Mobile to Drive 53% of 2024 US Holiday Sales 📱 Plus: TikTok Crosses $15 Billion in Consumer Spend 🥳

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🌀This week’s maze:

1. The Big Story 🧠 

Mobile Shopping to Drive 53% of 2024 US Holiday Sales 📱

2. Data 📊 

TikTok Crosses $15 Billion in Consumer Spend 🥳

3. News 📖 

🛒 🇨🇳 Temu enters EU market, undercuts competitors

🛒 🇦🇺 Amazon rolls out same-day delivery in Sydney

👗 🇸🇪 H&M to close Afound after 6 years of operation

👗 🇰🇷 Farfetch shuts down software service under Coupang

🍔 🇺🇸 Instacart Launches Fee-Free Next-Day Deliveries

🗞 🇨🇦 Shopify expands YouTube partnership for sellers

🦄🇺🇸 The Rounds raises $24M to expand eco-delivery

🦄🇬🇧 Tilt raises $18M to expand live shopping in the UK

+ over 25 other news you might like 🎁

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1. The Big Story 🧠

According to a report by Adobe Analytics shared (here) by Ramon Ray (Publisher of ZoneofGenius.com), the shift towards mobile shopping is gaining momentum. Adobe analyzed over one trillion visits to U.S. retail sites and provided insights on consumer behavior, highlighting significant trends in mobile commerce.

📊 Holiday Shopping Trends

• In the 2021 holiday season, mobile sales accounted for 43% of online sales, up from 40% in 2020.
• By 2023, mobile surpassed desktop for the first time, contributing 51% of sales.
• Adobe forecasts that mobile will account for 53% of online sales in the 2024 holiday season.
• This continued growth signifies a decisive shift towards mobile as the preferred shopping channel during the holiday season.

📈 2024 Mobile Sales Growth

• Mobile sales averaged 47.7% of online sales from January to July 2024, up from 46.6% in the same period in 2023.
• In July 2024, mobile reached a 49.3% share, approaching half of all online sales.
• A total of $280.4B was spent through mobile devices in the first seven months of 2024, marking a 10.2% YoY growth.
• Promotional events such as Prime Day and Memorial Day saw mobile dominate with a 51% share of sales on average.

🛒 Key Categories in Mobile Shopping

• Groceries saw a 68.2% share of online sales via mobile in July 2024, continuing its dominance since April 2021.
• The personal care category, including cosmetics, saw 77% of online sales through mobile in July 2024.
• Mobile accounted for 60.8% of online apparel sales in July 2024, overtaking desktop in May 2020.
• Electronics and home improvement lag behind, with mobile shares of 21.3% and 33.3%, respectively, in July 2024.

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2. Data 📊 

Data from Sensor Tower shared (here) by Mohammad Sawalha (Game Operations Manager) reveals TikTok's remarkable achievement in breaking the $15B mark in global consumer spending across the iOS App Store and Google Play. This milestone highlights TikTok's growing dominance in the mobile app market.

📊 TikTok's $15B Milestone

• TikTok has crossed $15B in global consumer spending across iOS and Google Play, as estimated by Sensor Tower.
• It joins Honor of Kings as the only apps to reach this milestone.
• Only two other games, Monster Strike and Candy Crush Saga, have hit $10B in spending.15 more apps have crossed $5B, showing the elite status of TikTok.

🌍 Top Markets for TikTok

• China, where TikTok is known as Douyin, contributed nearly $7B (47%) of lifetime spending.
• The U.S. overtook China as TikTok’s largest market by consumer spending across iOS and Google Play.
• The U.S. has around $3.2B in spending, which is 22% of the global total.
• Germany, Japan, and Saudi Arabia each account for about 3% of TikTok’s total spending.

💸 In-App Purchases and Ad Revenue

• TikTok's in-app purchases have propelled it to the top app globally, but most of its revenue still comes from ads.
• In Q2 2024, TikTok's digital ad revenue in the U.S. surpassed $2B.
• TikTok now accounts for 12.2% of U.S. ad spend on major social networks, up from 9% in 2022.
• While still behind Facebook and Instagram, TikTok’s share of ad revenue is growing rapidly.

3. News 📖

🛒 Mass merchant

▶🇨🇳 Temu enters EU market, undercuts competitors. Temu launches its EU marketplace, offering no fees for sellers and taking over pricing. European retailers are encouraged to join, while Temu's local warehouses pose a new challenge to Amazon, Otto, and Kaufland.

