?? TikTok Rules Emotional, YouTube Rational Commerce ??Plus: Food Delivery Lack Meat & Dairy Reduction Strategies??

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??This week’s maze:

1. The Big Story ???

TikTok Rules Emotional, YouTube Rational Commerce ??

2. Data ???

Food Delivery Lack Meat & Dairy Reduction Strategies??

3. News ???examples:

??????? Amazon tests drone delivery service in the UK

??????? Amazon relaunches used goods as Amazon Resale

??????? Bloomingdale's partners with Rebag for luxury resale

??????? Shein plans UK warehouse before $63B IPO

??????? EU probes Delivery Hero, Glovo over cartel concerns

??????? Getir faces $4M rent debt in NYC lawsuits

?????? China hits record 100B deliveries for 2024 milestone

?????? FTC finalizes rule banning fake and AI-made reviews

4. Deals ???

Trove, Zepto, Jumia, StockX, Photon Health

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1. The Big Story ??

Fran?ois Maingret , an Ecommerce Expert, analyzed data from the PYMNTS report "Tracking the Digital Payments Takeover: Monetizing Social Media " to shed light on TikTok-Amazon partnership reasoning.

The data analyzed comes from a PYMNTS report in collaboration with Amazon Web Services (AWS) based on a census-balanced survey of 2,976 consumers conducted from May 5 to May 15, 2024.

??? Product Category Insights

• 47% of consumers bought clothes on Instagram, with TikTok close behind at 42%.
• TikTok excels in beauty and toy sales, with 33% buying beauty products on TikTok in the last 30 days.
• YouTube topped in food and beverage sales, with 40% of users purchasing in that category.

?? Emotional vs. Rational Buying

• TikTok drives emotionally driven purchases like apparel, ranking highest for such products.
• TikTok struggles with rational purchases like appliances, where it ranks lower than other platforms.
• YouTube dominates in rational purchases, favored for appliances, home furnishings, and office products.

?? The Power of Video Content

• YouTube's long-form content enables users to see product performance, boosting trust and sales.
• TikTok's short videos, up to 10 minutes, are effective in demonstrating beauty products and toys.
• Consumers appreciate seeing products in action, which influences their decision-making.

2. Data ??

FOUR PAWS conducted a study called "Food Delivery Service Challenge " to evaluate how top food delivery services are addressing meat and dairy reduction amid the climate crisis.

?? Climate goals fall short

• Just Eat Takeaway Switzerland ranked highest with 32/100 points, but it’s still a poor rating.
• Meat and dairy make up 57% of global agricultural emissions, yet services lack solid strategies.
• Deliveroo's 2023 report recognized beef as the highest polluting food, suggesting a potential meat tax.

?? Animal welfare ignored

• Thuisbezorgd, Just Eat Switzerland, and Deliveroo briefly mentioned animal welfare, but had no policies in place.
• No service out of the 18 analyzed had a clear animal welfare policy.
• Just Eat Switzerland and the UK showed some effort by collaborating with carbon calculator startup My Emissions.

?? Vegan offerings increase

• Just Eat Switzerland led with 14/20 points for plant-based food availability.
• 11 out of 18 services mentioned increasing vegan offerings, but most were short-term.
• Deliveroo and Uber Eats offered limited discounts on vegan dishes during specific events like Veganuary and Earth Day.
• Only a few markets consistently promote plant-based options.

?? Efforts across geographies

• Just Eat subsidiaries in Switzerland and the UK actively use sustainability guides.
• Postmates US and Uber Eats Netherlands scored the lowest overall, with minimal efforts.
• It's unclear if carbon labeling and sustainability guides will be rolled out in more regions.
• Grubhub’s involvement in meat-free initiatives remains uncertain, despite Just Eat’s global Veganuary campaign.

4. News ??

?? Mass merchant

????? Amazon to tests drone delivery service in the UK , partnering with six organizations. This test aims to gather data on drone safety, airspace integration, and regulatory clarity. The goal is to modernize UK airspace.

????? Amazon relaunches used goods as Amazon Resale , offering used and pre-owned items with average discounts of over 25%. The platform also supports sustainability, having helped donate over 160M items in 2023 alone, extending product lifecycles.

????? eBay Redesigns Search for Visual Shopping . The new design includes larger images, intuitive navigation, and AI-driven features. This update focuses on visual categories like Clothing and Toys, improving both buyer and seller experiences.

