Social gifting: the new buzzword in e-commerce. The latest fashion in retail is social gifting, where people get together on Facebook to buy each other gifts.
Last year, the buzzword in e-commerce was Groupon Inc and its myriad of competitors that offered daily online coupons to entice shoppers in a down economy. Now, the latest fashion in retail is social gifting, where people get together on Facebook to buy each other gifts.
Start-ups such as Sweden-based Wrapp, which is launching its U.S. business on Monday, are getting millions of dollars in venture-capital funding, and retailers like Best Buy Co Inc , Gap Inc and Starbucks Corp are scurrying to be a part of it.
“Brick-and-mortar retailers are all looking for new, more efficient ways to drive sales into stores without diluting their brands ... we wanted to really see how retailers can leverage the megatrends of smartphones and social networks,” said Hjalmar Winbladh, chief executive of Wrapp.
Wrapp is essentially an app that can run on smartphones, tablets and computers.