Bonobos founder Andy Dunn to depart Walmart in 2020

The founder of Bonobos, Andy Dunn, is leaving Walmart, roughly two years after the company acquired the money-losing online apparel retailer and he joined Walmart to help grow its e-commerce operations. Dunn said in a LinkedIn post on Thursday that he would be departing in early 2020. “When I joined Walmart in the summer of 2017, my goal was to leave the company better than I found it,” Dunn wrote. Walmart’s online sales were up 41% in the latest quarter. Walmart shares, which have a market valu


The founder of Bonobos, Andy Dunn, is leaving Walmart, roughly two years after the company acquired the money-losing online apparel retailer and he joined Walmart to help grow its e-commerce operations.
Dunn said in a LinkedIn post on Thursday that he would be departing in early 2020.
“When I joined Walmart in the summer of 2017, my goal was to leave the company better than I found it,” Dunn wrote.
Walmart’s online sales were up 41% in the latest quarter.
Walmart shares, which have a market valu
Bonobos founder Andy Dunn to depart Walmart in 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: lauren thomas
Keywords: news, cnbc, companies, post, ecommerce, 2020, company, brand, walmarts, andy, acquired, dunn, walmart, depart, brands, bonobos, online, founder


Bonobos founder Andy Dunn to depart Walmart in 2020

The founder of Bonobos, Andy Dunn, is leaving Walmart, roughly two years after the company acquired the money-losing online apparel retailer and he joined Walmart to help grow its e-commerce operations.

Dunn said in a LinkedIn post on Thursday that he would be departing in early 2020. He didn’t specify where he would be heading next.

“When I joined Walmart in the summer of 2017, my goal was to leave the company better than I found it,” Dunn wrote. “What I am certain of is how much I gained from my time at Walmart.” (See his full post below.)

Dunn will remain with Walmart through January and will work closely with merchandising and brand leadership to “ensure a smooth and successful transition,” a Walmart spokesperson said in an emailed statement.

“After more than two years innovating new, incubated brands and bringing on important acquired brands, as an entrepreneur at heart, Andy Dunn has decided now is the right time to take the next steps in his career,” the spokesperson said. “During the last two and a half years, Andy’s contributions to the organization have been invaluable. He’s been instrumental in building out and growing Walmart’s proprietary brand portfolio.”

Bonobos, known for its patterned men’s shirts and chinos, is one of a handful of digital companies that Walmart has acquired in recent years to try to grow online and compete with Amazon. Others include Jet.com, where Walmart gained the current head of its e-commerce operations in the U.S., Marc Lore; Moosejaw and Art.com. Walmart also acquired women’s apparel company Modcloth in 2017. But earlier this year, it announced it would be selling Modcloth to Go Global Retail.

As a result, some view Walmart’s acquisition strategy as yielding mixed results. The big-box retailer’s e-commerce business is still losing money, and some of its acquisitions, including Bonobos, remain unprofitable, according to a report from Vox.

However, the robust gains in Walmart’s grocery business, which is partially online, are helping the company offset some of those losses. And Walmart has learned lessons from these digital-first brands, which has made it a more savvy e-commerce competitor. Walmart’s online sales were up 41% in the latest quarter.

More recently, Lore has said Walmart is putting a pause on brand acquisitions and instead will focus on incubating its own brands, internally. Its first is a mattress brand that it launched in 2018 called Allswell.

Walmart shares, which have a market value of nearly $340 billion, have climbed a little more than 28% this year.

Here’s the complete LinkedIn post from Dunn:


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: lauren thomas
Keywords: news, cnbc, companies, post, ecommerce, 2020, company, brand, walmarts, andy, acquired, dunn, walmart, depart, brands, bonobos, online, founder


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

How a Harvard dropout founded South Korea’s most valuable start-up

Now, less than a decade on, Kim is the billionaire brains behind South Korea’s most valuable start-up. Kim is founder and CEO of Coupang, the $9 billion e-commerce giant that’s been dubbed the Amazon of South Korea. The shape of Coupang, the business model of Coupang … went through a lot of change. But at the eleventh hour, he pulled the deal and radically changed the business model, convinced he could build something better. While Amazon is not active in South Korea, Coupang last year outrank


Now, less than a decade on, Kim is the billionaire brains behind South Korea’s most valuable start-up.
Kim is founder and CEO of Coupang, the $9 billion e-commerce giant that’s been dubbed the Amazon of South Korea.
The shape of Coupang, the business model of Coupang … went through a lot of change.
But at the eleventh hour, he pulled the deal and radically changed the business model, convinced he could build something better.
While Amazon is not active in South Korea, Coupang last year outrank
How a Harvard dropout founded South Korea’s most valuable start-up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: karen gilchrist
Keywords: news, cnbc, companies, business, founded, koreas, south, coupang, valuable, korea, harvard, amazon, startup, dropout, model, delivery, founder, kim, ecommerce


