🌀 Will Zalando become the next Shein? 🤔

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1. ❓ Question of the week

Will Zalando become the next Shein? 🤔

Even though Zalando has discontinued its “Factory to Consumer” (F2C) model tests (with end of Movmnt app and zLabels), the recent launch of Zeus fulfillment could signal a comeback of the strategy. With Shein's rise and shareholder pressure for profits, Zalando's market strategy and commitment to quality over quantity face a crucial test.

• 📱 Movmnt's Legacy: Zalando's Movmnt app was a bold foray into the F2C space, mirroring Shein's approach. Aimed at budget-conscious consumers, it connected them directly to manufacturers. Despite its potential, Zalando discontinued Movmnt in 2018

• 🔄 Fulfilment by Zalando Experiment: Strategy first introduced in 2016 Capital Days, involved leveraging Zalando's logistics for brand support, similar to Amazon and Bol.com. It included a pilot project with zLabels, reflecting a more integrated e-commerce ecosystem. I loved the Zalando Essentials but it was also discontinued back in 2019.

• 💼 ZEOS: In late 2023, Zalando unveiled ZEOS, marking a shift towards technological and logistical excellence. This platform is designed to unify multi-channel retail management across Europe, signaling Zalando's possible come back to Shein's successful direct sales model

• 📈 Current Market Dynamics: With Shein's rapid rise, offering affordable, trend-focused fashion, Zalando's position in the market is under scrutiny. Executive behind the doors need to be already considering that, with shareholders breath on their shoulders to push for more profits

• ♻️ Sustainability: Zalando in 2023 has made claims that they pursue quality over quantity when it comes to the brands it stocks and the consumers it attracts. It is focusing on relevant and premium labels as well as loyal, sustainability-minded customers. Robert Gentz, co-chief executive said “The global clothing industry must abandon the “fast fashion” business model within the next ten years, “The fashion industry is part of a global sustainability problem”

So the question is will the shareholders push Zalando to earn more with Shein’s fast fashion model or will Zalando stick to its positioning and sustainability claims? Time will tell

2. 📊 News of the week

Google, Microsoft, Walmart, Amazon jump on retailer AI bandwagon🚂

AI and generative AI technologies transforming retail, with tech giants spearheading. Google Cloud's suite, Microsoft's ad studio, Walmart's AI solutions, and Amazon's challenges mark key developments.

🛍️ Google's AI Revolution: Google Cloud, on Jan. 11, 2024, introduced a suite of AI technologies for retailers, including generative AI for chatbots and enhanced search capabilities. With 81% of U.S. retail decision-makers keen on adopting AI, Google aims to personalize shopping and streamline operations. For instance, its AI can recommend a formal dress considering color, venue, and budget, significantly shortening deployment time. Deep Dive 👉 PRNews

📈 Microsoft's Creative Leap: Microsoft Retail Media unveiled the Retail Media Creative Studio, an AI-driven tool for creating banner ads. As retail media grows, projected to hit $100B by 2026, Microsoft's AI tools are designed to boost ad creativity and efficiency, catering to retailers and advertisers of all sizes. This tool simplifies campaign creation, promising a more personalized shopping experience and enhanced revenue streams. Deep Dive 👉Microsoft

🛒 Walmart's Shopping Ease: Walmart, stepping up AI integration, introduced features in its InHome replenishment service for automated grocery shopping. Their AI analyses shopping habits to predict needs, improving the efficiency of grocery deliveries. At CES 2024, Walmart displayed a generative AI search engine for broader shopping queries and is testing AI for streamlined checkout processes in Sam’s Club stores. Deep Dive 👉TechCrunch

⚠️ Amazon's AI Missteps: Amazon, despite pioneering in AI utilization, faces challenges with AI-generated product names and descriptions, leading to errors and humorous listings. This issue underscores the complexities and potential pitfalls of AI integration in e-commerce, highlighting the importance of careful implementation and oversight. Deep Dive 👉Futurism

Who do you think will win in the race for best retail AI tool for retailers?

