Dawn of the robot couriers

The Checkout is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in ecommerce. [Read from your browser]( The Checkout 🛒 Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by [registering here](. Hello {NAME} , I get to know when a package arrives not because of a call, a text, or the doorbell, but because a cat who lives with me - and thinks he’s a dog - raises an alarm every time there’s a shadow at the door. Knowing how much this little guy detests all things that fly, he’d probably see drones as his mortal enemies. But I don’t think the question is if robots will deliver packages, but when. As the demand for last-mile logistics skyrockets in Southeast Asia, the great big experiment featuring autonomous delivery robots has found serious takers. Global ecommerce giants are backing these bots to lower the cost of getting purchases to your doorstep. Thanks to ecommerce titan Alibaba’s research and logistics arms, 1,000 of these unmanned machines are set to roam a few China’s university campuses next year. Two of Meituan’s driverless vehicles are already delivering food in some Beijing neighborhoods. What’s stopping these delivery bots from taking to the streets and the skies in a big way? It’s not the usual suspects - tech or regulation - that are holding these bots back. The answer is more... human. Our big story this week, written by Melissa Goh, takes an in-depth look at what the future of deliveries (and the bane of furry sentries) could be like. -- Nikita THE BIG STORY  [Delivery bots may arrive sooner than you think]( Image credit: Timmy Loen Ecommerce companies have been investing in robot couriers, and their efforts are beginning to bear fruit. DEEP READ 1️⃣ [Will GoTo’s SEA story entice enough investors?]( Photo credit: Tokopedia While Gojek has regional ambitions, Tokopedia has no plans to step out of Indonesia’s ecommerce ecosystem, which has matured [over the last decade](. There’s reason to believe that the way to win investors’ confidence is to follow Tokopedia’s strategy for the time being. The merger of the two Indonesian tech majors has been one of the biggest regional stories this year. Check out our [podcast]( on the topic and our analysis on how Tokopedia was able to defy the odds to stand toe to toe with regional champions Shopee and Lazada. 2️⃣ [Advertising dollars have a new favorite: retail media]( As the [third-party cookies crumble]( ecommerce advertising is being hailed as the next big thing in the industry. Digital retailers can use all the data they are sitting on - from what a shopper wants to how much they spend - to offer brands effective advertising strategies. This story unpacks what makes retail marketing tick and what it takes to surf the wave of advertising in an internet-first world. TRENDING NEWS Check out Tech in Asia’s coverage of Asia’s ecommerce scene [here](.  1️⃣ [India’s video apps have 4x more influencers than what TikTok had in the country]( