Indian fashion discovery platforms Wooplr and Roposo are following their successful Chinese peers to add commerce in addition to branding/advertising as a source of revenue.
Even as social networks around the world have been competing to encourage small businesses and introduce commerce features, Indian fashion discovery platforms Wooplr and Roposo are following their successful Chinese peers to add commerce in addition to branding/advertising as a source of revenue. With the expansion of in-app shopping, social e-commerce is bound to leapfrog in 2017.
In 2016, it is estimated that sales worth around $50 billion were generated using social networks, an increase of $20 billion from the previous year. No wonder leading social networks like Facebook, Instagram and Pinterest have introduced ‘shop now’ features.
But what distinguishes niche fashion discovery sites in India from deep-pocketed players like Instagram is that they are focusing on monetisation early on.
Wooplr claims to have positive unit economics on every transaction and charges upward of 20% as commission from brands. However, it plans to stay away from sponsored posts and banner ads.
Instead, it does fashion campaigns with brands. “We worked with brands like Zara and Levi’s to launch their new collection and also did a campaign with Forever21 and helped them create the 2016 calendar with 12 influencers,” says Wooplr’s CEO Arjun Zacharia.
The women-centric social buying platform claims to be having 40% month-on-month growth and higher user engagement. The platform has one million monthly active users and 200 brands on board. It aims to achieve annualised GMV run-rate of $100 million by 2019.
On the revenue front, Roposo has tie-ups with marketplaces and works as an affiliate marketer to e-commerce players like Jabong. Recently, it also started monetising through its ‘chat and buy’ feature.
“Brands are approaching us for influencer marketing. To leverage this we recently launched Bizdrum to connect brands with influencers for their social reach.
This will work as another revenue stream for us,” says Mayank Bhangadia, co-founder and CEO, Roposo. The company plans to reach $100,000/month in the next eight-nine months and break even by mid-next year.
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Conversation to commerce (C2C) is the future and that’s where social commerce will play a role, says S Swaminathan, CEO and co-founder, Hansa Cequity. “The C2C social commerce will play a key role in building a tangible business for brands too.
That’s where the future of brands and commerce is going to be,” he sums up.