MarketLine Blog

Posts about E-commerce

Foot Locker: Share price slides on disappointing results

MarketLine

On Friday August 18, Foot Locker announced financial results for its second quarter ended July 29 and they were not what the markets had expected. In fact, they were way short of what the markets anticipated and consequently, the company’s share price plunged. There is a suggestion that product may be at least partly to blame and as Foot Locker is reliant on the goods manufactured by the likes of Nike and Under Armour, the news had a detrimental impact on their share prices too. High-priced products that have failed… Read more

Spotify: How the Swedish start-up revolutionized an ailing music industry

MarketLine

The power of the internet has grown rapidly since its introduction to the mainstream in the early 2000s and it has become the most powerful tool on the planet, both socially and economically. However the music industry has struggled in recent years, in freefall since the turn of the century and the birth of the mainstream internet. The shift from physical to digital music has been stifled by the rapid growth in internet piracy, with software such as LimeWire, Napster and later torrent clients making it incredibly simple to download… Read more

GAME Digital: How the cyclical console release pattern is stifling GAME’s growth

MarketLine

The video game industry across the West is incredibly cyclical, with regular console releases every seven to eight years providing very large revenues to major players and carrying them through the period in-between releases. However a shift in the console market, with console developers choosing to release completely new consoles at a slower rate and instead releasing interim consoles (such as Sony’s PlayStation 4 Pro), has hurt GAME Digital, a company only recent out of administration. It’s profit warning announced on June 30, the result of Nintendo’s decision to prioritize… Read more

M&S and Debenhams: Online retail to continue its surge while retail outlets continue to close

MarketLine

The growing popularity of shopping via the internet, coupled with both the younger and older generations becoming increasingly tech-savvy, has led to a massive surge in shopping online A bit of rewording would be good so it reads better. – whether it be essentials such as food or clothes, all the way to smaller items. The convenience of doing so has meant that fewer sales have been achieved on the high street for major retailers, and sales revenue have transferred to online equivalents. After recent announcements from M&S and Debenhams… Read more

Selfie generation: Refashioning make-up market

MarketLine

The global make-up industry grew by a record 8.4% in 2016 and was the main growth driver for the cosmetics market worldwide. The range of make-up products is endless, and some product categories, in particular those highly popular with the generation of Millennials, (i.e. concealers, illuminating highlighters, lipsticks) are booming. These hyper-connected customers are young, have a strong purchasing power, new ideas about beauty, and are also very keen to spend money on beauty products. While clothing and department stores are increasingly closing their physical locations, not being able to… Read more

US Retail Apocalypse: Price-sensitive consumers rather than online-purchasers shape the industry

MarketLine

The term “US Retail Apocalypse” which is used to describe the downsizing trend of some of the largest US retailers is characteristic of the widespread belief that online retail has transformed the structure of the US retail industry by incurably altering the habits of US consumers. However, such an explanation is proved to be extravagant based on statistics and data regarding e-commerce penetration. In addition, the steady growth of discount retailers is one of the facts that disapprove this theory of e-commerce prevalence as a distribution channel and key reason… Read more

Beckham’s Target: Posh on a budget

MarketLine

As common household names, celebrities are always being discussed; especially in modern society. The Beckham family is no different, although their fame has stems from football and music to the latest venture of fashion. Victoria Beckham has recently partnered with Target, a US retailer to sell her range of cheap designer clothes for all age ranges and all sizes. Whilst this range is extensive, it is set to only be available for a limited period of time, with online access as well through victoriabeckham.com creating a global customer base. The… Read more

The Digital Age: A Hackers delight

MarketLine

Online storage is a huge leap forward in technology, allowing files to be accessed from anywhere without the need to send them via email. Files can be shared in a much simpler fashion and can be locked to ensure that any changes made are present in a single file as opposed to numerous versions of the file. This online system serves as a backup for companies and customers. A network of banking telecommunications (SWIFT) has been the target of numerous hacking and data leaks over recent years, serving to reduce… Read more

East meets West. The battle for supremacy in India’s e-commerce market

MarketLine

While China and the US currently dominate in terms of e-commerce spending, India is one of the world’s fastest growing internet markets. It is also the fastest growing country in the Asia Pacific region in the retail e-commerce space. The rapid pace of growth of e-commerce in India creates a huge potential opportunity and attracts not only local players but foreign e-commerce giants, like Amazon and Alibaba. The largest local players, Flipcart and Snapdeal, initially seen as the dark horses in this race and attracting serious investment, are now losing… Read more

Netflix competition: Not a chill environment

MarketLine

Growing from a DVD rental/ selling service in 1997, Netflix today has become one of the leading companies in the online streaming market. Netflix has benefitted greatly from the increased range and depth of broadband internet. The global reach of Netflix and its competitors serve to increase rivalry.  Gaming systems which now incorporate applications into their systems present new and growing opportunities and potential dangers for Netflix. The increased advertisements from gaming systems can help recruit more customers which is also an opportunity for competitors of Netflix. Netflix, as one… Read more

Amazon Web Services, revolutionizing cloud computing

MarketLine

Amazon Web Services (AWS) was developed alongside the online retail giant’s vast e-commerce from the world’s largest online retailer’s inception. Although having built its reputation and brand recognition on its retail operations, Amazon has gone on to expand its offerings into products and services as diverse as media, electronics and cloud computing. Responsible for over 4% of Amazon’s revenues in 2013, AWS has seen Amazon sink over 10 years of development and millions of dollars of investment into the world’s largest cloud service provider. Available in over 190 countries worldwide,… Read more

