Red Balloon splits business in two as it launches ‘Wrapped’ division
Online retailer of gifts and experiences, Red Balloon, has split its offer into two divisions, with the creation of Wrapped, which will sell only physical gifts.
The decision to split the business in two will see Red Balloon continue to sell experiences such as race car rides, parachuting and destinations while Wrapped will offer shoppers the ability to buy physical gifts, such as handbags and wallets.
Red Balloon CEO, Nick Baker, said the decision to launch the new division came after the level of interest in buying physical gifts rose on the site in the lead up to Christmas last year.
“It became obvious at Christmas last year that the physical gift range on RedBalloon was an extremely popular option for many people preferring traditional gifts at Christmas, as well as people in rural and regional areas who may not have a variety of experience options close to them,” Baker said.
Seems silly. Gift equity already existed with the redballoon brand and now they have to invest in building an entirely new brand, build traffic and subscribers. Contrary to redballoon’s main site there is no point of difference between this new “Wrapped” site and any other online gift shop. This isn’t news, just a confused business.
looks like that business is wrapped up now as well … didn’t last too long.