🌀 Fashion Giants Go Beauty💄

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Fashion Giants Go Beauty💄

Zara and Shein have both entered the beauty market, leveraging their brand presence and broad consumer reach.

They're both using their fashion insights to thrive in beauty, appealing to youth with trendy, affordable products. Recent analysis from FoxiInteligence analyses it deeper

Shein's Beauty Ventures 🌟

• 🎨SheGlam Launch: Shein introduced SheGlam, its makeup line, focusing on frequent updates, trendy items, and competitive pricing, all cruelty-free.

• 📈Market Impact: Beauty is Shein's fastest-growing category, accounting e.g. 7% of its market share in the Netherlands and 3.7% in France in 2023.

• 💳Spending Patterns: Shein's customers buy beauty products more often, potentially due to lower average prices.

Zara's Beauty Approach 🌺

• 💨Perfume Dupes: Zara's low-priced perfumes mimic luxury scents like La Vie est Belle by Lancôme, tapping into TikTok's dupe trend.

• 💼Market Performance: In Spain, Zara outperforms traditional perfume giants in online sales, with perfumes now capturing 63% of the beauty category.

• 👩🏻‍🎓Target Demographic: Zara's beauty products are favored by young consumers, particularly Generation Y and Z.

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Metaverse technologies are merging the virtual with the real, enhancing the ecommerce experience significantly.

Recent research from AltIndex.com and Statista forecasts the metaverse ecommerce market to reach $200 billion by 2030.

Market Growth 📈

• The industry is poised for a meteoric rise, with a 580% growth expected in the next six years.

• Consumer demand for immersive experiences has fueled a 60% growth in just three years.

Global Trends 🌍

• The metaverse ecommerce market could see a 30% increase this year, hitting $30 billion.

• By 2025, the market is expected to grow by 37%, reaching a value of $42 billion.

• Asia, especially China, is predicted to lead with a $58 billion market value by 2030.

Tech Adoption by Giants 🛍️

• Amazon is leveraging AR technology with its Room Decorator tool, allowing users to visualize furniture in their spaces.

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Temu's marketing blitz has intensified discussions around Cost Per Click (CPC) in digital advertising.

Alphabet's earnings statements provide official CPC data, which Smec has analyzed against its own Ecomm CPC benchmark over the last four years.

🕒Historical Perspective 

• Historically, Ecomm CPCs started to diverge slightly from Google's official figures during and post-pandemic, showing up to 7% deviation on four different occasions.

💸Current CPC Trends 

• Click costs have risen by 43% from their lowest point in 2020, although prices were notably lower during that period.

• Relative to late 2019, current CPCs are approximately 18% higher, aligning closely with the general inflation over the past few years.

🌍Geographical Variations 

• It's crucial to recognize that these figures represent an aggregated view.

• Specific markets, like the UK, have experienced a steady increase in unit costs compared to other European countries.

▶🇿🇦 Amazon Enters South Africa, No Prime Yet. It is the first marketplace in sub-Saharan Africa, targeting a $3B e-commerce market.

▶🇮🇪 Amazon.ie to Launch in Ireland in 2025. Over 100 million products, faster deliveries, and easier returns will enhance shopping. The Dublin fulfilment centre supports this, boosting local business and job creation.

▶🇺🇸 Amazon Extends Fee Transition to May 31. Amazon's FBA low-inventory-level fee, introduced to improve inventory health, is now in effect but will be credited back for fees incurred from April 1 to May 14 as part of an extended transition period to assist sellers.

▶🇬🇧 eBay Partners with McLaren F1 Team. McLaren Racing announces eBay as an official partner. eBay branding to appear on F1 cars at four grand prix races in 2024, starting with Miami. This partnership links eBay’s auto parts growth to F1’s innovative features.

▶🇺🇸 TikTok Sues US Over Ban, Alleges Bias. TikTok is taking legal action against the US government, claiming that a law demanding its sale by January 2025 unfairly targets the platform and threatens to disconnect over 1 billion global users.

▶🇺🇸 TikTok Expands Pulse for Precise Ad Placement. TikTok's Pulse suite now includes Max Pulse, Pulse Lineups, and Pulse Premiere. These new offerings guarantee ads are placed next to trending, top 4% content. New partners like NHL and Paramount Global join for 2024.

▶🇳🇱 Bol reports minor growth amid Chinese competition. Bol reported a slight 1% increase in Q1 2024 sales to $1.5B. Third-party sales lag due to Chinese competition. Bol's ad branch and logistics grew by 30% and 10% respectively.

▶🇩🇪 Zalando Returns to Growth with Strong Q1 Results. Zalando's first-quarter sales of $2.37M mark a minor drop but show promise of recovery with a net loss improvement from $41.4M to $9.6M. Strong B2C and B2B growth highlighted by a 1.3% margin in adjusted EBIT.

▶🇵🇱 Poland Eyes Tighter Control on Shein and Temu. Poland's government, led by Finance Minister Andrzej Domański, is looking to protect local producers by imposing additional fees on Chinese shopping platforms Shein and Temu, potentially raising prices for Polish consumers.

▶🇰🇷 Coupang's Profit Plummets After Farfetch Buy. Coupang, a South Korean e-commerce giant, saw its net income drop dramatically in Q1 2024, from $91M to $5M, largely due to its recent acquisition of luxury retailer Farfetch. Excluding Farfetch, net income would have been $98M.

