Consumer Goods Manufacturer | Digital Commerce 360

MyTradeZone.com launches for B2B networking and lead generation

Paul Demery — Wed, 01 Nov 2023 21:46:58 +0000

Bachir Kassir has spent over 20 years in the ecommerce technology industry, having founded the WebJaguar ecommerce platform before selling it to manufacturing and supply chain technology vendor QAD Inc. in late 2021. Now, Kassir’s out with MyTradeZone.com, which he founded and describes as a B2B-dedicated social network stocked with business tools for developing revenue-generating business relationships with trading partners.

Bachir Kassir, founder, MyTradeZone.com

“We know that 40% of B2B marketing budgets are spent on trade shows and that over 95% of marketers use social media content in their campaigns,” he says in his promotional material, adding: “So why is there no social network specifically dedicated to B2B trade?”

That’s where MyTradeZone fills the gap in B2B commerce, he adds.

“On MyTradeZone, each business can both market its products/services and source what it needs, all within the same platform,” he says.

Kassir notes that he founded and launched the site quietly several years ago, building a base of about 50,000 users through word-of-mouth.

A toolset with CRM and email marketing

But he recently publicized MyTradeZone’s official launch in a press release and is considering taking on investment partners to spur growth. He adds that he expects the site to begin generating revenue in the first quarter of next year.

MyTradeZone.com provides built-in features ranging from site search, product listings, and online video chats to email marketing and CRM software applications to help buyers and sellers find and build business relationships with particular types of trading partners.

It offers limited access to these features at no charge under its basic membership plan. Premium plans will provide the same features and higher site search rankings for monthly fees from $20 to $50 based on the volume of activity.

In addition, the top premium plan will let participants earn fees from online ads placed on the social network site. MyTradeZone will take a cut of those ad fees.

MyTradeZone.com does not operate as a conventional ecommerce marketplace hosting product and services sales transactions among participating buyers and sellers, who complete those transactions outside the networking site. But it will let users monetize business communities, such as by setting up industry organizations and charging membership fees through the Stripe online payments system. In that case, MyTradeZone will charge a fee based on a percentage of the membership fees.

Kassir says MyTradeZone has been gaining about 100 members daily — a figure he wants to grow to about 1,000.

To get there, he says he’ll continue to invest in “lots of business tools” available to members and offer premium membership deals to trade shows, business networking groups and trade associations. He adds that while he has mostly self-funded MyTradeZone, he may consider outside investors.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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India: The emerging B2B ecommerce powerhouse

Gaurav Dhingra — Wed, 25 Oct 2023 13:58:32 +0000

Gaurav Dhingra

India is not only a rising giant in the global arena, but also a booming market for B2B ecommerce. With its fast-growing economy, large population, and digital transformation, India offers immense opportunities for businesses looking to sell their products and services to other businesses online. This article explores why India should be on your radar if you want to succeed in the B2B ecommerce space.

João Manuel

India’s B2B ecommerce market is one of the fastest-growing in the world. By 2030, Redseer projects it will reach $90 billion to $100 billion in gross merchandise volume (GMV). Several factors are driving this growth, such as:

The increasing demand from small and medium enterprises (SMEs) for a variety of products and services, especially in sectors like packaging, textiles, apparel, and contract manufacturing. SMEs account for about 40% of India’s GDP and employ over 100 million people.
The availability of affordable and reliable internet connectivity and smartphones, which enable online transactions and communication. India has over 624 million internet users and over 500 million smartphone users, making it one of the largest and fastest-growing digital markets in the world.
The government’s initiatives to promote digitalization and ease of doing business, such as the Digital India campaign, the Aadhaar biometric identification system, the Unified Payments Interface (UPI), and the Goods and Services Tax (GST). These initiatives have simplified online payments, reduced tax complexities, and improved transparency and efficiency.
The emergence of innovative and disruptive B2B e-commerce platforms that connect buyers and sellers across the country and offer solutions for vendor management, supply chain automation, and supply chain financing.

India’s B2B ecommerce market is large, diverse and dynamic. It caters to different segments of buyers and sellers, such as wholesalers, retailers, manufacturers, distributors, service providers, and exporters. It also covers a wide range of product categories, such as industrial goods, consumer goods, agricultural products, healthcare products, and digital services.

