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”.

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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.

Learn more about wanelo’s audience!

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Pinterest: The original DIY & Fashion treasure site

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Source: Google Images

 

Pinterest is a well-established app that was recognized for its immense variety in fashion, home decor,  and other DIY project selections. Pinterest could easily dismantle Wanelo’s core structure of the app just by adding a “buy” or “browse” section for the variety of clothing items that retailers currently post as well as fashion bloggers. The “idea” sharing site has over a 100 million active users and could easily steal wanelo’s current market share. The only issue is that Pinterest’s focus will have to go from sharing “ideas” to letting users purchase the things they pin from retailers. The demographic for Pinterest users are mainly older women. Wanelo currently caters to the female/male millennial market and will have to expand their current target market to older men and women. Expanding the current market may be difficult since many Pinterest users have adapted to the ease and user-friendliness of the site. The clothing and other fashion-related items do not necessarily appeal to men and women that are 30+ on Wanelo. Wanelo does try to fit more clothing options based on your age when you create your profile but is still struggling to fit in a wider variety of items for an older audience. Primarily because of the infinite of local stores that Wanelo provides are selling their products aimed at Millenials and not necessarily at the 30+-year-old working woman. If Wanelo is able to provide more retailers that could cater to the 30+ demographic then there is a chance for Wanelo to survive against this social media site giant. The biggest advantage that Wanelo has is its ability to advertise for multiple retailers on its app and offer promotions based on a user’s preference of retailers and past purchases. Local and online retailers receive more brand awareness thanks to the apps’ browsing feature for users. Since users are able to follow multiple brands and keep up with the current promotions going on at that moment it helps mold and strengthen relationships between the users of the app, the retailers, and the creators of the app. Pinterest may have an issue of replicating this same system.