Snapchat is selling new merchandises through the company's freshly launched in-app Snap Store. The purpose of the latest push is to build "brand loyalty," the firm stressed.
The storefront currently sells five products, and among the notable item is the Dancing Hot Dog Plushie that is up for grabs for only $20, which is also the cheapest of the bunch. Snapchat said the store will change the displayed items without warning, meaning a product or two will be removed anytime, so if the plan is to buy, it's best to make that decision quick.
However, there will be new merchandises to drop on Feb. 8, and Snapchat has elected not to divulge the details on them for now.
One thing is clear, though: the new thrust is at an experimental stage, as the company has confirmed that the new store is way to serve the Snapchat community. The specific reason given by the company was "to drive brand loyalty," according to the exclusive report posted by TechCrunch.
Likewise, the move is to provide increased visibility to the company's brand name, the report added.
Where Snapchat Is Headed
Selling items, apart from its main business of maintaining its own social media platform, is nothing new to Snapchat. Previously, the company had launched similar initiatives, but the most notable was the Snap's Spectacles that debuted back in 2016. It proved disastrous for the firm.
Hundreds of thousands of Spectacles were manufactured by the company, but only a small fraction of the products attracted buyers. As a result, Snapchat gradually withdrew the line from the market and was forced to incur losses on the failed venture, which reportedly reached around $40 million.
Clearly for this latest drive, the company is on cautious mode as evidenced by its own declaration that the new Snap Store is not designed to open up an additional revenue stream for Snapchat. To tap into another source of income may not be the company's intention at the moment, but if the store will click, doors will open eventually.
One possible scenario is for Snapchat to draw in sellers on its online store, which is accessible by exploring the Discovery tab and realize income via the revenue-sharing scheme. The company can also sell ads if the store traffic will explode.
In any case, Snapchat can certainly use some sort of a boost on its income-generating schemes. The company has been hampered by similar failed ventures in the past that it had to implement operational adjustments, which led to some employees getting the dreaded pink slip.