India’s B2B ecommerce market is also open to international players who want to tap into this lucrative opportunity. According to a report by PayPal, cross-border B2B ecommerce in India is expected to grow at a compound annual growth rate (CAGR) of 28% from 2021 to 2026, reaching $54 billion. Some of the factors that are driving this growth are:

The increasing demand from overseas buyers for high-quality and low-cost products from India, especially in sectors like textiles, handicrafts, pharmaceuticals, engineering goods, and software services.
The increasing supply from Indian sellers who want to expand their market reach and access new customers across the globe.
The availability of online platforms that facilitate cross-border trade by providing features like currency conversion, payment processing, logistics support, customs clearance, and dispute resolution. Some of these platforms include Amazon Business, Alibaba, eBay, TradeIndia, and IndiaMART.

India’s B2B e-commerce market is also poised to benefit from the recent developments in the global scenario, such as:

The successful hosting of the G20 Summit in New Delhi onSeptember 9 and 10, 2023, which showcased India’s leadership role in addressing global challenges like climate change, sustainable development, digital transformation, multilateralism, and women empowerment.
The signing of several trade deals and partnerships with key countries and regions like the United States, the European Union, the UK, Japan, Australia, ASEAN, Africa, and the Middle East, which enhanced India’s economic cooperation and integration with the world.
The launch of several initiatives to boost India’s manufacturing sector and exports, such as the Production Linked Incentive (PLI) scheme, the Atmanirbhar Bharat (Self-reliant India) campaign, the Make in India program, and the National Export Policy (NEP).

To sum up, India is an emerging powerhouse in the B2B ecommerce space that offers tremendous potential for growth and innovation. If you want to be part of this exciting journey, here are some tips to help you succeed:

Understand the market dynamics and customer preferences in different regions and sectors of India. Customize your products and services according to the local needs and expectations.
Leverage the existing online platforms that connect you with potential buyers and sellers in India. Alternatively, create your own online presence and brand identity that showcases your value proposition and differentiates you from the competition.
Build trust and credibility with your Indian counterparts by providing quality products and services, timely delivery, transparent communication, and responsive customer support. Use online tools like ratings, reviews, testimonials, and certifications to demonstrate your reputation and reliability.
Comply with the legal and regulatory requirements of doing business in India, such as taxation, customs, licensing, and intellectual property rights. Seek professional advice and assistance if needed.
Stay updated with the latest trends and developments in the Indian B2B e-commerce market. Adapt to the changing customer demands and market opportunities. Innovate and experiment with new products, services, and business models.

India is a land of opportunities for B2B ecommerce players who are willing to explore, learn, and grow. With its huge market size, diverse customer base, digital infrastructure, supportive government policies, and global outlook, India is the place to be for B2B ecommerce in the 21st century.

About the Authors:

Gaurav Dhingra is the co-founder and CEO of New Delhi, India-based ecommerce marketing agency Refresh Ideas. João Manuel is the founder and CEO of international marketing and public relations firm Vereda, which operates without a specific headquarters but maintains a company website at Vereda.global, with content displayed in the English and Portuguese languages.

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Nike Digital sales grow modestly in fiscal first quarter

Abbas Haleem — Fri, 29 Sep 2023 13:00:14 +0000

Nike Inc. started its fiscal 2024 with digital sales growing in its first quarter ended Aug. 31, 2023. The athletic apparel and footwear retailer did not share a dollar amount for digital sales but reported $12.9 billion in revenue for the quarter. That’s up 2% versus Q1 of its fiscal 2023.

Nike ranks No. 9 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers.

Nike’s digital retail strategy

Chief financial officer Matt Friend said Nike consumers spent more time in brick-and-mortar locations in the quarter.

“But 90% of their shopping journeys are starting with digital,” Friend said. “And so we continue to believe that our digital and physical strategies of serving consumers are the right strategy to serve demand as we look forward.”

In North America, Nike Digital sales grew 4% in the retailer’s first quarter. Nike Digital refers to sales made through the retailer’s websites and apps.

At the same time, Nike Digital sales in Europe, the Middle East and Africa decreased 2%. And they decreased 3% in Asia Pacific and Latin America. In Mexico specifically, though, Nike’s “digital business delivered double-digit growth,” Friend said, without revealing more.

