GH Pulse - December Newsletter 2023

Hello Reader,

Welcome to the year-wrap edition of GH Pulse! As we step into a new timeline, lets reflect on the milestones achieved by the eRetail Industry and prepare for the opportunities to transform the world of Digital Commerce in 2024. The year 2023 marked a revolutionary leap in Generative AI, enabling businesses to think beyond current capabilities and limitations. This advancement helped brands create efficiencies in many areas of marketing such as enhancing the creative process, offering product personalization, bringing greater precision, and providing sustainability to the media buying process.

Furthermore, in 2023, several D2C brands made an amazing resurgence on Shark Tank securing funding, strategic partnerships and carving out a notable presence in the D2C ecosystem. This boosted the presence and development of these D2C brands at the global level encouraging and setting marks for other eCommerce startups on how to seek growth in more collaborative ways. However, last year also saw eCommerce brands grappling with heightened competition, rising advertising costs, margin fees, etc. These challenges also followed the surge in customer acquisition costs, compelling many eRetail brands to shift their focus from acquisition to retention and loyalty. Amidst these challenges, a significant strategic shift emerged resulting in the adoption of an omnichannel approach by growth-focussed brands.

Looking at the brighter side, unit economics positive brands continue to break through the clutter driven by strong product-market fit and ears to the modern shopper. A few key emerging trends that are deemed to shape the future of eRetail - Phygital enablement, Brand native content-to-commerce strategy, Product diversification and Premiumization, growing appetite in Tier 2 & Tier 3 cities and the ever-increasing influence of digital media consumption. While we welcome 2024, eCommerce headwinds indicate continuous growth and dominance with global eRetail estimated to contribute 23% of the total retail sales worldwide by 2027.

Happy New Year From GreenHonchos!