This week we have news about new startups competing with Amazon, Mondelez looking to try out eCommerce, making shipping easier in Asia, and a strategic eCommerce acquisition by Michelin to sell tires online. Two startups in the United states, Enjoy and Jet.com are taking aim to try and best Amazon, but will low prices and great service be enough? Shipping is a headache for most merchants, but in Asia shipping and logistics can be an absolute nightmare. This is what Easy Ship, a new startup that provides a seamless platform for pick-up, packing, labelling, shipping, and tracking, hopes to change. Mondelez the confectionary giant is testing the waters of eCommerce and applying “Buy Now” buttons to their media platforms to enable consumers to purchase goods online. Finally, Michelin, the tire giant just recently made a strategic acquisition in France. The company took a 40% stake in Allopneus, a pure play retailer of tires. This move is to help Michelin better understand the research and buying process consumers go through to order tires online.
It’s no shock to say that Amazon is a beast, and many want to either be Amazon or try to best Amazon. Well, two companies in the United States are taking aim to try and do the impossible: compete if not best Amazon. The first company is led by a former Apple employee who was responsible for bringing the Apple retail stores to life. Ron Johnson is in the processing of launching Enjoy, a selective online store that with no additional cost, will send an expert to your home to not only delivery your product(s) but spend an hour with you to set up and teach you how to use your new devices. The second company, Jet.com, is led by Marc Lore, an entrepreneur that actually sold one of his previous businesses, Quidsi, to Amazon back in 2010 for a cool $550 million. Jet.com’s premise is very simple: to have the cheapest prices for all goods on the internet. The business will function much like Costco, in that it will require an annual membership of $49.99. This is to ensure that all cost savings on products are passed directly to the customer. What’s more interesting, is that not only are Jet.com’s prices cheaper than Amazon, but the larger your cart is, the further discounted your items become. Many think it’s impossible to compete with Amazon, however while the company sold a record $29.3 billion in merchandise over the holidays in 2014, Americans spent $1.2 trillion, meaning Amazon only accounted for just 2% of total purchases – leaving lots of room for others to compete in the market.
Hong Kong is one of the biggest trading hubs in the world, and now especially important with the adoption of eCommerce. WIth more than 100,000 companies in Hong Kong alone, shipping 240 million parcels, to over 200 countries worldwide, shipping is a bit of a nightmare. That’s what Easy Ship, a startup based out of Hong Kong, hopes to change. The founder Tommaso Tamburnotti, founded Easy Ship out of the pains and struggles he faced while at Lazada, South East Asia’s online shopping destination. Sellers were spending too much time and struggling to choose which shipping courier to use, then having to prepare the shipping material, and tracking statuses for orders shipped. Enter: Easy Ship, a reliable logistics platform that offers a single end-to-end solution for pick-up, packing, labelling, shipping, and tracking. The company is currently competing in startup competitions in Asia, and hopes to raise more money to help with the costs of a young business.
Convenience Aisle Items soon to be available for purchase online
Want to buy Oreos, Cadbury chocolate, and Trident gum online? This may soon be a reality! Modelez is actively looking to establish “Buy Now” buttons across many of their media platforms through ChannelSight, an online shopping technology provider. In the next few months, Modelez will enable its brands’ product pages, social media platforms and advertising campaigns with links to more than 130 retailers’ websites. Bonin Bough, the company’s media and eCommerce officer says that this is a crucial step in their journey to accelerate their growth through eCommerce. Mondelez hopes to turn their branded content into buying opportunities for their consumers, and in turn, fuel growth for their “power brands”. The company has piloted the program in 20 markets, with more than 100 retailers using its technology, the company is now looking into additional regions and markets.
The Michelin Group is widely known as one of the world’s largest manufacturers of tires. The company sells almost 18 million tires to 170 countries each year. However, they does not currently sell online… until now? Recently, it was announced that Michelin would purchase a 40% stake in Allopneus SAS, a large pure play eCommerce retailer of tires, for 60 million euros ($67 million USD). Allopneus is based in France and has been selling tires online since 2004. This investment will help Michelin better understand online tire buyers, as three out of our consumers in France research and buy tires online.