“We’ve increased the size of our supply chain in the last few years to be able to address the growth that we’ve seen in our business, both overall and in digital,” Friend said.

To improve that efficiency, he said, Nike has reduced digital split shipments so consumers don’t get two deliveries for the same order. It has also invested in “regional service centers that are closer to where consumer demand is.” In other words, it has improved its fulfillment by opening distribution centers in strategic areas.

Nike Digital sales in China

In the Greater China region, Nike Digital sales grew 6% in Q1. The footwear brand held a three-day sports festival called Sportchella in China.

“The team amplified the impact of the festival by partnering with Tmall to create the first Nike Super Brand Week, which drove more than 2 billion impressions,” Friend said. “And this partnership seamlessly integrated the events with a digital shopping journey that generated very strong consumer response and engagement.”

Tmall is an Alibaba-owned marketplace, along with Taobao. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by gross merchandise value. Tmall ranks No. 2.

Nike App increases Nike sales

The Nike mobile app had “strong growth,” Friend said. Nike mobile app traffic had high single-digit growth in the quarter, he said.

“We saw member activity continue to increase both in terms of engagement and buying behavior and a higher basket size, a higher AOV,” Friend said.

That drove “sustained momentum on the Nike mobile app” as loyalty members increased their buying frequency in the quarter, he said.

“We continue to see a growing structural advantage as more consumers start their shopping journeys with us on mobile,” Friend said.

Nike Direct revenue

Friend said member engagement through Nike Direct grew double digits in its Q1 compared with the year-ago period. Average order value through Nike Direct sales increased, but he did not specify how much.

Nike Direct refers to the retailer’s direct-to-consumer sales (online and offline). It grew 6% year over year in the first quarter.

In North America, Nike Direct grew 7%, led by 11% growth in physical store sales. Nike Direct sales grew 10% in China. They grew 6% in Europe, the Middle East and Africa, and 3% in Asia Pacific and Latin America.

How much does Nike make in a year?

For the fiscal first quarter ended Aug. 31, 2023, Nike reported:

Revenue grew 2% to $12.94 billion, from $12.69 billion in the year-ago period.
Profit also grew 2%, to $5.72 billion from $5.62 billion the year before.
Similarly, Nike Digital sales grew 2% year over year in the quarter.
Nike Direct, or the retailer’s direct-to-consumer sales (online and offline), grew to $5.4 billion. That’s a 6% year-over-year increase.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Nike report.

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Optimizing the e-commerce payment experience

Megan Veltman — Thu, 31 Aug 2023 17:35:38 +0000

Merchants and consumers want an easy and secure online payment experience at checkout. If the process is difficult, merchants risk losing the sale. Trust is essential.

Join us to discuss the results of Digital Commerce 360’s survey, “Optimizing the E-commerce Payment Experience,” where merchants said their customers abandon carts when they are asked to enter their credit card information at checkout.

Join Veronica Correa Janssen, Global Head at Elavon Labs, James Anderson, Managing Director at Paze, and Gretchen Salois, Managing Editor, Editorial Content at Digital Commerce 360 as they discuss:

How merchants can reduce friction and eliminate steps during the checkout process.
Research that indicates financial-institution-offered digital wallets provide security without adding more transaction fees for merchants.
Why merchants benefit by providing customers with the payment options they want at checkout.
Why consumers trust their banks more than other providers to offer a digital wallet.

Colgate pilots generative AI tool to improve product detail pages

April Berthene — Fri, 04 Aug 2023 14:00:43 +0000

Colgate-Palmolive is tapping into generative AI to help manage its hundreds of product detail pages.

The consumer package goods giant best known for its toothpaste has close to 1,000 online product detail pages when factoring in its dozens of SKUs across the 10-plus retailers where it sells its products, including Amazon.com, Walmart.com, Thrivemarket.com, Instacart.com, Albertsons’ brands and more, says Todd Hassenfelt, global digital commerce director, strategy and execution at Colgate-Palmolive.

Ensuring those product detail pages are up to date, and resonating with the target audience on each of those brands’ sites, takes a team of people. That’s why Colgate is piloting a new generative artificial intelligence tool to help optimize those pages.