How a Harvard dropout founded South Korea's most valuable start-up

For many would-be entrepreneurs, Harvard’s prestigious MBA program provides an important step in the journey from dreamer to founder. But for Bom Kim, that step was quicker than most. Just six months into the program, he dropped out, determined to make it on his own. Now, less than a decade on, Kim is the billionaire brains behind South Korea’s most valuable start-up. “I had a belief when I was in grad school that I had a very short window to really make something that had an impact,” he told CNBC Make It. Kim is founder and CEO of Coupang, the $9 billion e-commerce giant that’s been dubbed the Amazon of South Korea. He started the business in Seoul in 2010 to take advantage of what he saw as the growing technology opportunity. Today his company boasts a user-base almost half the size of the country’s population. However, as the 40-year-old founder recently told CNBC Make It, he didn’t exactly set out to become the next Jeff Bezos.

The shape of Coupang, the business model of Coupang … went through a lot of change. Bom Kim Founder and CEO of Coupang

Learning to pivot

In fact, when Coupang started out in the late-2000’s, it was a Groupon-style daily deals business. But, as Kim noticed the growing scope of e-commerce, he quickly transitioned to an eBay-inspired third-party marketplace. “The shape of Coupang, the business model of Coupang, what Coupang looks like today, went through a lot of change,” said Kim.

Bom Kim, founder and CEO of South Korean e-commerce site Coupang. CNBC

The business was a success. Within three years, Kim said the company crossed $1 billion in sales and was on the cusp of an initial public offering. But at the eleventh hour, he pulled the deal and radically changed the business model, convinced he could build something better. “We had to ask ourselves: ‘Was the business we had built, were the services and experiences that we were providing … creating that kind of world where the customers we love, their jaws would drop?’ said Kim. “The reality was no,” he noted.

Starting over

So Kim decided to start over; this time reinventing Coupang as an end-to-end shopping platform designed to manage the full customer journey from desktop to door. That included creating Coupang’s own UPS-style logistics business, Rocket Delivery, intended to “delight” customers and improve South Korea’s disjunctured postal system, said Kim. “The only models that we had seen were primarily like that of Amazon … And at that time, we really envied that,” he said.

One of Coupang’s fulfillment centers in South Korea. Coupang

South Korea’s e-commerce market has been growing rapidly over recent years, and this year is projected to become the world’s fifth largest after China, the U.S., the U.K. and Japan. Meanwhile, long working hours and densely populated cities make the country ripe for on-demand delivery services. Coupang responded to those market characteristics in spades. Today, its more than 5,000 drivers – known as Coupangmen – deliver 99.3% of orders in less than 24 hours. Its new Dawn Delivery service even promises to go beyond Amazon Prime, providing 7 a.m. delivery for orders made before midnight the night before. Kim said he believes that level of detail is what has helped set his business apart in an exceedingly competitive market. While Amazon is not active in South Korea, Coupang last year outranked local names such as Gmarket and 11Street to be named the consumers’ preferred online retailer. “What seemed like a curse at that time — that we had to build this entire infrastructure, and build the technology to integrate it all, end-to-end, by ourselves, from scratch — ended up becoming a huge blessing,” he said.

South Korea as a model


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: karen gilchrist
Keywords: news, cnbc, companies, business, founded, koreas, south, coupang, valuable, korea, harvard, amazon, startup, dropout, model, delivery, founder, kim, ecommerce


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Target and Walmart are a threat to Amazon this Cyber Monday

Amazon has become a huge threat to big-box stores in recent years, but those retailers may be making a comeback this Cyber Monday. Walmart and Target had bigger jumps than Amazon in online customer spending during the first two weeks of November compared with the same period last year, according research firm Edison Trends, which looked at more than 1.2 million transactions. Walmart took in 51% more than last year, while Target followed close behind with a 47% increase. “Retailers have gone from


Amazon has become a huge threat to big-box stores in recent years, but those retailers may be making a comeback this Cyber Monday.
Walmart and Target had bigger jumps than Amazon in online customer spending during the first two weeks of November compared with the same period last year, according research firm Edison Trends, which looked at more than 1.2 million transactions.
Walmart took in 51% more than last year, while Target followed close behind with a 47% increase.
“Retailers have gone from
Target and Walmart are a threat to Amazon this Cyber Monday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: mallika mitra, lauren thomas
Keywords: news, cnbc, companies, online, stores, investing, according, site, walmart, cyber, amazon, ecommerce, spending, threat, target


Target and Walmart are a threat to Amazon this Cyber Monday

Amazon has become a huge threat to big-box stores in recent years, but those retailers may be making a comeback this Cyber Monday.