3. 📖 Headlines of the week

🛒 Mass merchant

• 🇺🇸 X and Shopify join forces - more exposure for merchants. This collaboration aims to enhance Shopify sellers' visibility on X. Features include simplified product catalog uploads and potential in-stream payment opportunities, aligning with Musk's "everything app" vision. Deep Dive 👉 MediaPost

• 🌍 Shopify collaborates with Manhattan for unified commerce solution. This partnership aims to redefine omnichannel shopping experiences, combining strengths for superior customer engagement. It integrates Shopify's platform with Manhattan's order management, enhancing consumer experience and boosting merchant revenue and margins. Deep Dive 👉 ChannelX

• 🇨🇦 Shopify unveils custom workplace software for efficiency boost. Shopify's internal software, including Shopify OS and GSD, drives efficiency in workforce management. Revealed during its investor day, these tools align with the company's focus post-2022 layoffs, embodying CEO Tobi Lütke's "product thinking" ethos. Deep Dive 👉 BusinessInsider

• 🇨🇳 JD launches global express delivery service, expanding to 23 countries. 🇨🇳 JD Logistics, the powerhouse behind Chinese e-commerce giant JD, debuts its international express service, elevating global logistics. Initially covering North America and Europe, the service leverages six logistic networks and introduces a proprietary ChatGPT model, ChatJD. Deep Dive 👉 ChainStoreAge

• 🇺🇸 BigCommerce partners with Marketplacer for ecommerce growth. BigCommerce's new connector transforms stores into multi-vendor marketplaces, enhancing customer experience and sales. This follows Shopify's similar move with Mirakl last week, marking a trend in ecommerce expansion strategies. Deep Dive 👉 Yahoo

👗 Fashion & Beauty

• 🇺🇸 TikTokers as T.J. Maxx personal shoppers, charging viewers. TikTok users innovate by live streaming from discount stores like T.J. Maxx, turning personal shopping into a side hustle with fees. They charge $10-$15 finders fees, plus shipping, with no refund options, appealing to those seeking unique bargains. Deep Dive 👉 BusinessInsider

• 🇪🇺 Vinted merges with Rebelle, expanding luxury fashion offerings. Vinted, having acquired Rebelle 18 months ago, to shut down Rebelle on March 18. Account migration starts February 19, focusing on upscale market. Rebelle’s Cécile Wickmann becomes Vinted's Senior Director Luxury. Deep Dive 👉 FashionNetwork

• 🇸🇪 Vinted's Nordic expansion exceeds expectations with €39M Annualised GMV in Sweden. In its first year in the Nordics, Vinted, Europe's leading C2C marketplace, sees strong growth in Sweden and promising starts in Denmark and Finland, aiming to make second-hand fashion the first choice. Deep Dive 👉 Vinted

• 🇩🇪 The Platform Group acquires Avocadostore, bolsters sustainable e-commerce.🇩🇪 The Platform Group acquires Avocadostore, bolsters sustainable e-commerce. Strategic acquisition of Avocadostore marks a significant expansion in sustainable fashion. Leveraging expertise in e-commerce, the deal strengthens TPG's portfolio, promising accelerated growth and sustainability focus in the industry. Deep Dive 👉 FashionUnited

• 🇫🇷 LVMH partners with TikTok against counterfeits, eyes e-commerce boom. LVMH and TikTok's potential alliance signals a strategic move to protect intellectual property and elevate the shopping experience, as TikTok targets a $17.5B US e-commerce expansion by 2024. Deep Dive 👉 FashionUnited

• 🇯🇵 Uniqlo sues Shein over viral shoulder bag copy. Uniqlo claims Shein's product infringes on their popular "Round Mini Shoulder Bag," demanding €1M in damages. The lawsuit, filed in Tokyo, highlights intellectual property rights in fast fashion. Deep Dive 👉 BusinessInsider

🍔 Food & Grocery

• 🇺🇸 Uber halts Drizly's operations, shifting focus to UberEats. Uber's decision to shut down Drizly, the alcohol delivery app, marks a strategic shift. The service, acquired for over €1B in 2021, will be integrated into UberEats, amidst previous challenges including a €6M settlement and a data breach. Deep Dive 👉 Quartz

