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Dear Readers,

I have been busy the last three weeks and was behind in my reading to create this newsletter.

The three questions on my mind:

1. How does Amazon balance the new cheap from China store with its current operation? There are a lot of pitfalls and downsides vs Temu.
2. What is the second-order impact of these cross-border marketplaces? Unemployment, textile sector challenges, and chaotic logistics?
3. Is Temu the Trojan horse eroding Shein, Amazon, and Zalando?

Please share this newsletter to help me grow the list and justify the costs associated with this newsletter. Please reply to this email as I read and respond to all reader feedback.

​Onwards, Hendrik

Marketplaces

Hepsiburada and Jumia Join Forces to Unlock Broader Product Selection for North African Consumers. - GlobeNewsWire​

Hepsiburada will list its private label products, a portion of its retail assortment, and a selection of other curated Turkish brands on Jumia. As Jumia is closing Tunisia and South Africa (Zando), this announcement leads me to believe that Jumia is struggling with its assortment based on a large selection of goods from China. Hepsiburada's competitor, Trendyol, is leveraging their parent company, Alibaba, to scale in new markets and move goods from Turkey to new markets.

Amazon's plan to tackle Temu, Shein? Sell more toothpaste. - Reuters​

Amazon's push to offer more everyday essentials like toothpaste hurts its average selling prices, but it is also a guard against rivals such as Temu and Shein that offer rock-bottom prices on goods they ship from China.

​Wasoko-Maxab valued at $526M after merger. Ghost raised a $40M Series C. Indian B2B firm Udaan secures $36M for expansion. Mubadala invested $23M in Coupang. Optiwise.ai secures $2.4M for generative AI tools for the Wamart marketplace.

​Watchfinder expands its pre-owned platform into a marketplace. Borong, Maybank launch Malaysia’s ​first digital halal marketplace, Salaam Market. Gopuff to accept SNAP EBT Nationwide

​Nexxus Capital acquires assets of Amazon aggregator Intrinsic Brands. Olsam hit by winding up petition.

Amazon Prime now offers members fuel savings. Amazon shows seller ratings on product search results in a new test. Top cities for Amazon sellers.

Amazon stock jumps 6%; Q3 revenue up 11% to $158.9B; profits hit $15.3B; AWS sales up 19%.

TikTok Shop adds refurbished electronics. TikTok is starting to help creators manufacture their own products. AliExpress invites U.S. retailers to sell on the platform.

OnBuy prepares for European expansion. HARIBO and Gopuff partner to launch the UK’s first sweets emergency service, ‘TreatLine.’

YouTube brings its affiliate program to India and partners with Flipkart. Meesho claims Indian e-commerce first with positive cash flow. Flipkart’s marketplace arm cuts losses by 13%. Quick commerce in India market overview. Flipkart is under fire as iOS users pay more than Android. Quick-commerce risks in India: A lot can go wrong when everything arrives in 10 minutes. Daraz Sri Lanka launches ‘Choice by AliExpress.’

For Alibaba, this year’s ‘Singles’ Day’ Is a brutal dogfight. Alibaba.com expands global e-commerce opportunities for UAE businesses. China's e-commerce industry pushes back on 'no-return' refunds. Alibaba agrees to $433.5M settlement in shareholder lawsuit

Temu begins Vietnam sales unlicensed. Force Shein and Temu to create SA jobs, Temu receives endorsement from China’s official news agency. Europe announces intention to investigate Temu. Temu considers joining European anti-counterfeit group. Pinduoduo launches free Hong Kong shipping service. Temu expands into U.S. Groceries.

​JD.com apologizes after collaborating with a controversial comedian, which triggers backlash. JD.com’s international e-commerce division announced it has extended its services to Malaysia and Thailand.

Takealot tells Sars—bad news for people who shop at Temu and Shein in South Africa. Twist platform by e& Egypt now partners with Jumia to provide entertainment to Egyptian consumers.

​Mercado Libre, a new podcast episode, sheds light on ambitious growth plans and strategic focus across Latin America.

AnyMind Group releases GenAI-powered customer review analysis module for Shopee and Lazada on AnyX. Mexico is weighing whether to impose tariffs on e-commerce Chinese imports.

Luxury Commerce insights sponsored by Luxlock​

LVMH investors are jittery over the anemic Chinese demand for European designer goods. - Reuters​

​Estée Lauder launches on Amazon. Harrods and Scayle partner to launch e-commerce upgrade. Luxury watch trade in Turkey under tax inspectors’ crosshairs. Is aspirational luxury back in China? H&M Group Ventures invests in luxury platform Cult Mia. NEXT launches premium online site Seasons. David's Bridal partners with Arrive Recommerce to Launch 'Adored by David’s.' MDMaison introduces an e-commerce platform for luxury tableware. Tata CLiQ Luxury partners with Bvlgari for first-ever digital boutique in India.