Walmart and Target had bigger jumps than Amazon in online customer spending during the first two weeks of November compared with the same period last year, according research firm Edison Trends, which looked at more than 1.2 million transactions.

Walmart took in 51% more than last year, while Target followed close behind with a 47% increase. Amazon’s customer spending grew just 32%.

As retailers battle for market share, they are investing in their e-commerce options, and integrating them with brick-and-mortar stores. This includes adding more products to their online shops, offering in-store pick up for items purchased online and direct shipping from stores to customers’ houses, according to Nomura Instinet analyst Michael Baker. These companies are also investing in the infrastructure of their websites to allow them to handle big shopping days like Cyber Monday.

“Retailers have gone from being in denial about the potential threat of e-commerce to accepting that e-commerce is a real threat and investing to take advantage of the omnichannel asset,” Baker said.

They’re realizing that they can compete with Amazon to win back market share, he added.

There is a lot of competing to be done. Amazon sees more users start with its site when online shopping than on any other site, including Google, according to a recent report by Bain & Co.


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: mallika mitra, lauren thomas
Keywords: news, cnbc, companies, online, stores, investing, according, site, walmart, cyber, amazon, ecommerce, spending, threat, target


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

E-commerce billionaire Michael Rubin: There needs to be ‘more pressure’ on wealthy to give back

Rather than a wealth tax, successful businessman and businesswomen should be pushed to donate more, according to e-commerce billionaire Michael Rubin. “There has to be more pressure on entrepreneurs, when they create great value, to give back,” Rubin told CNBC’s “Squawk Box” on Monday. A wealth tax could also stifle American innovation, Rubin added, though he didn’t comment on specific proposals. Elizabeth Warren and Bernie Sanders, both champions of the left, have proposed different versions of


Rather than a wealth tax, successful businessman and businesswomen should be pushed to donate more, according to e-commerce billionaire Michael Rubin.
“There has to be more pressure on entrepreneurs, when they create great value, to give back,” Rubin told CNBC’s “Squawk Box” on Monday.
A wealth tax could also stifle American innovation, Rubin added, though he didn’t comment on specific proposals.
Elizabeth Warren and Bernie Sanders, both champions of the left, have proposed different versions of
E-commerce billionaire Michael Rubin: There needs to be ‘more pressure’ on wealthy to give back Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, billion, great, tax, net, rubin, entrepreneur, worth, ecommerce, wealth, pressure, million, money, wealthy, needs, billionaire, michael


E-commerce billionaire Michael Rubin: There needs to be 'more pressure' on wealthy to give back

Rather than a wealth tax, successful businessman and businesswomen should be pushed to donate more, according to e-commerce billionaire Michael Rubin.

“There has to be more pressure on entrepreneurs, when they create great value, to give back,” Rubin told CNBC’s “Squawk Box” on Monday. “I always bank on an entrepreneur to give back and get great results versus giving that same money to the government.”

Rubin, executive chairman of online sports apparel giant Fanatics, said that while there’s a “responsibility” when it comes to giving back, it’s better to “bet on the entrepreneur who made the money” than on the government. He also has an ownership stake in the Philadelphia 76ers in the NBA and New Jersey Devils in the NHL. His Kynetic firm is the holding company of Fanatics as well as e-commerce brands Rue Gilt Groupe and Shoprunner.

Pointing to his efforts into reforming the U.S. parole and probation system, Rubin said, “I think we’re going to make a lot more progress than the government can with many more times that money. In January, he partnered with rapper Meek Mill and other sports-team owners and businessmen to donate $50 million to push for systematic changes.

A wealth tax could also stifle American innovation, Rubin added, though he didn’t comment on specific proposals.

“America’s a country where you can come, you can be an entrepreneur, you can create great value,” said Rubin, who never attended college but sold his first company, GSI Commerce, to eBay for $2.4 billion. “I don’t think you ever want to deter that from happening because this is a place where so many great businesses get created and started.”

Rubin’s comments come as a handful of billionaires, including J.P. Morgan Chase CEO Jamie Dimon, ex-Goldman Sachs CEO Lloyd Blankfein and billionaire investor Leon Cooperman, have spoken out against wealth-tax proposals.

Democratic presidential contenders Sens. Elizabeth Warren and Bernie Sanders, both champions of the left, have proposed different versions of a wealth tax, ramping up the rhetoric around the issue.

Warren’s plan calls for a 2% tax on families’ net worth above $50 million and a 6% tax on household net worth over $1 billion. The wealth tax proposed by Sanders, a self-described democratic socialist, would be progressive, starting at 1% for household net worth of more than $32 million and ending at 8% on wealth over $10 billion.


