Letsbuyit beefs up new marketing push
- Added:
- May 31, 2001
It follows a marketing agreement signed earlier this month with American Express and is part of a wider push to re-establish the site through partnerships with recognised e-commerce players.
Its deal with travel site Priceline - which officially launched in the UK in January armed with a 15m marketing budget - will provide LetsBuyit.com's 1.2m members with access to its “name your own price” facility for flights, hotels, rooms and car hire. The two firms will also work on cross-promotions.
The agreement with QXL Ricardo will see the two companies working on joint marketing campaigns across Europe.
The campaign is expected to be followed by a proposed TV effort which Letsbuyit mooted earlier this month. However, the company refused to give details on how much the campaign might cost and whether it will mirror its high profile TV ads of last year.
Letsbuyit.com, which was launched in Sweden in April, resumed trading in February, two months after a suspension on its trading was lifted through a last minute 34m investment. It has since cut back its 350-strong workforce to 200 with the aim of becoming profitable by the end of 2002.
Its results, released yesterday, showed that these cost-cutting procedures appear to have paid off, with operating expenses down 39% on the comparable period to EU15.3m for the quarter ending 31 March.
Its revenues for February were EU734,000, with a total volume of EU1.1m, while it claims its total order value has continued to increase steadily in April and May, amounting to around EU4.0m so far this year.