🌀 Trust or Not, Germans Buy from Asians🤔

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ECC KÖLN study in cooperation with Salesforce of Germans reveals significant increases in awareness and use of Temu, Shein, and other Asian marketplaces even though there is almost a complete lack of trust. Let's dive into insights

📊 Asian Marketplaces on the Rise

• 91% of consumers are now familiar with Asian marketplaces, up from 78% in 2023.

• 43% of respondents use these marketplaces, with usage among 18-29-year-olds at 51%.

• Social media plays a key role, with 57% discovering these marketplaces through platforms like Instagram and TikTok.

📈 Temu and Shein's Growth

• Temu’s purchase rate tripled from 11% in 2023 to 32% in 2024.

• Shein’s order frequency doubled from 10% in 2023 to 22% in 2024.

• Over 35% of respondents see Temu's ads multiple times a week.

• However, 50% of users find this ad frequency annoying.

🛡️ Trust and Credibility Issues

• 65% of users shop at Temu and similar sites for bargains.

• Only 16% trust the security of their data on these platforms.

• 51% feel manipulated by the discounts advertised.

• 24% shop without hesitation, but many have safety concerns.

📉 Established Providers Still Trusted

• 54% of consumers still prefer established providers like Amazon.

• Amazon excels in data security, smooth delivery, and product searches.

• 66% of consumers do not plan to shop at Asian marketplaces in the future.

• Quality defects (83%) and safety concerns (57%) are major deterrents.

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Foxintelligence has compiled a study on trends in sales of furniture categories across selected European countries. The post-pandemic era has fueled a surge in the furniture market, driven by the desire to upgrade homes for comfort, while consumers now prioritize personalized, sustainable furniture with flexible delivery options. Foxintelligence explored how marketplaces impact retailers’ sales and whether pure players still have a place in the furniture market.

🛒 Retailers vs. Marketplaces

• In France, marketplaces account for 31% of sales, lower than Germany and Spain at over 40%.

• Maisons du Monde launched its marketplace in 2022.

• Retailers like Ikea City and Castorama are adopting new urban proximity concepts.

• Physical stores still dominate, but eCommerce is growing annually.

📈 Direct Sales vs. DtoC

• Pure players account for 30% of sales in France and the UK, over 50% in Germany, Italy, and Spain.

• Pandemic growth for pure players slowed due to the return of physical commerce.

• Traditional players adopted omnichannel strategies, increasing online sales.

• Second-hand furniture markets are minimal, with Ikea offering "Second Life Spaces" in France.

🛍️ Top Retailers

• Ikea and Amazon lead in the UK, France, Italy, and Spain.

• Otto is the top retailer in Germany.

• La Redoute, Maisons du Monde, and Cdiscount are top 5 in France.

🎨 Consumer Trends

• Product personalization is key, with online configurators allowing custom furniture designs.

• Advanced delivery options include selecting day and time of delivery and easy returns.

• Companies offer furniture assembly services to ease online purchases.

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▶🇺🇸 Amazon ramps up logistics, speeds delivery. Amazon is expanding its logistics with 16M sq ft of new warehouse space in the U.S. The company has restructured its distribution network into nine regions to speed up deliveries and cut costs, competing with Walmart and new players like Shein and Temu.

▶🇺🇸 Amazon launches Prime Access at $6.99/month. Amazon introduces Prime Access for qualifying government assistance recipients at $6.99/month, over 50% off. Customers can save on essential needs with programs like SNAP EBT, Amazon Layaway, and more. Last year, Prime Access members saved $1,600 on average.

▶🇯🇵 Rakuten and eBay launch U.S. trial for used fashion. Rakuten is teaming up with eBay to test the U.S. market for used Japanese fashion goods. The trial, starting with seven vendors, takes advantage of the yen's low value.

▶🇧🇷 Temu gets tax benefit for Brazil debut. Temu, a Chinese e-commerce retailer, has been approved for Brazil's tax benefit program, exempting goods up to $50 from import fees. This step brings Temu closer to launching in Brazil, joining rivals Shein and Shopee in the market.