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, billion, great, tax, net, rubin, entrepreneur, worth, ecommerce, wealth, pressure, million, money, wealthy, needs, billionaire, michael


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The direct-to-consumer strategy is making a run at Amazon’s throne

As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier. It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery. There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs. “As you start to get more mega companies, consumers just g


As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier.
It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery.
There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs.
“As you start to get more mega companies, consumers just g
The direct-to-consumer strategy is making a run at Amazon’s throne Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: deirdre bosa laura batchelor, deirdre bosa, laura batchelor
Keywords: news, cnbc, companies, throne, strategy, brands, dtc, fluhr, ecommerce, amazons, companies, returns, run, amazon, making, consumers, disney, nike, directtoconsumer


The direct-to-consumer strategy is making a run at Amazon's throne

As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier.

It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery.

It’s made up of some of Silicon Valley’s hottest startups, up-and-coming names and established companies.

There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs. Affirm provides credit to consumers to buy bigger ticket items like furniture from Wayfair and Peloton bikes. Returnly helps Everlane and Supergoop manage product returns; Shipbop helps with warehousing and Darkstore is trying to take aim at Amazon with same-day shipping.

Established names are also part of the system, like Shopify for ecommerce platforms and Facebook’s Instagram, which has emerged as a powerful tool for DTC marketing.

“The next frontier in the battle with Amazon is on the back-end,” said David Bell, co-founder of Idea Farm Ventures and a former Wharton professor. “This is where companies like Affirm, Shipbot, and Happy Returns have a critical role to play. When customers can spread payments, get product quickly and return without much friction (and even a bit of fun), the brand wins.”

Jeff Fluhr, cofounder and general partner at Craft Ventures said Amazon has set a high bar for consumers’ expectations.

“Until recently it’s been really hard to compete,” Fluhr said. “But that’s starting to change.”

It could be particularly appealing to brands that are wary of giving up sensitive data to Amazon, which itself could become a competitor. Amazon’s private label 206 Collective sneakers have made headlines for looking strikingly similar to Allbirds’ iconic wool sneakers at half the price.

Another advantage of controlling the process instead of using Amazon’s one-stop service, Fulfillment by Amazon, is that companies can better maintain their brand strength by offering greater personalization and exercising more control over quality.

“Consumers like to buy from companies and brands that align with their own ethics and values,” Fluhr said. “As you start to get more mega companies, consumers just get more skeptical and concerned about how their data is being used.”

And it’s not just DTC start-ups. Earlier this month, Nike severed its relationship with Amazon. It’s now working with Shopify and Darkstore to deliver shoes, avoiding the “gray market” issues that arose when selling its products directly on Amazon.

“The strategies that digitally native brands used to outsmart Amazon are now being used by large retailers like Nike and Disney to win modern consumers,” Returnly’s founder and CEO, Eduardo Vilar said. “Nike is trying to emulate the strategies of DTC brands and cutting ties with their retail partners. Disney is doing the same with Disney+.”


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: deirdre bosa laura batchelor, deirdre bosa, laura batchelor
Keywords: news, cnbc, companies, throne, strategy, brands, dtc, fluhr, ecommerce, amazons, companies, returns, run, amazon, making, consumers, disney, nike, directtoconsumer


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Black Friday may not save retail, but some e-commerce plays are buys

The SPDR S&P Retail ETF, also known by its ticker, XRT, is up less than 10% for 2019 — coming in just above the modest 4% year-to-date gain for energy, the worst-performing sector in the S&P 500. Black Friday also remains a question mark for many physical retailers struggling to attract shoppers to their stores. But investors could still benefit from parts of the retail space via exchange-traded fund strategies, Dave Nadig, managing director of ETF.com, tells CNBC’s “ETF Edge.” Other ETFs that c


The SPDR S&P Retail ETF, also known by its ticker, XRT, is up less than 10% for 2019 — coming in just above the modest 4% year-to-date gain for energy, the worst-performing sector in the S&P 500.
Black Friday also remains a question mark for many physical retailers struggling to attract shoppers to their stores.
But investors could still benefit from parts of the retail space via exchange-traded fund strategies, Dave Nadig, managing director of ETF.com, tells CNBC’s “ETF Edge.”
Other ETFs that c
Black Friday may not save retail, but some e-commerce plays are buys Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-28  Authors: lizzy gurdus
Keywords: news, cnbc, companies, names, etf, emerging, nadig, shopping, seymour, online, retail, think, plays, buys, black, save, ecommerce


Black Friday may not save retail, but some e-commerce plays are buys

Retail has had a rough year.

One of the worst-performing groups in the stock market for 2019, retail stocks have had difficulty mitigating the effects of the ongoing U.S.-China trade war and consumers’ shifting shopping preferences, with names like Macy’s and Gap notching double-digit losses for the year.

