/// Gap, H&M, Sephora and Others Unwrap New Social Gifting Service in the U.S.
More than 25 major retailers, including the Gap, H&M, Sephora and Brooklyn Industries, are working with a Swedish company named Wrapp to roll-out a social gifting service starting today. The intention of the service is to drive consumers into stores, much like Groupon, but rather than enticing them with coupons, the bait is even richer: Free gift cards. Wrapp, which was founded by a mix of former executives from Spotify and Groupon and received financial backing from Reid Hoffman of Greylock Partners , is now available in the U.S. It works like this: Using Facebook and a mobile application, people can give their Facebook friends free gift cards, commonly valued at $5 to $15. A notification saying that they’ve received a gift card is posted to that friend’s wall, where anyone can see it and contribute more money if they wish. The person, who received the gift card, can then redeem it using a mobile application in the store. Lexy Funk, the CEO of Brooklyn Industries , a New York retailer that sells handbags and apparel online and at a dozen-or-so stores, said she was drawn to the concept because of its ability to target customers based on their Facebook information, including age. “Wrapp has the potential to be more sophisticated for us and the consumer,” she said, adding that she experimented with Groupon, but felt it attracted a lot of low-end users.
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Gap, H&M, Sephora and Others Unwrap New Social Gifting Service in the U.S.