This is issue no. 100 of 180. The last issue saw a 40.46% open rate with a 🔥13.64% going to this article branding secrets from 14 fashion industry experts. Also, 2PML.com is on a list of 61 eCommerce influencers "to follow."
ECOMMERCE: The deal incorporates $3 billion to be paid to Jet.com stakeholders in cash, a portion of that to be distributed over time, while $300 million will be paid in Walmart stock over time, according to a statement released by the companies on Monday. The companies did not specify the length of the payment period. Before Jet.com even opened for business, the company had raised hundreds of millions of dollars from venture capitalists, who believed the start-up had the potential to take on Amazon, the No. 1 e-commerce giant.
ECOMMERCE: The day and age of the PIN-less transaction that does not require a credit card number are upon us. Instead, these technologies are being replaced with a digital fingerprint that safely stores a customer’s data and allows convenient one-click checkouts. The benefit of such innovations are numerous. As clearly demonstrated in Amazon’s one-click shopping model for Prime, which Rejoiner says is a patent with a billion-dollar value, cart abandonment rates drop dramatically.
BRAND: These days, Sam Adams has lost a bit of its mojo among the thousands of new craft brews that have flooded the marketplace. Three new beer makers set up shop every day, and the total number of breweries in the U.S. has doubled over the past four years to 4,200. According to the Beer Association, the last time there were this many breweries in the country was in 1873, when each individual pub manufactured its own beverages. In this new landscape, Sam Adams isn't as hip as it once was.
BRAND: "First, rounds played were reported up 5.3% in June and up 2.7% [year to date] in 2016, as show in our chart of the week," Baker wrote, using data from the Professional Golf Association. "This is an acceleration from up 1.8% in 2015, and continues a three-year run of improvements in rounds played since the business troughed in 2013." More golf played would generally indicate more golf equipment purchased, and Baker said this could be a boon for Dick's Golf Galaxy franchise.
BRAND: When you think about sports companies, which come to mind? Adidas, right? It was founded in 1949. And how about Nike, circa 1969? For sure. But when the data was crunched for LinkedIn's U.S. list of Top Attractors, the companies where people want to work now, only one showed up: Under Armour, founded by Kevin Plank a scant ten years ago. (For the record, both Adidas and Nike showed up on the global list of Top Attractors.)
ADTECH: Why is this important? The terms that we use reflect the assumptions that underlie our approaches to marketing — and bad assumptions lead to bad marketing at best, and spam at worst. This is what I believe that Mark Ritson meant when he wrote his recent, controversial Marketing Week column stating that marketers need real marketing qualifications. After all — and as I think Ritson was implying.
DATA: Website design is supposed to be simple, and technology is supposed to make everything easier than it already is, so why is it that over the years designing and building a website has actually become a more challenging task? It’s mostly because of divergent technologies not evolving at the same pace. At one point, desktop monitors with a maximum horizontal resolution of 640px were common, and almost all websites supported these low resolution users. Within less than five years, these low resolution monitors were virtually obsolete, and sites gradually stopped adding support for those displays.
MEDIA: NBC Universal isn’t happy just dominating Olympic coverage thanks to its $1.2 billion deal for the rights to the Games. Now the news and entertainment conglomerate wants to dominate the universe of Harry Potter and expand further into the millennial-focused world of Snapchat as well with two recent deals. In the case of Harry Potter, NBCUniversal has snatched the television and theme park rights to the young wizard’s story away from entertainment giant Walt Disney Co. DIS 0.12% . The Comcast-owned company said the deal with rights-holder Warner Bros.
BRAND: The investment will fuel a number of growth initiatives, including expanding product assortment through both material and process, investing in technical systems designed to improve the customer’s shopping experience end-to-end, and continuing to build a community through retail installations and events. “We've grown a lot and we're super excited to take this funding and build on that momentum."
BRAND: Apple generates 12% of its revenue from digital services such as iCloud, Apple Pay, AppleCare, and the App Store, and that part of the business is growing faster than hardware sales. "I expect it to be huge," Cook says. "It’s already large. If you look at it on a stand-alone basis, and we’ve started disclosing this now, it’s tough to find many companies that are as big."
ECOMMERCE: As US couples’ average wedding spend has grown—to a whopping $32,000+, according to the most recent national survey by The Knot—investors have poured funding into startups aiming to ease the process from the proposal to the thank-you notes. Many of these startups leverage new technologies to improve planning efficiency and save users money, such as The Black Tux with tuxedo rental and Vow to Be Chic for bridesmaid dress rental, WedPics for photo sharing, and Four Mine.
MEDIA: LeEco, based in China, is expanding aggressively in the U.S. and generated headlines from buying Vizio and partnering with Aston Martin. But LeEco is a complex mix of public and private companies. Its founder has pledged much of his shares in its core business, a publicly-traded video streaming site, as collateral for loans to help fund a slew of new ventures for the LeEco brand. There is no deal in the works and LeEco’s comment is “news to us,” a Netflix spokeswoman added in a statement to The Information.
Last Word: Will the Jet.com Acquisition Work?
In America, we don't quite understand just how good we have it. We have our own cars and the autonomy to go along with it. Brick and mortar store fronts are still doing well enough to exist and American eCommerce has positioned itself as a relative luxury and not yet a necessity.
Just 110 years ago, a motor car was a luxury, a buggy was a necessity. in India and China, eCommerce has begun to emerge as option one for all retail.
I wrote in Cars and the Future that there were three different changes occurring in the car market: the shift to electric, the shift to self-driving cars, and the shift in business model from owned-and-operated vehicles to transportation-as-a-service.
China's consumers (who depend on vast systems of public transit) need eCommerce for goods and services whereas our cities' smaller populations and high percentage of independent transportation allow us to lean on our traditional commerce systems. How we travel will influence how we shop. Though we have the shining star that is Amazon.com - where China goes, we follow. The stats are alarming: 85.7% of China is mobile-first. America is ~ 74%. This is significant because it is indicative of a wave of change, where mobile will be our primary device and our desktop computers will be reduced to our clerical tasks. China is projecting our own adoption curve.
In China, $.15 of every $1 spent on retail is through eCommerce, In the United States - that number is $.07 of every $1. China's analysts expect their number to hit $.40 per every dollar spent by 2020.
So what does this mean for Jet.com and Wal-Mart, a relationship that many of us pan and even more of us could care little about? Eventually, America will outpace China's emphasis on eCommerce innovation (spearheaded by Alibaba's massive growth). I will always bet on us. But we are early, very early. For those of us who see eCommerce eventually accounting for 80+% of all retail activity, that means that we are 90% away from the finish line.
Instagram recently cloned Snapchat's format to slow their junior competitor's threatening growth. I don't see the Jet.com M&A as a Wal-Mart play on eCommerce innovation, rather - I see it as way for Wal-Mart to convert it's existing shoppers and prevent further migration to Amazon.com. Wal-Mart's bricks and mortar, as we know it today, won't be around. And their CEO, Doug McMillon is finally convinced of that. Will the Jet.com acquisition work? Maybe not but it's Wal-Mart's best chance to reinvigorate what it has long neglected.