The SPDR S&P Retail ETF, also known by its ticker, XRT, is up less than 10% for 2019 — coming in just above the modest 4% year-to-date gain for energy, the worst-performing sector in the S&P 500. The S&P itself is up by more than 25% this year.

Recent earnings reports from top brick-and-mortar retailers including Kohl’s and Home Depot have added to the pain. Discount retailer Dollar Tree followed suit Tuesday, slashing its fourth-quarter earnings forecast and blaming China tariffs for the move. Shares have fallen by over 15% since Tuesday.

Black Friday also remains a question mark for many physical retailers struggling to attract shoppers to their stores. With online platforms making it easy to compare prices, expectations for the nationwide shopping holiday are dimming as the spread of shopping options continues to widen.

But investors could still benefit from parts of the retail space via exchange-traded fund strategies, Dave Nadig, managing director of ETF.com, tells CNBC’s “ETF Edge.”

“It really just comes down to that online, brick-and-mortar split,” Nadig said Monday. “I like CLIX here, which is the ProShares Long/Short [ETF]. You get long the good names in the space, the Amazons of the world, and you go short all the names we just saw. It’s having a great year.”

CLIX, which counts e-commerce giants Amazon and Alibaba among its top holdings, has indeed had a strong year, with a nearly 15% gain to date. Other ETFs that capitalize on the online shopping boom include ProShares’ Online Retail ETF (ONLN), Amplify’s Online Retail ETF (IBUY), the Global X E-commerce ETF (EBIZ) and the Emerging Markets Internet & Ecommerce ETF (EMQQ).

“Stick to the global plays. That’s where you’re going to get that emerging market consumer story,” Nadig said, adding that he didn’t like the popular XRT ETF for its heavy brick-and-mortar tilt and its exposure to smaller-cap companies.

Tim Seymour, founder and chief investment officer of Seymour Asset Management, said LVMH’s $16.2 billion acquisition of Tiffany speaks to the strength of emerging markets.

“That’s an EM story. That’s an Asia story,” Seymour said in the same “ETF Edge” interview. “If you barbelled it, I think high-end discretionary is working right now and the lower end is also working. So, I like that acquisition and I think you could see more consolidation.”

At the same time, some domestically focused retail stocks are “priced for perfection,” said Seymour, who appears regularly on CNBC’s “Fast Money.”

“If you look at a Target and a Walmart, while they’ve been massive outperformers, at some point, valuation does matter,” he said. “And I think, in this environment, they’ve been priced to perfection, but I’ve been wrong there for months.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-11-28  Authors: lizzy gurdus
Keywords: news, cnbc, companies, names, etf, emerging, nadig, shopping, seymour, online, retail, think, plays, buys, black, save, ecommerce


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The trade war could give Chinese tech the upper hand in the race for influence in the Middle East, Africa

Ben Harburg, managing partner of Beijing-based venture capital firm MSA Capital, told CNBC the “decoupling” of China from its largest trade partner has forced Chinese businesses to innovate and diversify beyond their preferred timeline. However, he added that that has also served to accelerate their already planned push into the Middle East and Africa. “This forced self-sufficiency and forced decoupling has yielded them a really attractive market,” Harburg said of Chinese companies — most notabl


Ben Harburg, managing partner of Beijing-based venture capital firm MSA Capital, told CNBC the “decoupling” of China from its largest trade partner has forced Chinese businesses to innovate and diversify beyond their preferred timeline.
However, he added that that has also served to accelerate their already planned push into the Middle East and Africa.
“This forced self-sufficiency and forced decoupling has yielded them a really attractive market,” Harburg said of Chinese companies — most notabl
The trade war could give Chinese tech the upper hand in the race for influence in the Middle East, Africa Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: karen gilchrist, kavita chandran
Keywords: news, cnbc, companies, middle, partner, nansha, trade, influence, hand, ecommerce, chinese, forced, guangzhou, tech, war, race, east, capital, upper, harburg


The trade war could give Chinese tech the upper hand in the race for influence in the Middle East, Africa

Ben Harburg, Managing Partner of MSA Capital and Rafik Nayed, Group Chief Executive Officer of Al Salam Bank Bahrain speak with Geoff Cutmore, anchor of CNBC on Day 3 of CNBC East Tech West at LN Garden Hotel Nansha Guangzhou on November 20, 2019 in Nansha, Guangzhou, China.

The ongoing U.S.-China trade war may be prematurely pushing the world’s second largest economy toward greater self-sufficiency, but that could prove a win for the country as it seeks to make inroads into some of the world’s biggest untapped markets.

