Online marketplace Paytm, which is backed by Alibaba, is looking to get a significant stake in Bigbasket, ramping up the competition in the lucrative Indian e-commerce market. In Britain, Sainsbury's takes on Amazon, while Ocado teams up with the Seattle-based powerhouse. Enjoy the read and feel free to share!




Wednesday, 30 August 2017





Hello, dear reader,

Online marketplace Paytm, which is backed by Alibaba, is looking to get a significant stake in Bigbasket, ramping up the competition in the lucrative Indian e-commerce market. In Britain, Sainsbury's takes on Amazon, while Ocado teams up with the Seattle-based powerhouse. Enjoy the read and feel free to share!




Asia & South Pacific


Alibaba stays active ▪ The Chinese giant is set to compete with Amazon for a share of the Indian e-commerce market. Alibaba-backed Paytm will reportedly spend US$ 200 million to get a significant stake in popular online grocer Bigbasket. In New Zealand, the Hangzhou-based company has signed a deal to sell Kiwi milk online in China.



... and builds its empire ▪ Having poured billions into major e-commerce platforms in Southeast Asia, Alibaba has furthered its plans to expand outside (paywall) the mainland by creating a pan-Asia logistics unicorn. The Chinese e-tailer is also betting on physical stores. It has invested as much as US$ 8 billion in brick-and-mortar retailing in the last two years.



Acquisitions and alignments ▪ Philippines' leading retail empire, SM Investments, is in talks to buy a controlling stake in popular bakery chain Goldilocks Bakeshop. In South Korea, shareholders have approved Lotte's plan to restructure as the retail conglomerate faces increasing internal and external difficulties.




Europe


Dealing with Amazon ▪ In an effort to fight back against the e-commerce giant, UK retailer Sainsbury’s has announced ambitious plans to roll out Argos click-and-collect points. Online retailer Ocado, on the other hand, teams up with the US powerhouse and has become the first UK grocer to use Amazon's Alexa for voice ordering.



Winning strategy ▪ Poland's largest wholesale company, Eurocash, grew primarily through retail acquisitions, figures for the second quarter show. LZ Retailytics thinks that the company's strategy of strengthening its competence in the supermarket channel will help improve its bottom line.


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Polish pilot ▪ French retailer Auchan is trialling a minimarket concept in Warsaw. Opened last month, the pilot focuses on fresh, exotic, organic and healthy food, as well as regional beers. With the formula, the company is taking its first steps to adjust to local preferences.




USA & Latin America


Best Buy sends warning ▪ America’s largest electronics retailer topped analysts' expectations with its second-quarter earnings. However, competition in the electronics category is expected to intensify and CEO Hubert Joly warned the sales gains were likely temporary. Here is what the experts say.



Changes in the cloud ▪ Target is scaling back its use of Amazon Web Services. In a move to take greater control of its infrastructure, the discounter plans to “aggressively” distance itself from the online behemoth by moving e-commerce activities, mobile development and operations away from AWS.



Investing in Brazil ▪ Walmart will spend around US$ 316 million through 2019 to refurbish about 120 stores in Latin America's biggest economy. Rival GPA is also undertaking an ambitious store renovation to prepare for recovering consumer demand after Brazil’s worst recession on record.




Analysis and Expectations


Intelligent machines ▪ Brand managers who are not thinking about how to leverage artificial intelligence are already falling behind according to a UK study. They should take a leaf out of Amazon's books. The online major doesn't shy away from using AI and takes an algorithmic approach to fashion.



Warehouse boom ▪ The rise of online shopping has led to a record level of demand for industrial property and warehouses in Australia, according to real estate agency JLL and the arrival of Amazon could see another blowout in the numbers.