As per latest buzzword in social networking site such as Facebook, Social gifting is most likely trend of “E-commerce” a retailing service on site where millions of people shares blessings, love and wishes to their loved one, buying gifts for each other.
This latest progressive gifting technology is pushed via Sweden-based Wrapp that recorded a huge success over millions of dollars in venture-capital funding, in the selling of gift card in Sweden and across Europe.
And now Wrapp is launching in U.S. on Monday to prove it’s successful line linked with more than 25 retailers signed up to use the service, including Gap, H&M, and Sephora.
“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,” Hjalmar Winbladh, chief executive of Wrapp told reporters.
Wrapp is an app run on smartphones and tablets, allowing Facebook users to buy gift cards for their friends from participating retailers. Once buy it, user can store on their mobile and their Facebook friends add more funds to it.
Offering free gift cards, Wrapp allow retailers to target specific consumer demographics, being cost effective both side of Retailers and buyers, an easy way of marketing. it also has a more personal touch than Groupons , tend to attract dealhounds who may never visit a store again, something that irks retailers, and in some cases has also killed businesses, source said.
Wrapp has 165,000 active users, sending 1.4 million gift cards in some 50 major retail stores across Europe and recorded $10.5 million in funding.
According to Wrapp , targeting the United States, the most mature Facebook market, significant smartphone penetration for gift cards as presents, Swedish based company tried to boost its market by raising more scope of investment. That’s why the company said, it has tied up with retailers including H & M Hennes & Mauritz AB, Gap Inc, Sephora and Fab.
Appreciating Wrapp’s performance in market, Reid Hoffman, a cofounder of LinkedIn, recently joined the company’s board, said, “The thing that struck me as unique and interesting about Wrapp is that it is kind of the intersection of three trends: gift cards, social networks and mobile (shopping).”