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Why Shein should buy PEPCO?🎯

Let's talk shop - literally. The retail landscape has witnessed several significant online giants making their way into the brick-and-mortar realm. Here's a quick overview of a few notable ventures:

• 🛒 Amazon Takes on Whole Foods: Amazon's purchase of Whole Foods for a hefty $13.7B was a historic move.

• 🏪 Alibaba's Retail Revolution: Alibaba's introduction of Hema supermarkets marked a new era in shopping.

• 👗 Farfetch's Future Fashion: Farfetch transitioned from online to on-site by launching its "Store of the Future," revolutionizing luxury shopping with a unique mix of digital data and physical presence.

While Amazon and Whole Foods have made significant strides, both Alibaba and Farfetch face challenges that impact their strategies. However, they aren't the only ones exploring physical retail spaces.

In 2023, SHEIN has ventured beyond digital, partnering with Forever 21 to enter US malls and experimenting with pop-up stores, like those in Dallas and Los Angeles. I strongly believe this move would be 10x more powerful in Europe.

Why SHEIN Should Target Europe's Offline Market?

• 👀 Increased Brand Visibility: Establishing a presence in Europe would enhance SHEIN's brand awareness and reinforce its global stature.

• 🌿 Easy Pickup/Returns: Shein would simplify the ordering process, no customs, ending the hassle of sending items back to Asia.

• ⏩ Faster Delivery: With local warehouses, SHEIN could dramatically reduce waiting times for deliveries, key aspect where they fall behind with their 2 week delivery.

• 🤝 New service for Local Sellers: By utilizing local warehouses, SHEIN could offer fulfillment services akin to Zalando & ZEOS, benefiting European sellers and exponentially increasing the offer.

The Ideal Target? PEPCO!

If you're unfamiliar with PEPCO, it's a European chain known for offering affordable apparel and household products. With 4.8k stores and $6B in revenue, compared to SHEIN's rumored $30B in 2023, PEPCO is a significant player in the European discount retail market. PEPCO in their 2023 Capital Markets Day presented strategic map where they placed Shein next to PEPCO.

The Synergy Between SHEIN and PEPCO:

• 💻Complementary Channels: No words needed

• 🔄 Complementary Categories: Both focus on fashion and home goods, with Shein following most recent trends and PEPCO only must haves dabbling in FMCG.

• 🌏 Complementary Sourcing: Both source primarily from Asia. PEPCO, through its sourcing arm PGS, aims for quality and affordability by supporting local producers. Imagine SHEIN enhancing its sellers' production capabilities through a support network.

• 💡 Synergistic Capabilities: SHEIN's digital expertise combined with PEPCO's retail presence could create an unmatched retail powerhouse. While SHEIN excels in digital innovation and online presence, PEPCO's strengths lie in its physical stores and value offerings, despite lacking digital capabilities like an app or loyalty program.

• 💰Great Potential Price: Pepco has been struggling in the last year or so. The current market price is reflection of that (Todays stock price is 55% cheaper than a year ago!).

This move could leverage the best of both worlds, merging SHEIN's online agility with PEPCO's retail might to redefine the European retail landscape forever.

Rithum, the powerhouse in global e-commerce that used to go by CommerceHub and ChannelAdvisor, just dropped some fresh insights in the 2023 Online Consumer Behaviour Global Report

They've been digging into the 2023 ecommerce scene, trying to get the scoop on how, where, when, and why we're all clicking away online these days.

Rithum teamed up with Dynata, a top-tier global research firm, to chat with online shoppers all over the place. In August 2023, they reached out to over 6K active online shoppers hailing from the US, UK, Australia, France, Germany, Sweden, and Denmark.

Ready for the juicy bits? Here are the key takeaways:

1. 🔄Shoppers Are Going Multi-Channel: Turns out, 83% of global shoppers aren't putting all their eggs in one basket. They're hopping across two or more sites before hitting the 'buy' button. And get this - a whopping 72% check out two to four sites. Talk about shopping around!

2. 🔍First Stop - Search Engine: When it's time to shop or just window shop, the majority kick things off with search engines. Yep, 42% are there to buy, and 43% are on the prowl for info. But it's not just Google getting all the love. Brand websites catch the eye of 12% of buyers and 14% of the curious, while Amazon pulls in 33% of buyers and 31% of researchers.

3. 🏪Multiple Marketplaces stops: three-quarters of shoppers globally are all about browsing and buying on various marketplaces. And over in Germany, a staggering 83% of consumers are making the rounds across 2+ different marketplaces.

As I received a lot of great feedback on our latest test with Linkedin (Thank you!), I decided to reverse back to old news style. Each news has a link that points to our MarketMaze page with the full article. Full article also has further links to additional resources on the news from e.g. Reuters, CNBC or TechCrunch.

▶ 🇺🇸 TikTok's battle cries echo in Congress halls. TikTok fires up 170M users to fight a looming US ban, leveraging its platform for a massive call to action. As Congress eyes a TikTok crackdown, the app unites creators and users in a digital showdown.

▶ 🇺🇸 Amazon halts loans in its $140B Marketplace biz. Amazon's pivot from lender to third-party financier marks a major shift for its $140B Marketplace (only counting fees to 3rd party sellers). Sellers, making up 60% of sales, face new challenges and fee increases, stirring a mix of outrage and concern.

