🌀 Shein’s Sustainability: Progress or PR? 🤔

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Shein’s third Sustainability Report, reveals how its EvoluSHEIN strategy is progressing. The report offers some data on the company's sustainability goals and challenges.

Below is a selection of interesting data points that Shein shared so that you can decide for yourself if Shein's Sustainability journey is fact or fiction.

📊 People: Supplier Audits and Compliance

• Supplier audits expanded from 664 in 2021 to 3,990 in 2023.

• Suppliers receiving top grades (A or B) increased from 18% in 2022 to 29% in 2023.

• Suppliers receiving low grades (D or E) dropped from 35% to 20%.

• Shein terminated 5 non-compliant suppliers in 2023.

• "Two child labor cases were identified and resolved in 2023," Shein reported.

🌍 Planet: A Mixed Bag

• Greenhouse gas emissions increased by 80% in 2023, from 9.17M to 16.68M metric tons CO2e.

• Shein has set a goal to reduce emissions by 25% by 2030.

• Polyester usage rose to 76% of total fibers in 2023, up from 64% in 2022.

• Only 7.9% of polyester used in 2023 was recycled; the goal is to reach 31% by 2030.

🔄 Process: Circularity in Focus

• Shein is committed to achieving a fully circular textile supply chain by 2050.

• Focus areas include product longevity, waste reduction, and cross-supply chain collaboration.

• This initiative is part of Shein’s participation in World Circular Textiles Day.

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ECDB has analyzed data from a survey by Deloitte and the National Retail Federation (NRF) to shed some light on shifting consumer behaviors in back-to-school shopping, emphasizing changes in timing, shopping channels, and perceived benefits.

📅 Timing Shifts Matter

• 14% of shoppers completed their back-to-school shopping before July, up from previous years.

• July sees 52% of spending, with 27% in early July and 25% in late July, showing stability.

• Early August spending dropped to 21%, highlighting a shift away from late summer shopping.

• Only 12% of spending happens in late August and September, indicating a declining trend.

🛒 Online vs. In-store Preferences

• 57% of consumers prefer online shopping, making it the leading channel.

• Department stores follow closely at 50%, with discount stores at 47%.

• Clothing and electronics stores attract 42% and 23% of shoppers, respectively.

🎁 Online Shopping Benefits

• 70% of online shoppers prioritize product quality, compared to 30% of in-store shoppers.

• Responsive customer service is key for 66% online, significantly higher than 34% in-store.

• Easy returns are a top benefit for 63% of online shoppers, slightly higher than in-store (37%).

• Enjoyment is nearly equal for both, with 61% online and 39% in-store citing it as a benefit.

Emarketer published data from May 2024 research conducted by Basis Technologies and GWI. This data is crucial as the 2024 holiday season approaches.

🎯 Gen Z Dominates Social Commerce

• Gen Z (42%) is more than twice as likely to buy holiday gifts via social media compared to the average consumer (20%).

• Millennials follow with 26% likely to purchase through social platforms, while Gen X sits at 15%, and baby boomers at only 6%.

• The trend highlights a significant shift towards younger generations embracing social commerce for holiday shopping.

📱 Instagram and Facebook Lead the Pack

• Instagram (57%) is the top platform for holiday gift purchases via social media, closely followed by Facebook (56%).

• TikTok captures 43% of the social commerce market, showing its growing influence among younger shoppers.

• YouTube is also a notable player with 38% of users planning to shop through its platform

• Social commerce is projected to account for 6.6% of total ecommerce sales in 2024.

▶🇺🇸 Walmart adds 3 new categories to Marketplace. These include Premium Beauty with 20+ brands, a new pre-owned marketplace with 5M items, and a collectibles category with 0% commission fees until Oct. 31.

▶🇨🇳 PDD Holdings loses $55B after weak market report and warning about challenges in China's e-commerce. Shares fell 28%. Executives cited competition and economic woes, raising concerns among investors.

▶🇩🇪 eBay DE launches new DHL return label service allowing sellers to link their DHL business accounts for automated return labels. This service lets sellers use their own negotiated DHL rates, improving efficiency and the buyer experience.

▶🇨🇳 JD.com offers free delivery on global orders for customers in the US, Japan, and Singapore, reducing costs by up to 50%. Free delivery is now available for qualifying orders, boosting its appeal to global Chinese consumers.

▶🇬🇧 eBay cuts private seller listings to 300 monthly. eBay UK's new policy reduces free private seller listings from 1,000 to 300 monthly, starting October 1st. A fixed 3% international fee will apply to all regions, and cash on collection payments will be removed for increased security.