Colgate already uses digital analytics vendor Profitero Inc.’s digital shelf technology to manage these pages. Starting in July and through September, Profitero is piloting a generative AI tool called “Ask Profitero” with eight of its existing clients, including Colgate.

How Colgate plans to use the generative AI bot

The tool allows brands to ask the generative AI bot questions about specific details on any product detail page on a merchant’s site. For example, Colgate could want to improve the conversion rate of its mouthwash on the Walmart.com site. It could ask the bot, “What is the optimal title length to drive sales in this category?” The bot could then answer with the ideal length of characters for the specific category on that merchant’s website.

The bot could even recommend new titles for products and explain why it tweaked the language.

Todd Hassenfelt, global digital commerce director, strategy and execution at Colgate-Palmolive

Profitero derives these insights based on how highly products rank in search results on a retailer’s website when a shopper inputs certain keywords, says Bryan Wiener, CEO at Profitero.

This data is publicly available but takes time to analyze. The vendor also has 4,000 brands globally that use its software (one account can have multiple brands, Profitero says) that also helps improve its data models.

Retrieving insights faster

The AI tool can also just be a quicker way to retrieve insights from Profitero’s software. For example, a Colgate employee could log in and find these insights, or it could just ask the chatbot, “How are my sales on total whitening toothpaste in mint across all brands?” Or retrieve out-of-stock data and find out how often a product is out of stock at a certain retailer and for how many days over the course of 30 days, Hassenfelt says.

Another example of how Colgate plans to use the tool is to easily summarize the sentiment of ratings and reviews. Instead of finding the information and doing a manual analysis, Colgate could ask “what is the sentiment of reviews for this product?” If many of the highest-ranking reviews highlight a certain attribute, such as good flavor, Colgate can then update the product detail page with this information.

Effective product detail pages are not only important for online sales. They’re important for in-store sales as well, Hassenfelt says. Shoppers frequently check their phones while shopping in stores, and they might look up additional details on product detail pages. Plus, retailers may pull information from a product detail page for any in-store signage or product promotions. Ensuring this information is up to date with the information a retailer’s audience cares most about could help influence even more sales, Hassenfelt says.

Goals for the Ask Profitero AI tool

Hassenfelt expects this tool to save its teams weeks or months of time in manual analysis. There is a huge time component to creating content and content variations for one SKU in multiple places, he says. Then, if Colgate wants to change something and then see how that improves the conversion rate, it could take months of waiting to implement and analyze something, he says.

Despite the time savings, Colgate doesn’t anticipate changing any headcount.

“It will allow our teams to make faster decisions,” Hassenfelt says.

Another goal for using the tool is an increase in conversion rate, Hassenfelt says. A one percentage point increase in conversion (for example going to a 3% conversion from a 2% conversion) could equate to $1,000 to $10,000 in dollars for each product, Hassenfelt says. An increase like this would be possible if it received actionable insights out of the tool, he says.

In the short-term, overall the goal is to, “make it simpler and faster for our teams to take the analysis from our products to then actionability, going to act on those insights, specifically for conversion rate and improving sales,” Hassenfelt says.

“Long term, does this give our teams a source really to take information in a more timely way, in a way to consolidate data and find the trends and find the information,” he adds.

Colgate has about 10-20 employees from its U.S. team working on the pilot. Plus, the brand added another seven to 10 employees from various teams across its global digital organization including marketing, branding, customer service and logistics to make a cross-functional team.

Profitero builds AI tool

Profitero built this tool in house based on artificial intelligence consortium Open AI’s language model, Wiener says. After OpenAI became available to companies, Profitero developed its tool in about 60 days, he says.

Bryan Wiener, CEO, Profitero

“We immediately saw the opportunity to make our clients’ lives easier by providing faster and better insights. The question was how to implement it,” Weiner says.

Profitero debuted the tool at a user conference in June and began working with clients on the private beta then. It was looking for the right clients to work with Profitero to train and tweak the tool to ensure it delivers valuable insights, such as, “Yes, I agree with these insights,” or “These answers are not working,” Wiener says.

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CPG manufacturers speed up the digital transformation assembly line

Mark Brohan — Fri, 14 Jul 2023 23:00:40 +0000

Consumer brand manufacturers face a litany of challenges, not the least of which are supply chain distribution companies and a softer economy.

