Morning Briefing: Home24, Digitization, Logistics, Amazon, Ebay, DEG, Cross-Border Consumer Index, Supply Chains, Influencers, Circular Economy

According to the latest Ifo business climate index, the mood in the German economy has improved. In January it reached a value of 95.7 points, in December it was still 94.8 points. Companies are much more optimistic about the future, but the assessment of the current situation is worse. This development also applies to retail. Optimistic expectations are particularly evident in the retail sector, which have a good chance of being confirmed when the 2G rules for retail throughout Germany are lifted.

Home24 just missed the sales target
Home24 stumbled on its growth path last year. The online furniture retailer had aimed for an increase in sales of between 28 and 32 percent, and finally achieved 27 percent, reports the Southgerman newspaper. A total of 615 million euros came to the accounts, with Home24 citing the weak development in Brazil as the main obstacle. Adjusted earnings from interest, taxes, depreciation and amortization reached around one million euros, not including the takeover of the household goods chain Butlers last December. This step should also lead to an expansion of stationary sales, said Home24.

Corona ensures more time on the computer
Ten hours a day is the new limit, that’s how much time Germans spend in front of the screen these days. This is reported by the digital association Bitkom according to the results of a new representative survey. Two years ago, the average value was still eight hours, and more time for video streaming, video telephony and online shopping contributed to the increase. Consumers invested more than twice as much time in shopping on their home computer as before Corona, a total of 24 minutes a day. However, many people wanted to reduce their time on the computer again, reports the association that the average time invested after Corona should be 7.6 hours. The proportion of people who used digital technologies more than in the pre-pandemic times has now risen from 78 percent at the beginning of 2021 to 84 percent. Digitization plays a role here in all areas of life.

Furthermore, many takeovers in the logistics industry
The trend towards takeovers and mergers remains unbroken in the logistics and transport industry. According to the “Transport & Logistics Barometer” study by PwC Germany 322 deals totaling $219.1 billion were announced or completed last year, a new record. 44 percent of the deals were made by strategic investors. Around 75 percent of the transactions took place in the freight transport and logistics sectors. The authors give the growing importance of stable supply chains for companies and a strengthening of the business model outside of the core business as the reason for the development. However, the stricter specifications and requirements in the areas of climate protection and sustainability also played a role.


TRADE INTERNATIONALAmazon is moving out of town with Amazon Go

Amazon is planning the next stationary sales channel and is now also moving towards the suburbs with the grocery stores. According to a report by Retail Dive Daily necessities, groceries and snacks as well as beverages are included. The range of products could be expanded in the future. Billing should also take place automatically in the new stores when the customer leaves the store. Mill Creek, a suburb of Seattle in the US state of Washington, is said to be the first location, and the opening should take place in the next few months. The stores of the new chain are to differ from those in the inner cities primarily in terms of a larger area.

Many sellers on Ebay with years of experience
The proportion of sellers who have been present on Ebay for years is constantly growing. More than half have been selling their wares there for at least ten years, reports Marketplace Pulse, some for more than 20 years. The analysts examined the data from around 100,000 sellers, primarily from the specialist trade. More than 40 percent of Ebay dealers have been active on the platform for at least twelve years. It also shows that the number of dealers who have joined the company in the past five years is only 28 percent. This achieves a rate that is lower than on other platforms, at Amazon it is 44 percent. It can be assumed that they will not be there for as long as the long-standing providers.

DEG is investing in the African online retailer Copia Global
The German investment and development company mbH (DEG) acquires shares in the East African online retailer Copia Global in a value of 7.5 million US dollars. With the new injection of capital, the company, which was founded in Kenya and specializes in mobile commerce, should be able to further expand its core business, accelerate expansion within Africa and integrate financial services. DEG reports that other investors include the US development bank DFC, Goodwell Investments, Lightrock and Zebu Investment Partners, with a total volume of 50 million US dollars. Copia has its own delivery system and uses its own technology for its intermediary model.


Room for improvement when buying in other European countries for German consumers
When shopping online, many consumers do not limit themselves to national providers, they also find what they are looking for when shopping abroad. According to the latest figures from Cross-Border Consumer Index 2020 However, Germans only achieved a low value of 37 percent. However, they would have achieved the largest volume with sales of 26.5 billion euros, which corresponds to more than a quarter of the total sales in online trading. 13 European markets were examined for the delivery platform Seven Senders. When it comes to shopping abroad, Luxembourgers are at the top in Europe with a rate of 86 percent. The authors’ studies see an advantage in the number of pick-up stations with 40 per 100,000 inhabitants, whereas in Germany there are only 17 stations available for 100,000 consumers. Here Austria has the best quota with 96 stations.

When shopping, Germans pay attention to problems caused by bottlenecks in supply chains
According to a new study by Soti led to a shift in purchases to their own country. 40 percent of German consumers hesitate when ordering a product if it is delivered from abroad. Delivery times of two days or longer are a reason for 38 percent to order the product from another supplier if necessary. For example, 42 percent of those surveyed named the delivery time as “the most frustrating aspect of online shopping”. The majority of customers (58 percent) want to know where their order is at all times, and 47 percent prefer retailers with multiple return options. When it came to delivery options, 45 percent said that larger packages could be delivered with autonomous vehicles, while 42 percent agreed that small packages could be delivered by drone.

Growth potential for influencers
There are good growth opportunities in the influencer market for the next few years. This is the result of “State of Influencer Marketing”-Reports by Hype Auditor. Analysts expect the industry could grow to $22.2 billion by 2025 from $13.8 billion today. For the new study, they examined the trends on the social media channels Instagram, Tiktok and Youtube. Influencer marketing is expected to grow in importance, with new options in social commerce playing a role here, but also a shift in advertising money from TV and offline advertising to digital channels. The decline in fraud on Instagram, to which around 49 percent of influencers were exposed last year, also plays a positive role. However, the rate has fallen by 14 percent in the past two years. The categories that were most shared were music (11.58 percent), photography (11 percent), and lifestyle (10 percent).


DHL wants to strengthen the circular economy

As part of the white paper “Delivering on Circularity”. DHL examined the chances of a circular economy for reducing the ecological consequences. Katja Busch, Chief Commercial Officer at DHL, lists the following starting points for the transition to a circular economy: “We have to reduce, repair, resell, recycle and reuse and redesign the supply chains accordingly.” Innovative logistics solutions are required in order to achieve better flows of goods and information. The fashion and electronics industries, among others, have a high demand for raw materials and emissions. The lifespan of the products must be extended and consumer behavior must change. There should be incentives for consumers to strengthen the circular economy. The aim for everyone involved must be to convert the supply chains to supply cycles.

Leave a Reply

Your email address will not be published.