▶🇬🇧 Fruugo appoints ex-Amazon exec as new COO, leveraging his retail expertise to drive global growth. Gara brings deep experience from Amazon, Sony, and Asda to guide Fruugo's strategy in 2024 and beyond.

▶🇨🇳 Alibaba rises 3% after completing regulatory process. Alibaba finished a three-year regulatory rectification after being fined $2.6B for monopolistic practices in 2021. China's SAMR guided the process, ensuring Alibaba's compliance with antitrust laws.

▶🇳🇱 Bol raises free shipping threshold to €25 from €20, citing rising costs and inflation. This is the first increase in over ten years. The company hopes customers will consolidate orders to reduce shipping movements.

▶🇨🇳 Shein finds 2 child labor cases in 2023 audits. Shein discovered two instances of child labor between Q1 and Q3 2023 in supplier audits. The company, known for fast fashion, suspended the involved manufacturers and enforced stricter rules. No cases were found in Q4 2023.

▶🇸🇮 Vinted expands with new electronics category. Vinted, the popular second-hand platform, adds a new electronics category to its app, offering users the ability to buy and sell items like VR headsets, e-readers, and accessories. In 2023, Vinted reported its first profit of $19.2M.

▶🇩🇪 Breuninger targets $2.7B in retail asset sale. The Breuninger family is exploring a sale of their department store group. Interest has been expressed by 31 entities, including retail groups and private equity investors. Initial bids are expected by late October.

▶🇺🇸 UPS sees explosive growth from Shein & Temu. UPS has seen a major volume increase, with each providing 900K packages daily in July 2023. While this has helped carriers recover from a slump, it also brings profitability challenges as carriers offer low rates.

▶🇬🇧 Asos hints at changing its free returns policy. An email update hinted at changes to the returns policy, similar to a move made in the US last year where a $4.99 fee was introduced. The potential change targets "serial refunders".

▶🇺🇸 Revolve (fashion e-commerce) invests in physical stores to drive growth, starting with Aspen. This move responds to changing consumer behaviors and aims to revitalize growth. Investors are watching closely as the company shifts to a hybrid model.

▶🇩🇪 The Platform Group exceeds 2023 sales forecast. The Platform Group outperformed its 2023 financial forecast. GMV increased to €705M, beating the predicted €700M. Net sales reached €440.8M, slightly above forecast. Adjusted EBITDA improved to €22.6M, while net income reached €26.9M.

▶🇺🇸 ThredUp and Vestiaire push for tax-free resale. ThredUp and Vestiaire Collective join American Circular Textiles in petitioning to end double taxation on secondhand apparel. The move aims to promote sustainability, make resale more appealing, and support the growing circular economy.

▶🇩🇪 Delivery Hero stock soars 10% on Talabat IPO news. CEO Niklas Ostberg says this move aims to attract local investors. Talabat operates in key Middle East countries and is a major revenue driver.

▶🇺🇸 Uber partners with Coco to expand robot deliveries in L.A. Coco will deliver from hundreds of local merchants starting this week, with plans to expand. The partnership aligns with Uber's aim for sustainable delivery methods and broader U.S. expansion.

▶🇺🇸 Amazon's $99.99 plan saves big on grocery delivery, giving Prime members unlimited delivery on orders over $35. An annual plan at $99.99 offers two months free. EBT users get a $4.99/month rate. This benefit covers over 3,500 U.S. cities.

▶🇩🇪 Delivery Hero reports $798.6M H1 loss, rising revenue. Revenues rose to $6.1B, with 6.3% GMV growth. The company projects FY 2024 revenue growth of 18%-21% and plans to list talabat in Dubai in Q4 2024.

▶🇺🇸 Amazon Fresh Opens Four New Stores, including its first Northern California location. The new stores in California, Illinois, New Jersey, and Pennsylvania offer advanced shopping tech and local products, bringing the chain close to 50 locations nationwide.

▶🇬🇧 Zapp expands in London as Getir exits the UK. It has added new stores and is hiring for 20 senior roles. Zapp focuses on premium customers, offering luxury items with an average order value of $50. The company aims for further growth in London.

▶🇨🇳 Meituan Surpasses Revenue Expectations with $11.6B and marking an impressive rise from $9.5B last year. Despite China's slow economic recovery, the company benefited from delivering low-cost products. Profit margins also grew, doubling from 8.7% to 16.9%.

