Hungry For A Bigger Piece Of The Pie

Wanelo currently touts itself as the top digital mall where clothing and fashion related brands can reach a wide range of millennial shoppers who have grown to value a shopping experience that is entirely accessible via their laptops and smartphones versus spending time at a traditional store.  While the social shopping network is doing better business than ever before and its user base continues to grow, if it weren’t for a key strategic move the company made a little over a year ago, things may not be looking so good today.  In the earlier versions of Wanelo, shoppers actually had to leave the application once they had found a product that they liked and then complete the purchase process on the merchants own sight. (Sigh)

That all changed in November of 2014 when the digital mall partnered with over 200 brands to begin to let users complete purchases without having to leave the Wanelo app.  At the time, Wanelo was offering roughly 20 million products in their online marketplace.  The 200 brand sign initially converted more than 500,000 products to be available for in app purchase.  That number has since grown tremendously as Wanelo has now shifted their focus and aim for almost all of the purchases associated with the application to be completed “in-app”.

wanelo

Image Credit: Wanelo

In reference to the recent movement of Twitter and companies such a Spring & Curate revolving around the addition of e-commerce capabilities, Wanelo CEO Deena Varshavskaya said,

“They are concerned about millennials that are getting harder and harder to reach.”

The movement of these companies doesn’t worry Varshavskaya because she is confident in the focus that Wanelo has put strictly on e-commerce.  Only time will tell if their “loyal” users will stick around or leave for future similar applications and networks.

Now let’s dissect the strategic change Wanelo made in their operating system.  They found that the conversion rate for customers finding the product and actually purchasing was 3X higher when the purchase took place in-app versus being redirected from the product page on Wanelo to brand own website.  The functionality of the change seems to cater more toward the human physcolgical process more than anything.  People have hard time letting go of money.  That is a simple truth.  The less effort that is associated with making a purchase, the less the buyer has to thing about spending money and the easier (more likely) the purchase becomes.  Simplifying the purchasing process on Wanelo’s application and web services uses the same logic as waiving a credit card versus swiping a credit card.  Studies have shown that waiving a credit card over a card reader takes less energy and provokes more purchases at higher dollar amounts than when shoppers have to slide the card through the machine.  The less effort required, the easier it is to get customers to let go of their hard earned cash.

The idea that Wanelo users are more comfortable with purchasing products and are more likely to do so versus traditional online or instore shoppers could be huge for marketers.  If you work for a brand and haven’t started to explore the possibility of selling your product through Wanelo, I would suggest you do so. You may be surprised at the change in customer behavior you see.

Is Wanelo A Pinterst For Purchasing? Find Out Now.

What’s With All The Hype?

Wanelo has seen great success early on in its existence.  As I’ve said previously, for being only four years old, the social shopping app has already amassed an impressive user base of 11,000,000 users.  In comparison to wildly popular social platforms like Instagram and Pinterest this figure may not seem like a lot.  But, brand marketers have already taken notice of the unique sharing environment that Wanelo has created for its user and they believe the future of the “digital mall” is going to be something special.

Let’s take a look at the numbers and see where Wanelo stands in comparison to Pinterest in its fourth year since launching.  Pinterest is running roughly 100 million users per month which is staggering still.  Pinterest was launched in 2010 so it’s technically a year ahead of Wanelo in terms of operating time.  While Wanelo’s user base may only be 10% of that of Pinterest’s, there is unique statistic that may shock you.

The average image posted on Pinterest receives 10 “pins” or saves.

And the average product posted on Wanelo receives 140 saves.

wanelo saves

Image Credit: Wanelo

This is truly remarkable and even though Wanelo’s user base is currently 90% smaller than Pinterest’s, the social shopping network is receiving over 10X the amount of activity and saves per post than its competitor.  To put things in perspective in regards to the potential that Wanelo still has untapped, Instagram has roughly 300 million users which is 3X the size of Pinterests user base.  If Wanelo continues to grow and their activity rate per post stays the same, they could experience nearly 1,300 saves per product at 100 million users.  Now, compare that number to the 10 pins per post that Pinterest is currently receiving — amazing.  The sky truly is the limit for Wanelo.

When analyzing technology and social platforms, often times, Gartner’s Hype Cycle is used to get a feel for where a company or network may stand in the process of maturity, adoption and social application.  There are five phases in Gartner’s Hype Cycle.  They include technology trigger, peak of inflated expectations, trough of disillusionment, slope of enlightenment, and the plateau of productivity.  In Wanelo’s case, it seems as though they are approaching the peak of inflated expectations but are not quite there yet.  When we compare Wanelo’s user base to those of more established social networks, it’s easy to see that there is still a lot of room for growth.  Wanelo has not yet reached its full potential and could cater to a user base similar to the size of Pinterest’s in the near future if digital e-commerce continues to show fast growth.

320px-gartner_hype_cycle-svg

Image Credit: Google Images

 

Many marketers are taking advantage of the opportunities that Wanelo presents which allows brands to grow closer to their customers.  Maybe entering in the digital e-commerce race is the right decision for your business.  Perhaps Wanelo is just what you’ve been looking for.

If you would like to learn more about how brands are diversifying their social portfolios, be sure to check out my guest blog post.