TRD Issue 29 - Briefing: Shopify's Strategic Turn, Industry Acquisitions, Card Fee Hikes, and AI Developments

Hello Subscribers,

It's another bustling week in the retail and tech sectors, and we are thrilled to bring you TRD Issue 29.

In a remarkable turn of events, Shopify is forming a truce with 亚马逊 and integrating more closely with TikTok Shop. Despite TikTok ending its Shop integration soon, this collaboration marks a significant shift in Shopify's strategy. Interestingly, this development comes after Shopify sold its logistic business earlier this year, indicating a recalibration in its approach to navigating the competitive market dynamics.

On the acquisition front, E.L.F. BEAUTY broadens its horizon by acquiring NATURIUM , which significantly expands into the skincare segment. As we move further east, the Thai supermarket giant Big C Supercenter Public Company Limited is gearing up to make a grand entry into the Hong Kong market, with plans for a dual listing on the horizon.

Furthermore, we explore the consumer preference for in-store experiences, as evidenced by Ulta Beauty 's recent report showing a significant inclination towards physical transactions. The DTC business sector is witnessing a robust upswing, indicating a potential shift in market dynamics.?

However, the impending increase in credit card fees by Visa and 萬事達卡 is a development that warrants close attention, given its potential impact on merchants and consumers alike.

In the tech sphere, OpenAI and 谷歌 are making waves with the launch of enterprise-focused AI solutions, promising to revolutionize business operations and customer interactions.

Your Tuesday briefing is set to equip you with the insights you need to stay ahead in the game. Happy reading!

The Retail Direct

About 91APP

Founded in 2013, 91APP is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solution and Marketing Solution that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive their operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.

For more information about 91APP (TWO: 6741), visit www.91app.com.

e-Commerce

Shopify Rolling Out TikTok Shop Integration, Adding New Twist to Rivalry

Why it is important

• Shopify integrates with TikTok Shop, adapting to the evolving e-commerce landscape and sustaining its growth by collaborating with a burgeoning competitor.
• TikTok's move into e-commerce is causing concern for Shopify, who are looking for a compromise.

What happened

• Shopify initiated integration with TikTok Shop, allowing merchants to manage orders and customer details directly through Shopify dashboards.
• Previously, Shopify sellers had to rely on third-party software to transfer sales data from TikTok's Seller Central to Shopify's platform.

Source: The Information

Amazon, Shopify Strike Deal to Open Amazon Logistics to Sellers

Why it is important

• Amazon and Shopify's partnership expands Shopify's capabilities, potentially enhancing the user experience and fostering trust with new customers through Amazon's established network.

What happened

• Amazon and Shopify have collaborated to integrate Amazon's "Buy with Prime" service into Shopify's platform, facilitating smoother transactions and leveraging Amazon's logistics network for Shopify merchants in the US.
• Shopify will process the payments under the new Buy With Prime partnership, allowing it to keep payments revenue.

Source: Bloomberg

Retail

Color Cosmetics Powerhouse e.l.f. Beauty Acquires Naturium, Broadening Reach Into Skincare

Why it is important

• e.l.f. Beauty's acquisition of Naturium marks a significant expansion into the skincare segment.

What happened

• e.l.f. Beauty is acquiring the skincare brand Naturium for $355 million, aiming to double its revenues and enhance its market position by leveraging Naturium's growth trajectory and product portfolio.

Source: Forbes

Thai Supermarket Chain Big C to Enter Hong Kong Next Month, Eyes Dual Listing, CEO Says

Why it is important

• Big C Supercenter's entry into Hong Kong and dual listing plan could impact the retail market and strengthen its financial position in Southeast Asia.

What happened

• Big C Supercenter is entering Hong Kong by rebranding 24 AbouThai outlets and planning a dual listing in Hong Kong and Thailand, said CEO Aswin Techajareonvikul.

Source: SCMP

Ulta Beauty Members Embrace In-Store Experience: 75% Opt for In-Store Transactions

Why it is important

• In-store beauty shopping is still preferred despite virtual options, emphasizing the importance of sensory engagement.

What happened

• Ulta Beauty wants to turn their in-store customers into omnichannel members to increase spending.?
• The CEO sees potential in AR/VR to improve the retail experience.

Source: PYMNTS

DTC Business Enjoys Recent Strong Upswing

Why it is important

• D2C sales are booming in the apparel sector, possibly changing consumer behavior and market dynamics and impacting business strategies.

What happened

• DTC sales saw a 4% YoY rise in e-commerce in July 2023, led by a 10% increase in apparel sales and an 8% rise in shoes and accessories.?
• Despite a 5% decline in home décor, affluent consumers are spending more, thanks to promotional holidays and tax-free days.?
• Fall season shopping is encouraging, but spending patterns remain erratic, leading businesses to prepare for strong promotions in the upcoming seasons.

Source: Forbes

Payment

Visa, Mastercard Prepare to Raise Credit-Card Fees

Why it is important

• Visa and Mastercard's upcoming credit card fee hikes may raise costs for merchants and consumers, impacting the economy during the pandemic recovery.

What happened

• Visa and Mastercard will raise fees for merchants accepting credit cards starting in October and April, which could cost merchants an estimated $502 million annually.?

Source: WSJ

Thailand's Line Man Wongnai Acquires Majority Stake in Local Payments Platform

Why it is important

• LINE MAN Wongnai 's acquisition of LINE Pay (Thailand) is significant in Thailand's digital payment platform sector.

What happened

• Line Man Wongnai has acquired most shares in Rabbit Line Pay, a digital payment platform in Thailand.?
• This move will strengthen the integration of Rabbit Line Pay with other Line services in Thailand, including Line Man, Wongnai, and Line Shopping.

Source: Tech in Asia

AI

OpenAI Launches a ChatGPT Plan for Enterprise Customers

Why it is important

• OpenAI launches ChatGPT Enterprise, improving business-focused chatbots for potential revenue and market gains.

What happened

• OpenAI introduced ChatGPT Enterprise with improved privacy, data analysis, and customization, targeting business clientele.

Source: TechCrunch

Google's Duet AI Becomes a Meeting Assistant, Doc Summarizer, and Chat Companion

Why it is important

• Google's Duet AI integrates with Workspace, offering versatile functionalities, potentially enhancing productivity and personalization in corporate settings.

What happened

• Duet AI streamlines workflows for Google Workspace users by providing a meeting assistant, document summarizer, and chat companion with real-time translations, note-taking, and personalized email responses.

Source: TechCrunch