Social Gifting App Bills Itself As The Anti-Groupon To Gain Fans

In an attempt to harness the backlash against daily deal sites like Groupon, new so-called “social gifting” companies are trying to garner fans with a different kind of mobile merchandising. Instead of giving yourself the gift of a deal, apps like Wrapp allow users to give e-gift cards to popular retailers.

Sending someone a virtual gift might bring to mind the kind of presents Facebook used to offer — hey, here’s a “drink” that is really just an icon on a screen! — but as Fortune points out, social gifting could take hold because what it offers actually has worth.

Even Groupon investor and startup sage Reid Hoffman suggests that Wrapp could prove more effective for retailers than daily deals. “It has a similar value proposition but appeals to consumers in a very different way,” says Hoffman, who invested in Wrapp’s $10.5 million Series A round in January and joined the company’s board of directors. “It’s not saying, ‘hey, my product is worth less than I charge for.’ It’s a different kind of marketing promotion.”

Wrapp (wrap plus app, ya see?), a Swedish startup, launched in the United States today, and it isn’t shy about touting how much it isn’t like Groupon. Users can send pals and loved ones digital gift cards for places like Gap, H&M or Sephora via Wrapp, and recipients can then use those gift credits at stores just by showing it on their phone at the store.

Instead of driving discount-hungry customers to stores they might not normally frequent, Wrapp aims to capitalize on consumers who maybe sort of could’ve possibly forgotten to buy a gift for someone’s birthday, and can make up for it when Wrapp reminds them of said occasion.

Meet the anti-Groupon [Fortune]

Comments

Edit Your Comment

  1. Coffee says:

    I elect my president using this logic every four years.

  2. Cat says:

    I might send this to someone. If I hated them a whole lot.

  3. mistyfire says:

    I actually like this idea.

  4. sparc says:

    i don’t get how this has anything to do with groupon. groupon can save you money if you partake in the deals wisely.

    I don’t see what this social gifting app does. I can buy gift cards now directly at a retailer’s site without having to go through some middleman.

    Are they going to offer gift cards at half off?

    • Naked-Gord-Program says:

      +1 They seem to be going for the positive social angle. I fail to see how this does this. It’s just a clearing house to buy all gift cards in one place.

      Since they’re likely getting a discount in bulk if they wanted to give up a healthy portion of that discount for the charity of the choice of the buyer/recipient then that’d be a different story.

    • D007H says:

      Think they’re offering “free” gift cards-like $5 or $10 that people can give to their friends. The giver can add on more money if they want. I’m suspicious, since these “free” offers usually comes with a ton of conditions and restrictions.

  5. AllanG54 says:

    This just seems like a waste of time. Wonder how they’re making money unless Wrapp is charging full price from the merchant and getting a commission.

  6. canfree says:

    Love this idea!!! Groupon type websites are too over ran ………. I’m sick of looking at them, I know there’s some good deals – but I feel like they are over pushed too much! Bring Back Old School! Love the idea:)

  7. humphrmi says:

    “Instead of driving discount-hungry customers to stores they might not normally frequent, Wrapp aims to capitalize on consumers who maybe sort of could’ve possibly forgotten to buy a gift for someone’s birthday”

    In other words, now you can buy your friends and loved ones gifts at stores they might not normally frequent.

  8. axolotl says:

    Huh?
    It allows you to send a gift card to someone for free? Is that it? Why can’t I just send it to myself? These are effectively just coupons, right?

    • MMD says:

      Exactly. It wouldn’t be hard to set up a dummy Facebook account for a long-lost “cousin” who loves to shower me with gift cards, “just because”.

  9. Scuba Steve says:

    I keep misreading the headline as “Social Grifting” which seems much more like groupon than I’d care to admit.