▶🇦🇺 Amazon rolls out free same-day delivery in Sydney, covering 90% of the city's population. Prime members can now get over a million items delivered on the same day if ordered by noon. The service is available on orders over A$49.

▶🇺🇸 Amazon tests removing star ratings in search results page. This test affects only a few products and requires consumers to visit the product page to see ratings. The change may impact how customers shop and interact with the site.

▶🇮🇳 Amazon India eyes a standalone Amazon Pay app to gain more recognition. Currently part of the main app, Amazon Pay has only a 0.5% market share on UPI. The move may help it compete better with rivals like PhonePe and Google Pay.

▶🇩🇰 Temu surpasses Amazon in Denmark. 71% of Danes recognize Temu, while 22% made a purchase within the last year. The Chinese platform is now more popular than Amazon and eBay, making it the third most recognized online store in Denmark.

▶🇺🇸 eBay extends purchase cancellation period, enabling buyers to cancel orders until the item is marked as shipped, effective August 28, 2024. This adjustment, tested with minimal impact on abandonment rates, has led to a 25% boost in customer satisfaction, helping to maintain trust between buyers and sellers.

▶🇺🇸 Walmart ends DroneUp deliveries in 3 states (Phoenix, Salt Lake City, and Tampa) due to unsustainable costs. The company will shut down 18 hubs, affecting 70 jobs, and will now focus on Dallas-Fort Worth operations.

▶🇺🇸 Walmart exits JD.com with $390M sell-off. Walmart has sold its 9.4% stake in JD.com to focus on its own operations in China. The move comes as Walmart experiences 8.3% international sales growth, partly driven by China. Competition with Alibaba and Pinduoduo in low-cost goods is intensifying.

👗 Fashion & Beauty

▶🇸🇪 H&M to close Afound after 6 years of operation. H&M's Afound, a digital outlet launched in 2018, will close by the end of 2024. The decision follows a drop in demand as brands favor direct-to-consumer sales strategies. Afound currently operates online in seven European countries.

▶🇰🇷 Farfetch shuts down software service under Coupang. Farfetch, owned by Coupang, is closing its SaaS product Farfetch Platform Solutions. Once central to Farfetch's strategy, FPS is now discontinued as Farfetch grapples with a $105M loss in Q2 2024, shifting focus back to its core marketplace.

▶🇺🇸 ThredUp launches no-fee peer-to-peer marketplace, similar to Poshmark, with no seller fees during its beta phase. The move comes as ThredUp seeks profitability after reporting a $71M loss in 2023 and exiting the European market.

▶🇬🇧 Shein plans $63B London IPO targeting UK public buyers. This unusual move, backed by JP Morgan, faces criticism due to Shein's alleged environmental issues. Originally, Shein considered a US listing but shifted to London.

▶🇬🇧 Newless launches fashion upcycling service in UK. Newless, a new UK-based fashion service, lets customers transform old clothes into custom pieces. The process is easy, with prices ranging from $88 to $188. Newless will also hold pop-ups where customers can upcycle garments live.

▶🇬🇧 Boohoo halts supplier payments citing low quality. Sales dropped 17% to $1.8B as Boohoo faces tough competition and rising inflation. The company, dealing with $407M in debt, is under pressure to resolve issues.

▶🇱🇹 Tingit raises $545K to expand fashion repairs marketplace. Currently available only in Lithuania, Tingit plans to scale across Europe. The service simplifies repairs with an app-based video upload process.

▶🇬🇧 Sephora UK partners with DHL to fuel UK expansion and to manage its supply chain, including a new carbon-neutral distribution center in Coventry. This five-year deal supports Sephora's UK expansion strategy, aiming for sustainable growth.

▶🇨🇳 Shein sues Temu over IP theft, unfair practices. Shein has filed a lawsuit against Temu, alleging IP theft, counterfeiting, and unethical practices. The lawsuit comes as Temu expands aggressively into the US, challenging Shein's dominance. The case highlights broader concerns about labor rights, online marketplaces, and the role of Chinese e-commerce giants.

🍔 Food & Grocery

▶🇺🇸 Instacart Launches Fee-Free Next-Day Deliveries for orders over $10 and personalized digital circulars highlighting discounted items. These initiatives aim to make online grocery shopping more affordable.

▶🇺🇸 Grubhub expands campus reach, adds 500K students from over 360 schools. The company now serves 4.5M students. With the addition of delivery robots and Just Walk Out technology, the service is growing faster than ever.

▶🇮🇳 Swiggy targets $15B valuation in IPO to raise $1-1.2B. This would be one of India's biggest IPOs this year. Swiggy plans to use the funds to expand its quick commerce business, Instamart, which is currently loss-making but crucial to competing with Zomato.

▶🇬🇧 Just Eat's ad banned for targeting minors. Just Eat's ad featured McDonald's burgers. Despite using age filters, the ASA ruled that the ad violated the CAP code by not preventing exposure to those under 16.

▶🇩🇪 Delivery Hero expands into loans. Delivery Hero is entering the financial services sector, potentially offering loans to restaurants via its platform. The Berlin-based company is hiring for its Fintech division, aiming to introduce credit products to markets in 70 countries.

▶🇬🇧 Waitrose launches delivery hatch for 24/7 orders on August 21 at Finchley Road, extending delivery hours via Deliveroo and Uber Eats. This innovation helps manage demand and attracts new customers. The grocer plans to open 100 new convenience shops.

▶🇺🇸 DoorDash simplifies appeal process for gig workers. DoorDash now offers an in-app appeal process for deactivated gig workers. The new feature allows workers to appeal directly via the Dasher app with real-time status updates. The goal is to resolve cases within a few days, addressing concerns about fairness and income disruption.

🗞General

▶🇨🇦 Shopify expands YouTube partnership for sellers, allowing eligible Shopify sellers in the U.S. to join YouTube's affiliate program. Merchants can now leverage creators to promote products, boosting visibility and sales through social commerce.

▶🇸🇪 Klarna launches new cashback and balance features in 12 countries, including the US, on August 15, 2024. These features allow users to store money in a Klarna account and earn up to 10% cashback at participating retailers, strengthening Klarna's position in everyday spending.

▶🇮🇳 Amazon's $715M loss sparks predatory pricing fears. India's Commerce Minister Piyush Goyal warns of e-commerce disruption, citing Amazon's $715M loss as evidence of predatory pricing. With e-commerce doubling every four years, concerns rise over the future of small retailers.

▶🇬🇧 SportsShoes launches new website on BigCommerce. SportsShoes is UK's largest independent sporting goods retailer. After a £2.5M overhaul, the site increased conversion rates by 19% and average order value by 10%. It uses Next.js and Prismic.io CMS for a seamless customer experience.

▶🇨🇳 China’s Auto Parts Exports Surge via E-Commerce with key products like bumpers and headlights seeing exponential growth. With US online penetration at 16%, the market has ample room for further expansion.

▶🇬🇧 Yodel launches new SME parcel services, offering tailored solutions for businesses sending over or under 50 parcels weekly. Following a 200% rise in C2C volumes, Yodel supports the growing £7B resale market in the UK.

▶🇨🇦 Pivotree Partners with Shopify to Boost Growth, effective August 9, 2024, aiming to optimize digital commerce for large global brands. The collaboration will help businesses reduce costs, improve customer experiences, and drive growth.

▶🇫🇷 Decathlon to invest $108M in the Indian market over 5 years, adding 80 new stores to its existing 110. The brand aims to increase local production to 85% by 2026, enhancing its Indian market presence and manufacturing capabilities.

🦄Deals

▶🇺🇸 The Rounds raises $24M to expand eco-delivery. The Rounds, known for sustainable delivery in reusable packaging will use the funding to support product development, hiring, and expanding to new U.S. markets. It added features like flexible delivery and one-time purchases.

▶🇩🇪 Bookbot secures $4.3M to expand in DACH region. Bookbot, an online second-hand book marketplace will use the funds to help expand in the DACH region. Founded by the Gazdoš brothers, Bookbot aims to double its sales to $26M by 2024.

▶🇬🇧 Tilt raises $18M to expand live shopping in the UK. Tilt, a UK-based live-shopping app has been founded by ex-Revolut employees, has gained 500K users since launching. Tilt focuses on real-time fashion sales, aiming to tap into the Gen Z market.

▶🇺🇸 Revenew raises $4.5M to boost platform payments. Revenew, a fintech startup by Checkout.com alumni raised the funding to enhance its tools for managing payments and improving profitability for digital platforms like Uber and Airbnb, boosting their growth.

▶🇬🇧 Fresha secures €27.8M to boost AI in beauty. Fresha, a London-based beauty platform, raised the funding to enhance their AI and machine learning capabilities, fueling global expansion and helping beauty professionals offer tailored services.

▶🇷🇴 Creatopy raises $10M to dominate AI ad creation. Creatopy, an AI-driven ad creation startup from Romania is a platform, used by 5,000 brands and agencies. It is focused on scaling and automating ad production. The company sees itself as a key player against competitors like Canva.

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