​Birkenstock strengthens its brand presence in South Korea through the launch of a dedicated website. The RealReal replaces its CEO ahead of quarterly earnings. Cettire blown way off course as fall in luxury spending dents profits, How dupe culture is challenging traditional luxury. Singles’ Day price war: Why beauty brands may suffer. Skincare brand 3Lab to close Tmall store by end of 2024.

Fashion e-commerce

These fashion companies have private equity backing — and might be due for deals. - WWD​

Fashion and apparel brands have investments from PE, which generally has ownership interest for five years. After year five, these brands are sold to other PE funds or acquire distressed brands. PE has capital looking for investment opportunities.

​Hilco and TPG form a joint venture to acquire struggling brands, beginning with Bebe and Brookstone.

​Vinted raises €340M at €5b valuation. Coolmate, a Vietnamese direct-to-consumer (D2C) men’s apparel brand, raised $6M. Birl raises £850k for fashion resale technology. Malaysian modest fashion group Fashionvalet founders exit. Indonesia’s Sociolla says it hit profitability in Q1 2024. Lazada Partners With Alibaba's Taobao to launch dedicated fashion channel in Singapore and Malaysia. Permira to take 40% of K-Way. Haut Drops, A new TikTok trend-led E-tailer, wants to Be the ‘Supreme’ of the beauty industry. Aesthetic debuts its ‘Shazam for Clothes’ AI Platform​

​Revolve launches Bellemint fashion game in the US. Poshmark to eliminate fees on buyers three weeks after implementation. Children's apparel resale marketplace Kidizen announced its sudden closure. Patagonia deploys Trove resale solutions that integrate pre-owned and new products. Asos and Hirestreet partner for rental offerings.

​Inditex creates a venture capital fund [in Spanish]. Trendyol launches its first LLM and accelerates expansion in the Gulf. Fleek marketplace for wholesale vintage and second-hand fashion. German shoe giant Deichmann buys rights to Esprit. H&M makes strategic move onto Pinduoduo and prepares to venture into Douyin.

Shein’s profits are said to plunge 70% as Temu and Zara challenge its dominance. SHEIN will become the world's most visited clothing and fashion brand in the third quarter of 2024. [in Mandarin]. The Children’s Place announces the launch of Storefront on SHEIN. How SHEIN got so big so fast. Boohoo boss to step down as review launched that could spark breakup. Zara's sister brand Oysho to exit Tmall.​

Advertising

​Insider raises $500M in funding for its personalized marketing platform.

Pinterest faces EU privacy complaint over tracking ads. Koddi partners with Grubhub to expand Ad capabilities. Zalando appoints Crossmedia as global strategic media partner. Spotify is launching an ad exchange and will partner with the Trade Desk. Rogers-based Harvest Group, a national integrated commerce agency, has acquired Rogers-based e-commerce marketing firm Bold Strategies,

​Amazon Ads spend growth continues As Google and others slow. Amazon sells out advertising ahead of the 2024 Black Friday NFL game.

Google shakes up ad auction dynamics for holiday shopping. Google expands Travel Ads with real time data. Google tests video-enabled shopping ads in search results. US Mobile ditches Google ads and pays the profits forward with a new referral program. Google’s AI search summaries are rolling out to over 100 more countries. Google rep’s unauthorized ad changes spark advertiser concerns.

Shopee affiliates drive brand success: one million videos generated & 4X livestream growth in 10.10 brands festival. Reckitt partners with GrabAds to drive growth across SEA using retail media network.

Logistics is sponsored by Third Person - a new way for brands to discover 3PLs

​Zip saw its valuation jump 47%, raising $190M Series D. Nimble Closes $106M Series C funding found, scales fully autonomous fulfillment with FedEx. Interos raises $40M for its supply chain risk platform.Pargo raised $4M and expanded to Egypt. Obeezi has acquired Primelink, a logistics company.

​Maersk and Hapag-Lloyd aim to cut docking costs and improve on-time performance. Alpega introduces Connecta, Europe’s first open logistics network. Monta will open fulfillment centers in France, Italy, and Poland. Amazon tightens shipment tracking regulations in Germany. Ochama opens a Polish warehouse.