▶🇳🇱 Just Eat CEO reacts to mega merger proposal. JPMorgan suggested a mega merger of Just Eat, Delivery Hero, and iFood. Just Eat's CEO joked about the idea on X, referencing the proposed name, JustiFoodHero. The combined companies would create a giant in the food delivery sector.

▶🇺🇸 Instacart unveils AI-powered grocery shopping revolution. Instacart's Daniel Danker shares their vision for the future of grocery shopping, centered around AI personalization. New features like personal planograms and digital flyers aim to make grocery shopping more tailored and cost-effective.

▶🇪🇸 Ikea launches secondhand marketplace in two cities. Ikea is piloting a secondhand marketplace called Ikea Preowned in Madrid and Oslo. Users can sell their old Ikea furniture and choose to be paid via bank transfer or an Ikea gift card with a 15% bonus. The trial ends in December 2024.

▶🇺🇸 Etsy Launches New Search Visibility Tool for sellers. This tool gives personalized recommendations to improve product listings in Etsy's search results, including tips on images, return policies, and shipping costs.

▶🇺🇸 GoDaddy Empowers Small Businesses with AI-driven Digital Marketing tools to help small businesses manage SEO, social media, and email marketing.

▶🇺🇸 BigCommerce launches key AI & B2B tools. BigCommerce launched new tools like AI-powered product recommendations and B2B features, aiming to help brands globally. Updates include an enhanced visual editor, local payment options, and quicker checkout to boost sales by up to 200%.

▶🇺🇸 Similarweb launches tool for Google's AI tracking. Similarweb has launched a new Rank Tracker feature that helps marketers and SEO professionals identify which keywords trigger Google's AI Overview. This AI-generated summary at the top of search results could change user behavior and search strategies. According to Baruch Toledano, VP at Similarweb, the tool is available for all SEO subscription tiers.

▶🇳🇱 Uber fined $310M for data breaches in Europe, including taxi licenses and medical records. The fine follows last year's $10M penalty and was sparked by a complaint from 170 French drivers. Uber plans to appeal the decision.

▶🇺🇸 Shopify Expands Affiliate Sales with YouTube. Eligible U.S. merchants can now join the YouTube Shopping affiliate program. Creators can tag products in videos from thousands of new brands. This collaboration empowers businesses and creators.

▶🇺🇸 Mavely “Everyday Influencer” platform reaches $675M in GMV, grows 175%. It supports micro- and nano-influencers, offering commissions from brands like Adidas and Macy’s. Over $37M has been paid out to influencers since 2019.

▶🇬🇧 Trouva delays payments to indie retailers by months. Trouva, an online marketplace, has left many of its 650 boutique partners unpaid for over a month, despite promises of swift payment resolution. Trouva's acquisition by Fy! and a pending funding round are cited as reasons for the delays.

▶🇳🇱 Coolblue (the largest Dutch Electronics retailer) invests $161M to expand in Germany. CEO Pieter Zwart sells 7.5% of his shares to HAL to fund the initiative. 36 stores and 9 delivery depots are planned.

▶🇺🇸 Branded and Heyday plan merger amid industry slump. Branded and Heyday, two leading Amazon aggregators, plan to merge into a new entity named Essor, with an expected annual revenue of $400M. The merger reflects the contraction in the industry that once thrived on $16B in investments.

▶🇬🇧 Shift Launches Logistics Marketplace for Drivers. Shift has launched a logistics driver marketplace to serve enterprise clients like IKEA. The service aims to reduce last-mile delivery costs using proprietary tech. This follows the acquisition of Tuffnells and a $6.8M funding round led by Fuel Ventures.

▶🇮🇳 Agrim raises $17.3M to expand agri-inputs like seeds and pesticides. The company aims to expand its catalog from 30,000 to 150,000 items and extend its services to southern and western India.

▶🇮🇳 Zepto raises $1B, projects 150% growth in 2024. The company expects to grow 150% in the next 12 months, reaching over $3.5B in sales. The quick-commerce market in India is booming, with Zepto leading the charge.

▶🇺🇸 GrubMarket acquires FreshGoGo, eyes B2C expansion. GrubMarket, a $3.6B food delivery startup, has acquired FreshGoGo, a B2C platform for Asian groceries, expanding its customer base by 210K across 27 states. This is part of GrubMarket's strategy to grow through strategic acquisitions. FreshGoGo, which generates $30M in revenue but is not yet profitable, joins GrubMarket following its recent purchase of Good Eggs

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