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on 5/5/15I don't know, try this: http://www.londonlovesbusiness.com/entrepreneurs/meet-the-pair-behind-uk-fashions-worst-kept-secret/3909.article
I can tell you I just bought a pair of shoes from the site that were far less expensive than on the brand's own website for the same shoes, not always the case---always scheck out if you can find it cheaper elsewhere before you buy [it's very rare I find it cheaper somewhere else]
I would imagine it would be a mixture of both depending in the kind of sale to the end consumer.
There are two types of purchase a consumer can make with secret sales in my experience.
If the product is being purchased from their Outlet Store, this indicates that Secret Sales owns and is in possession of the stock. I would then assume that they have purchased the products at a discount rate to sell on in bulk.
If the products are part of their daily sales (which take longer to be dispatched to the end consumer) I conclude that these items are advertised for sale at a reduced rate and Secret Sales act as a middle man. They gague interest in the products and basically pre sell the individual items. Once they have been purchased by the end consumer, they place the order with the original supplier.
This is just my understanding of their business model. If I were to offer the same service to compete with them, this is exactly what I would do.
Take advantage of discount bulk purchases for stock for outlet sales, work in partnership with higher end suppliers to provide designer items without the risk of unsold stock.
Hope this helps?
Poppy