FROM THE DESK OF DEBORAH WEINSWIG

Thoughts on the Successful Second Annual 10.10 Shopping Festival

We did it again! Coresight Research’s talented team went above and beyond to make the second 10.10 Shopping Festival a success. We originally developed the event as a way to inject some fun and excitement into the retail industry, which was hit hard last year by store closures and consumers’ shift to working and sheltering from home.

The 2021 iteration of the festival was held on October 10, from 10:00 a.m. to 10:00 p.m. EDT. It centered around livestreaming e-commerce, or shoppable video. Both livestreaming and shopping festivals have been wildly successful in China, and retailers there have used the concepts to reach consumers everywhere. Numerous shopping festivals—the best known of which is Singles’ Day (also known as the 11.11 Global Shopping Festival)—create excitement and provide new shopping opportunities for consumers and retailers.

The 10.10 Shopping Festival 2021 was fortunate to have Firework as its Lead Technology Partner and Access Beauty Insiders as the Lead Execution Partner. The first global livestreaming festival had nine sponsors and brought together 14 partner charities and 33 participating brands and retailers. Several celebrities and influencers pitched in to help make the event a success, including spokesperson and brand educator Sarah Williams. Two charities—Soles4Souls and National Breast Cancer Foundation—also held their own livestreaming sessions for the first time. Although many of the retailers had never hosted a livestream before, Firework’s technology enabled them to get up and running in just a couple of weeks.

Many of the livestreams during 10.10 were emotional, reflecting the authenticity of the channel and the presenters themselves: Livestreamers shared touching, inspiring, personal stories that reflected real human relationships. Many first-time livestreamers were energized by the concept and offered bundles, limited-time offers and limited quantities of merchandise to boost excitement, and GiftNow provided giveaways during the day.

A key focus of the 10.10 Shopping Festival was charitable giving: Participating retailers were required to donate at least 5% of the day’s proceeds to charity, and many donated a greater percentage. In addition, the infectious energy of the livestreams also boosted charitable giving, with goodMRKT auctioning off a jacket and donating the proceeds, for example. October 10 was also World Mental Health Day—an international day for mental health education and awareness—and we invited The Child Mind Institute to participate as one of 10.10’s partner charities. Coresight Research has donated to this organization, which provides support to children struggling with mental health and learning disorders and their families.

10.10’s overall success came alongside some unfortunate retail realities: Some retailers and brands suffered from stockouts as of showtime and so were unable to participate—reflecting ongoing supply chain struggles and the start of holiday shopping advancing into October. Some retailers new to livestreaming used much of their 30-minute session to explain their mission, values and purpose before beginning to generate sales. Fortunately, our proprietary research finds that 65% of US livestream customers make their purchase after the stream, and we are therefore optimistic that those retailers, having successfully introduced themselves to consumers in their allotted timeframe, will see sales rise after the event.

Best of all, the event was also fun, and we made many new friends around the globe while helping to introduce US consumers to the enjoyment of livestreaming. We also contributed to retail, which is the industry we love and the reason we are here, while also doing good by promoting our charity partners.

With two 10.10 Shopping Festivals under our belt, we are now solidly established within the holiday shopping season and look forward to sharing our upcoming 10.10 research.

US RETAIL AND TECH HEADLINES

Best Buy To Acquire Current Health

(October 12) Company press release

• Best Buy has announced plans to acquire Current Health, a UK-based care-at-home technology provider, for an undisclosed amount. The transaction is expected to close by the end of 2022.
• The acquisition comes as part of Best Buy’s strategy to expand into healthcare services and create a holistic care ecosystem. The company will integrate Current Health’s remote-care management platform with its existing healthcare products and services.

Kroger Expands Delivery; Adds New Fulfillment Centers (October 12) Company press release

• Kroger has announced the addition of new fulfillment centers as part of its partnership with Ocado. The new fulfillment centers will combine machine learning and robotics to offer an affordable and fast fresh food delivery service.
• Kroger will start delivering groceries in the northeast region through the initiative, offering same- or next-day grocery delivery. The company also plans to expand its capacity in California and launch two smaller fulfillment facilities in South Florida.

Signet Jewelers To Acquire Diamonds Direct; Raises Third-Quarter Revenue Guidance

(October 12) Company press release

• Signet Jewelers has entered into an agreement to acquire off-mall rival Diamonds Direct for $490 million. The acquisition is likely to be completed by Signet Jewelers’ fourth quarter of 2022 (ending January 30, 2022).
• The company has also raised its outlook for the third quarter of 2022 (ending October 31, 2021) on the back of strong consumer demand. According to the company, revenue now has an expected range of $1.42–1.45 billion, up from the prior $1.26–1.31 billion.

Stop & Shop Launches Express Delivery Service

(October 12) ChainStoreAge.com

• Stop & Shop, a regional grocery chain located in northeastern US, has partnered with Instacart to launch a new faster delivery service, Stop & Shop Express.
• Stop & Shop Express is available to customers across Connecticut, Massachusetts, New Jersey, New York and Rhode Island. Customers will be able purchase from an assortment of more than 30,000 items and have them delivered in as little as 30 minutes.

Walmart Partners with Netflix To Launch New Retail Hub

(October 11) Company press release

• Walmart has partnered with Netflix to introduce an exclusive online shopping destination for Netflix’s merchandise. The new online shopping site is Netflix’s first digital storefront and will allow customers to purchase merchandise from their favorite shows.
• The new online store will also include innovative shopping experiences, including voting systems to select products customers would like to see from new Netflix titles.

