🌀 The Economic Impact of Shein in the EU 💼

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🌀This week’s maze:

1. The Big Story 🧠 
The Economic Impact of Shein in the EU 💼 

2. Data 📊 
Early US Black Friday Results 🛍️

3. News 📖 
🛒 🇺🇸 Shein and Temu drive up Black Friday ad costs
🛒 🇩🇪 Amazon introduces "No-Rush Shipping" test
👗 🇸🇪 Secret Sales acquires H&M’s Afound marketplace
👗 🇪🇸 Inditex launches "Zacaffé" in Madrid
🍔 🇮🇳 Zomato raises $1B for quick-commerce growth
🍔 🇳🇱 Just Eat Takeaway exits London stock market

+ over 15 other hot news from the last week you need to know 🔥

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3 things before we began:

🌀1: This week we will be continuing with MarketMaze+, a deeper dive into original content we think you’ll find valuable. This Tuesday we’re exploring: “Second-hand
gifting in 2024 🎁”. If you haven’t had time to check please read our 1st issue on: “How War Shaped E-commerce in Ukraine⚔️.”

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The Economic Impact of Shein in the EU 💼 

November report by Oxford Economics highlights Shein's $1.2B contribution to the EU economy in 2023, focusing on GDP growth, job creation, and digital engagement across key countries like France, Italy, and Poland.

🔎 Reliable Analysis and Methodology

Oxford Economics used detailed models for accuracy in sector analysis.

Data sources included sales, wages, OECD, and Eurostat statistics.

The report analyzed direct, indirect, and induced contributions.

‍

💰 Shein’s Economic Impact

Shein added $1.2B to EU GDP in 2023, with France leading at $640M.

Italy and Poland followed, contributing $302M and $119M, respectively.

Key industries benefiting included transportation, retail, and business services.

Shein’s demand-driven model reduced waste and optimized inventory levels.

👷 Jobs Created Across the EU

Over 6,130 jobs were supported across France, Poland, and Italy.

Indirect jobs reached 4,830 through supplier partnerships.

France saw the most jobs at 2,900, followed by Poland and Italy.

Employment spanned logistics, retail, and business services sectors.

📈 Digital Engagement and Growth

Shein engaged 100M EU users monthly through its platform.

Online shopping grew to 40% of all purchases, up from 33% in 2020.

Shein X fostered 15% of global collaborations with EU designers.

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Early US Black Friday results 🛍️

Data from Adobe and Foxintelligence shows Black Friday drove a 10% increase in spending, with November online sales hitting $107.3B. Mobile sales outpaced desktop, and Buy Now, Pay Later options grew significantly.

📊 Black Friday Powers November Growth

Black Friday sales increased by 10% year-over-year, reaching $10.8B.

November's total online sales hit $107.3B, with mobile devices accounting for $56.1B, ahead of desktop at $51.2B.

Flexible payment methods, like Buy Now, Pay Later, surged to $7.6B as consumers sought budget-friendly options.

🚀 Cyber Week Drives Daily Sales Spikes

Daily November sales averaged $2-4B, with Black Friday tripling to $12B.

Cyber Week delivered significant peaks, contributing heavily to seasonal sales.

Popular categories like electronics and FMCG fueled the growth, reflecting consumer demand.

📈 Order Frequency Boosts Resilience

Average Order Value (AOV) grew by 1% to $127, despite a 5% drop in items per order.

Higher order frequencies offset smaller basket sizes, ensuring volume-driven growth.

Black Friday was the best-performing day, while midweek sales lagged.

🌍 Amazon Leads, New Players Rise

Amazon retained its dominance in European markets, leading sales.

TikTok Shop ranked second in the UK, showing rapid growth in social commerce.

MediaMarkt and e.Leclerc gained ground in Germany and France, respectively, solidifying their positions.

🇺🇸 Shein and Temu drive up Black Friday ad costs. Shein and Temu’s aggressive keyword bidding drove Black Friday CPC up 16x in two years. Retailers adjusted budgets, targeting Meta, TikTok, and loyalty programs.

🇩🇪 Amazon introduces "No-Rush Shipping" test in Germany. Prime users get a 1% discount for choosing slower delivery, with some items eligible. Discounts can be as low as €0.24. However, not all products qualify, and delivery can take up to 8 days.

🇯🇵 Amazon Japan raided over antitrust concerns by the Japan Fair Trade Commission for alleged anti-monopoly law violations. The raid concerns Amazon’s Buy Box system and demands for lower prices from vendors. Similar probes occurred in the EU and U.K.

🇦🇺 Temu surpasses eBay in Australian market share for the first time since its 2023 launch. October 2024 saw Temu at 20% share, compared to eBay’s 17%, with Amazon still leading at 50%. Smaller retailers like Kogan have lost ground.

