale for Gilt of clothing and other items from the retailer’s warehouse that Gilt will promote, with Ms. Holmes’s story, to its members. Mr. Binn and Ms. Peluso said the two companies planned to offer similar, specially curated sales in the future.

Finally, what Ms. Peluso described as the “top customers of Gilt” will be invited to DuJour’s exclusive events, such as parties for celebrities like Ms. Holmes.

Mr. Binn said he expected that DuJour’s strengthened alliance with Gilt could help its luxury advertisers, which might not have a “large online marketing presence and budget,” reach younger, affluent consumers. “Many advertisers always want to have their products and services exposed to digital consumers, who they know will be a big part of where the future is going. There was a solid foundation with Gilt at the beginning, and now we are allowing advertisers to optimize access to Gilt’s audience and to speak to consumers who enjoy opportunities for discounts. That’s what a lot of brands are trying to get access to, but there’s no outlet for them,” he said.

DuJour’s and Gilt’s partnership was “arm’s-length at the beginning, but now we’re mixing it up together as partners,” he added.

“Fashion is always highly editorial, but when you can mix content with commerce successfully, that’s a win,” Ms. Peluso said.

Two Luxury Names Expand Their Marketing Collaboration

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