- Growth Classics
- Posts
- Never Fully Read #20 - eCom weekly
Never Fully Read #20 - eCom weekly
Your weekly eCom drop including...China, Amazon, Shopify, IPO's, Nike & much more
☕️ Morning Inspiration:
“The real test is not whether you avoid this failure, because you won’t. It’s whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere.”
→ Barack Obama
⬇️
🤖 eCommerce News:
“Alibaba shares have slumped by more than 10% in Hong Kong trade after the Chinese online retail giant warned of a slowdown in consumer spending. The company forecast that its annual revenue would grow at the slowest pace since its stock market debut in 2014. The weak figures underscore the firm's struggles with increasing competition and Beijing's regulatory crackdown.”
“Amazon users were told of the changes this week. After making purchases they received a notification from the company saying that from Jan. 19, 2022 “we will no longer accept Visa credit cards issued in the U.K.” due to the high fees charged to process transactions. Visa shares slumped 5.2% to $203.96 at 9:36 a.m. in New York. They’ve dropped 6.6% this year, compared with a 29% increase for the S&P 500 Information Technology Index.”
“Founded in March, OpenStore is doing everything in a hurry. The startup launched with backing from Founders Fund, where Rabois is an investment partner, and startup studio Atomic. In June, it reached a reported $250 million valuation after raising $30 million in a round led by Khosla Ventures pre-launch. Now, with a team of 35 and more than a dozen merchants rolled up into its platform representing tens of millions in revenue, the Miami-based startup has gone back to the well to make Rabois’ target a reality.”
“Nike is teaming up with Roblox to create a virtual world called Nikeland.
Users will be able to dress up their avatars in Nike-branded sneakers and apparel.
Nikeland will be free for now, but could be a place to try out new products and gauge consumers’ interests.”
“Investors are keen to get into the online grocery boom. Plus, Mondelez sees online snack-shopping boom lasting beyond pandemic. Daily Harvest, a company that specializes in frozen-food products, including ready-to-blend smoothies, is valued at $1.1 billion after its latest round of funding, said founder and Chief Executive Officer Rachel Drori.”
“Faire, a San Francisco and Waterloo, Ontario-based online wholesale marketplace connecting more than 300,000 retailers with 40,000 brands around the world, has closed $400 million in Series G financing. The round was led by new investor Durable Capital Partners and existing investors D1 Capital Partners and Dragoneer Investment Group.”
“The ecommerce sector in India is currently at a late growth stage due to the presence of multiple players and the emergence of new models such as direct-to-consumer or D2C, the Thrasio model of consolidation and growth and the rapid rise of social commerce. Besides, the country is home to more than 4,658 ecommerce startups, accelerating the advantages they can bring in the consumer retail segment and digital commerce models.”
“Amazon announced a new version of its Halo fitness band at its September hardware event, Halo View, Amazon’s first wearable with a display”
⬇️
📈 Trends Of The Week:
Scott Galloway: Profits are going out of style
Only a quarter of this year’s IPOs were profitable. (Source Video)
Home Security Is Heating Up
“Subscribers to r/HomeSecurity have grown by ~43% over the last 12 months.
The global home security industry is expected to reach ~$79B by 2025 (at an 8% 5-year CAGR).
One of the biggest in-demand items in the US is the home security camera -- particularly wireless options.”
The Hunt Is On for Foragers
“It’s in vogue to channel your inner hunter-gatherer these days, with significant emphasis on the gathering.
TikToks’ #foraging has 397m views -- up by 22m in the last 10 days. The r/Foraging subreddit is closing in on 160k subscribers. US searches for “foraging near me” are (cough) mushrooming.”
Opportunities:
1) Providing experiences, including: e.g.Guided foraging excursions (e.g., mushroom hunting) or Culinary experiences, like a US version of Sweden’s The Edible Country where visitors cook recipes designed by Michelin-starred chefs, from their own foraged ingredients (add a guide or professional chef at an extra charge)
2) Developing apps: Local foraging guides and identification apps are one of the biggest needs in the r/Foraging subreddit
3) Merch and equipment: There are ~2k monthly searches for “foraging book” on Amazon, per Jungle Scout (up 44% over the last 90 days). This $42 waxed foraging pouch brings in ~$22k/mo.; knives and baskets are also popular items (put together a beginner’s kit!)”
- Trends.co
⬇️
🛍 My marketing highlight:
Mr. Beast Burger Launch Case study:
“How Mr. Beast was able to launch 300 restaurant locations overnight & make $8 million in 3 months by selling burgers
It took McDonald’s over 10 years to launch 700 locations. It took one night for Jimmy Donaldson aka Mr. Beast to launch a burger chain in 300 locations.
Thanks to over 49 million subscribers, Mr. Beast was able to successfully launch a restaurant chain without spending anything on infrastructure or marketing.”
⬇️
❓Quotes that make you think:
“Always treat your employees exactly as you want them to treat your best customers.” Stephen R. Covey
Seneca
“We suffer more in imagination than in reality”
“But life is very short and anxious for those who forget the past, neglect the present, and fear the future.”
“They lose the day in expectation of the night, and night in fear of the dawn”
“Most bullies act from a place of weakness. They feel threatened and backed into a corner by something – or someone – they don’t understand. Bullying is they way they lash out, but underneath all the bravado, there’s often a fragile individual riven with insecurities and weakness who doesn’t know how to express him or herself when confronted by the unknown.” Gina Miller
“The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts.” Bertrand Russel
“I skate to where the puck is going to be, not where it has been.” Wayne Gretzy
“Fortunes are built during the down market and collected in the upmarket.” Jason Calacanis, Founder of LAUNCH Ticker
⬇️
⛓ Mental Model Of The Week:
“One Level Higher…
Repeatedly ask whether you’re optimising a cog in a machine instead of the machine itself.
The higher the level you optimise at, typically the greater your ROI.
For example, if your goal is financial wealth: You can work years to earn a 15% raise (a cog) or you could switch jobs for an instant 25% salary boost (the machine).
You'd reach the financial goal quicker if you optimised the machine: finding a new job. That's higher level.
The One Level Higher model is the process of asking yourself: Is it higher-leverage to optimise a level above the one I'm focused on?
This is a hard question to ask due to the phenomenon of inertia. Using a mental model to break out of your flow and question what you’re doing is like ripping the carpet out from under your goals. It’s painful to confront the possibility that you’ve spent years on the wrong thing. Whether it’s coding, a 9-5, saving money, building muscle—anything—you’ve been riding the momentum of steady progress.
"When you view the world as a series of outputs, you form opinions. But when you view the world as a series of systems, you form strategies." Channing Allen
⬇️
📚 Book I'm Reading:
“The Tao of Seneca (volumes 1-3) is an introduction to Stoic philosophy through the words of Seneca. If you study Seneca, you'll be in good company. He was popular with the educated elite of the Greco-Roman Empire, but Thomas Jefferson also had Seneca on his bedside table. Thought leaders in Silicon Valley tout the benefits of Stoicism, and NFL management, coaches, and players alike - from teams such as the Patriots and Seahawks - have embraced it because the principles make them better competitors. Stoicism is a no-nonsense philosophical system designed to produce dramatic real-world effects. Think of it as an ideal operating system for thriving in high-stress environments.”
⬇️
Happy Existing