Market Intelligence Insights July 25, 2019
What's Going on at Wayfair?
Ahead of Wayfair’s earnings on 1st August one of the key concerns is that the company is racking up heavy losses at the expense of high growth. Some KPIs that investors will be monitoring include whether the company is growing its local market share as well as Wayfair’s push for growth in international markets.
- Website traffic market share in the US grew 25% YOY in Q2 2019
- Brand awareness is growing globally displayed by growth in direct traffic to local sites in all key markets
- UK and Germany sales grew by 66% YOY and 80% YOY respectively in Q2 2019
US Traffic Share
In the US website traffic share grew 25% YOY in Q2 2019, indicating that the company is managing to successfully grow its market share.
The main market for Wayfair is the US, in addition to three key international markets; the UK, Germany and Canada. Brand awareness has improved in all four key markets, displayed by a growth in the percentage of traffic to the respective sites coming from direct channels.
在线视频 The Canadian site experienced the strongest YOY growth in direct traffic, 10% in Q2 2019.
What’s Going on in International Markets?
With regards to international markets the UK has been rapidly growing its number of sales, which SimilarWeb measures by the number of converted website visits. In Q2 2019 the UK grew 66% YOY, and was the largest international market in terms of conversions. Germany is another market that has seen tremendous growth in terms of conversions with 80% YOY growth in Q2 2019, however it still has a way to go if it wants to catch up with the UK. Canada, the market that has the smallest TAM for the business, was the largest international market in terms of conversions just one year ago but its growth is much slower than the UK and Germany, 25% YOY in Q2 2019. Overall International conversion grew 47% YOY.
To summarise it appears that Wayfair’s push for growth is paying off, particularly in international markets where we see strong growth in sales in two of the company’s key markets.
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