▶🇨🇳 Alibaba invests $230M in Lazada again. Alibaba invested $230M into Lazada, totaling $7.7B since 2016. This is its first investment this year. In 2023, Alibaba invested $1.8B. The investment supports Lazada’s low-cost strategy to compete with Temu and Shein.

▶🇲🇽 MercadoLibre seeks Mexican banking license. MercadoLibre is in talks to get a banking license in Mexico, aiming to enhance its financial services. This move follows the success seen in Brazil, with plans to expand digital banking and credit offerings in Mexico.

▶🇨🇳 TikTok plans global layoffs in operations. TikTok is set to lay off a significant number of employees in its operations and marketing teams worldwide. The layoffs, affecting user support, communications, content, and marketing teams, were announced by senior executives. Approximately 1,000 employees may be impacted.

▶🇫🇷 LVMH partners with Alibaba for tech boost. LVMH strengthens its partnership with Alibaba to redefine luxury retail in China. Leveraging Alibaba's AI and cloud technologies, LVMH aims to enhance customer experiences and streamline operations. The partnership, starting in 2019, now covers over 30 brands and includes new AI capabilities like Qwen and Bailian.

▶🇩🇪 The Platform Group posts record growth in 2023. TPG had its best year in 2023. Gross merchandise volume grew to $770M, and sales hit $480M. The number of partners rose to 5,520, and active customers grew to 4.05M. Profitability improved with adjusted EBITDA at $24.7M and consolidated profit at $29.4M.

▶🇩🇪 Germany backs ending EU tax breaks for Shein, Temu. Germany backs ending EU import tax breaks for Shein and Temu. This change could affect their ability to offer low-cost products by eliminating the current €150 exemption, increasing scrutiny on imports, and impacting their business strategies.

▶🇩🇪 Mytheresa Leads in Luxury E-commerce Growth. Mytheresa, a leader in luxury e-commerce, reported a 15% growth in GMV in 2023, reaching $932M. It aims for $1B by year-end with a 3.9% EBITDA margin. The U.S. market saw a 42% GMV increase, driven by targeted events and pop-up shops. CEO Kliger sees bright prospects.

▶🇬🇧 Hugo Boss launches tech loyalty program. Hugo Boss XP, a new tech-based loyalty program, launches in the UK next month. It combines traditional loyalty features with blockchain and Web3 elements, allowing members to collect and trade NFTs. The program aims to enhance customer engagement and lifetime value.

▶🇬🇧 John Lewis offers UK’s largest menswear rental. John Lewis introduces the largest high-street menswear rental range in the UK. Powered by Hurr, it offers brands like Boss Tailoring and Charles Tyrwhitt, with prices starting at £40 for a 4-day rental. The global menswear rental market is set to reach £2.36B by 2027.

▶🇬🇧 Oh Polly’s new returns policy targets frequent returners. Oh Polly, a fashion retailer, now charges a tiered fee for returns based on the percentage of the order returned. The policy aims to manage costs associated with high return rates. First-time returns remain free for new customers.

▶🇬🇧 Ocado gains Getir customers after UK exit. Ocado Retail buys Getir's customer email database following Getir's UK exit. Zoom by Ocado offers former Getir users 25% off their first order and Gorillas customers 30% off their first shop and three months of free deliveries.

▶🇺🇸 Amazon offers free same-day delivery from Lucky. Amazon teams up with Lucky Supermarkets for same-day, 2-hour grocery delivery in select San Francisco Bay Area cities. Prime members receive free delivery on their first three orders of $10 or more.

▶🇬🇧 Gopuff expands 24/7 service, price matches Aldi. Gopuff launches 24/7 delivery in Birmingham, Bristol, Cardiff, Leeds, Manchester, and Swansea, offering an Aldi Price Match on over 50 products for added value. This move aims to meet the increasing demand for round-the-clock grocery delivery.

▶🇺🇸 Home Depot teams with Instacart for fast delivery. Home Depot joins forces with Instacart to provide same-day delivery from 2,000 stores. This move aims to enhance their eCommerce capabilities amid declining consumer spending. The partnership leverages Instacart's fast delivery, including heavy items, and follows a successful pilot. Instacart's collaborations with other retailers like Kohl's and Uber Eats highlight the trend of delivery services expanding beyond groceries.

