The MyDeal.com.au Ltd (ASX: MYD) share price is soaring after the company announced the launch of its native mobile apps for iOS and Android.
At the time of writing, the MyDeal share price is trading at 71 cents, up 4.4%. The online retail marketplace has a lot of work to do after sliding almost 60% since its ASX debut on 22 October.
MyDeal ticks off another growth initiative
Back in the first half of FY21, the launch of native apps was a key growth initiative to improve the mobile shopping experience, reduce marketing and increase customer retention. Mobile apps represent a significant growth opportunity with approximately 75% of website visits coming from mobile or tablet devices, according to Google Analytics.
The MyDeal native apps will enable its current 833,000 active customers a seamlessly shop from its range of 6 million home and lifestyle products.
The app provides users with additional mobile-specific features and offerings including app-specific discount coupons, notifications for offers, shop-by-room navigation, product cross-sharing to social media apps and seamless checkout management.
Management commentary
MyDeal founder and CEO Sean Senvirtne commented on the app launch, saying:
Operating a leading online retail marketplace for home and lifestyle products, we understand that providing a seamless customer experience is vital, no matter how users choose to access our platform.
The native apps are a key part of our growth strategy of improving conversion and retention rates by continually refining the customer experience and optimising the site, harnessing the data from different channel usage across our platform and more effectively personalising our interactions and offers for customers.
Why the MyDeal share price is struggling
Its been a challenging market for initial public offerings (IPOs), where shares more often than not go downhill after the first day of listing. Some recent examples include the likes of Youfoodz Holdings Ltd (ASX: YFZ), Payright Ltd (ASX: PYR) and Zebit Inc (ASX: ZBT).
Furthermore, ASX e-commerce shares across the board have struggled amidst a period of tough comparisons against supercharged COVID-19 sales from last year. E-commerce shares including Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have fallen a respective 41% and 32% this year as growth moderates.
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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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