Happy Sunday! Welcome to MarketMaze, the #1 newsletter in the Marketplace and E-commerce space that keeps professionals ahead of the curve. Each week we deliver insights, stats, and news from the last week so you can be up to date in just a few minutes.
1. ??News: Specialist marketplaces outsmarting the giants, especially in Europe
2. ??Stat: Forrester envisions e-commerce rebound in 2024
3. ??Headlines:
Temu
,
亚马逊
,
TikTok
,
阿里巴巴
,
SHEIN
,
Vinted
,
FARFETCH
,
Zalando
,
Rohlik Group
,
Getir
,
REWE Group
,
Chrono24
,
Etsy
,
Schibsted
and more!
4. ??Spotlight: Wholesale marketplace for retailers, Australian wholesale marketplace, student housing app
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1. ?? News of the week
Specialist Marketplaces are outsmarting the giants, especially in Europe
In a rapidly evolving e-commerce landscape, digital marketplaces are reshaping how consumers shop and businesses operate. OC&C's annual report
on the world's top 250 digital marketplaces provides valuable insights into this transformation. Here are the key takeaways:
?? Astounding Growth: Digital marketplaces have added a staggering $1.7 trillion in consumer spending since 2019, totaling $4.1 trillion in GMV, equivalent to Germany's GDP. This growth signifies a major shift in consumer spending habits.
?? Specialist Models Leading: Specialist marketplaces, focusing on verticals, second-hand goods, and local services, have outpaced generalists nearly 2x in growth between 2019 and 2022. These platforms are reshaping the marketplace landscape by offering more curated experiences.
?? European Dominance: Europe is at the forefront of this trend, with 34 new marketplaces each exceeding $1 billion in GMV in the last 3 years, primarily driven by these specialist models.
??? Category Expansion: Key sectors like apparel, consumer electronics, grocery, and personal care are seeing increased marketplace penetration, suggesting significant growth opportunities for specialist platforms in these multi-trillion-dollar markets.
?? Increased Seller Pressures: Major marketplaces like Amazon and Flipkart have raised their take rates by 30-50% over the last three years, impacting seller margins but also driving the adoption of value-add services such as marketing and analytics.
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2. ?? News of the week
Forrester envisions e-commerce rebound in 2024
Recent Forrester's paid repot on top5 ecommerce
countries in Europe paints a comprehensive forecast of a dynamic European retail landscape.?Forrester's analysis of European retail trends highlights key developments shaping the future of commerce in Europe. Next week, MarketMaze with friends will publish predictions for 2024 but for the time being, here are the pivotal insights from Forretster:
?? Overall Market Growth: European retail sales are projected to swell from €2.3 trillion in 2023 to €2.7 trillion in 2028, growing at a 2.9% CAGR. Germany, the UK, and France are spearheading this expansion, representing the largest retail markets in Europe.
?? Online Retail Resurgence: After a slowdown in 2022, online retail sales are set to bounce back to pre-pandemic growth levels by 2024. The forecasted increase from €372 billion in 2023 to €579 billion in 2028, with a 9.2% CAGR, indicates a new era of digital commerce.
?? Rising Online Penetration: Online retail penetration, a measure of online sales as a percentage of total sales, is expected to climb from 16% in 2023 to 22% by 2028. The UK leads with the highest anticipated online retail penetration among the Europe-5 countries.
?? Category-specific Growth: Categories like media, electronic devices, computer software, and video games are projected to constitute over 50% of their respective total retail sales by 2028. This trend underscores the importance of a nuanced, category-specific strategy for retailers.
3. ?? Headlines of the week
?? Mass Merchant
- ???? Temu
takes on the US Dollar Stores. Temu is shaking up the U.S. discount market, swiftly claiming 17% and challenging giants like Dollar General. Leveraging social media influencers and affordable products, Temu's strategy resonates with value-seeking shoppers. Its projected revenue? A staggering $16 billion in just over a year. Deep Dive → ApparelResources
- ???? Temu
tops the US App downloads in 2023. Surpassing tech giants, Chinese e-commerce app Temu became Apple's most downloaded free app in the U.S. for 2023. With longer engagement times than Amazon, Temu's success reflects a shift in consumer preferences, highlighting the growing appeal of Chinese apps amidst economic downturns. Deep Dive → TechCrunch
- ???? Amazon
counters FTC antitrust allegations. Amazon has filed a Application to discontinue the FTC's antitrust lawsuit, insisting the case is unsubstantiated and lacks evidence of consumer harm. Challenging claims of higher prices on rival sites, Amazon's motion questions the FTC's specifics and the logic behind linking Amazon's pricing strategies to broader economic effects. Deep Dive? → ITVoice
- ???? Tiktok
takes over Tokopedia. In a significant shift, TikTok acquires a 75.01% stake in Indonesia's Tokopedia for €840M. As part of a larger €1.5B investment in order to expand the platform to Tiktok Shop customers and sellers. This move follows the closure of TikTok Shop in Indonesia, blending social media influence with retail in response to regulatory changes. Deep Dive → PYMNTS
- ???? Alibaba
bets big on cross-border e-commerce with new service base in Shanghai. Alibaba bolsters its cross-border e-commerce initiatives, launching its first 'digital trade service base' in Shanghai and investing €634M in Southeast Asia's Lazada. This move counters rivals like Shein and Temu, aiming to connect Chinese merchants with global consumers. Deep Dive → SCMP
?? Fashion & Beauty
- ?? Shein’s
sustainability paradox. Shein customers, averaging $100/month on women's clothing, claim heightened environmental awareness, yet the fast-fashion brand faces criticism for unsustainable practices. A survey reveals 52% of Shein shoppers prioritize environmental care, higher than the 47% average. Deep Dive → BusinessInsider
