MarketLine Blog

Posts about Online Retail

Nigerian e-commerce market will lead economic growth: However companies are struggling in the current market environment

MarketLine

Nigeria is seen by many investors as a gateway to the African market: the country has the highest GDP in Africa. Investment has enabled the country to develop its digital market; improving internet services and accessibility has created opportunities for digital businesses. E-commerce has become one of the most lucrative online markets in Nigeria; the rate of internet usage and purchases has continuously increased over the years. The rising amount of online retail purchases has resulted in the e-commerce market in Nigeria reaching a value of $13bn within just ten… 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

Daniel Wellington: The fastest growing private European company in 2017

MarketLine

Daniel Wellington is a Swedish watch making company that has been placed at the top of the “Fastest Growing European Companies” list. Started by Filip Tysander in 2011 using his own money, the company has since witnessed impressive growth thanks to a very successful social media marketing strategy campaign. Rather than engaging in traditional marketing in a rather congested market where giants like Rolex and Tag Heuer exist, Daniel Wellington instead has sought to utilize the power of social media in order to boost its brand awareness. It has done… 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

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

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

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

Gig Employment: Not a smooth ride

MarketLine

The number of individuals defined as self-employed is growing aided by the latest trend of gig-employment. These self-employed individuals serve to increase competition between those seeking full time employment and those who prefer to work contract to contract. A recent change in the mindset of the gig-employment workers has caused a shift in working patterns with these workers now beginning to seek out full time employee status and the benefits which accompany this. Businesses which previously exploited these gig workers (e.g. Deliveroo and Uber) are now under scrutiny and face… Read more

Next alone in its Christmas disappointment

MarketLine

The Christmas trading period is the most important time of the year for retailers, accounting for a significant proportion of a company’s sales and profit. In January 2017, numerous UK retailers revealed their Christmas 2016 trading results, with many high street retailers hailing the festive period a success. A notable exception to this was Next PLC, which revealed it had faced a difficult Christmas trading period and warned of a problematic retail environment in the UK as a whole. On 4th January 2017, Next was the first high street retailer… Read more

Sports Direct: Working conditions scandal fallout must be managed to minimize damage

MarketLine

Recent revelations about Sports Direct’s working practices have been largely made via exposé reporting from The Guardian. Secret filming in the company’s Shirebrook warehouse led to claims of a culture of fear, pay of less than the national minimum wage, unpaid after-hours work, and questionable punitive practices. This was then followed by written reporting and interviews with workers, both from the warehouse and from stores. Although terminology like ‘Victorian workhouse’ and ‘Gulag’ is sensationalist and unwarranted, Sports Direct was forced to respond to the claims in a bid to limit… Read more

Sainsbury’s trialing one-hour delivery service

MarketLine

Supermarkets in the UK have faced a tough marketplace in recent years. The recession, and the accompanying squeeze on incomes, has led to many consumers becoming shrewd in their purchases and increasingly looking to find the cheapest option. This has led to a climate in which discounters, and in particular Aldi and Lidl, have been able to thrive. All of the ‘Big Four’ supermarkets have seen their market share eroded by the discounters, which led to a debilitating round of price wars in which profits were eroded. As such, there… Read more