The Global eCommerce Newsletter 08.22.16

 

1. China’s shopping army reboots Australia retail
An army of 40,000 Chinese shopping agents use social media and mobile payment apps to buy goods for mainland Chinese consumers in Australia. Australian brand owners have begun exploring ways to work with shopping agents instead of competing with them to tap into the $1 trillion cross-border e-commerce market. Top grocer Woolworths set up an online store on Tmall Global last year but has met with mixed results, largely thanks to shopping agents offering the same products for less.

2. Shoptiques, now in Australia, gives boutiques an online presence
Since Shoptiques launched in Australia in June, Australian boutiques on the platform have grown 80% in orders in the past few months. Founded in 2011, Shoptiques brings boutique shopping online by providing boutiques an online presence, helping with photo shooting, email marketing, inventory management, and shipping. All boutiques pay Shoptiques a setup fee as well as a transaction fee. The company now has over 800,000 email subscribers.

3. In Acquiring Jet, Walmart Seeks Younger, Higher-income Consumers
More analyses on Walmart’s Jet acquisition become available. The acquisition of Jet will be successful if Jet can give Walmart access to younger, higher-income consumers. In the last fiscal year, Walmart’s total revenue was $482.1 billion, a decline of 0.7% from the previous year. On the contrast, Amazon grew 21% in revenue to $107 billion. Walmart’s ecommerce rose 7% in the most recent quarter, compared with Amazon’s 31%.

Jet abandoned a $5o membership fee and focused solely on price in July 2015 – a strategy that eventually adversely affected its profitability.

Walmart has struggled to keep pace with Amazon. The acquisition allows Walmart to tap into the demographics of Jet’s customers who are much more in line with those of Amazon’s customers. In addition, Walmart gets Marc Lore, CEO of Jet who previously worked for Amazon for about four years and knows how Amazon operates.

4. What the Fuchsia? Google’s trying out a mysterious new operating system
Google is working on Fuchsia, an operating system for phones and personal computers, to complete with Microsoft’s Windows, Apple’s iOS, and possibly its own Android.

5. Apparel Leads Products Purchased Online in Europe
According to Research and Markets, a market research firm, apparel was purchased by more than half of online shoppers in the EU last year and it was a leading product category purchased online in many countries in the continent. The share of online clothing sales compared to total retail clothing sales exceeded 10% in the UK. This number is predicted to reach to over one third by 2025 in Germany.

 

Please send comments to jiangnan.zhu@overstock.com.
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