TRD Issue 56 - Briefing: Apple's Vision Pro Debut, Carrefour Halts PepsiCo Sales, Instacart's Ad Expansion

Hello Readers,

I hope you and your family had a delightful New Year holiday.

Welcome to the first 2023 issue of Briefing, where we've compiled the most significant news from the past week and New Year's Eve.

To kick things off, Apple made an announcement on Monday, ahead of the CES, revealing the much-anticipated Vision Pro virtual reality headset. Priced at $3,499, it's set for pre-order on January 19 and will ship and hit the shelves on February 2. Users will have access to over a million compatible apps from iOS or iPadOS, along with more than 250 game titles.

On another note, the overall economic climate suggests a challenging year ahead for physical retail in 2024. Essential goods and fast-moving consumer goods continue to see price hikes. This has led French retailer Carrefour to post notices in stores suspending the sale of PepsiCo products, presumably in response to supplier price increases. Moreover, many retailers, including giants like Amazon and CVS, have cut costs through measures like store closures, layoffs, or negotiating prices with suppliers.

Instacart is testing in-store ad displays with Caper smart shopping carts that offer personalized ads and product recommendations. Brands like Del Monte Foods, Dreyer's Grand Ice Cream, and General Mills are already on board. Bank of America predicts that Amazon's venture into video advertising with Prime Video Ads could generate up to $5 billion in ad revenue.

For more news highlights, please refer to the rest of the article. Have a great Tuesday back at work!

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.

Headline

Apple’s Vision Pro Headset to Go on Sale at US Stores on Feb. 2

Why it is important

• Apple Vision Pro marks a shift in consumer electronics, redefining user interaction and immersion in digital environments.
• Vision Pro is the first new product category since the Apple Watch’s debut in 2015.

What happened

• Apple announced the Apple Vision Pro, a $3,499 mixed-reality headset, launching on February 2, ahead of CES.
• It combines virtual and augmented reality, offering advanced features like dual 4K displays.

Source: Bloomberg

Retail

French Retailer Carrefour Drops PepsiCo Products Over High Prices

Why it is important

• The decision to stop selling PepsiCo products highlights the escalating tensions between retailers and manufacturers over rising food prices.
• This has a direct impact on consumer costs and market dynamics.

What happened

• French retailer Carrefour will cease selling PepsiCo products due to high prices.
• According to Nielsen, France accounts for about 1% of PepsiCo's 2022 sales.

Source: FT

How 2023 Became the Year Cost Cutting for Retailers

Why it is important

• Retailers are adopting cost-cutting strategies instead of expansion to cope with changing consumer behaviors and economic challenges.
• These strategies impact the retail industry's operational capacities, employment, and market dynamics.

What happened

• Retailers like Amazon, CVS, and Bark are reducing expenses by closing distribution centers, layoffs, and supplier negotiations in 2023.

Source: Modern Retail

Marketing

Instacart Expands In-Store Shopping Cart Business to Include Ads

Why it is important

• Instacart's integration of ads into its smart shopping carts is a strategic expansion in retail technology.
• The integration blends in-store experiences with digital advertising, influencing consumer behavior.

What happened

• Instacart is set to display ads on its high-tech shopping carts in grocery stores, starting with Bristol Farms in Southern California.
• This move is part of Instacart's growing advertising business and diversification beyond grocery delivery.

Source: Bloomberg

Amazon’s Video Ad Push Expected to Generate an Extra $5 Billion in Revenue

Why it is important

• According to a Bank of America analysis, Amazon's venture into video advertising on Prime Video aims to boost revenue by as much as $5 billion.

What happened

• Prime Video ads will start appearing in North America on Jan 29.
• For an additional fee of $3 per month, subscribers can enjoy streaming services without any advertisements.

Source: Bloomberg

Stanley Cup Craze Floods TikTok Feeds, Raises $750 Million In Revenue

Why it is important

• Stanley's TikTok fame boosted sales, showing social media's power to turn a product into a cultural phenomenon.

What happened

• Stanley's 40-ounce Quencher tumbler became a viral sensation on TikTok, leading to billions of views.
• It brought significant revenue growth for the drinkware manufacturer.

Source: Forbes

e-Commerce

2023 Online Holiday Spending Reached $221.1 Billion

Why it is important

• The record $221.1 billion US online holiday spending in 2023 reflects evolving consumer behaviors and the growing significance of e-commerce in the retail landscape.

What happened

• US online holiday spending grew 4.9% to $221.1 billion in 2023.
• There are significant increases in categories like electronics and apparel and a notable rise in mobile shopping and BNPL usage.

Source: DigitalCommerce360

Influencer Agencies Report Mixed Experiences with TikTok Shop

Why it is important

• TikTok Shop's growth indicates a significant shift in e-commerce, as it effectively blends social media influence with shopping. 
• However, it faces various challenges, including technology, onboarding, and content authenticity, that must be addressed to ensure its success.

What happened

• TikTok Shop was launched in 2023 and has 200,000 merchants and 100,000 creators.
• The platform faces issues with technical infrastructure and complex onboarding, which impact its effectiveness for brands and influencers.

Source: Modern Retail

Payment

Report: 25% of UK BNPL Users Hit With Late Fees

Why it is important

• The prevalence of late fees among UK BNPL users, especially younger consumers.

What happened

• In the UK, 22% of BNPL users missed repayments, leading to late fees and credit score impacts.
• Young adults (18-24) were most affected, reflecting a lack of awareness about BNPL risks.

Source: PYMNTS

Asia

Expansion of Logistics Centers: Asian E-commerce Giant COUPANG Invests NT$2.475 Billion in Taiwan

Why it is important

• COUPANG's significant investment in Taiwan reflects its strategic expansion in Asia, enhancing its logistics capabilities and e-commerce presence in the region.

What happened

• COUPANG invested NT$2.475 billion in its Taiwanese subsidiary, planning to use the funds for operational expenses and expansion of logistics centers, indicating growth in Taiwanese operations.

Source: CTEE