$WISH DD: The sleeping giant and potential 10-20x multi bagger
Disclaimer: I’m an existing WISH app user and also a WISH investor. My views may be biased and this is not financial advise in any way.
To start this off, here are some of my favourite hate comments that I read about WISH and my thoughts:
- “WISH sells cheap, trash products.” I don’t disagree with this. I mean, even if 2 genius level intellect professors consummate and have 10 kids, one of them kids is bound to be “not so bright” I reckon. With WISH we’re now looking at over 800k merchants and hundreds of millions of products… there are bound to be trashy stuff, this is the same with Amazon, same with Taobao.
- “I don’t invest in Chinese stocks.” Maybe this stupid ape mixed up WISH with another company. We can actually Wiki this, WISH is an American online e-commerce platform (based in San Francisco, United States) that facilitates transactions between sellers and buyers. (But they do have a very significant number of merchants from China, this is the same with Amazon, same with Taobao.) 3. “WISH sells Chinese junk.” Similar to point 1, but will just like to bring us back to reality that made in China products are here to stay whether we like it or not. I can’t think of another country with a bigger population of people that works as hard, fast or cheap. China produce about almost everything from cars, to smartphones, tablets, stupid plastic toys, big city skyscrapers etc you name it. Look around your home and you’ll probably find something that’s made in China. Tesla cars, Iphones and many more big brand names are also made in China.
- “Scam. You’re going to wait months for something which may never come.” As a WISH user, I’m going to have to say that this is a myth. WISH is not a scam and $2.5b revenues in 2020, projected $3.2b revenues in 2021 and over 100m monthly active users are facts. If the product you want is not available, it will be reflected as sold out. When you place your purchase for an item which is available, it will come (from my personal experience). Like most good e-commerce platforms, you’ll be able to check your order status (processed, shipped, arrival date etc) via the WISH app. If you want your items urgently, you can pay more for WISH Express. If you’re like most WISH users that are buying not through a search query but instead from personalized browsing (it’s basically impulse buys and not need based), you can probably wait for your items to arrive which lowers the cost base (which is one of the main reasons for the impulse buys, PRICE). And no, it won’t take months. WISH quotes me an estimated 2-3 weeks for my items to arrive and I usually get them before the actual projected arrival date.
- “Goodluck with your imitation crap.” This comment reminds me of the time when I was studying as a kid, my teacher used to say that copying from my classmates was wrong. As an adult now, I will like to share with her a quote from Oscar Wilde, “Imitation is the sincerest form of flattery that mediocrity can pay to greatness.” The next quote is from me. “In the business world, no amount of copying is bad unless we’re copying crap.”
Why I’m a happy user of WISH app:
For WISH users, the satisfaction really comes from finding the gems, which is also probably the main reason why the average time spent per user on WISH app are more than any other e-commerce platforms… unlike fucking a dead log, it is just so much more interactive and fun shopping with WISH app. Gems are basically good quality products with very cheap prices. A recent gem I found from WISH was a soundbar for my gaming needs which costs $24, it’s about half metre long and I’m serious when I say the sound and bass is SOLID. I would encourage anyone to just log into WISH app to discover the gems for yourself to truly understand what I’m saying, just search under “WISH select” and there are already tons of solid products which are cheap and good with many verified user reviews.
Just be warned: Once you are a WISH user, it all starts with WISH app prompting users to log in to the app with gamification, flash sales etc. And when you eventually do decide to see what they have to offer (with no obligations of course). The software prompts further discounts for immediate purchases, adding in similar or complimentary product recommendations based on data and advanced algorithms… it’s like a dollar store on steroids. Most users and especially existing users like myself (with address/payment details done) make the purchases sooner rather than later and when we do, we potentially buy in quantity because of the low prices.
In summary, I strongly believe that WISH is a sleeping giant (with tons of cash on hand in their balance sheet) that is going to give the big boys in e-commerce a good run for their money especially once they achieve the following:
- To have a fully comprehensive catalogue of products with different price ranges, moving upstream to touch a wider demographic audience.
- Filling in the gaps for product categories which are lacking right now in WISH app such as grocery products that are used daily by average consumers that require routine replacement or replenishment such as food, beverages and household products.
- Increased WISH user demographics that prioritize services (products, speed of delivery etc) over savings, this in turn potentially allows for rapid expansion on their logistics platform and also accelerated growth in logistics and transaction revenues.
- Establishing WISH as a global brand and in-house WISH products. WISH seems to be trending more than just a cool ticker, it’s also trending as a cool brand with items such as hoodies, t-shirts, charging cables, bags etc going for flash sales on their platform. Back in the days, who knew a tick mark with the word Nike would move on to become a global top selling brand. Personally, I love the cool simplicity of the WISH logo and their mission to bring affordable and entertaining mobile e-commerce to consumers around the world including the underserved. With over 300,000 WISH T-shirts sold currently, in my mind it hints the potentiality of what WISH might become in an internet world of social media trendings and smartphones.
- Tapping on Jacqueline Reses’ expertise and experience to accelerate their entry into payment and financial services which will further monetize their growing merchants and user base. Imo their user base is likely to grow rapidly regardless of what haters are saying. As a WISH user myself, I can only say that my experience with WISH is just starting and it’s worth referring my friends. I believe this experience is not unique to me and that I’m just one out of many users that loves my WISH app and the branding. With over 100m monthly active users, over 500m total WISH users, over 3m of items sold daily, most downloaded app globally for past 3 years, we can’t be getting it all wrong. As the saying goes, it only takes a spark to get a fire going.
- Expansion in WISH Local Merchant base. WISH stores their inventory orders with WISH local merchants, saving costs on storage and last mile delivery (This also translates to reduction in time taken for delivery and further cost savings for consumers). WISH local merchants get to increase their personal product sales through WISH inventory pick ups as it translates to increased customer footprint and potential sales opportunities. Wish local Merchants can also tap on the millions of WISH users by advertising their products through the platform. This business model seems underestimated and is a good alternative to Shopify. It can potentially create a sustainable ecosystem and rapid revenue growth for WISH while offering a lifeline for brick and mortar retailers to succeed in an era of disruptive tech and innovation fast forwarded by the pandemic.
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July 21, 2021 at 03:55AM