Investors October 24, 2019
Wayfair Q3 2019 – Does International Growth Justify the High Levels of Spend?
With the share price down significantly since YTD highs in March this year, we have explored some digital insights to understand how the company has been growing its market share in the US, and digital footprint and brand strength internationally – ahead of Wayfair Q3 earnings report:
- Website traffic market share in the US grew 4.12ppt YOY in Q3 2019 to 23.4%
- In Q3 2019 Wayfair’s Android app in Germany experienced a 746% YOY growth in the percentage of devices with the app installed
- Wayfair is continuing to spend in international markets to improve brand awareness – seen by an upward trend in traffic to Wayfair sites from paid search
US Traffic Share
In the US the traffic to wayfair.com accounted for 23.4% of traffic to home goods sites at the end of Q3 2019, representing a 4.12ppt YOY growth. The company has started to see profits in its US business and this growth indicates that the company is continuing to grow its market share in the region.
What about International markets?
Other than the US Wayfair is focused on three international markets – UK, Germany, and Canada.
在线视频In Q3 2019 the percentage of Android devices with Wayfair’s app installed (install penetration) experienced YOY growth in all three international markets, with the most significant YOY growth in install penetration in Germany, 746%.
International brand awareness
Following a significant decrease in traffic to Wayfair sites in international markets from paid search between Q1 2017 and Q4 2018, site visits from paid search have been on an upward trend again since the beginning of 2019.
In Q3 2019 paid search accounted for 30% of traffic to wayfair.co.uk (an 8.1 ppt YOY increase), 32% of traffic to wayfair.de (a 3.2 ppt YOY increase), and 27% of traffic to wayfair.ca (a 9.5 ppt YOY increase).
Is this increase in spend justified by strong growth in international markets? Download the data to find out.