TRD Issue 42 - Briefing: Apple's AI Plan, Amazon's Drones for Pharmacy, D2C Profit Focus

Hello Subscribers,

Welcome to another issue of TRD, your go-to source for the latest trends and insights in the retail and tech sectors.

First up, 苹果 is investing significantly in generative AI, aiming to integrate AI across its product line. This move could revolutionize customer service, app development, and even Siri's capabilities. Meanwhile, Square is also stepping up its AI game, introducing new features like a website and restaurant menu generator to boost customer engagement and operational efficiency.

In e-commerce, 亚马逊 is making waves with two innovative features. Their Pharmacy division has launched its first drone deliveries, promising to deliver essential medications within 60 minutes. Amazon has also rolled out a new feature, 'Consult-a-Friend,' allowing users to seek real-time feedback from friends and family on potential purchases. Shopify is setting a new precedent in celebrity collaborations by partnering with Drake to power his e-commerce site and test new tools like Collective.

Turning our focus to direct-to-consumer, brand executives at The Modern Retail DTC Summit highlighted the growing focus on profitable growth. D2C grocery brands leverage social media for growth but face challenges in traditional retail spaces.

Last week in Asia, PopChill 拍拍圈 secured Pre-A+ funding and is expanding into the Hong Kong market. Acne Studios is entering Taiwan through a strategic partnership with Bluebell Group . Lastly, AnyMind Group , a Tokyo-listed company, is eyeing a 16x profit in 2023, reflecting the growing demand for online selling tools.?

Happy reading!

The Retail Direct

About 91APP

Founded in 2013, 91APP, Inc. 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.

AI

Inside Apple’s Big Plan to Bring Generative AI to All Its Devices

Why it is important

• Apple is investing heavily in generative AI to catch up with competitors like Google and Microsoft.
• The technology will be integrated across Apple's product line, affecting Siri, app development, and customer service.

What happened

• Apple was initially slow to adopt generative AI but now commits about $1 billion annually to the technology.
• New features are in development for Siri, iOS, and Apple's suite of productivity apps, aiming for a smarter ecosystem.

Source: Bloomberg

Square’s New AI Features Include a Website and Restaurant Menu Generator

Why it is important

• Square's new generative AI features aim to redefine retail customer engagement and operational efficiency.
• The move comes as Square faces financial challenges and competition.

What happened

• Square unveiled new AI capabilities, including a Menu Generator for restaurants and personalized email messages, focusing on customer content creation, onboarding, and setup.?

Source: TechCrunch

e-Commerce

Amazon Pharmacy Launches Its First Drone Deliveries

Why it is important

• Amazon Pharmacy's new drone delivery service marks a significant advancement in healthcare logistics, offering rapid delivery of essential medications, which could be crucial for patient outcomes.

What happened

• Amazon Pharmacy has initiated its first drone deliveries for around 500 medications, promising delivery within 60 minutes.
• The service is initially available in College Station, Texas, and aims to narrow the "golden window" from diagnosis to treatment.

Source: TechCrunch

Amazon Debuts ‘Consult-a-Friend’ Mobile Shopping Feature

Why it is important

• Amazon's Consult-a-Friend feature adds social validation to e-commerce, enhancing engagement and sales, especially during the holidays.

What happened

• Amazon introduced a feature called Consult-a-Friend in its mobile app. It allows users to seek and manage product feedback from friends and family.
• The feature is being tested in multiple countries, including the US, Mexico, Canada, the UK, and Australia.

Source: PYMNTS

How Shopify’s Partnership with Drake Lays the Groundwork for Future Celebrity Collaborations

Why it is important

• Shopify's partnership with Drake signals a strategic shift towards more integrated collaborations with celebrities, aiming to create unique commerce experiences and test new features.

What happened

• Shopify has been working with Drake to power his e-commerce site and test new tools like Collective.
• The collaboration has involved unique online-to-offline experiences, setting a precedent for future celebrity partnerships.

Source: Modern Retail

D2C

Modern Retail DTC Summit Recap: Brands Focus on Profitable Growth

Why it is important

• The Modern Retail DTC Summit discussed key challenges and strategies in the direct-to-consumer space, emphasizing the need for profitable growth and effective marketing, especially in a competitive landscape.

What happened

• Executives at the summit highlighted the importance of organic customer acquisition, influencer partnerships, and customer retention.
• They also discussed the difficulties in navigating retail partnerships and the increasing focus on profitability over rapid growth.

Source: Modern Retail

DTC Grocery Brands Thrive On Social, But Can They Win In Retail?

Why it is important

• The article explores the challenges and opportunities for DTC food and beverage brands as they transition to retail, and it questions whether these brands can compete with legacy CPG giants.

What happened

• DTC brands leverage social media and search-based grocery platforms to gain an edge.
• However, they face hurdles in physical retail spaces, where legacy brands dominate, and consumer preferences are different.

Source: AdExchanger

Asia

PopChill Secures Pre-A+ Funding and Expands into Hong Kong Market

Why it is important

• PopChill's recent Pre-A+ funding and expansion into Hong Kong signify a strategic move in the luxury resale market, emphasizing its unique business model based on product authentication.

What happened

• PopChill, a fashion resale platform, has raised NT$57 million in Pre-A+ funding and launched in Hong Kong.
• The platform uses a combination of AI and manual checks to authenticate products and currently processes NT$30 million in monthly transactions.
• PopChill plans to maintain a monthly growth rate of 10%-15% and expand to Singapore and Malaysia next year.

Source: Inside

Acne Studios Partners with Bluebell Group to Establish Taiwan Presence

Why it is important

• Acne Studios' entry into the Taiwanese market via a partnership with Bluebell Group is a strategic move to expand its global footprint, leveraging Bluebell's expertise in the Asian retail landscape.

What happened

• Following their successful collaboration in Singapore, Acne Studios and Bluebell Group announced a partnership to open the fashion brand's first store in Taiwan, located at Shin Kong Mitsukoshi Taipei Xinyi Place.

Source: Retail in Asia

Tokyo-listed AnyMind Eyes 16x Profit in 2023 as More Seek Online Selling Tools

Why it is important

• AnyMind Group's ambitious profit projection for 2023 reflects the growing demand for e-commerce and marketing solutions in Asia.
• The company's diverse service offerings make it a key regional player.

What happened

• AnyMind, listed on the Tokyo Stock Exchange, aims to grow its annual operating profit by 16x to $3.2 million in 2023.
• The company offers e-commerce and marketing solutions and partners with major brands like Grab and TikTok.

Source: Tech in Asia