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.

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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.

Why wanelo is every shopaholics dream?

This is the post excerpt.

If I have to describe what wanelo is and how it works, it is the lovechild between Pinterest and Instagram.Consumers are able to go through multiple clothing items of their choice by following local and well-known retailers on their phone and purchase them at their own convenience by creating a “wish list”.  Users follow other users similar to their fashion taste and can “swipe right” on fashion items of their choice. They can also save those items to their wishlist, and then purchase the product from their phone later on if they want. The app also offers free shipping and reviews of the item before they purchase it.

The app itself is user-friendly and does not take much time in learning how to use the app overall. According to the Business insider, wanelo was able to raise two million dollars  from investors and create the app. In 2013, they were able to pull in more than a million visitors, “Wanelo pulled in 1,367,000 unique visitors in December, up from 743,000 the month prior.” The site has a significant amount of marketing potential due to the fact local and well-known retailers are able to promote, and sell their clothing lines on the app. Not to mention, marketers could potentially use the app emphasize a certain clothing line or label that they have just started. Overall, online and brick and mortar retailers can gain a sustainable competitive advantage if they were to use Wanelo. They could possibly expand into other product categories since they have been successful with clothing but that would have to depend if the company would want to head in that direction. For now, there is plenty of marketing potential with Wanelo for the clothing retail industry and home decor products. Considering the increase in users who want to purchase things online vs. a physical store is steadily growing. It is plausible, that the retail industry may have to integrate into an site/app such as Wanelo in order to survive in the current market. Multiple retailers are able to target customers better and offer them promotions as well from the app.

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