Hey there, still recovering from all the food during the Christmas break? Lay back and scroll through the latest eComm news below!
Your holiday order this week:
Coupang Rescues Farfetch with $500 Million Lifeline
Small Businesses eCommerce Surge, PYMNTS Survey Reveals
AI to influence $194 billion in online holiday sales
Ecommerce Trends Shaping 2024 by Mirakl
Sustainable Fashion & Community Building
Coupang Rescues Farfetch with $500 Million Lifeline
South Korean eCommerce giant Coupang has stepped in to save luxury retailer Farfetch, injecting a crucial $500 million into the financially challenged company.
The deal, announced Monday, not only provides a much-needed financial boost for Farfetch but also grants Coupang access to the lucrative personal luxury goods sector.
Farfetch founder José Neves had considered taking the company private, and the acquisition by Coupang signifies a pivotal move in that direction. The deal also marks the end of Farfetch’s attempt to acquire Yoox Net-A-Porter from Richemont, the owner of Cartier.
Facing financial uncertainties, Farfetch recently chose not to disclose its Q3 2023 financial results. Despite challenges, the retailer experienced a turnaround in May, reporting 8% year-over-year revenue growth, attributed to improved inventory management and strategic partnerships.
With the Coupang deal, Farfetch aims to secure stability, emphasizing the critical role of strategic alliances in navigating industry shifts.
Small Businesses Thrive in E-commerce Surge, PYMNTS Survey Reveals
Small businesses are not merely adapting; they are thriving in the e-commerce landscape, with 80% boasting a basic e-commerce site, according to a PYMNTS Intelligence survey.
Recognizing the critical role of online channels, almost all small to mid-sized businesses (SMBs) on Main Street, USA, see them as essential for sustainability, contributing to $793.7 billion in e-commerce sales for the first three quarters of this year.
The survey underscores that nearly eight in 10 small businesses are actively utilizing online channels, with 16% expressing interest in adopting them. Impressively, the average small business already generates 50% of its sales online, with Main Street retail SMBs leading the charge at 54%.
Key findings highlight that 57% of Main Street SMBs predominantly engaged in online sales anticipate revenue growth in 2023. Despite optimism, 21% cite security concerns as a challenge in navigating online sales channels.
As the economy shows signs of slowing down, the survey emphasizes the increasing importance of e-commerce for SMBs.
AI to influence $194 billion in online holiday sales
Salesforce’s analysis of holiday sales unveils the dominance of two key retail tech trends this season:
Artificial Intelligence (AI) and
Buy Online, Pickup In Store (BOPIS)
AI has influenced a significant 17% of online orders since November 1, with projections indicating a $194 billion impact on holiday sales by season’s end. BOPIS adoption surged, constituting 25% of online orders post-Cyber Monday and reaching 28% by mid-December, reflecting a 4% YoY increase.
The analysis, based on data from over 1.5 billion consumers, highlights a doubling in returns post-Cyber Monday, with an estimated $131 billion worth of online orders expected to be returned in the next year.
Notable figures include, 6% YoY growth in EU online sales versus 1% in the U.S., resulting in a 3% YoY global growth since November 1. The average discount rate during Cyber Week reduced from 27% to 18%, while mobile wallet payments globally increased by 47% in the three weeks following Cyber Monday. Mobile devices dominated digital traffic, comprising 75%.
Ecommerce Trends Shaping 2024 by Mirakl
In the dynamic landscape of ecommerce, 2024 brings transformative trends. Retail media is poised to exceed TV ad spend, reaching $176 billion by 2028, with a focus on AI-powered personalization.
The AI-first marketplace era begins, enhancing B2C and B2B shopping experiences through technologies like conversational commerce.
Payments security takes center stage, leveraging AI and contactless transactions for heightened protection. Buy Now Pay Later (BNPL) options gain traction, offering secure payment alternatives amid economic uncertainties.
Marketplaces prove crucial for retailer agility, allowing experimentation and growth without traditional inventory risks. B2B marketplaces drive digital transformation, becoming one-stop shops digitizing entire value chains.
Sustainable practices, integral to the circular economy, rise in demand. Refurbished and recycled products are anticipated to thrive in 2024, fueled by consumer preferences and regulatory mandates. These trends signify a dynamic year ahead for the evolving ecommerce sector.
Sustainable Fashion & Community Building
In a pivotal era where fashion becomes a statement of identity, the $1.5 trillion global fashion market anticipates 5-6% annual growth until 2025 (The Business Research Company). Beyond numbers, it embodies art, expression, and cultural narrative.
Amid this wave, innovative brands redefine fashion narratives, witnessing a surge in sustainable, inclusive, and uniquely designed labels. These brands incubate ideas, marking a shift towards inclusivity and environmental consciousness.
Social media and e-commerce empower smaller brands globally. Consumer preferences lean towards ethical brands; 73% of millennials are willing to spend more on sustainability (Nielsen).
Next-gen brand incubation in e-commerce emphasizes a holistic approach. Mio Ho, Founder of SYLPH, stresses innovation, individuality, and empowerment in the digital age. Prioritizing sustainability and ethics, next-gen incubation models lead in eco-friendly materials and ethical practices.
Building communities is crucial; next-gen models foster loyalty. Challenges include staying ahead of trends and tech, demanding agility.
Fashion’s future transcends garments; brands reshape the industry. The fusion of technology, consumer engagement, and sustainability marks a dynamic era. Next-gen incubation promises a responsive and responsible fashion industry, sparking transformative changes online.
Signing off,
The Merchant @CartHustle