But a new survey of consumer brand manufacturers from Rockwell Automation shows that CEOs are counting on digital technology and transformation processes to solve challenges, gain efficiency and improve sales.

Lee Coffey, global strategic marketing manager, CPG, Rockwell Automation

“The consumer packaged goods industry has been hit hard by a perfect storm of challenges over the last year, with disruptions in the supply chain, a shortage of workers, and inflation all contributing to a dramatic impact on businesses,” says Lee Coffey, global strategic marketing manager, consumer packaged goods, Rockwell Automation. “Adapting to these changes requires agility, innovation, and a willingness to embrace new ways of working to survive and thrive in these uncertain times.”

Technology is increasingly being seen as the answer to many of the challenges CPG leaders face, Rockwell says. The single most common way CPG leaders are mitigating risk — both internally and externally — is by adopting innovative technology, according to the survey of 216 CPG manufacturers across 13 countries.

Specific findings include:

52% of CPG manufacturers see inflation as their biggest external obstacle in 2023.
42% of businesses are accelerating their digital transformation to keep pace with competitors, while 44% are doing so to improve quality.
On average, businesses in CPG invest just over one-fifth of their operating budget on technology, with the top three investments in cloud technology (45%), supply chain planning (42%), and cybersecurity (41%).
57% of businesses are using software to automate processes and 63% are using it to better track corporate data. Notably, 48% of leaders are increasing process automation to address labor shortages.
90% of CPG manufacturers believe they will maintain or increase the size of their workforce because of technology, with 38% expecting to repurpose their existing workforce and 29% assuming they will hire more workers due to technology adoption.
In practice, 31% of CPG manufacturers report smart manufacturing initiatives have helped deal with the impact of the COVID-19 pandemic and keep pace with market transformations.

“Technology is increasingly being seen as the answer to many of the challenges CPG leaders face,” Rockwell says. “The single most common way CPG leaders are mitigating risk — both internally and externally — is by adopting new technology.”

Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week, covering technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, vice president of B2B and Market Research Development, at mark@digitalcommerce360.com and follow him on Twitter @markbrohan.

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AI and livestreaming: Building authentic bonds with buyers

Sunil Nair — Fri, 30 Jun 2023 13:00:17 +0000

Sunil Nair

Running online operations as a small and medium enterprise comes with its own set of challenges. While obstacles may vary based on factors such as market dynamics, regulatory environments, and infrastructure, there are some common and specific problems that SMEs face when operating an online business in the United States.

The landscape in the U.S. is highly competitive, with a multitude of established players and new entrants. SMEs often struggle to differentiate themselves and capture market share in a crowded environment. Acquiring customers can be a significant challenge due to the high cost of digital marketing, advertising, and search engine optimization. In addition to this, building brand awareness and driving traffic to their online platforms can be time-consuming and resource-intensive.

Going beyond standard content management

The only way SMEs can stand out is by being authentic about who they are and what their products stand for. Videos and live commerce speak a thousand times louder than the text and image-driven web presence that SMEs are forced to adopt while using the standard CMS platforms in the market.

Authentic content, whether in the form of live videos or short videos, plays a crucial role in the success of SMEs on their websites and apps. In today’s digital landscape, where buyers seek genuine connections with brands, authenticity has become a key driver of engagement and conversion.

Original and unique content allows SMEs to showcase their brand values, personality, and expertise. By presenting real people, real experiences, and real stories, businesses can establish trust and credibility with their audience. When customers perceive a brand as authentic, they are more likely to engage with the content, believe in the value of the products or services offered, and develop long-term loyalty.

An artisanal bakery could share behind-the-scenes footage of their bakers handcrafting each pastry, demonstrating their commitment to quality and craftsmanship. This unique content helps customers trust the brand and feel confident in their purchases. The head baker going live every weekend and taking questions from his customers forms a bond that ensures retention.

Building bonds with viewers

Genuine online material has the capacity to arouse feelings and create bonds with viewers. By sharing relatable and compelling stories, SMEs can tap into the emotions of their audience, resonating with their experiences, aspirations, and values. This emotional connection strengthens the bond between the brand and its customers, leading to increased engagement, brand advocacy, and repeat business. A sustainable fashion brand could feature real customers sharing their stories about why they choose ethically made clothing. These original videos create an emotional connection with potential customers who share similar values and are passionate about supporting sustainable fashion.