​U.S.-Mexico cross-border trucking traffic hits a record ahead of the election. Stability in freight markets is reviving logistics dealmaking. Kuehne+Nagel adopts new Amazon air cargo service for China e-commerce. Amazon warns of West Coast capacity constraints. Rumour is that Amazon is opening up its “Key For Business” platform.

Magalu consolidates logistics under Magalog. iMile Delivery continues strong growth in the Australian market.

JD Logistics announced the launch of its express delivery service from China to seven Southeast Asia countries: Singapore, Malaysia, Thailand, Vietnam, Indonesia, the Philippines, and Brunei.JD Logistics is planning to re-enter Indonesia, Cainiao expands delivery capacity and global express shipping services for seamless 11.11 Global Shopping Festival. JD Logistics to double its overseas warehouse space by 2025.

Consumers are content with e-commerce delivery speeds. Evri and Yodel are the worst parcel firms at helping their customers, says Ofcom.

eBay and others do not escape the USPS peak rate hike. Amazon tightens shipment tracking regulations in Germany. The story of Omnilife.

​Landmark Global announced a partnership with Shipium. Grubhub partners with Amazon Key—simplifying third-party deliveries to residential buildings. Asendia Connect self-serves visibility for retailers on e-commerce parcels. Aramex and ZK Holding pave the way for Iraq’s logistics growth. Poland’s second-largest online marketplace, ERLI, has partnered with DPD.

Consumer

A growth arena: State of grocery retail 2024 Middle East and North Africa. - McKinsey and Co​

The grocery sector in MENA has not been immune to global economic pressures, but the sector is enjoying strong momentum and has significant growth potential.

E-commerce sales in São Paulo see the first decline in 8 years. - Valor International​

After seven consecutive years of growth, São Paulo state’s e-commerce sales saw a 1.6% drop in 2023 to R$67 billion compared to R$68.1 billion the previous year.

Jüsto, an online grocer in Latin America with operations in Mexico, Brazil, and Peru, announced it has raised $70M in equity and debt financing.Table22 raises $11M for food and beverage subscriptions. Reactiv, a mobile commerce startup, launches out of stealth with $5M seed round. Hue raises $4.5M to expand AI-powered video platform for e-commerce. Sustainable sparkling water startup Aerflo raising Series A extension. Australia's Vinyl Group launches e-commerce platform Vinyl.com in UK. GoodRx unveils new e-commerce platform, launches with Opill. Amazon has acquired a minority stake in Spotter Serial returners to account for £6.6B of online returns in 2024.

eBay and Zodiac create limited edition Super Sea Wolf Dive Watch. Walmart and Amazon threaten US drugstores in prescription delivery. Walmart+ annual membership fee slashed in half for the holidays. Perplexity aims for e-commerce.

​Kirkland’s and Beyond partner to pave Bed Bath & Beyond's return to physical stores. Buy a refurbished Pixel phone at Google's Store for a fraction of the price. The online food & grocery market in Italy is worth 4.6 billion Euros in 2024, up 6.2% compared to the previous year. Two New Zealand supermarkets (New World and Pak'nSave) remove the ability to sort items by price online. The Indian government is in talks to sell Bharat brand food through Reliance Retail outlets.

​Stella & Chewy's launches e-commerce platform for raw pet food. Amazon to end same-day delivery service from retailers’ local stores. Introducing Wayfair Rewards, A loyalty program for all things home.

​Hong Kong supermarket chain Uselect winds down operations amid relentless retail slump. A list of startups that are leveraging AI for shipping​

Payments

Bank of America extends guaranteed FX rates up to one year. foodpanda and Fiserv launched an e-commerce payment processor. Walmart-backed fintech PhonePe’s operating revenue jumps 74%. Wells Fargo offers customers a convenient way to check out online with Paze. TikTok Shop partners with Venmo.

Shein partners with Stori to launch a credit card in Mexico. FinMont joins forces with Payválida Getnet to launch e-commerce payments solution in Brazil, Argentina, Mexico, and Chile.

Mastercard launches local e-commerce payment processing in Saudi Arabia. Telr enters Jordan and Bahrain, empowering local e-commerce growth. Orange Middle East and Africa team up with Mastercard to digitize Africa.

Stats and Other Interesting News

New immersive AI-powered Elvis Experience will recreate the life of the King in London's Docklands. Air White Whale unveils biggest unmanned cargo aircraft Tea with GaryVee is Back… on Whatnot! Amazon to add NBA Game to Black Friday slate, with NFL game as high-powered lead-in. Panasonic is trial the use of a generative AI-based demand forecasting application to drive e-commerce sales growth in Southeast Asia

The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. The content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.

This was edition number 313, sent on 6 November 2024.