????? Alibaba's Lazada turns EBITDA profitable in July 2024. This milestone reflects successful cost management and strategic investments. Despite tough competition, Lazada’s growth in Southeast Asia is a promising sign for Alibaba's global expansion.

????? Otto updates commission rates, impacts cheaper goods . Starting October 1, Otto's new tiered commission model will apply higher rates to cheaper products and lower rates to more expensive ones. This shift favors high-priced items, making it tougher for retailers selling low-cost goods.

????? Alibaba revenue grows 4% but misses estimates . Alibaba’s June quarter revenue grew 4% to $34B, below expectations, with profits dropping 29% to $3.3B. The company is focusing on boosting e-commerce and cloud services amid economic challenges. CEO Eddie Wu is optimistic about future growth.

????? Walmart beats estimates with 6% stock jump with a nearly 5% revenue growth in Q2 2024. The retailer raised its full-year outlook but warned of a potentially weaker second half due to economic uncertainties.

????? Allegro shifts to product-based search results . Allegro, Poland's largest e-commerce platform, will implement a mandatory product-based display for all search results from October. This change is expected to streamline the shopping experience and generate 6M additional annual transactions.

?? Fashion & Beauty

????? Bloomingdale's partners with Rebag for luxury resale both online and in five U.S. stores. Rebag will offer 2,500+ designer items on Bloomingdales and 500+ in-store, blending new and pre-owned luxury for discerning shoppers.

????? Shein plans UK warehouse before $63B IPO . Shein is exploring warehouse sites in the UK's Midlands ahead of its expected $63B London IPO. The fashion giant seeks locations of up to 600K sq ft, focusing on sites ready for e-commerce operations. This move ties to its future growth plans.

????? Zalando profits surge 18.5% on sports, beauty growth . Zalando's profits surged 18.5% in Q2 2024, driven by strong performance in sports and beauty. Gross merchandise volume grew by 2.8%, and revenue rose 3.4% to $4.15B. Zalando's shares jumped as much as 7%, as active customers increased to 49.8M.

????? Douglas raises 2023/24 sales growth to 8.5% . Douglas Group's net sales grew 7.3% in Q3 2023/24, reaching $1.1B. The group increased its full-year sales growth guidance to 8.5% due to strong Q3 and first nine months performance. Adjusted EBITDA for the first nine months rose 11.5% to $721M.

????? Chantecaille expands in China via Tmall partnership . Chantecaille, a New York-based beauty brand acquired by Beiersdorf in 2022, expands its reach in China by partnering with Tmall. The move includes a flagship store and immersive pop-up experience in Shanghai, enhancing its market presence.

????? Fanatics and FA renew deal after record sales during Euro 2024. The extended deal includes e-commerce rights and in-stadium retail operations, helping the FA invest in football development.

????? Asos introduces AI chatbot for price haggling . Some users reported discounts of up to 40%. This move follows Asos' ongoing commitment to AI, including a new 3-year deal with Microsoft signed earlier this month.

????? Farfetch brings in $460M for Coupang amid losses . Despite a $121M fine and $105M loss, Coupang's Q2 2024 results were boosted by Farfetch, which brought in $460M, contributing to Coupang's $7.3B revenue. Coupang's strategy shows promise as Farfetch averaged 26M visitors, outpacing competitors.

?? Food & Grocery

????? EU probes Delivery Hero, Glovo over cartel concerns , including market division and sharing sensitive information. If found guilty, these companies could face fines of up to 10% of their global turnover.

????? Getir faces $4M rent debt in NYC lawsuits . Once valued at $12B, Getir now faces nearly $4M in unpaid rent and lease obligations in NYC. The Turkish grocery app, which bought FreshDirect in 2023, is dealing with multiple lawsuits, with some landlords demanding over $1M in back rent.

????? Deliveroo drivers use fake accounts, dodge taxes and avoid legal issues in Belgium. Some drivers use borrowed profiles to exceed tax thresholds, while others work without documentation or to maintain unemployment benefits.

????? DoorDash adds Max to DashPass for more value at no extra cost. The membership offers a Max With Ads subscription and an upgrade option for a discounted ad-free version at $10.99 per month. This marks DashPass's first benefit outside DoorDash.