Producing original content enables SMEs to showcase transparency in their operations, thereby instilling confidence in their customers. By offering a glimpse into their processes, sourcing methods, and company culture, businesses can address any concerns or doubts customers may have. Transparency builds trust and reassures customers that they are dealing with an honest and accountable brand. An eco-friendly skincare brand could create videos highlighting its sustainable packaging, natural ingredient sourcing, and ethical production practices. By sharing these true stories, they demonstrate their commitment to transparency and environmental responsibility, appealing to conscious consumers.

Digital strategies can also involve leveraging user-generated content, which adds a layer of credibility and authenticity to a brand’s online presence. Encouraging customers to share their experiences, testimonials, and reviews through videos or other forms of content not only increases engagement but also showcases genuine interactions with the brand. A boutique hotel could invite guests to share their vacation experiences through short video clips, capturing their genuine excitement and satisfaction. These user-generated videos serve as powerful testimonials, influencing potential customers’ decisions to book a stay at the hotel.

AI in live streaming unlocks possibilities

Live streaming and short vertical videos on a brand’s website or apps have emerged as powerful tools that hold immense potential for SMEs to put out their stories and make lasting connections. This cutting-edge trend has revolutionized the marketing landscape, offering businesses unprecedented opportunities for growth and success.

The integration of Artificial Intelligence (AI) into live streaming has unlocked a new era of possibilities for SMEs. Through AI-powered features such as real-time data analysis, personalized product recommendations, and chatbot interactions, businesses can elevate their live commerce experiences. AI algorithms provide valuable insights into consumer behavior, enabling small businesses to tailor their content and product offerings to meet individual preferences. This personalization fosters a stronger connection between businesses and consumers, enhancing engagement and increasing conversion rates. Furthermore, AI-based technologies have simplified and automated various aspects of live streaming, making it more accessible and cost-effective for SMEs to implement.

Consumers crave personalized shopping experiences that go beyond the traditional e-commerce model. Live streaming offers a unique platform where SMEs can engage with their audience in real-time, customized product demonstrations, Q&A sessions, and interactive discussions. By offering personalized content, businesses can build trust and loyalty, as consumers feel more connected to the brand. Live streaming allows SMEs to showcase the uniqueness and human side of their operations, creating a sense of community that resonates with customers. Furthermore, by leveraging customer data and insights, businesses can curate personalized product recommendations during live streams, boosting sales and customer satisfaction.

Live streaming enables businesses to reach wider audiences by leveraging the power of their content on their own websites and apps and enhancing it with social media platforms. It encourages real-time interactions, comments, and shares, fostering a sense of community and virality. The live nature of streaming builds a sense of urgency and excitement among viewers, resulting in higher conversion rates and a rise in purchases. It allows businesses to showcase product features and benefits while addressing customer concerns in real time.

Real-time and cost-effective content

Compared to traditional advertising methods, live streaming provides a cost-effective marketing solution for SMEs. It eliminates the need for elaborate production setups and allows businesses to deliver real-time content without the high production costs associated with other forms of media. Live streaming platforms provide valuable data and analytics that allow businesses to track viewer engagement, preferences, and purchasing patterns. This data-driven approach enables SMEs to make informed marketing decisions and optimize their strategies for better results.

To thrive in the online business landscape, SMEs must differentiate themselves through authenticity, personalized experiences, and transparency. Leveraging authentic content, such as live videos and short videos, on their websites and apps allows SMEs to build trust, forge emotional connections, and demonstrate transparency. By showcasing the human side of their operations, small businesses can create meaningful relationships with customers, drive engagement, and foster loyalty.

By adopting technology, understanding local market dynamics, and investing in customer-centric solutions, SMEs can carve out their place in the competitive online business environment. Through resilience, adaptability, and a deep understanding of their target markets, small businesses can overcome the hurdles they face and thrive in the digital age.

Ultimately, the success of SMEs in running online businesses lies in their ability to embrace authenticity, leverage technology, and adapt to the unique challenges of their respective regions. By doing so, they can seize the tremendous opportunities that online business offers and build a strong foundation for sustained growth and success in the dynamic global marketplace.