Ben Harburg, managing partner of Beijing-based venture capital firm MSA Capital, told CNBC the “decoupling” of China from its largest trade partner has forced Chinese businesses to innovate and diversify beyond their preferred timeline. However, he added that that has also served to accelerate their already planned push into the Middle East and Africa.

“This forced self-sufficiency and forced decoupling has yielded them a really attractive market,” Harburg said of Chinese companies — most notably those in tech — at CNBC’s East Tech West conference in the Nansha district of Guangzhou, China.

“The chip industry here would have loved another five years to get its feet underneath it. Operating systems locally would have preferred more time for maturation,” he continued during a panel hosted by CNBC’s Geoff Cutmore entitled “Beyond One Belt, One Road.”

“But it’s kind of the necessity of innovation at this moment to survive. It’s pushing these companies to emerging technology markets and what they’re finding there are incredibly attractive conditions.”

Harburg highlighted particular opportunities in the e-commerce and banking sectors, within which many of the regions’ markets have a penetration rate of less than 10%.

“China (has) an e-commerce penetration rate of around 30%. In the Middle East today it’s 2%,” said Harburg. “(It’s) hugely attractive to walk millions of people online and find them a place in e-commerce that’s obviously mobile-first.


Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: karen gilchrist, kavita chandran
Keywords: news, cnbc, companies, middle, partner, nansha, trade, influence, hand, ecommerce, chinese, forced, guangzhou, tech, war, race, east, capital, upper, harburg


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Why Icahn is making a $400 million bet against malls: Record store closures this year

Icahn’s specific bet is against securitized loans of mall owners, the WSJ reported. Essentially its a bet that the value of these securities will fall as mall owners run into trouble paying their mortgages. Record store closuresIcahn is making his trade in a year when store closures hit a record high, thanks to the e-commerce boom and the rise of companies like Amazon. Mall closures alone have reached 4,087 this year, a 140% increase year-over-year from the 1,696 closures in 2018, according to B


Icahn’s specific bet is against securitized loans of mall owners, the WSJ reported.
Essentially its a bet that the value of these securities will fall as mall owners run into trouble paying their mortgages.
Record store closuresIcahn is making his trade in a year when store closures hit a record high, thanks to the e-commerce boom and the rise of companies like Amazon.
Mall closures alone have reached 4,087 this year, a 140% increase year-over-year from the 1,696 closures in 2018, according to B
Why Icahn is making a $400 million bet against malls: Record store closures this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, icahn, bet, making, 400, owners, million, closures, malls, real, record, ecommerce, rates, store, mall


Why Icahn is making a $400 million bet against malls: Record store closures this year

Carl Icahn Adam Jeffery | CNBC

Activist investor Carl Icahn is poised to win big if the American mall loses. Icahn, likely the largest short seller of mall debt, stands to gain $400 million or more if mall owners can’t pay or service their debt, trader sources told the Wall Street Journal. The big bet by the legendary investor comes as U.S. retail store closures — many of them as part of mall shutdowns — have hit record highs this year as customers get more accustomed to the convenience of online shopping. Icahn’s specific bet is against securitized loans of mall owners, the WSJ reported. Essentially its a bet that the value of these securities will fall as mall owners run into trouble paying their mortgages.

Record store closures

Icahn is making his trade in a year when store closures hit a record high, thanks to the e-commerce boom and the rise of companies like Amazon. So far in 2019, more than 9,100 stores have closed across the country, according to Bank of America, which believes this year’s number is the highest of any single year and blows past previous closures on record even during recessions. Mall closures alone have reached 4,087 this year, a 140% increase year-over-year from the 1,696 closures in 2018, according to Bank of America.

“We were concerned heading into 2019 on potential store closures in the mall and outlet space. Unfortunately, the pace of closures has exceeded our expectations,” said Bank of America research analyst Craig Schmidt in a note to clients earlier this week. The larger-than-expected number of closures can partly be attributed to the rise of e-commerce. For the sixth straight year, U.S. consumers say online shopping is causing them to head to the mall a lot less, said UBS analyst Jay Sole, in a note earlier this month titled, “eCommerce Disruption: No End In Sight.” The firm expects e-commerce to outgrow store sales by an average of 7% over the next five years, a trend they call “most problematic” for retailers. “We believed services like buyonline-pickup-in-store (BOPIS) could help mall-based retailers differentiate,” said Sole. “However, survey responses suggest BOPIS isn’t important enough to change the mall traffic trend.”

Rebounding rates

Icahn has suffered some early losses in the bet he made in recent months, the WSJ said. Mall-owners and more broadly real estate owners got some relief over the summer when interest rates fell with the 10-year Treasury yield trading below 1.5% as the Federal Reserve cut rates. Low interest rate environments are a real tailwind for real estate investment trusts because they make it easier for them to pay and refinance their mortgages. But recently rates have rebounded, with the 10-year Treasury yield above 1.74%. If rates have bottomed and are heading back up, this could exacerbate mall-owners’ finances, possibly making Icahn’s trade a winner.