????? HelloFresh sees 45% growth in prepared meals . HelloFresh reports 0.9% sales growth to $2.1B, with a 45% increase in prepared meals to $571M. While meal kit sales drop by 9.3%, the company shifts focus to high-value customers, boosting the average order value by 5.6%.

????? Tchibo offers fast deliveries . Starting August 13, 2024, Tchibo and Lieferando are piloting an express delivery service in Berlin and Hamburg for 800 Tchibo products, with delivery in 60 minutes.

????? Swiggy hikes fees for 1,000 non-metro restaurants . This change aligns with larger cities and might raise commissions by 17-25%, sparking a debate among restaurant owners.

????? Instacart expands grocery stipends to new cities . Instacart and Partnership for a Healthier America expanded their grocery stipends program to Chicago, New Orleans, and Wichita, reaching 1,050 new families. By 2025, they aim to provide 10M servings of produce through the initiative.

??General

????? China hits record 100B deliveries for 2024 milestone . China's e-commerce and courier sectors have reached a new milestone with 100 billion deliveries in 2024, driven by rapid online sales growth. However, fierce competition has squeezed profits for delivery firms, even as parcel volume and return rates soar.

????? FTC finalizes rule banning fake and AI-made reviews . The FTC has finalized a rule prohibiting fake reviews, including those generated by AI. The rule, effective 60 days after its Federal Register publication, targets deceptive practices like fake endorsements, AI-made reviews, and review censorship. Violations could result in fines up to $51,744 per incident.

????? PayPal launches new tracking service for merchants . PayPal introduced a new package tracking service in Germany on August 14, 2024. This service lets merchants synchronize shipping statuses automatically with PayPal, saving time, reducing costs, and enhancing customer satisfaction. Merchants can now offer real-time shipping updates, reducing customer inquiries by up to 80%. The service is free for German retailers and available via PayPal Checkout.

????? Ikea secures 3-year delivery deal with Australia Post . Ikea has signed a 3-year deal with Australia Post to deliver 250K parcels yearly, covering 65% of Ikea’s online sales. The partnership starts in October and supports Ikea's sustainability goals with electric vehicle deliveries.

????? JD.com Profit Surges 92% Amid Fierce Price War . JD.com ’s Q2 profit jumped 92% to $1.7B, driven by efficient operations amid intense price wars. Revenue edged up 1.2% to $40.3B. The trade-in program and 618 sales event also boosted online retail in a sluggish economy.

????? Klarna debuts new saving and cashback features . Klarna has introduced balance accounts and cashback rewards, launching in 12 countries across Europe and the US. Customers can now store money in a Klarna account, earn cashback up to 10%, and manage multiple payments with ease.

????? MediaMarkt sales jump 6.6% from football boost . Ceconomy, MediaMarkt's parent, saw sales rise 6.6% to €4.92B ($5.4B). The European Football Championship led to a spike in TV sales, while e-commerce grew 10.9% to €1B ($1.1B). Retail media revenues also doubled, contributing to strong profits.

????? Flexport partners with Passport for global solution . Flexport and Passport team up to provide a streamlined DDP option for North American brands shipping globally. This new partnership enhances the global reach of Flexport's clients, enabling them to sell in 180+ countries.

5. Deals??

????? Trove captures 75% of U.S. resale market through the acquisition of Recurate. The acquisition brings 29 new brands into Trove's portfolio, increasing its control to 75% of U.S. branded resale traffic, with plans for global expansion.

????? Zepto raises $340M, hits $5B valuation in Series G round. Competing in India’s quick-commerce market, Zepto plans to expand its dark stores to over 700 by March 2025, while Amazon lags behind.

????? Jumia raises $99.6M from secondary shares sale . The funds will bolster its $92.8M cash position. The e-commerce giant aims to accelerate growth and move towards profitability as it continues to expand its customer base in Africa.

????? StockX Founder Launches New Toy Business “Ghostwrite”, focused on limited edition collectibles. Backed by notable investors like Michael Rubin and Mark Wahlberg, the company aims to replicate the success seen in sneakers and trading cards.

????? Photon Health takes on $700B drug industry . Photon Health, founded in 2021, allows patients to shop for prescriptions like they shop online. With over 70K monthly prescriptions, they've raised $16M to take on industry giants.

That’s all. See you next week in the ??Maze!

Your guide through the maze

Artur Stańczuk Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 yrs at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain ?abka and Entrepreneur that co-launched 3 startups