About the author

Sunil Nair is the president of BeLive Technology, a provider of live commerce and shoppable short video solutions. Previously, he was managing director for the APAC Region and CEO of Firework India, and chief operating officer of ALT Digital Media Entertainment Ltd, a digital media and entertainment conglomerate in India.

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Holiday season not looking good for clothing sales

Bloomberg News — Fri, 16 Jun 2023 20:40:46 +0000

There are warning signals that some U.S. retailers are bracing for apparel and footwear sales to fall off sharply during the next several quarters. That would be a sign that the better-than-expected retail sales data may give way to deeper declines in the coming months.

Holiday season

The value of retail purchases climbed 0.3% after a 0.4% gain in April, Commerce Department data released June 15 showed. But the outlook for the end of this year and next looks bleaker. Some factory owners say they are starting to see big drops in retailers’ holiday orders as companies become increasingly cautious about consumers’ budgets. At least one company that works with major brands has heard about plummeting demand from retailers for merchandise it plans to sell in the spring and summer of 2024.

The drop-off in apparel orders further bolsters the view that a U.S. economic recession is increasingly likely after the Federal Reserve said it’s prepared to raise interest rates again.

The quantity of apparel imports tumbled 31% in the first four months of this year versus a year earlier, according to U.S. government trade figures.

“You can really see the anxiety in the apparel market,” said Sheng Lu, an associate professor of apparel studies at the University of Delaware.

Some of the decline is retailers slowing down their imports while they focus on whittling down the piles of merchandise they accumulated in 2022 amid supply-chain turmoil. But the decline in imports — like the drop in orders — also underscores retailers’ concerns that years of strong spending is beginning to falter as they prepare for the crucial back-to-school and holiday seasons.

Employment weakens

Overall employment in the apparel production sector in California fell 4.6% in April, steepening a drop that began in October, according to the most recent data available from S&P Global Market Intelligence. That’s relevant because California — home to Los Angeles County, the heart of apparel manufacturing in the U.S. — has about one-third of all U.S. jobs in the sector.

Dan Leahy runs retail analytics platform MakerSights, which works with some of the world’s largest apparel and footwear brands to keep inventory aligned with consumer demand. Some big retailers in North America and Europe are slashing what they plan to buy from major U.S. brands for the spring and summer 2024 season by more than 50% versus the previous year, Leahy says.

“Normally that’s up or down 5% to 10%,” Leahy said.

Some of the biggest pullback is from ecommerce retailers that are readjusting their revenue forecasts, Leahy said, after they overestimated the staying power of the surge in online sales during the pandemic.

Also, he added, “retailers are worried about how much inventory they already have relative to the demand signals they are seeing from their customers.”

Usually louder

At his knitwear factory about 20 minutes from downtown Los Angeles, Wei Wang says he can tell the apparel sector has a hard year ahead just by listening to the hum of his automatic knitting machines.

“Usually, it’s a lot louder,” he said. “We should be picking up for the fall and holiday sweater season production.”

But orders are down 30% to 40% this year versus last year.

Wei, chief executive officer of Andari Fashion Inc., recently returned from a trip to visit factories that he works with in China. Managers there told him they’ve already finished their sweater production for the upcoming holiday season. In a normal year, the Chinese factories would be busy making sweaters through September or October.

“All of our customers are placing smaller orders or delaying orders because everybody’s being more conservative,” Wei said.

His Andari Fashion factory can produce around 30,000 sweaters a month at full capacity. It works with brands including Ralph Lauren Corp. and luxury sweater company the Elder Statesman. Wei said Ralph Lauren is producing its 2024 Olympics outfits at Andari and, unlike other brands, has held orders steady.

“The factory is the leading indicator of brands’ projections,” Wei said. The brands “might be right and they might be wrong. But that’s what they’re thinking right now.”

Wei has automated the factory as much as possible in recent years, in part by installing around 90 flatbed knitting machines. As he talks, one of the machines looks like it’s printing out three separate pieces of a bright green sweater. No one has figured out how to automate the process to stitch those three panels together, though, so Wei has highly skilled sewers on staff to do that. Andari employs around 100 workers, down from around 130 pre-pandemic.