The next “big short”


Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, icahn, bet, making, 400, owners, million, closures, malls, real, record, ecommerce, rates, store, mall


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Walmart CEO Doug McMillon: ‘We need even more progress on Walmart.com’

The big-box retailer said Thursday its e-commerce sales were up 41% during the latest quarter, thanks to a strong grocery business. “We’re making progress on many fronts, but we need to do more and move faster, especially with our assortment including marketplace,” CEO Doug McMillon said in a statement. “Our strength is being driven by food, which is good, but we need even more progress on Walmart.com with general merchandise. We’re committed to progress and building a larger, healthier eCommerc


The big-box retailer said Thursday its e-commerce sales were up 41% during the latest quarter, thanks to a strong grocery business.
“We’re making progress on many fronts, but we need to do more and move faster, especially with our assortment including marketplace,” CEO Doug McMillon said in a statement.
“Our strength is being driven by food, which is good, but we need even more progress on Walmart.com with general merchandise.
We’re committed to progress and building a larger, healthier eCommerc
Walmart CEO Doug McMillon: ‘We need even more progress on Walmart.com’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-14  Authors: lauren thomas
Keywords: news, cnbc, companies, need, walmart, doug, billion, ceo, grocery, walmartcom, mcmillon, work, business, delivery, ecommerce, progress


Walmart CEO Doug McMillon: 'We need even more progress on Walmart.com'

Walmart is admitting it still has work to do online.

The big-box retailer said Thursday its e-commerce sales were up 41% during the latest quarter, thanks to a strong grocery business.

“We’re making progress on many fronts, but we need to do more and move faster, especially with our assortment including marketplace,” CEO Doug McMillon said in a statement. “Our strength is being driven by food, which is good, but we need even more progress on Walmart.com with general merchandise. We’re mixing the business out better to achieve better margin rates, but there is more work to do. We’re committed to progress and building a larger, healthier eCommerce business. Our customers want that, our marketplace sellers want that, and so do we.”

Walmart’s online business has especially come under fire this year, as competition with Amazon only intensifies.

Vox reported in July that Walmart’s e-commerce division was on track to lose more than $1 billion this year, which had caused some strife internally.

Some of those tensions reportedly were between Walmart’s CEO in the U.S., Greg Foran, and e-commerce chief Marc Lore. Foran has stepped down from his role, replaced by former Sam’s Club CEO John Furner.

Walmart has been investing in faster delivery options, including a next-day option, and it has acquired a slew of online brands, some of which remain unprofitable, according to Vox. Walmart said in October it will be selling one of the clothing brands it had bought, ModCloth.

Grocery, however, has been a strength, thanks to new services being rolled out like in-home grocery delivery and an unlimited grocery delivery membership that Walmart now offers from 1,400 U.S. stores.

“Grocery pickup and delivery, along with new offerings like Unlimited Delivery and InHome Delivery, will help us unlock advantages we have to serve customers in a way that reduces friction and enhances convenience,” McMillon said. “We need to translate this repetitive food and consumable volume into a stronger Walmart.com business that’s profitable over time, so that’s what we’re working on.”

Walmart shares rose 2% in premarket trading Thursday, on the heels of the upbeat earnings report. Shares are up about 30% for the year. Walmart has a market cap of roughly $344.1 billion, compared with Amazon’s roughly $869.2 billion.


Company: cnbc, Activity: cnbc, Date: 2019-11-14  Authors: lauren thomas
Keywords: news, cnbc, companies, need, walmart, doug, billion, ceo, grocery, walmartcom, mcmillon, work, business, delivery, ecommerce, progress


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

All those Singles Day packages show the real battleground for China’s online shopping giants

China’s largest cities rival global metropolises in the variety of clothes, electronics and other goods that can arrive at the door often less than a day later. In cities like Beijing and Shanghai, online shopping is already a major part of daily life, leaving limited room for growth. For a sense of the volume companies in China might need to handle, China’s official postal service company said that on Nov. 11 — the Singles Day shopping day that’s akin to Black Friday in the U.S. — shipping comp


China’s largest cities rival global metropolises in the variety of clothes, electronics and other goods that can arrive at the door often less than a day later.
In cities like Beijing and Shanghai, online shopping is already a major part of daily life, leaving limited room for growth.
For a sense of the volume companies in China might need to handle, China’s official postal service company said that on Nov. 11 — the Singles Day shopping day that’s akin to Black Friday in the U.S. — shipping comp
All those Singles Day packages show the real battleground for China’s online shopping giants Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: evelyn cheng
Keywords: news, cnbc, companies, ecommerce, real, delivery, battleground, packages, cities, company, shopping, online, chinas, volume, companies, logistics, giants, china, areas, day, singles