▶🇱🇹 Vinted sees major growth, turns first profit. Vinted, a Lithuania-based secondhand clothing platform, reports a net profit of $17.8M for 2023, a significant rise from a $20.4M loss in 2022, with sales up 61% to $596.3M. The platform now operates in new markets including Denmark, Finland, and Romania.

▶🇬🇧 Frasers Group Launches New Digital Platform. Frasers Group is rolling out a cutting-edge digital platform across Europe, enhancing their retail operations and online customer experience. Designed with top tech firms, the platform aims to improve shopping with new personalization features and efficient stock management.

▶🇩🇪 About You raises sales, halves losses. About You Holding SE, a Hamburg-based e-commerce company, saw sales of €1.94B, up 1.6% YOY. Adjusted EBITDA improved significantly, reaching €3.2M after a loss of €137M last year. The net loss reduced to €112.2M, nearly halving the previous year's €229M.

▶🇺🇸 Instacart Teams Up With Uber Eats. Instacart is venturing into restaurant delivery by integrating Uber Eats' software and logistics into its app, with the same prices and courier pay as Uber Eats.

▶🇸🇮 Glovo exits two markets, plans store cuts. Glovo exits Slovenia and Ghana, with final orders on May 10, as part of a restructuring plan. The company also plans to decrease the number of its dark stores, which struggle to be profitable. Currently, Glovo operates in 23 countries.

▶🇮🇳 Swiggy Relaunches Daily Ahead of IPO. Swiggy relaunches its homestyle meal service, Daily, in Bengaluru, targeting office-goers. Integrated into the main app, this move comes as Swiggy prepares for its IPO, enhancing its competition with Zomato Everyday.

▶🇦🇪 Deliveroo Launches Abra Food Delivery. Deliveroo introduces a unique delivery method using abra boats in Dubai, highlighting local heritage and modern culinary experiences. This method enhances community connections and offers a hyperlocal shopping and dining experience.

▶🇹🇭 Line Man Wongnai Ponders IPO in 2025. Line Man Wongnai, Thailand's food delivery giant, backed by giants like GIC and Z Holdings, contemplates a 2025 IPO possibly in Thailand and the US. The company's worth surpasses $1B.

▶🇺🇸 DoorDash Cuts Fees by 12%, Boosts Efficiency. Despite rising food prices, DoorDash has decreased fees by 12% in 2 years, improving order affordability. The company's operational efficiency and better delivery accuracy support these cuts.

▶🇨🇦 Shopify Reports $273M Loss, Shares Drop. On May 8, 2024, Shopify announced a surprising $273M loss for Q1, despite a 23% rise in revenue to $1.9B. After selling its logistics unit to Flexport in 2023, it now expects a decrease in margins. Shares fell 20%, wiping $20B off its market value.

▶🇺🇸 Google Launches Ads Tool for Marketplaces. Google's Performance Max now aids sellers on platforms like Amazon by driving sales directly through online marketplaces, eliminating the need for individual websites or Merchant Center accounts. This service has launched in beta and is still evolving.

▶🇺🇸 Etsy Reduces Delivery Times Notably. Etsy's CEO, Josh Silverman, revealed a new machine learning model that reduced USPS transit times by over a day, boosting perceived reliability and increasing estimated delivery dates of seven days or less for triple the orders.

▶🇦🇪 Expedia enters UAE, plans Gen-AI app launch. Expedia enters the UAE market, introducing a Gen-AI app and innovative price tracking for enhanced travel planning and booking. The launch aligns with a $25B regional industry.

▶🇺🇸 Walmart Partners with Roblox for E-Commerce. Starting today, Walmart introduces e-commerce inside Roblox, allowing players to buy real-world items. This pilot runs through May, targeting U.S. users over 13. It could redefine virtual shopping, leveraging Walmart's vast retail network.

▶🇺🇸 Allbirds sees a 28% drop in Q1 revenue!. Allbirds' revenue fell 28% in Q1, totaling $39.3M. Joe Vernachio, the new CEO, addresses urgent restructuring as the company anticipates a 25% sales drop throughout the year.

▶🇮🇳 Meesho Secures $275M, Eyes $3.9B Valuation. Meesho, a major Indian e-commerce startup, just raised $275M, aiming for a $3.9B valuation. This round could expand to over $500M with secondary transactions.

▶🇺🇸 BigCommerce explores potential sale, sparking interest. Software company BigCommerce is exploring a sale with help from Qatalyst Partners after a significant drop in market value. The company's strategic shift follows competitive pressures, especially from Shopify.

▶🇬🇧 Nivoda secures $30M for market expansion. Nivoda, a digital marketplace for diamonds and gemstones, secured $30M in Series B funding. Avenir Growth, alongside Headline and others, backed this round to help Nivoda's global expansion and product enhancements, including faster delivery and new services in 2024.

▶🇨🇱 Reuse secures $4.5M for LATAM expansion. Reuse, founded in 2018, partners with big brands to sell refurbished electronics in LATAM. It just raised $4.5M led by Seaya Cathay Latam, aiming for growth in Mexico.

That’s all. See you next week in the 🌀Maze!

Your guide through the maze

Artur Stańczuk Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 yrs at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain Żabka and Entrepreneur that co-launched 3 startups