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Instant Brands to gauge sale offers in Chapter 11 bankruptcy

Bloomberg News — Wed, 14 Jun 2023 16:25:13 +0000

Instant Brands Inc., the maker of Instant Pot and Pyrex kitchenware, will solicit offers to sell the business in bankruptcy. It is also considering alternative transactions to restructure more than $500 million in debt on its balance sheet, a company lawyer said late June 13.

Instant Brands lawyer Brian Resnick said during a virtual court hearing that company advisers will explore both options as the company tries to figure out how to get out of Chapter 11. The company, which private equity firm Cornell Capital owns, could use Chapter 11 to restructure its balance sheet if it can find an investor to fund a Chapter 11 plan. A buyer could purchase Instant Brands’ assets or lenders could take over the business in exchange for debt relief, Resnick said.

“All those options are on the table,” he said.

Instant Brands bankruptcy

The retailer wants parties to submit indications of interest by July 27 and is targeting an Aug. 23 bid deadline, according to a slide show company lawyers played during the June 13 hearing. In the meantime, Instant Brands will continue operating its business as normal, Resnick said.

The company already cleared an initial hurdle in its Chapter 11. It won court approval for a roughly $133 million Chapter 11 financing to fund the business and keep its factories running during bankruptcy. The structure is “somewhat unusual,” Instant Brands lawyer David Schiff said, necessitated by a complex debt deal the business used to raise new money early this year.

Instant Brands performed a so-called drop-down transaction in January in which the company transferred to two new subsidiaries its manufacturing facilities in New York and Pennsylvania, equipment and other property. The move allowed the company to get more liquidity but trading prices for its debt fell. Beginning in the second quarter, Instant Brands vendors and suppliers shortened payment terms which further stressed the business, the company said in a court filing.

Saving money from bankruptcy

Instant Brands joins a handful of other companies that executed similar transactions before ultimately ending up in Chapter 11. Others include Serta Simmons Bedding and aerospace supplier Incora.

Schiff said June 13 that Instant Brands’ lenders would only provide Chapter 11 financing if they know “they have a clear first lien with no possibilities of obligations springing back that could come ahead of them.” The company said it was in desperate need of funding to continue operating the business in bankruptcy.

Matthew Roose, a lawyer representing a group of Instant Brands lenders, said the Chapter 11 financing addresses the fact that the manufacturing facilities and other assets that were moved to the new subsidiaries were the lenders’ collateral. Company lenders include Pacific Investment Management Company and AGL Credit Management LP, according to a June 13 court filing.

Judge David R. Jones said he’d give Instant Brands initial approval of the bankruptcy financing. He said he was satisfied the arrangement wasn’t intended to give a particular group of company creditors an unfair edge in the case.

Instant Brands filed Chapter 11 on June 12. It blamed the bankruptcy on a confluence of negative events including:

High interest rates
Waning demand for Instant Pots following a boom during the start of the pandemic
Desire by more consumers to go out to eat when COVID-19 pandemic restrictions eased

Corelle Brands manufactures and sells well-known kitchen gear brands including:

Corningware
Pyrex
Corelle
Snapwear
Chicago Cutlery

Corelle Brands ranks No. 638 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

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The post Instant Brands to gauge sale offers in Chapter 11 bankruptcy appeared first on Digital Commerce 360.

Revolutionizing ecommerce: How generative AI is transforming online business

Megan Veltman — Mon, 22 May 2023 22:05:50 +0000

There’s massive hype around AI systems like ChatGPT that create astonishingly human-like text. But here’s the thing: There’s real steak under that sizzle. These generative AI systems are being put to use today by online retailers, wholesalers, distributors and manufacturers to boost sales, improve merchandising and accelerate marketing campaigns. In this webinar, experts in AI and ecommerce will do a deep dive and explain AI opportunities in the following areas of your online business:

Product Design and Generation
Customer Experience Personalization
Virtual Try-On and Augmented Reality (AR)
Automation of Content Generation
Visual Search and Product Discovery
Interactive Chatbots, Customer Support and Virtual Assistants
Demand Forecasting and Inventory Management:
Fraud Detection and Security
Dynamic Pricing to Maximize Revenues