I am clearing my reading backlog. I have at least about 15 more essays to read and yet I wasted yesterday on Fleabag. That just means one thing - I need a break. So, this week, instead of one long essay, I am curating some incredibly good takes (they really are and also a couple of them are mine. So, duh!) for your quick read.
At the end, I have an ask as well. It's directed at you. So please do indulge me, mmmkay? (Oh, I haven't tried mmmmkay or whatever. Have ya?)
The reason Amazon is so successful is that they relentlessly convert every cost center into profit center. It's their culture of playing the long game that allows them to plan and execute.
The meaning of the 'Business District' for retail is changing fast. Unless there is a need to entertain the audience or showroom the SKUs, there is no economic sense in have full-fledged stores in the expensive real estate locations.
For context, if you don't realize, India's Reliance held an AGM last week and announced that they are debt-free. How? They had raised $20B in 9 weeks. They raised money from everyone - Facebook, Google, Top PEs, etc. They became debt-free ahead of schedule. But, will an 'oil to telecom' company become a tech powerhouse? People are skeptical. But they miss the point. Reliance is a 'large infrastructure project management' company like no one else. Chemicals and Telcos are large infra plays. Reliance is good at executing them. The Internet in India is an infra play too. They are good at that. Reliance will be the infra platform and their acquisitions will drive the innovation. (This my take)
BigCommerce is filing for an IPO. Their cost of acquisition of customers put a 72% drag on margins. The long tail is gravitating towards Shopify and WooCommerce. The general advice is to focus on the enterprise segment. Yes, enterprise is not a 'winner takes it all' market but there is a pretty tight 'consideration basket' in enterprises (Magic Quadrants!). I don't see why an enterprise should choose BigCommerce. I agree that markets will reward BigCommerce like they are a mini-Shopify. So, there's that! BigCommerce is a short-term darling.
Creator communities and platforms are going to become really big. The extension of the D2C wave is the creative wave. People craving for authenticity get the closest to it with artists. That's why brands court influencers and that's also why creators need to be identified. After every war, creation and entertainment boom happens. This time too is no different. But the creation and entertainment will happen online.
PS: I am looking to interview incredible eCommerce/D2C operators and get their worldview to our audience. If you are one, don't be shy :). I'd love to interview you. Also, please do make recommendations/introductions.
PipeCandy is a market intelligence platform that tracks the global eCommerce & 'direct to consumer' landscape.
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