Is JOOM about to take on Wish?
Have you heard about the newest marketplace?
The fast and furious success of the Wish marketplace has opened up the floodgates for ever more online marketplaces to serve the needs of customers who want to find cheap deals.
While most reasonably priced stock comes from Asia – customers can enjoy bargains from across the world with marketplaces like eBay and Amazon. With many marketplaces like Wish, Aliexpress and now, Joom, all now catering to the Western market, it is of little wonder that adverts are popping up everywhere for these popular “cheap” apps. But with shopping apps springing up so fast universally and growing so speedily, will the creators be able to keep up with the demand and, keep your brand secure? Boasting over 4 million products on the store and over 100 million users worldwide, it’s clear that JOOM, which launched in 2016, is only going to grow in popularity in 2019.
Let’s take a closer look into JOOM and its business model.
What does JOOM sell?
JOOM runs an online Chinese discount store that sells products such as phone cases, clothes, cosmetics, trainers and household electronics. Like their close competitor, Wish, JOOM sells these products at a heavy discount as they are mostly manufactured in bulk in Asia. However, it can sometimes fail to meet the high standards that the Western markets demand. There have been numerous reports in the Western media about faulty products which haven’t exactly painted these marketplaces in a good light...
What is the JOOM platform like?
The JOOM platform is very comparable to Wish. Their homepage is based on the very recognizable “tile” format and previous user preferences are applied to show users the products they are more likely to buy, and products that are heavily discounted on that day. JOOM also offers a mobile app that works in a similar way. The platform is aimed at Generation Z audiences and “millennials” who are used to the tile format from all of their favored social media apps.
Which countries does JOOM operate in?
JOOM operates across Europe with its headquarters at Latvia, but interestingly enough, they have lately started targeting German audiences with TV adverts promoting their platform. They have also set up a customer service department in Germany. They also have English speaking customer services to cater to US, UK and Australian audiences.
Although JOOM advertises that they have “free shipping”, due to certain customs restrictions, customers often have to pay high duties for their goods to get them into the country.
Why is it mine or my brand’s concern?
As with most online marketplaces, there is always a risk that your brand could be counterfeited. The issue with some of the newer platforms is that they grow terribly quickly and once that happens, they find it challenging to regulate their own marketplace. Consequently, there is also a risk that your brand name could be hurt if you are selling legitimately on a platform that is typically discouraged in press due to the concerns with safety of the products One of the more perturbing things about JOOM is that even though it is a sizable platform, information about the founders is hard to find online.
If you are worried about greymarket issues or brand protection, please contact us to find out more on how we can help.