🌀 Temu hits growth limits in Europe and US? 🚪

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Data from Foxintelligence and Apptopia show Temu's growth slowing down in Europe and the US. This report analyzes market saturation in Eu and US and engagement trend in the US.

📊 Temu’s European growth slowdown

• Foxintelligence data shows Temu's market share has stabilized since March 2024.

• Growth was fast in Q3 2023, but Q4 2023 was weaker in France, UK, Spain, Italy, and Germany.

• Spain saw 1 in 3 online purchases on Chinese marketplaces by mid-2024, suggesting market saturation.

📉 Declining engagement in the US

• Apptopia data reveals a slowdown in Temu's new US users, with negative growth starting in July 2024.

• Average time spent on the app dropped from 25 minutes per day in March to 21 minutes per day by July.

• User engagement has fallen, with a decline in panel users who still use Temu in Q2 2024.

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Data from ECDB highlights trends in the global eCommerce market from Sep 2023 to Aug 2024, focusing on key players China, the U.S., and the U.K. as they navigate growth and challenges.

📊 Global eCommerce Trends

• ECDB reports a 1.5% dip in the global eCommerce market for August 2024.

• Highs were seen in October 2023 and March 2024, with significant dips in December 2023 and April 2024.

• Despite the global downturn, China and the U.S. showed stronger performance than the U.K.

• The U.S. and the U.K. ended August with larger declines—4% and 3.7%, respectively.

🛒 China’s Dominance in eCommerce

• China remains the largest eCommerce market, expected to reach $2.02T by 2024.

• In August 2024, China saw only a 1% decline, performing better than the global average.

• The market experienced rapid growth in late 2023, despite price wars between giants like Alibaba and JD.com.

• Experts warn of "shrinking margins and potential deflation" from aggressive price cuts.

📦 U.S. eCommerce Market Update

• The U.S. market is projected to hit $1.06T in revenue by 2024.

• August 2024 saw a 3.8% decline following a stronger July.

• Walmart's online sales surged by 22%, and Amazon's North American sales rose by 9%.

• Both companies are using tech innovations to stay competitive in a shifting market.

⚖️ UK eCommerce Faces Legal and Market Challenges

• The U.K. market posted a 3.7% decline in August 2024, worse than the global trend.

• Amazon is facing a $1.28B lawsuit from the British Independent Retailers Association, accused of misusing non-public data.

• The lawsuit claims Amazon manipulated its Buy Box to prioritize its own products, harming smaller retailers.

• Many small businesses have struggled to compete, leading to a loss of market share.

▶🇺🇸 Walmart expands with new StockX sneaker deal. StockX will launch next week on Walmart.com, offering hundreds of pre-verified shoes. The move is part of Walmart’s strategy to boost its marketplace’s growth.

▶🇨🇳 Temu owner PDD holds $38B cash, no payouts planned, surpassing even Tesla. However, the company refuses to offer dividends or share buybacks, which caused a 31% stock drop. Concerns rise over its limited financial transparency.

▶🇨🇳 ByteDance eyes record $9.5B loan for expansion. Banks like Citigroup and Goldman Sachs are interested. ByteDance plans to invest in e-commerce, generative AI, and research while refinancing a $5B loan.

▶🇩🇪 Amazon faces scrutiny in price control probe. The Federal Cartel Office is investigating Amazon's price control mechanisms and brand gating. It surveyed 2,000 third-party retailers to understand the impact of Amazon's algorithms, which can limit competition on its marketplace.

▶🇮🇳 Amazon invests $20M in India’s BNPL firm Axio, which serves 9M customers and 3,000 merchants. Axio aims to scale its loan book, enhance its offerings, and unlock credit for 200M new customers across India.

▶🇺🇸 eBay shifts global media to Dentsu’s iProspect. After a competitive pitch involving Havas Media, iProspect stood out with its passion for eBay and an integrated campaign model.

▶🇦🇷 Mercado Libre to invest $75M, create 2,300 jobs to build a new logistics center in Buenos Aires, creating 2,300 jobs. President Javier Milei praised Galperín’s contribution to Argentina's economic growth during his visit.

▶🇨🇦 Shopify partners with Roblox for 80M new customers. Shopify teams up with Roblox to let brands sell real items in-game. The pilot will launch in 2025, offering new opportunities for brands and creators. Roblox is popular among youth, despite past concerns over safety.

▶🇬🇧 ASOS offloads 75% Topshop stake for $146M to strengthen its balance sheet. ASOS retains 25% and faces pressure from rivals like Shein and Temu. Shares rose 18% following the announcement.

▶🇵🇱 Shein hires Polish IT experts for Warsaw team. The brand plans to hire 10 employees as part of its Europe Technology Centre. This follows Shein's rapid expansion in Poland, with warehouses and teams already in place.

▶🇬🇧 Littlest Luxuries relaunches after key merger with peer platform Little Fashion House. The business aims to be the leading marketplace for authenticated luxury childrenswear, addressing high clothing circulation and reducing waste. The marketplace had 600+ sellers on a waitlist before launch.

▶🇺🇸 Google expands AI to offer dress try-ons, supporting brands like Boden and Sandro. Dresses are more complex than tops, so Google developed new technology to provide lifelike, detailed virtual experiences.