- ???? Temu
vs Shein
: legal showdown intensifies. Temu, the U.S. arm of Chinese retail giant Pinduoduo, is escalating its legal battle with Shein. The latest lawsuit alleges Shein's use of aggressive tactics, including "mafia-style intimidation" of suppliers and dubious copyright claims, to hinder Temu's U.S. market growth. Deep Dive → Quartz
- ???? Vinted
exits Canadian market. Vinted, a leader in online used clothing sales, announces its exit from Canada. Citing challenges in maintaining its service standards on a separate technical platform, the European giant will shut down Canadian operations by February 2024. Existing users face phased restrictions leading to the final closure. Deep Dive → Ledevoir
- ???? Farfetch's
financial rescue efforts intensify. Farfetch, facing financial challenges, is in rescue talks with Apollo Global. Investor Carmen Busquets aims to raise up to €1B for support. The funding type remains uncertain as Moody's downgrades Farfetch's credit rating. Deep Dive → Reuters
- ???? Zalando
launches 'Invite-Only' shopping. Zalando introduces exclusive 'invite-only' shopping for limited products, enhancing the buying experience for special editions and collaborations. Initial offering: Puma x Fenty collaboration. Deep Dive → FashionUnited
| FashionNetwork
- ???? La Redoute
's second-hand strategy shift. La Redoute, after a brief foray into peer-to-peer second-hand sales, is revamping its approach. The brand relaunches La Reboucle, now leveraging professional partners instead of individual sellers. This pivot reflects the challenges faced by traditional fashion retailers in adapting to the burgeoning second-hand market. Deep Dive → Novethic
?? Food & Grocery
- ???? EU's landmark decision on gig economy workers. The EU strikes a deal potentially reclassifying millions of gig workers as employees, impacting companies like Uber and Deliveroo. This change, mandating employee rights like minimum wage and paid leave, could reshape the ride-hailing and food-delivery industry, adding billions in costs. Deep Dive → BNNBloomberg
| EFAnews
- ???? Rohlik
innovative approach reshapes European online grocery. Czech-based Rohlik stands out in Europe's online grocery market with a unique retail concept. Operating under different names in various countries, it blends elements of traditional supermarkets and specialty stores, offering a vast range of products. Despite the tough economic climate, Rohlik plans to expand further in Europe. Deep Dive → RetailDetail
- ???? Getir
acquires FreshDirect
, expanding US market presence. Turkish ultrafast delivery company Getir finalizes the acquisition of U.S. online grocer FreshDirect from Ahold Delhaize USA. This move aims to create synergies by enhancing FreshDirect's technology and delivery speed, marking a significant step in Getir's expansion within the U.S. grocery market. Deep Dive → ChainStoreAge
- ???? REWE
expands Innovative Pick&Go Technology in Germany. REWE is set to launch its advanced Pick&Go technology in additional stores, including its largest yet in Hamburg. This cashier-free shopping experience leverages Trigo Vision computer vision tech, represents a significant step in REWE's commitment to innovative, convenient shopping solutions. Deep Dive → ESM
??Various
- ???? Chrono24
appoints a new CEO from Zalando. Chrono24, the premier online luxury watch reseller, names Carsten Keller, previously with Zalando, as its CEO, signaling a major leadership change. Deep Dive → BoF
- ???? Amazon
unveils 'Your Books' for comprehensive reading experience. Amazon introduces 'Your Books', a new feature providing a centralized space for users to access their entire collection of print, Kindle, and Audible books. This personalized platform offers tailored recommendations and insights into reading habits, enhancing discovery and organization of reading materials. Deep Dive → Amazon
- ???? Etsy
reduces its workforce amid economic challenges. Etsy announces an 11% workforce reduction, about 225 employees, including its Chief Marketing Officer, to maintain a sustainable cost structure. This strategic move comes amidst flat gross merchandise sales since 2021 and growing competitive pressures in the online retail space. Deep Dive → RetailDive
- ???? Schibsted
divests its news-media business in €569M deal. Norwegian media giant Schibsted plans to split into two, selling its news-media operations to Tinius Trust for €569M. The move, enhancing focus on its marketplaces business, aims to streamline earnings and reduce reliance on advertising revenue. Deep Dive → Schibsted
| MarketWatch
- ???? Airbnb
introduces 'Pay Over Time' in UK with Klarna. Airbnb teams up with Klarna to launch 'Pay Over Time' in the UK, offering guests the option to pay for their stays in interest-free installments. This flexible payment solution, part of a global rollout, makes booking diverse accommodations, from windmills to treehouses, more accessible and convenient. Deep Dive → AirBnb
4. ??Spotlight
- ???? Qogita
(Retail wholesale marketplace) Secures €80M Series B Funding. Qogita focusing on retailers in health and beauty sectors, has raised €80M ($86M) in Series B funding led by Dawn Capital. This investment, also supported by Accel and others, aims to expand its category range and strengthen its position in the competitive European B2B market. Deep Dive → TechCrunch
| TechEU
- ???? Housr
(Student Housing App) Raises ￡1.5M for Expansion. UK-based Housr, a startup offering an app for student housing, secures ￡1.5M of a planned ￡5M funding round. Their app assists students in finding and managing housing, and is on track for 30,000 users by January 2024. Housr aims to expand to more UK and US cities and grow its team. Deep Dive → TechEU
- ???? Andisor
(Australian wholesale marketplace) secures $1M in Pre-Seed Funding. Focused on connecting enterprise-level buyers and sellers, Andisor aims to enhance B2B transactions and empower retailers with data-driven tools. The funding will advance their analytics and segmentation capabilities. Deep Dive → StartupDaily
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