🇪🇺 Shopify supports multi-currency payouts now for Advanced and Plus plans. Initially rolled out in the UK, Australia, Austria, Germany, Italy, Netherlands, and Spain, it helps merchants save on FX fees. Multiple bank accounts can be added.

🇺🇸 Walmart adds festive features to virtual store, leveraging TikTok and Pinterest trends. New features include AR-enabled previews and shareable Wish Lists. Influencers curated the experience for a social shopping edge.

🇺🇸 Walmart retreats on DEI amid boycott threats. Walmart has scaled back diversity efforts, citing backlash and boycotts. The retail giant ended its five-year racial equity program and supplier diversity initiatives.

🇮🇳 Meesho reduces customer support costs by 75%. Meesho’s GenAI bot now manages 60K daily customer calls in India. It handles English and Hindi, with plans for 6 more languages. Customer satisfaction is up 10%, while human agents focus on complex tasks.

🇪🇺 Amazon struggles with logistics bottlenecks. Amazon's European fulfillment centers face capacity issues, especially during the holiday rush. Retailers report delays, unprocessed shipments, and returns, with added costs of $159 per pallet. They demand better communication and swift solutions from Amazon.

🇸🇪 Secret Sales acquires H&M’s Afound marketplace, adding 10 European territories. The relaunch keeps the Afound brand alive, enhancing Secret Sales' sustainable off-price fashion strategy. CEO Chris Griffin aims to redefine brand inventory management.

🇪🇸 Inditex launches "Zacaffé" in Madrid, blending fashion with lifestyle. Located near Zara Man, it offers coffee, pastries, and branded merchandise. Plans include expansions to Tokyo and Seoul in 2025, redefining Zara as a cultural experience.

🇬🇧 JD Sports completes $548M Courir deal, adding 323 stores in Europe and 36 franchises worldwide. The move attracts more women and older customers while retaining Courir's identity.

🇨🇳 Temu and Shein expand into toy sales. Temu and Shein dive deeper into toy sales to capture holiday shoppers. Toys grew to $108.7B globally in 2023, with Shein reporting double-digit sales growth. The platforms now rival Amazon, Walmart, and Target, controlling 70% of US toy sales.

🇬🇧 Next partners with Zeos for Europe logistics. Next selects Zeos for fulfilling its online orders in continental Europe. Starting Q4 2025, the partnership will simplify logistics and improve delivery speed. Zeos, Zalando's B2B unit, strengthens its role in EU retail logistics.

🇺🇸 Abercrombie & Fitch sees 14% sales surge. Abercrombie & Fitch’s sales soared 14% in Q3 to $1.2B. Net income hit $133.9M, up 37%. Both Abercrombie and Hollister brands grew double digits. Robert Ball was named CFO on Nov. 20, succeeding Scott Lipesky.

🇮🇳 Zomato raises $1B for quick-commerce growth via institutional placement at $3/share. Top investors include Motilal Oswal (20.8%). The move shifts Zomato to a domestic company, empowering its quick-commerce unit Blinkit. Rival Swiggy recently raised $1.35B.

🇳🇱 Just Eat Takeaway exits London stock market. Just Eat Takeaway plans to delist from the London Stock Exchange by Dec. 27, citing low trading volumes and administrative costs. Shares fell 1.5% after the announcement. The firm will focus solely on its Amsterdam listing.

🇺🇸 Instacart launches tools for benefit users. Instacart now offers a SNAP eligibility tool, helping families check their benefits in 60 seconds. It also allows FSA/HSA payments at checkout, easing health expense shopping. These efforts enhance access to food and medical products.

🇮🇳 Amazon India to Launch 'Tez' in Quick Commerce by late 2024 or early 2025. The move targets a $7B market, competing with Blinkit, Zepto, and Swiggy. The initiative focuses on groceries, logistics, and scaling dark stores.

🇺🇸 DoorDash expands with 5 grocery chains. DoorDash adds 5 grocers to its platform, including Fresh Encounter, Stew Leonard’s, and Plum Market. These family-owned stores expand DoorDash’s grocery reach. CEO Tony Xu notes growing demand, with more users ordering groceries first.

🇬🇧 eBay introduces age checks for knife sales. Buyers must prove they're 18+, with secure delivery and packaging rules. Illegal knives stay banned. This update aids sales of everyday tools and kitchen items.

🇺🇸 Trump announces 25% tariffs on imports. Donald Trump plans 25% tariffs on Canada and Mexico imports and 10% on China. Experts warn this could raise inflation by $78B annually and disrupt USMCA. Companies like Honda and Ralph Lauren already adjust supply chains for changes.

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