🌀 Temu Dips in Cold Feb, Amazon Chills ❄️

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Temu Dips in Cold Feb, Amazon in the Chill Lane ❄️

Temu still manages to amaze everyone with its market maneuvers, yet our previous applause for their retention might be hushed as the latest data, particularly regarding the Temu and Amazon rivalry, reveals a less than stellar performance.

• 📉 Decelerating Growth: After a +59% QoQ growth in 4Q23, Temu's user expansion slows, with DAUs declining in February.

• 🔄 Moderation Signs: Despite strong growth in 4Q23, Temu shows moderation in 1Q with a sequential drop in DAUs.

• 🏈 Super Bowl Surge: Temu's downloads jumped +34% on Super Bowl Sunday, yet overall Super Bowl Weekend downloads fell -9% YoY.

• 📊 Download Trends: Increased advertising post-Super Bowl didn't prevent a dip in Temu's app store rank to its lowest since debut.

• 📈 Early Adopter Engagement: Temu’s early adopters quickly outpaced Amazon in time spent by the end of 4Q22.

• 🔄 Easing Competition: By 4Q23, competitive pressures between Temu and Amazon cooled, with Amazon catching up in user engagement.

TikTok's Steam Engine Hits a Lull 🚂

Last week there was a great article in WSJ “TikTok’s Business, in Charts”. Great opportunity to look closely at a potential black horse in ecommerce word that ambitious plan we analyzed 3 weeks ago (link).

If in the U.S., Uncle Sam waves the ban hammer, TikTok's hefty ad cash and legion of scrolling eyeballs could get swiped right into rivals' pockets.

Billions in play, and not a TikTok to waste so we jump right into key insights from the article:

• 🚫 Potential Ban Impact: A U.S. TikTok ban could disrupt users, creators, and advertisers, opening a battleground for rivals.

• 💰 Advertising Ascent: Despite the ban threat, TikTok's ad revenue hit $6.6B in 2023 in the U.S. (Emarketer estimate), showcasing its market impact.

• 👑 Engagement Reigns: Users average over 90 minutes daily on TikTok, topping YouTube and rivaling Facebook and Instagram combined!

• 🥈 Following Giants: Even with high usage, TikTok still lags behind YouTube, Facebook, and Instagram in total U.S. monthly users.

• 🔄 Post-Ban Shifts: A ban could benefit YouTube and Instagram's short-video services, and boost other entertainment forms.

• 📉 Growth Stumbles: TikTok was the star of the social media universe, growing at a dazzling rate of 12-17.5% per year in H1 2022. Fast forward to 2023, and the social media landscape hit a bit of a snag. Things took a surprising turn for TikTok, slipping into some negative growth territory that continues until February 2024.

▶🇺🇸 TikTok's ad blitz amid US ban scare. TikTok, despite the shadow of a potential US ban, pitches innovative ad formats at Shoptalk. With Video Shopping Ads and a focus on e-commerce, it's doubling down on retail, boasting a ROAS that eclipses traditional TV and online rivals.

▶🇬🇧 AliExpress dives into UK livestream shopping. AliExpress partners with Vogue Business for a UK livestream shopping launch, featuring Love Island's Kady McDermott and Olivia Attwood.

▶🇩🇪 eBay cuts fees & booms in Germany's market. eBay's bold strategy to axe selling fees in Germany led to a "double-digit percentage" spike in sellers and a 20% increase in listings.

▶🇲🇽 Mercado Libre boosts Mexico with $2.5B investment, targeting significant expansions in logistics, technology, and workforce. The e-commerce giant sees Mexico as key, with revenue contributions jumping from 12% in 2019 to over 20% in 2023.

▶🇰🇷 Alibaba invests $1.1bn to challenge Coupang to shake up South Korea's e-commerce scene by 2024, targeting Coupang's stronghold with a vast logistics network, enhancing delivery speeds & supporting local businesses.

▶🇬🇧 Amazon Business boosts SME visibility. Latest feature "Prefer Small and Medium Enterprises", helps business buyers easily find and support SMEs, vital for the UK's economy.

▶🇩🇪 Otto Group targets 42% emissions cut by 2031, endorsed by the Science Based Targets Initiative (SBTi).

▶🇺🇸 Shein revolutionizes fashion with new service 'supply chain-as-a-service' for third-party brands. This pivot aims to leverage its made-to-order model, ensuring small-scale launches and testing of new products, thus maintaining efficiency and sustainability.

▶🇩🇪 Zalando dives into TV series shopping. Zalando, partnering with RTL+, introduces an in-stream shopping feature for "Gute Zeiten, schlechte Zeiten" fans. This tech marvel allows viewers to shop directly via the RTL+ app, blending entertainment with instant fashion gratification since March 11th.

▶🇩🇪 Zalando to dazzle Dresden with new outlet. Zalando announces a late summer opening for its new outlet in Dresden, promising a shopping haven with up to 70% discounts. Spanning 1,500 square meters over two floors, the outlet brings a unique mix of fashion, beauty, and pre-owned items.

▶🇪🇸 Mango boosts sales with AI magic. In 2023, it recorded a massive $3.39B in sales, thanks to AI platforms like Midas for pricing, Gaudí for product recommendations, and Inspire for design creativity.