All those Singles Day packages show the real battleground for China's online shopping giants

A JD delivery cart stops at roadside. Zhang Peng | LightRocket | Getty Images

BEIJING – Alibaba, JD.com and Pinduoduo. For these three forces of China’s online shopping market, winning the race to tap the country’s fastest-growing regions will depend largely on an efficient delivery strategy — especially to more remote areas of the country. China’s largest cities rival global metropolises in the variety of clothes, electronics and other goods that can arrive at the door often less than a day later. In cities like Beijing and Shanghai, online shopping is already a major part of daily life, leaving limited room for growth. As a result, e-commerce companies are increasingly turning to smaller cities and rural areas, where disposable income remains relatively high, in part due to lower living costs. For example, Alibaba said its penetration rate in developed parts of China is 85%, versus 40% in less developed areas. The company added that for the quarter ended June 30, more than 70% of the increase in annual active consumers was from those less developed areas. Online retail only works with the support of delivery services. For a sense of the volume companies in China might need to handle, China’s official postal service company said that on Nov. 11 — the Singles Day shopping day that’s akin to Black Friday in the U.S. — shipping companies handled 535 million packages. That’s three times the average daily volume since the second quarter, according to the postal company.

To reach consumers in more remote markets, each of the e-commerce giants is trying a different tactic. Alibaba announced Friday it invested an additional $3.3 billion in its shipping affiliate Cainiao, for a 63% stake. The e-commerce company also has strategic investments in two of China’s major delivery companies: ZTO Express and YTO Express.

JD.com touted its five years of investment in an in-house logistics network as a driver in overall profits in the second quarter – the logistics unit itself reached break-even during the same period.

As for Pinduoduo, known for its group-buying model that initially took off in lower-tier cities, it has left the distribution of parcels to shipping companies.

Tech development is key

But, as Pinduoduo CEO Colin Huang announced on the second-quarter earnings call, the company is in the early stages of developing a system for making delivery more efficient using big data. In one case, a system could take information on past orders and traffic to determine the cheapest delivery route. That layer of information technology is what logistics companies need to develop now, since the basic infrastructure already exists, said Melissa Chen, logistics analyst, at China Renaissance. It’s the same case for JD.com. The company claims its logistics network already covers 99% of the population of China, and at least 90% of orders can be delivered within 24 hours. In more remote areas, the company has collaborated with local stores to serve as mini-warehouses.

A key next step is to improve data collection and analysis of local demand, so JD can effectively stockpile those smaller outposts with goods for one-day delivery to the region, the company said. JD also plans to open some more warehouses in lower-tier cities. “We have always believed the increased efficiency of logistics will bring a very large growth in sales,” JD Logistics CEO Wang Zhenhui told reporters on Oct. 29, according to a CNBC translation of his Mandarin-language remarks.

Concerns of higher expenses in rural areas

Wang would not provide a precise breakdown of costs for reaching less densely populated lower-tier cities versus more developed areas, but noted that as order volume increases, unit costs decline. The retailer is also looking to its delivery network as a source of income. Wang disclosed that since opening the network to third-party players in 2017, those clients now contribute to about 40% of the logistics department’s revenue. Without that third-party volume, an e-commerce company’s logistics business will have difficulty becoming a profitable enterprise, Charles Guowen Wang, director at think tank China Development Institute, said according to a CNBC translation of his Mandarin-language remarks. Wang is also the roundtable chair in China for the Council of Supply Chain Management Professionals. He pointed out that one key way for delivery companies to lower costs is by keeping trucks full in both directions: a vehicle bringing products from an urban center to a village can then bring agriculture produce back to the city. Pinduoduo already sells inexpensive fruit and other farm produce directly to urban residents through its platform. Gross merchandise volume from first and second-tier cities rose from 37% in January to 48% in June, the company said in its second-quarter earnings call. A spokesperson also noted that the forthcoming technology platform could help aggregate collection and delivery of these farm goods in a more efficient way.

Other competitors in delivery

Even as China’s e-commerce players work to improve their own logistics services, the market is full of other established players ranging from nationwide giants like SF Express to small, local delivery businesses. In August, China’s official postal service company also disclosed that packages for products sold on Pinduoduo accounted for about a quarter of the 27.76 billion parcels handled nationwide in the first half of the year. Since the e-commerce company does not deliver its own packages, the figure indicates shipping volume through a variety of Chinese courier businesses.


Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: evelyn cheng
Keywords: news, cnbc, companies, ecommerce, real, delivery, battleground, packages, cities, company, shopping, online, chinas, volume, companies, logistics, giants, china, areas, day, singles


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post