• 🇺🇸 Instacart makes strong push with ads beyond its platform, targeting Google and smart carts. Instacart's dual ad strategy: leveraging shopper data for Google Shopping campaigns and introducing ads on AI-powered smart carts. Aiming for greater market reach and enhanced shopping experiences, Instacart's approach reflects a dynamic shift in retail advertising. Deep Dive 👉 Adweek

• 🇬🇧 HelloFresh fined £140K for millions of spam texts and emails. ICO's investigation into HelloFresh's 79M emails and 1M texts reveals a breach of trust. The fine, reflecting the company's aggressive marketing tactics, raises concerns about data protection and customer rights in the digital age.. Deep Dive 👉 BBC

• 🇺🇸 Pipedream launches groundbreaking underground robot delivery in Peachtree Corners. Pipedream's innovative delivery system promises hyper logistics with deliveries under 10 minutes, potentially revolutionizing urban logistics. This system aims to reduce emissions and last-mile delivery challenges, enhancing smart city development. Deep Dive 👉 Technology

• 🇺🇸 Instacart's stock leaps 11% amid Uber Eats acquisition rumors. Instacart's potential acquisition by Uber Eats sparks market excitement, with Wolfe Research suggesting a bullish outlook. The delivery market leader's valuation and Uber Eats' expansion hint at a significant consolidation in the competitive online delivery industry. Deep Dive 👉 SupermarketNews

• 🇪🇺 Deliveroo, Just Eat, and Delivery Hero show profit growth. In 2023, European food delivery apps demonstrated profitability, with Deliveroo's gross transaction value increasing to €8.17B. All three companies expect positive adjusted EBITDA, reflecting market strength despite economic challenges. Deep Dive 👉 FT

📦Other

• 🇺🇸 FedEx launches New E-commerce Platform to Rival Amazon. FedEx introduces 'fdx', a data-driven commerce platform. Integrating existing tools with new features, it aims to enhance supply chain management and customer experience, challenging Amazon's logistics dominance. Deep Dive 👉 TheVerge

• 🇪🇺 Counterfeit Goods drain EUR 16B from EU's Clothing, Cosmetics, Toys Industries. The European Union loses nearly 200K jobs annually due to counterfeits. EUIPO study shows significant economic and safety impacts, with major losses in Germany, France, Italy, Spain, and Austria. Deep Dive 👉 Euipo

• 🇪🇺 Ecommerce Europe unveils Manifesto for Digital Commerce's Future. 🇪🇺 Ecommerce Europe Unveils Manifesto for Digital Commerce's Future. The manifesto sets a vision for a sustainable, digital EU economy, focusing on channel-neutrality, harmonization, and a level playing field for businesses. Deep Dive 👉 EE

🌟Spotlight

• 🇩🇪 Hey circle gains €1.5M seed funding for eco-friendly shipping solutions. Munich-based startup hey circle, led by CEO Doris Diebold, secures significant seed investment for innovative reusable shipping systems, aiming to revolutionize e-commerce with eco-conscious practices. Deep Dive 👉 TechCrunch

• 🇺🇸 Sway secures $19.5M in Series A for e-commerce return solutions. Changing the e-commerce landscape, Sway, previously Returnmates, a Los Angeles-based company, rebrands and expands its return services, boasting a 66% reduction in lost packages and a 20% increase in customer repurchases. Deep Dive 👉 TechCrunch

• 🇺🇸 Flexport secures $260M from Shopify, signaling strong e-commerce partnership. Flexport, a leader in digital freight forwarding, gains a significant boost with Shopify's investment, reflecting confidence in their joint e-commerce and logistics endeavors. Deep Dive 👉 Freightwaves

• 🇨🇭 Circunis to launch Swiss B2B Marketplace for Food Surplus in 2024. Funded by Migros Pioneer Fund, Circunis aims to reduce food waste and advance circular economy, connecting producers and traders to tackle Switzerland's waste challenge. Deep Dive 👉 Circunis