RedEnvelope

About RedEnvelope

RedEnvelope, Inc. operated as an online and catalog retailer specializing in upscale and personalized gifts. The company was founded in 1997 by Scott Galloway, initially named 911 Gifts and later Giftworks Online, Inc., before rebranding to RedEnvelope in 1999. The name was inspired by the Asian tradition of presenting special gifts in a red envelope. Galloway, a serial entrepreneur and marketing professor, identified an opportunity in the nascent e-commerce market to create a curated gift-buying experience.

The business model centered on direct-to-consumer sales through its website, redenvelope.com, and print catalogs. Revenue was generated from the sale of a wide array of products, which included everything from monogrammed goods to unique items sourced from artisans worldwide. The company targeted consumers looking for distinctive and high-quality gifts, aiming to simplify the selection and purchasing process. Key features included a "GiftSearch" portal, a gift reminder service, and express overnight delivery options. The product assortment was extensive, featuring around 550 items typically, and expanding to about 750 during the holiday season.

RedEnvelope was an early player in the dot-com era, experiencing rapid growth. The company went public with an Initial Public Offering (IPO) on the NASDAQ stock exchange under the ticker symbol "REDE" on September 25, 2003. Despite its strong brand recognition, symbolized by its iconic red box, the company faced financial difficulties, accumulating a significant deficit over the years. In April 2008, RedEnvelope filed for bankruptcy. Shortly after, in May 2008, the company was acquired by Provide Commerce, which also owned other brands like ProFlowers and Shari's Berries.