▶ 🇺🇸 Walmart, Target chase Amazon's ad spending boom. Advertisers are broadening their retail media horizons, shifting ad dollars from Amazon to platforms like Walmart and Target, sparking a competitive frenzy in the ad world.

▶ 🇨🇳 JD.com's low prices strategy boosts Q4 revenue. JD.com's focus on affordability leads to a 3.6% revenue rise to $43.1B in Q4, alongside a strategic $3B share buyback plan and a robust net income growth.

▶ 🇺🇸 Target launches Circle 360, eyeing Amazon Prime. Target unveils Circle 360 for $99/year, targeting Amazon Prime with unlimited same-day delivery. With 300 new stores on the horizon, Target's not slowing down.

▶ 🇩🇰 Vinted expands with Trendsales in the Nordics. Vinted's acquisition of Trendsales aims to conquer the Nordic second-hand market, tapping into Denmark's growing demand for pre-loved fashion.

▶ 🇮🇳 Asos eyes Indian market with Reliance Retail tie-up. Asos is in talks with Reliance Retail for an exciting entry into the Indian market, eyeing online and offline presence through Ajio and Centro stores. The move could boost Asos's sourcing and expand Reliance's fashion portfolio.

▶ 🌍 DHL dives deep into resale revolution. DHL partners with Reflaunt for a logistical leap into the resale market. Aiming to make vintage shopping seamless and eco-friendly.

▶ 🇺🇸 StockX kicks it in AR with Apple Vision Pro app. StockX leaps into AR with a shopping app for Apple Vision Pro, offering 3D sneaker models and immersive experiences. Say goodbye to traditional shopping!

▶ 🇬🇧 Frasers waves goodbye to Matches after brief fling. Frasers Group's £52M investment turns sour as Matches Fashion is set for closure, marking a quick end to a luxury e-commerce experiment.

▶ 🌎 Uber Eats turns pizza delivery into a safari!. Uber Eats' new live location-sharing helps couriers brave jungles for your pizza. Available in 11,000 cities, except Quebec, it's the outdoor delivery game-changer we didn't know we needed!

▶ 🇺🇸 Instacart and DoorDash hustle with grocers. Instacart and DoorDash team up with regional grocers like Canseco's Market & Rouses Markets for an ecommerce sprint. The digital age welcomes groceries with open arms.

▶ 🇮🇳 Swiggy's valuation soars to $12.16B, beats records. Baron Capital marks Swiggy at $12.16B, surpassing its $10.7B value in 2022. A leap from a $5.5B low, hinting at India's booming food delivery sector.

▶ 🇵🇱 Carrefour and Wolt turbocharge e-commerce in Poland. Carrefour Polska partners with Wolt for fast delivery, expanding e-commerce reach. The strategic move aims at enhancing online shopping convenience and broadening customer base.

▶ 🇩🇪 Delivery Hero optimizes with USD syndication magic. Delivery Hero restructures with a USD syndication, extending maturity to 2029 and reducing interest rates, while preparing to repurchase convertible bonds.

▶ 🌎 Airbnb steps up game, verifies 1.5M listings. Airbnb's new verification wave catches 1.5M homes, leaving 80% still in the queue. Stricter policies slash host cancellations by 36%, and the top 25% of listings now shine with new badges.

▶ 🇺🇸 GoDaddy Airo saves small businesses big bucks. GoDaddy Airo™ promises $4K+ savings and 300hrs for small businesses. A new era of AI-driven operations starts, with only 26% currently on board.

▶ 🇬🇧 Amazon & eBay champion green startups for 2024. Amazon's 2024 Sustainability Accelerator teams up with Europe's climate experts, targeting consumer goods to energy solutions. Meanwhile, eBay UK funds circular fashion innovators, boosting sustainable startups.

▶ 🇫🇷 Alltricks pedals past with a 5% growth spurt. Alltricks, the French e-commerce cyclone, sweeps through 2023 with a 5% sales bump, reaching $245M. With a new CO-CEO duo steering, expansion, and a booming second-life bike service, they're pedaling past expectations.

▶ 🇺🇸 Klaviyo conjures up marketing magic with AI. Klaviyo's new AI tool transforms digital marketing with spellbinding features for smarter customer engagement and revenue growth.

▶ 🇩🇪 Razor Group swallows Perch in mega-deal. Razor Group acquires Perch, hinting at e-commerce shakeup. The move adds 40,000 products and aims for over $1B revenue. Investors back with Series D amidst a sales boom dip.

▶ 🇳🇱 Fonq embraces Naduvi, eyes e-commerce throne. Fonq acquires Naduvi, blending unique scales & tech to spice up the furniture e-commerce scene. Both leaders eye a stronger market stance, weaving a new era in Home & Living.

▶ 🇩🇪 Douglas aims for a stunning $1.2B Frankfurt IPO. Douglas, with roots dating back to 1821, seeks a major IPO in Frankfurt, aiming for $1.2B to slash debt and sprint ahead in the premium beauty market as early as by end of March.

▶ 🇪🇸 Webel nails €2.1M for service marketplace. Webel, a Spanish sensation, has bagged €2.1M to enlarge its service emporium, witnessing a 10x growth spurt annually, courtesy of top investors like Trind Ventures & Zaka Ventures.

That’s all. See you next week in the 🌀Maze!