EUROPE RETAIL AND TECH HEADLINES

AliExpress To Open Its First Independent Logistics Centre in Poland

(October 12) TheFirstNews.com

• Alibaba Group-owned AliExpress, a Chinese online retail service provider, is set to open an approximately 107,500-square-foot logistics hub near Lodz, Poland, before November 11. Gary Topp, AliExpress’s CEO for Central and Eastern Europe, stated that Poland is the company’s regional hub and that the investment was a natural choice for its first logistics center in the region.
• The hub will allow deliveries in Poland within three days and will likely include next-day deliveries in major cities such as Krakow, Lodz, Poznan and Warsaw. The center will also serve nearby markets including Austria, the Czech Republic, Germany and Slovakia.

ASOS Records Revenue Growth of 20% in Fiscal 2021; Nick Beighton Steps Down as CEO 

(October 11) Company press release

• ASOS reported revenues of £3.9 billion ($5.3 billion) for its fiscal year ended August 31, 2021, growing 20% year over year from £3.2 billion ($4.4 billion). Its active customer base increased by 13% to reach 26.4 million. The company registered an operating profit of £190.1 million ($258.9 million), increasing by 25.8% year over year.
• On the same day, ASOS announced that Nick Beighton has stepped down as CEO, effective immediately. To ensure a smooth handover, he will remain available to the board till the end of this year. He served the company for 12 years, including six as CEO.

Holland & Barrett To Shutter Stores for Boxing Day

(October 12) Company press release

• UK-based wellness retailer Holland & Barrett will close all its stores in the UK and Ireland on Boxing Day (December 26). Its customers will still be able to place orders through the company’s website.
• The company’s Group Retail and Property Director, Anthony Houghton, stated that the decision was a gesture of thanks to all its employees for their tireless efforts since the beginning of the pandemic in 2020.

LVMH Records Strong Revenue Growth During the Third Quarter of 2021 (October 13) Company press release

• French luxury conglomerate LVMH recorded revenues of €44.2 billion ($51.0 billion) in its third quarter of 2021, ended September 30, 2021, up 46% year over year. Growth was driven by the company’s fashion and leather goods sales, recording organic revenue growth of 57% year over year and 38% compared to 2019.
• Looking ahead, the company aims to continue its recent growth and strengthen its brands’ desirability by leveraging its products’ authenticity and quality, its distribution network and its organizational reactiveness.

Ratina Shopping Center Signs New Leases as Retail Recovery Picks Up

(October 12) GlobeNewswire.com

• Ratina shopping center, the largest shopping hub in Tampere, Finland, is set to see new brands commencing operations this year, including virtual reality (VR) arcade Pikseli Arcade and healthcare provider Synlab.
• The shopping center has witnessed a 21% increase in cumulative sales between January and August this year. Over 600,000 visitors visited in July, up over 7% year over year, and 17,000 new customers joined its membership loyalty program, taking its total membership to 98,000.

ASIA RETAIL AND TECH HEADLINES

Fosun Group Rebrands to Lanvin; Valued at $1 Billion After Funding Round

(October 11) InsideRetail.asia

• China-based apparel company Fosun Group has rebranded itself as Lanvin Group, named after the oldest brand in its portfolio. The company stated that the rebrand reflects its vision to build a global portfolio of luxury brands, as it plans to expand both in China and globally.
• The company has also closed a capital-raising round valuing the company at $1 billion. Hong Kong footwear company Stella International, Japanese trading group Itochu Corporation and Chinese private-equity group Xizhi Capital invested in the company.

JD.com Partners with Dada Group for On-Demand Retail Model

(October 12) PRNewswire.com

• Chinese on-demand delivery and retail platform Dada Group and JD.com have launched their “Shop Now” business. The service enables customers to buy online at JD.com and have items delivered from stores in under one hour.
• The companies noted that Shop Now grew rapidly in the testing phase, seeing a 150% increase in sales in September compared to January, and that it continues to attract an increasing number of JD.com’s 530 million active users. In the long term, the companies aim to increase Shop Now’s penetration among active users to 50%.

L’Occitane Launches Eco-Friendly Store in Australia

(October 12) RetailNews.asia

• French beauty retailer L’Occitane has opened a new eco-friendly store in Sydney, Australia, aiming to appeal to a growing eco-conscious consumer base. The store offers products including conditioner, hand wash, shampoos and shower gels in recyclable and refillable packaging.
• The new store is the only one offering a limited-edition skincare product range, the Happy Shea Collection. The store also rewards customers for “green tasks,” such as leaving empty containers in the store’s recycling bins.

Lulu Group Opens Third Mall in India

(October 11) Business-Standard.com

• UAE-based multinational conglomerate Lulu Group has opened its third shopping mall in Bengaluru and plans to open two more in India in the next six months. Spanning 0.8 million square feet, the Bengaluru mall houses a 60,000-square-foot entertainment and experiential zone, Futura.
• The company stated it has invested around ₹45 billion ($598 million) in its first phase of expansion in India. For the next phase, it is looking to expand in states where it currently has a presence and also plans to enter new states.

Swiggy Enters Social Commerce with Swiggy Bazaar

(October 12) Pymnts.com

• Indian food and grocery delivery platform Swiggy is reportedly considering entry into social commerce with the launch of Swiggy Bazaar. The company will leverage the platform to sell consumer packaged goods, fresh farm produce and groceries.
• Swiggy plans to make an initial investment of $10–15 million and trial the program in key metropolitan cities such as Bengaluru and Gurugram. It also plans to double its Swiggy Bazaar workforce, currently 10–15 employees.