Snap Inc. SNAP recently announced a collaboration with LEGO Wear to launch the latter’s first limited-edition clothing line for adults.
The clothing store opened its gate in Fitzrovia, London only for a day. However, the store appeared empty to the naked eye. To lure users and boost engagement level, augmented reality (AR) technology was used to transform the empty shop into a virtual boutique.
Upon scanning the Snapcode, Snapchat users got to experience a virtual shop on their smartphone, featuring an interactive DJ booth, LEGO bouncer, arcade machine and clothes displayed on LEGO mannequins. The move can be attributed to LEGO’s decision to tap into "the sense of style and nostalgia" of millennials.
This feature was available for people in the United States, United Kingdom, France and Germany only. Snapchat users were able to buy LEGO sweatshirts, T-shirts and caps through an integrated “Shop now” feature on the app.
Snap Inc. Price and Consensus
Snap Inc. Price and Consensus | Snap Inc. Quote
Snap Boosts E-Commerce Strategy
Snap’s AR collaboration with LEGO will help the company bolster its e-commerce position and expand user base.
Notably, e-commerce continues to gain immense popularity driven by increased penetration of Internet and mobile phones as well as shift in consumer preference.
Per reports from Grand View Research, revenues from this sector are expected to reach $7.72 billion by 2025, recording compounded annual growth rate (CAGR) of 11.7% between 2018 and 2025.
The collaboration reflects Snap’s evolution from a mere photo or video sharing application to a serious AR supported technology provider.
In the recently reported quarter, management stated that on average more than 70% of users played with or viewed an AR Lens every day, indicating the growing popularity of Snap’s Lens.
In September 2018, the company rolled out a new feature that enables people to use the app camera for searching products on Amazon AMZN.
Snap’s Effort to Expand User Base
Snapchat continues to add features to make its platform more attractive to users as well as advertisers.
The company introduced a Tab feature on the Friends and Discover pages of the application that enables users to easily sort Stories they wish to see. Further, Snap launched a feature that lets users create and take part in lens-based challenges with others.
The company is also aggressively ramping up its original content efforts through collaborations with Viacom VIAB, Comcast division NBCUniversal and Disney’s DIS ESPN. Notably, Snap’s Publisher Stories and Shows are now watched by 30% more people every day compared to last year.
Management stated that user engagement continued to improve as average time spent on the platform was above 30 minutes per day in the recently reported quarter. Moreover, Snap’s daily active users (DAU) stayed unchanged sequentially.
Currently, Snap carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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