▶🇨🇳 Balenciaga unveils exclusive sneaker on JD.com on September 3, 2024. JD.com is now the exclusive online channel for Balenciaga’s new Stapler Sneaker. The partnership includes a wide range of collections and interest-free installments.

▶🇪🇸 Mango boosts online reach with 12 new markets, including Angola, Belize, and Laos, bringing its presence to over 120 markets. The company reported over $1B in online revenue in 2023, making up 33% of total sales.

▶🇬🇧 Reboxed unveils ReboxedOS for recommerce growth. Reboxed's new platform, ReboxedOS, empowers brands to scale resale and recycling programs. Founded in 2019, the London startup helps retailers like Three Mobile, aiming to rehome 100M devices and promote sustainability.

▶🇬🇧 Gymshark and La Redoute appoint new top executives. Gymshark appoints Sian Keane as chief people officer, while Fabien Versavau is set to take over as CEO of La Redoute. Both brands focus on global growth, with Gymshark transforming into an omnichannel giant and La Redoute strengthening its home and fashion segments.

▶🇦🇪 Mubadala seeks full control of Türkiye’s Getir on its home market after securing $250M in June. This follows Getir's exit from Europe, with founders retaining a minority stake.

▶🇦🇹 Kaufland expands Marketplace to Austria on September 4, 2024. This is the fourth country for its e-commerce platform, which is already available in Germany, Poland, Czechia, and Slovakia. Kaufland aims for rapid growth.

▶🇩🇪 REWE partners with Lieferando. REWE has teamed up with Lieferando to provide 45-minute grocery delivery in 40+ cities. Customers can choose from over 3,000 products with orders starting at $21. Delivery fees vary from $2, but are free for large orders.

▶🇿🇦 SPAR sells Polish stores to Specjal for $10M. SPAR Group is selling its struggling Polish division to Specjal for $10M. SPAR will recapitalize the business at a cost of $143M to clear debts. This deal refocuses SPAR on its South African core operations.

▶🇩🇪 Delivery Hero to raise $1B from Talabat IPO. Delivery Hero is planning to list its Talabat unit on the Dubai stock market, aiming to raise $1B. Emirates NBD, Morgan Stanley, and JPMorgan are handling the IPO. Talabat's valuation could exceed €5.4B.

▶🇮🇳 Swiggy launches Incognito Mode for private orders that are hidden from their order history. Currently available to 10% of users, this feature caters to the rising demand for privacy in online transactions.

▶🇩🇪 Alnatura ends delivery service after 2 years on Sept. 30, 2024. The company struggled with technical issues, high costs of electric vehicles, and scattered customers. Alnatura will now focus on its core in-store business.

▶🇯🇵 7-Eleven rejects $38B takeover bid from ACT. Seven & i Holdings rejected Alimentation Couche-Tard’s $38B offer, calling it too low and risky. The deal could create a 100K-store giant, but 7-Eleven is skeptical. The Japanese firm is open to better offers but warns of regulatory hurdles.

▶🇸🇬 Qoo10 lays off 80%, leaves only 20 staff in S’pore. 90 of the 110 employees were laid off, leaving only senior management to run day-to-day operations. This comes after financial trouble in Qoo10’s South Korean branch, raising questions about the company’s future.

▶🇨🇳 Alibaba’s Taobao to accept WeChat Pay soon. This breaks the "walled garden" payment rivalry between Alipay and WeChat Pay. The move comes after JD.com and Pinduoduo already allowed WeChat Pay.

▶🇨🇳 UPS introduces $0.50 surge fee on China imports. UPS will apply a $0.50 per-pound surcharge to imports from China, Hong Kong, and Macau. Other countries like Japan and Australia will see a $0.25 fee per pound. The move is meant to offset rising shipping costs, especially with the surge in e-commerce from sites like Temu and Shein.

▶🇨🇳 TikTok launches AI voice-over creation tool. Developed by parent company ByteDance, this feature is part of a broader AI push. The tool could save time and effort in content creation.

▶🇫🇷 Ochama expands Paris pickup points amid 172% growth. Offering faster delivery and a broader product range, the move improves shopping for French customers.

▶🇳🇱 ChannelEngine helps Amazon Vendors recover 3.5% losses. ChannelEngine’s Vendor Hub introduces a Recovery Management solution aimed at helping Amazon Vendors reclaim 3.5% of their unpaid revenue, amounting to millions in lost profits due to shortages and pricing discrepancies.

▶🇩🇪 SellerX auction reveals Aggregator struggles. Amazon Aggregator SellerX, founded in 2020, will be auctioned on Sept 17. Despite $900M in investments, financial struggles led to Blackrock pulling its $400M loan. This highlights broader issues with the Amazon Aggregator model.

▶🇬🇧 Warehow raises $2.7M to expand warehouse capacity. UK-based Warehow has raised $2.7M in a Series A round to expand its fulfilment services. Led by Mercia Ventures, the funds will grow storage and improve technology for major clients like Puma and River Island.

▶🇸🇦 Syarah secures $60M in Series C for expansion. Riyadh-based car marketplace Syarah raised $60M in a Series C round. Led by Artal Capital, funds will help expand their platform, selling new and used cars. The funding includes $20M in debt from US-based Partners for Growth.

▶🇮🇳 Zepto valuation hits $5B after $340M investment. Zepto's valuation surged to $5B after raising $340M in a funding round led by General Catalyst Partners. The Mumbai-based company plans to expand with over 700 warehouses by March 2025.

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