What’s all the “hype” about?

If I had to place wanelo within Gartner’s hype cycle, I would have to place them in the “Peak of inflated expectations”.

GM_Gartner_Hype_Cycle

Primarily because there has been a dramatic increase in users within the past few years and the number local boutiques and well-known brands have jumped on the online retailing bandwagon. Despite this increase in users, retailers, and a variety of international markets, it is becoming more difficult for the site to make themselves stand out among other retailer sites. Wanelo has already passed the initial “technology trigger” stage since they were the first ones to provide a platform where local retailers and popular brands could utilize it to increase sales online. Also, the site did not use any traditional forms of marketing until they hit ten million registered users on the site. Their proof of concept revolved around the idea that consumers could purchase unique items they could easily find during a mall-shopping experience and could potentially become competitors against major brick and mortar stores. Not many other e-commerce sites have mimicked their exact strategy and position in terms of distributing clothing, accessories, and home decor items seamlessly. Currently, they are in the “Peak of inflated” Expectations” stage since they are being promoted through retailers who are using their platform to sell their clothing and accessories. Local boutiques have a sustainable competitive advantage in utilizing the site since they can update a customer on sales promotions going on through the store and maybe create an incentive for a rewards program for loyal customers. For now, wanelo has been able to attract more retailers because of this advantage but will have to create more incentives for retailers signing up with them. Despite the advertising potential, they create for retailers, they still have to compete with numerous other retailers that are on the app and have to create more awareness for customers to notice them. Therefore, they would still in the second stage of the hype cycle. There are some issues arising in terms of adjusting their distribution strategy with the increased number of retailers that utilize the site.

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