MarketLine Blog

Posts about E-commerce

Estonia: Only 1.3m people, but 4 unicorn start-ups

MarketLine

The former Soviet-controlled nation of Estonia, home to just 1.3m people, is one of the most tech-savvy countries in the world. It holds the world record for the number of startups in the country per capita, has one of the world’s fastest broadband speeds, and its education system teaches every child how to code. It is also leading in the development of online governance infrastructure – participating in elections by internet voting takes just 90 seconds. Its highly flexible, transparent, and hassle-free infrastructure makes it a great place for business… Read more

Amazon Prime Dominating: revenue streams key to success

MarketLine

Amazon has become a phenomenon in the retail industry. Through the use of Prime, originally just a subscription to fast delivery at a fixed rate, has become a method to foster customer loyalty in an otherwise ruthless sector. Through continually pushing to add more value towards the mere $119 a year subscription, Amazon founder and CEO Jeff Bezos has smashed through analysts’ forecasts, reaching an astonishing 100 million subscribers to the service. The two-day delivery feature Amazon has so boasted proudly about for many years now continues to be a… Read more

Trillion dollar companies: Apple, Amazon, Facebook and Alphabet all in contention to be the first

MarketLine

For many years analysts have been considering which companies might actually reach the staggering level of a trillion-dollar market capitalization company. Over the last decade the leaderboards have seen change with the big oil companies dropping out of contention for the top spots and instead the big tech giants working their way up to the top along with the entrance of new Chinese companies and global banks. These companies have new freedoms, such as being able to avoid having to post profit in favor of extreme growth. Of the top… Read more

Amazon’s latest financials: Growth potential lies in advertising and web services

MarketLine

Amazon’s latest financials have once again demonstrated exponential growth, as the company continued to increase its advantage over its rivals in the online retail sector. The largest part of its revenues may come from these retail operations, but profitability and growth potential lies in other “overlooked” income streams, such as the web-based services and advertising. This becomes obvious form the fact that Amazon continued to incur operating losses from its retail business, which are the price paid for the growth of revenue. Moreover, these losses mainly come from emerging markets,… Read more

Toys R Us: Collapse Inevitable as Company Fails to Utilize the Power of the Internet

MarketLine

In recent months, well-established toy retailer Toys R Us has given repeated indications of the state of its finances. In September the US-based parent company announced that it entered into bankruptcy protection proceedings and is planning to close more than ten percent of its US stores in the near future. More recently the UK division made similar announcements, to close nearly a quarter of its stores soon after the New Year. So the recent news that the Pension Protection Fund (PPF), one of the company’s largest creditors in the UK,… Read more

Foot Locker: Share price slides on disappointing results

MarketLine

On Friday August 18, Foot Locker announced financial results for its second quarter ended July 29 and they were not what the markets had expected. In fact, they were way short of what the markets anticipated and consequently, the company’s share price plunged. There is a suggestion that product may be at least partly to blame and as Foot Locker is reliant on the goods manufactured by the likes of Nike and Under Armour, the news had a detrimental impact on their share prices too. High-priced products that have failed… Read more

Spotify: How the Swedish start-up revolutionized an ailing music industry

MarketLine

The power of the internet has grown rapidly since its introduction to the mainstream in the early 2000s and it has become the most powerful tool on the planet, both socially and economically. However the music industry has struggled in recent years, in freefall since the turn of the century and the birth of the mainstream internet. The shift from physical to digital music has been stifled by the rapid growth in internet piracy, with software such as LimeWire, Napster and later torrent clients making it incredibly simple to download… Read more

GAME Digital: How the cyclical console release pattern is stifling GAME’s growth

MarketLine

The video game industry across the West is incredibly cyclical, with regular console releases every seven to eight years providing very large revenues to major players and carrying them through the period in-between releases. However a shift in the console market, with console developers choosing to release completely new consoles at a slower rate and instead releasing interim consoles (such as Sony’s PlayStation 4 Pro), has hurt GAME Digital, a company only recent out of administration. It’s profit warning announced on June 30, the result of Nintendo’s decision to prioritize… Read more

M&S and Debenhams: Online retail to continue its surge while retail outlets continue to close

MarketLine

The growing popularity of shopping via the internet, coupled with both the younger and older generations becoming increasingly tech-savvy, has led to a massive surge in shopping online A bit of rewording would be good so it reads better. – whether it be essentials such as food or clothes, all the way to smaller items. The convenience of doing so has meant that fewer sales have been achieved on the high street for major retailers, and sales revenue have transferred to online equivalents. After recent announcements from M&S and Debenhams… Read more

Selfie generation: Refashioning make-up market

MarketLine

The global make-up industry grew by a record 8.4% in 2016 and was the main growth driver for the cosmetics market worldwide. The range of make-up products is endless, and some product categories, in particular those highly popular with the generation of Millennials, (i.e. concealers, illuminating highlighters, lipsticks) are booming. These hyper-connected customers are young, have a strong purchasing power, new ideas about beauty, and are also very keen to spend money on beauty products. While clothing and department stores are increasingly closing their physical locations, not being able to… Read more

US Retail Apocalypse: Price-sensitive consumers rather than online-purchasers shape the industry

MarketLine

The term “US Retail Apocalypse” which is used to describe the downsizing trend of some of the largest US retailers is characteristic of the widespread belief that online retail has transformed the structure of the US retail industry by incurably altering the habits of US consumers. However, such an explanation is proved to be extravagant based on statistics and data regarding e-commerce penetration. In addition, the steady growth of discount retailers is one of the facts that disapprove this theory of e-commerce prevalence as a distribution channel and key reason… Read more

Beckham’s Target: Posh on a budget

MarketLine

As common household names, celebrities are always being discussed; especially in modern society. The Beckham family is no different, although their fame has stems from football and music to the latest venture of fashion. Victoria Beckham has recently partnered with Target, a US retailer to sell her range of cheap designer clothes for all age ranges and all sizes. Whilst this range is extensive, it is set to only be available for a limited period of time, with online access as well through victoriabeckham.com creating a global customer base. The… Read more

The Digital Age: A Hackers delight

MarketLine

Online storage is a huge leap forward in technology, allowing files to be accessed from anywhere without the need to send them via email. Files can be shared in a much simpler fashion and can be locked to ensure that any changes made are present in a single file as opposed to numerous versions of the file. This online system serves as a backup for companies and customers. A network of banking telecommunications (SWIFT) has been the target of numerous hacking and data leaks over recent years, serving to reduce… Read more

East meets West. The battle for supremacy in India’s e-commerce market

MarketLine

While China and the US currently dominate in terms of e-commerce spending, India is one of the world’s fastest growing internet markets. It is also the fastest growing country in the Asia Pacific region in the retail e-commerce space. The rapid pace of growth of e-commerce in India creates a huge potential opportunity and attracts not only local players but foreign e-commerce giants, like Amazon and Alibaba. The largest local players, Flipcart and Snapdeal, initially seen as the dark horses in this race and attracting serious investment, are now losing… Read more

Netflix competition: Not a chill environment

MarketLine

Growing from a DVD rental/ selling service in 1997, Netflix today has become one of the leading companies in the online streaming market. Netflix has benefitted greatly from the increased range and depth of broadband internet. The global reach of Netflix and its competitors serve to increase rivalry.  Gaming systems which now incorporate applications into their systems present new and growing opportunities and potential dangers for Netflix. The increased advertisements from gaming systems can help recruit more customers which is also an opportunity for competitors of Netflix. Netflix, as one… Read more