▶🇨🇭 Migros shuts FoodNow, Alfies buys Stash. Migros discontinues FoodNow to focus on core business. Alfies buys Stash, expanding its Swiss presence. Despite 600 partners, FoodNow couldn't meet goals. Stash, active in Zurich and Lucerne, joins Alfies after struggling to break even.

▶🇰🇷 Hy to launch Knowk food delivery app. Hy, a South Korean retail firm, will launch the Knowk food delivery app in June, offering free delivery services and a low commission rate of 5.8% for restaurants. The initiative aims to collaborate with local businesses and leverage Hy’s logistics network.

▶🇮🇳 Zomato misses Q4 profit, shares dip 4.2%. Zomato missed profit estimates with $20.96M in Q4, below the expected $22.5M. Expenses rose nearly 50%, causing shares to dip 4.2%. Revenue from operations jumped 73% to $426.6M, beating estimates.

▶🇬🇧 Amazon delivers 1M+ packages by e-cargo bikes. Amazon is making over 1M deliveries using e-cargo bikes and foot in the UK. New micromobility hubs in cities like London, Manchester, Glasgow, and Belfast are part of a $300M investment to reach net-zero carbon by 2040.

▶🇺🇸 Airbnb purges experiences, impacts operators. Airbnb recently removed many travel experiences from its platform, causing confusion among operators. This move is part of a larger strategy to improve quality and refocus on its core offerings. Despite the delistings, Airbnb is committed to the experiences market with new initiatives like "Icons".

▶🇸🇦 Saudi Arabia plans $44B ecomm expansion by 2030. Saudi Arabia plans to expand ecommerce, targeting $30B in sales by 2027 and $44B by 2030. With a growth rate of 13.5% annually, the country aims to lead the region in ecommerce through investments in infrastructure, logistics, and partnerships.

▶🇺🇸 Levi's Launches New Supply Chain System. Levi Strauss & Co. teams with o9 Solutions to create a real-time data visibility supply chain system, reducing lead times and costs. The system launched with three modules and will expand with five more in 2024-2025 resembles a marketplace.

▶🇺🇸 Google Pay adds card perks, BNPL options. Google Pay introduces features like card perks display, BNPL options with Affirm and Zip, and biometric card verification. These updates enhance user experience and make Google Pay a stronger competitor in the digital payments market.

▶🇨🇦 Shopify wins $40M patent case appeal. A US court overturned a $40M patent infringement verdict against Shopify. The judge found insufficient evidence of infringement by Shopify. This decision is a major win for Shopify in its fight against patent trolls, who often target successful companies.

▶🇺🇸 Sysco’s new marketplace boosts product variety. Sysco’s (Wholesale Restaurant Food Distributor) new Mirakl-powered marketplace, announced on May 22, 2024, offers over 15,000 niche products. This initiative supports the Recipe for Growth strategy, enhancing customer choice and simplifying shopping.

▶🇵🇱 Quantia raises $1.2M for e-commerce growth. Quantia, a Polish e-commerce analytics platform, raised $1.2M. The funds, led by Inovo VC and Team X, will enhance product development and expansion in the UK, Nordics, Spain, and Germany. Key investors include Ariel Finkelstein, Dominique Locher, and Ben Lang.

▶🇺🇸 GrubMarket acquires Butter for AI capabilities. GrubMarket has acquired Butter, a four-year-old AI company, to enhance its ecommerce and payment solutions. Butter's AI tools will integrate with GrubMarket's existing products, aiming to improve services for food distributors. Butter has raised $39M and has 11,000 buyers.

▶🇺🇸 Zoovu boosts ecomm with new accessibility tools. Zoovu enhances ecommerce by introducing tools for ADA and WCAG 2.1 compliance. These tools help brands create accessible shopping experiences, benefiting the 27% of the US population with accessibility challenges.

▶🇬🇧 Purple Dot raises €9.2M to boost e-commerce. Purple Dot raised €9.2M Series A led by OpenOcean, with investors Commerce Ventures and others. The funds will expand their pre-commerce platform. CEO Madeline Parra emphasizes the goal to sell all products, reducing waste and unsold inventory. Founded in 2020, Purple Dot processes millions in transactions monthly.

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