▶🌎 eBay gears up luxury fashion consignment, building on its designer handbag service launched in September 2023. The partnership with Linda’s Stuff for item handling and eBay's steps to secure luxury sales highlight its ambition.

▶🌍 Farfetch dives into AR for luxury bags. Farfetch's AR branch “Wanna” introduces a virtual try-on solution for luxury bags, aiming to replicate the in-store shopping experience online.

▶🇬🇧 Depop ends fees for UK, boosts resale. Depop has eliminated its 10% seller fee for UK listings. The company's CEO, Kruti Patel Goyal, highlights this shift as a boost for the resale economy, aiming to empower sellers & enrich the platform's community.

▶🇰🇷 Sephora says goodbye to Korea this spring, starting to close down its online, app, and physical stores from May 6. The exit includes the loss of loyalty points for members and deletion of their info, with customer service winding down by mid-August.

▶🇺🇸 DoorDash delivers Baconators by drone, in collaboration with Wing. Residents within 2.5 miles of the Wendy's location in Christianburg, VA can enjoy aerially-delivered square beef sandwiches.

▶🇺🇸 Walmart speeds up with same-day delivery. Walmart's partnership with Instacart for same-day delivery in Los Angeles, San Francisco, San Diego, and Tulsa heats up the competition with Amazon.

▶🇺🇸 Target speeds up checkout with express lanes with a limit of 10 items, promising to cut waiting times in half.

▶🇧🇷 iFood gig workers find ways around bans. As gig work's profitability dwindles in Latin America, workers resort to renting accounts from peers to sidestep platform bans, impacting up to 30% of gig workers in Mexico.

▶🇩🇪 Getir gears up for a German feast. After acquiring Gorillas, Getir is now eyeing Flink, the German leader in quick delivery. Talks with Flink are progressing, with its CEO potentially becoming Getir's European head. Flink's need for funds amid rising costs and shrinking demand might seal the deal.

▶🇺🇸 Chick-fil-A launches mobile-only spot in NYC. This tech-forward spot on the Upper East Side will cater exclusively to online and app orders, marking a significant shift in dining trends post-pandemic.

▶🇬🇧 Deliveroo launches free childcare for riders. Teaming up with Bubble for 15,000 childcare hours and Lynx Educate for over 1,500 courses, the company aims to provide unparalleled flexibility and growth opportunities for its riders.

▶🇺🇸 Wayfair's retail gamble: small but mighty. Wayfair's tiny Birch Lane stores in Florida serve as a mini lab, setting the stage for a big reveal: the May opening of its Chicago flagship.

▶🇺🇸 Meta's big bet on shopping via social. With a forecasted 20% revenue boost in 2024, Meta's Amazon collab is poised to morph social media into a bustling e-marketplace.

▶🇺🇸 Kroger and Walmart hike prices during pandemic. The FTC slams major retailers like Walmart and Kroger for using the pandemic as a pretext to jack up prices, impacting consumers and competition. The investigation, touching on giants such as Amazon and Tyson Foods, highlights the struggle of smaller grocers against these "power buyers."

▶🇫🇷 Kingfisher expands with Castorama marketplace. Kingfisher's latest move to launch a marketplace in Castorama France introduces over 500,000 new products, enhancing choice for DIY enthusiasts. This significant expansion, enabled by Kingfisher's tech, sets a new standard in home improvement retail.

▶🇸🇬 Decathlon dives into second-hand bicycles. Decathlon Singapore and Carousell have teamed up, launching an official store for refurbished bicycles and trade-in program.

▶🇮🇳 Decathlon doubles down in India, eyes growth. Entering in 2009, with a network of 129 stores, the sports retailer aims to enhance local production and exports. Its app saw 29 million downloads, a testament to its booming presence.

▶🇮🇳 POP revolutionizes D2C with POPcoins. POP aims to disrupt e-commerce with a unique marketplace for D2C brands, leveraging its UPI handle to offer POPcoins rewards. With 140 brands like Perfora & Khadi Essentials on board, it targets 10M users by 2024, addressing high acquisition costs.

▶🇺🇸 Nvidia's AI nurses take on healthcare advice. Nvidia's collaboration with Hippocratic AI to introduce generative AI nurses offering real-time medical advice over video calls for just $9 an hour aims to address healthcare accessibility & efficiency.

▶🇨🇦 Fashionphile expands with 2a acquisition. Fashionphile, a key player in the resale market, has officially acquired Montreal-based Two Authenticators Inc. (2a), marking a significant expansion in its B2B and omnichannel operations.

▶🇦🇺 Bazaa raises $650K for antiques market. Bazaa, founded by Voly's Thibault Henry and Depop's Aria Wigneswaran, kicks off with $650K from angels. They're reshaping the pre-loved furniture scene with thousands of items already listed.

▶🇺🇸 mmERCH's 6.4M investment shakes up fashion. Web3 fashion startup mmERCH bags a whopping 6.4M in seed funding, led by Liberty City Ventures. Founder Colby Mugrabi promises "neo-couture" collections, melding AI and blockchain for unique fashion pieces. Debut in April.

▶🇨🇦 Landerz secures $1.5M for land tech boost. Backed by Accelia, Investissement Québec, and others, Landerz targets Canada's pressing need for 3.5 million homes by 2030, unveiling 100,000 high-potential sites in Montreal.

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