TRD Issue 49 - Briefing: Black Friday Cyber Monday, Shein Files IPO, TikTok’s Investments in Indonesia
Black Friday's online sales hit a new high of $9.8B in the US, a 7.5% increase from last year. Shein's confidential filing for a US IPO marks a significant step in its global expansion, potentially valuing the fast-fashion retailer at a staggering $90B.
Hello Subscribers,
I hope you've all emerged from the BFCM sales frenzy with your wits intact and your sales charts soaring! We trust your Thanksgiving was filled with more than turkey and gratitude – perhaps a side of record-breaking sales figures? As we all catch our breath and count our blessings (and profits!), let's dive into the latest issue of The Retail Direct for some post-holiday insights and reflections.
First, according to Adobe, Black Friday's online sales hit a new high of $9.8 billion in the US, a 7.5% increase from last year. Despite economic headwinds, this growth underscores the resilience and adaptability of the consumer market.
In the fashion retail sector, Shein's confidential filing for a US IPO marks a significant step in its global expansion, potentially valuing the fast-fashion retailer at a staggering $90 billion. Meanwhile, TikTok's proposed investment in GoTo's Tokopedia signals a strategic move to re-enter Southeast Asia's largest e-commerce market, Indonesia, overcoming regulatory challenges. Additionally, TikTok's shift towards longer video formats indicates a strategic pivot to diversify content and enhance monetization opportunities.
In the Asia section, we cover the call for stricter measures against low-quality online products in Thailand, a move to protect local SMEs, and Sojitz's acquisition of a significant Vietnamese food distributor, reflecting foreign investment interest in Vietnam's growing market. ZOZO's success with the 'FAANS' app in the apparel sector demonstrates the potential of digital tools in enhancing retail efficiency.
Stay tuned for more insightful updates in the dynamic world of retail and e-commerce. Happy reading, and see you next week!
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 Solutions and Marketing Solutions that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive 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
Black Friday Shoppers Set Online Spending Record, Adobe Says
Why it is important
- Black Friday's record online sales of $9.8 billion in the US indicate a robust consumer market, showcasing resilience despite economic challenges and shifting retail trends.
- Despite lower inflation, consumer sentiment has fallen over concerns of a potential reversal.
What happened
- Adobe Analytics reported that consumers shelled out $9.8 billion Friday, a 7.5% jump from last year.
- Thanksgiving Day witnessed a surge in sales, with a 5.5% increase from the previous year, with the total sales amounting to $5.6 billion, according to Adobe.
- Salesforce reported a mere 1% increase in Thursday's spending to $7.5 billion YoY, while online spending on Black Friday surged by 9% YoY to $16.4 billion.
Source: Bloomberg
Amazon's Cyber Monday: Robots, Pickers, Sorters — and Packages, Packages, Packages
Why it is important
- As showcased during a Cyber Monday tour, Amazon's logistics operation highlights its dominance in delivery services, surpassing UPS and FedEx in parcel volume.
What happened
- Amazon invited Axios to tour its fulfillment center near Trenton, N.J., revealing a high-tech operation with robots and AI.
- The facility, spanning 1.2 million square feet, employs 3,000 workers and integrates advanced robotics to handle massive package volumes.
Source: Axios
Fashion Retailer Shein Files Confidentially for US IPO
Why it is important
- Shein's confidential filing for a US IPO signifies a major step in global market expansion for the fast-fashion retailer.
What happened
- Shein, originally from China and now based in Singapore, confidentially filed for a US IPO, potentially valuing the company at $90 billion.
- Despite labor criticisms, Shein's growth in the fast-fashion market continues.
Source: Bloomberg
Social
GoTo Soars After TikTok Mulls Investment to Save Online Shop
Why it is important
- TikTok's investment in GoTo's Tokopedia aims to overcome regulatory challenges and re-enter SEA's largest e-commerce market - Indonesia.
What happened
- TikTok is negotiating to invest in GoTo's Tokopedia or form a joint venture to restart its online shop in Indonesia.
- This collaboration could address regulatory hurdles and enhance companies' e-commerce and payment platforms.
Source: Bloomberg
TikTok Ignited a Frenzy for Short Videos. Now It Wants Longer Ones
Why it is important
- TikTok users spend half their time watching videos that are longer than 60 seconds.
- The shift towards longer videos represents a strategic pivot to diversifying content and increasing monetization opportunities.
- TikTok is now attempting to adopt some of the features of YouTube after YouTube made efforts to become more like TikTok.
What happened
- TikTok encourages creators to produce longer videos, over a minute, to enhance user engagement and open new advertising possibilities.
- The company held a creator event focused on longer videos in October.
- TikTok is following the playbook of the Chinese sibling app Douyin.
Source: The Information
D2C
Allbirds Begins Selling on Amazon
Why it is important
- Allbirds' decision to sell on Amazon marks a strategic shift in its distribution approach, aiming to increase visibility and sales amidst declining revenues and growing losses.
What happened
- Allbirds began selling products on Amazon on November 14 to expand its customer reach and improve profitability.
- Allbirds is expanding its distribution network by partnering with REI, Dick's Sporting Goods Public Lands banner, and Zalando, but it does not consider Amazon as a wholesale partner.
Source: Retail Dive
DTC Briefing: Why Menswear Brand Rhone Has More Than Doubled Its Store Footprint This Year
Why it is important
- Rhone's store expansion shows a strategic approach to customer acquisition of D2C businesses during a challenging e-commerce climate.
What happened
- Menswear brand Rhone more than doubled its store count in the past year, opening its 15th store in Boston.
- This expansion aims to engage existing customers and acquire new ones amidst rising online customer acquisition costs.
Source: Modern Retail
Asia
Call for Policies to Curb Cheap Online Goods
Why it is important
- The call for stricter measures against low-quality, cheap online products in Thailand underscores local SMEs' challenges due to the influx of foreign e-commerce goods.
What happened
- E-commerce leaders in Thailand urged the government to address the surge of cheap, low-quality online products, mainly from China, impacting local SMEs.
- Proposals include stricter regulations and corporate tax collection on foreign sellers.
Source: Bangkok Post
Sojitz Acquires Major Vietnamese Food Distributor, Seizing Opportunities in Distribution Network Development
Why it is important
- Sojitz's acquisition highlights foreign investment in Vietnam's growing market, emphasizing the potential to modernize the country's food distribution network.
What happened
- Sojitz acquired Dai Tan Viet, Vietnam's largest food distributor for businesses, aiming to capitalize on Vietnam's burgeoning market and underdeveloped food distribution network, enhancing its presence in the region.
- Dai Tan Viet, established in 1997 by French duo Didier Lachize Albert and Le Thi Van, is the Vietnamese distributor for renowned brands such as Heinz, Paysan Breton, Tatua, Even, Fromagio, and Daisy.
Source: NIKKEI
ZOZO's Apparel Store Support App 'FAANS' Flourishes
Why it is important
- ZOZO's 'FAANS' app's success demonstrates the potential of digital tools in enhancing retail efficiency and sales, reflecting a significant shift in apparel retail strategies.
What happened
- ZOZO's 'FAANS' app, assisting apparel stores, is thriving. It enables efficient online posting of staff-coordinated outfits, surpassing 100 corporate users.
- This initiative boosts sales on ZOZO's e-commerce site and attracts consumers.
Source: NIKKEI