Xiaomi, not the Apple of China

MarketLine

2014 was an important year for Xiaomi, it saw the company become the world’s most valuable technology start-up, triple its phone sales, become the world’s fourth largest smartphone seller, more than doubling its revenue, and saw it expand to a number of new markets including India, the world’s third largest smartphone market. What makes the company’s performance all the more remarkable is that it has achieved this in less than five years of existence, and without a presence in any Western markets. A number of factors have contributed to this… Read more

Independent retailers and restaurants are small but growing organic food sellers

MarketLine

Sales of organic food through independent outlets rose by 6.9% in 2013 to a value of £513m (approximately $801m). Independent outlets include box schemes; farm, health and wholefood shops; farmers’ markets; and online purchases. Most independent retailers have seen strong growth: a Soil Association survey found that 75% grew, with three quarters of these retailers reporting sales growth of more than 10%. Only 6% experienced a decline in sales. Home delivery schemes have been doing particularly well: sales grew by 11% in 2013 to reach £193.6m (approximately $302.6m). Abel &… Read more

Is there a recipe to boost manufacturing sector growth in the Eurozone?

MarketLine

In 2010, the US Federal Reserve (Fed) launched its Quantitative Easing (QE) program with the aim of re-establishing credit conditions by accelerating inter-bank lending and, consequently, supporting business and consumers to have access to relatively cheap loans. The policy was designed to support the overall level of economic activity in the United States, raise inflation and employment to levels consistent with the Fed’s maximum employment and price stability mandate. The announcement that it would artificially create money by increasing its liabilities was seen as an unorthodox monetary policy by mainstream… Read more

Alibaba says open sesame to western markets

MarketLine

  Chinese e-commerce giant Alibaba has increased the price range of its eagerly anticipated IPO to $66-$68 per share, adding further value to the offering, which is already expected to be the largest technology IPO in history (surpassing the $16bn raised by Facebook in 2012). The value could even eclipse the largest ever US IPO – that of Agricultural Bank of China in 2010 – if underwriters exercise options to purchase additional shares. The jump in price means that the IPO could now net over $25bn, valuing the company at… Read more

Russian e-commerce market presents significant business opportunities for those able to overcome its challenges

MarketLine

With 84.4 million internet users and 27 million online shoppers Russia is already the largest online community in Europe and growing rapidly. With a skyrocketing number of Internet users, but a still underdeveloped commercial environment, the opportunity to build a successful online selling business in Russia is huge. The biggest growth areas are mostly in the remote regions, where growth is 50% higher than in central cities. Even amid a slowing economy, the country’s online shopping kept increasing at a double digit rate in 2013, making it the fastest expanding… Read more

Pinterest: social network drives engagement and sales

MarketLine

Retailers are increasingly using social media to enhance their brands, boost consumer engagement, and drive traffic and sales. Pinterest is a particular area of focus; the social network, founded in 2010, is fairly new and growing fast. The image-based network has been found to generate sales, and retail giants such as Target and Nordstrom have utilized this. Social media is used globally Billions of people around the world use social media, and retailers are increasingly witnessing the benefits of this. A study found that 89% of marketers reported found increased… Read more

Global Music & Video – Industry Analysis

MarketLine

Introduction On-going financial difficulties being experienced in many nations around the world, and the rise in illegal downloads have contributed to the continuing poor performance of the global music and video market. Industry figures The global music & video market shrank by -0.5% in 2011, to reach a value of $56.6bn, representing a compound annual rate of change (CARC) of -2.5% for the period spanning 2009-2013. Decline was primarily driven by the largest markets: the US and Europe, which both posted the biggest declines. The US, representing $27bn of global… Read more

Loyalty programs utilizing big data analytics to improve CRM for retailers

MarketLine

Loyal customers are indispensable if retailers are to succeed. According to the Chartered Institute of Marketing, it can cost between 4 and 10 times as much to acquire a new customer (primarily through marketing costs) than it does to retain an existing one. Recognizing the benefit of loyal customers, responsible for around 55%-70% of revenues according to the Center for Retail Management at Northwestern University in the US, retailers developed loyalty programs very early on. From early beginnings in Germany to get around a government ban on price competition, to… Read more

Financial services from Facebook?

MarketLine

Is Facebook planning to enter the European money transfer market? Yes, according to a report in the Financial Times that has been widely disseminated in the media. If so, it’s a bold move, but potentially a highly lucrative one. Let’s look first at the lucrative bit. The global money transfer market is huge and growing. One driver is remittances: money sent home by migrant workers. The figure below shows net transfers (inflows minus outflows) for several regions of the world. It is clear that between 1990 and 2010, there has… Read more

Alibaba: China’s answer to eBay and Amazon

MarketLine

Alibaba has grown from humble beginnings in 1999 to one of China’s largest e-commerce providers. An initial public offering (IPO) on the Hong Kong stock exchange is rumored to happen before the end of 2013, with initial estimates valuing the offering at between $60-120bn. In terms of transaction volumes, the company easily surpasses both eBay and Amazon globally. The company shows no signs of slowing down, with acquisitions in social media and logistics announced in 2013, and even the possibility of expansion elsewhere. Alibaba began in 1999, and in 14… Read more