👜 Burberry Is Fighting to Stay Relevant in a Challenging Market

📰Industry News

• Amazon Prime Day spending in the UK hit a record £633m on its first day, the highest ever daily e-commerce spend for the event and a 9.1% increase compared to first-day sales last year. (Retail Gazette)

• Waitrose is winning back shoppers for the first time in over two years as cost of living pressures ease. Sales at the upmarket grocer were up 3.3%, outpacing rivals including Aldi, Co-op & Morrisons. (Yahoo Finance)

• Unilever has announced that it is cutting a third (3,200) office-based roles in Europe by the end of 2025. This is part of the 7,500 roles it plans to cut worldwide. (Euro News)

• Shein has committed to invest £211 million over five years in the UK and Europe following criticism for its tax loophole by shipping globally from factories based in China. (The Industry Fashion)

📦 E-commerce App Marketing? Read this.

The eCommerce app market is evolving rapidly, with significant changes observed throughout 2023 and into 2024. The latest report by AppsFlyer highlights key trends and shifts in consumer behaviour, advertising spending, and market strategies that are shaping the future of mobile app commerce. Here’s a quick look at some of the most important findings from the report, and what they mean for UK entrepreneurs and businesses.

1. Consumer Spend and Market Growth

   • In Q4 2023, consumer spending on eCommerce apps rose by 15% year-over-year.

   • iOS led the market growth with a 21% spike in in-app purchases, driven by economic recovery and increased consumer confidence, outpacing Android’s 9% growth.

   • A noteworthy 60% of first-time app buyers make subsequent purchases, highlighting the importance of securing initial transactions to drive loyalty.

2. Ad Spend and Install Trends

   • iOS saw a significant 43% increase in user acquisition (UA) and remarketing ad spend, totalling $6.6 billion in 2023, while Android experienced an 18% decline.

   • Non-organic installs (NOIs) on iOS surged by 60% in Q4 2023 due to higher ad spend and improved measurement confidence.

   • Large Asian app developers played a crucial role, driving a 125% increase in iOS NOIs in affluent markets such as Japan, Brazil, and Saudi Arabia.

3. Remarketing and Consumer Loyalty

   • Paid remarketing efforts increased by 19% year-over-year in Q4 2023, with iOS seeing a 35% rise compared to Android’s 17%.

   • Effective remarketing strategies focus on the first week post-install, with 40% of conversions occurring on the first day and 75% within the first week.

Hustlers' Hot Take 🔥

The e-commerce app landscape is poised for continued growth, with iOS leading the charge in both consumer spend and ad investments. This trend is particularly relevant for UK software businesses aiming to capitalise on the rising mobile commerce market.

Sorry Android fans, but iOS is crushing it here. The insights from the AppsFlyer offer valuable insight, with a key takeaway highlighting the importance of investing in robust UA and remarketing strategies, especially targeting iOS users who demonstrate higher purchasing power and loyalty.

More insight and data can be found in the Apps Flyer eCommerce App Marketing press release.

👜Burberry's Battle: The Downfall of a British Fashion Icon

Burberry is facing significant challenges, with its share prices plummeting this week, marking another downturn in its ongoing decline.

In a desperate bid to turn things around, the British luxury fashion brand has replaced its chief executive. Joshua Schulman, formerly of Michael Kors, has taken over from Jonathan Akeroyd, who has left the company effective immediately. This is the battle on Burberry’s hands:

1. Sales Slump: Burberry reported a 21% drop in retail revenues for the quarter ending June 29, primarily driven by a 23% fall in the Asia Pacific region and a similar dip in the Americas. The decline in sales has led to suspended dividend payments and potential job cuts, particularly in the UK corporate division.

2. Strategic Missteps: Akeroyd's previous strategy aimed to push Burberry further upmarket. However, this move has alienated core consumers, many of whom have been priced out and as a result has lost touch with its primary customer base.

3. Market Challenges: The luxury market is proving more challenging than anticipated, with a growing disinterest in luxury fashion among younger generations. The downturn is not unique to Burberry, with other luxury brands like Gucci experiencing similar issues.

Hustlers' Hot Take 🔥

Burberry's attempts to reposition itself in the luxury market have backfired, highlighting the delicate balance brands must maintain between aspiration and accessibility. The appointment of Joshua Schulman signals a potential move back to Burberry's roots, focusing on its traditional appeal while introducing relevant innovations.

However, the path to recovery is steep and the UK market is turbulent. With high interest rates and economic uncertainty affecting aspirational shoppers, Burberry must refine its strategy to regain market trust. The forthcoming months will be crucial as Schulman and his team navigate these challenges, aiming to restore Burberry's iconic status.

The company's stock is down 46% year-to-date and 64% over the past 12 months. With job losses and restructuring on the cards, the future of the British luxury fashion icon is anything but certain.

✋Is Etsy Returning To Its Original Values?

Almost two decades after its launch, Etsy is making significant changes to refocus on its original mission of promoting handmade and unique goods. This move comes as the company faces increasing competition from major e-commerce players. At the same time, its sellers' voices grow increasingly loud, calling the platform out for turning its back on them in recent years, with mass-produced goods taking over from hardworking artisans.

Etsy CEO Josh Silverman has called for the platform to return to its roots while keeping 'commerce human.' The company will update its policies to clearly define what products belong on the platform.

KEY POINTS

• Updated Categories: New labels on the website and app will replace the current ‘handmade’ and ‘vintage’ labels. Products can now be categorized as:

  • Made by a seller

  • Designed by a seller

  • Sourced by a seller

  • Handpicked by a seller

• Differentiation Strategy: These changes aim to differentiate Etsy from competitors like Amazon, Temu, and Shein, in what’s being dubbed a ‘race to the bottom.’

• Commitment to Core Values: In an Etsy press release, CEO Josh Silverman emphasized, “We’re positioning ourselves to answer the call for original goods and real people by dialling up the things that make Etsy, Etsy.”

Hustlers' Hot Take 🔥

For Etsy and its sellers, these changes are much needed, though long overdue. Over the past few years, Etsy has lost control of its platform, resulting in the departure of many of its sellers and customers.

The surge of drop-shipped goods may have been profitable for Etsy, but it alienated a significant portion of its core community. The influx of cheap products from competitors like Shein and Temu has forced Etsy to reassess its strategy, realizing it cannot compete on price and scale with these giants.

While Etsy isn't fully reverting to its original values, it is finding a middle ground by creating space for handmade goods, products designed by sellers, and even items ‘curated’ by sellers - with this increased labelling and visibility being a step in the right direction for the platform.

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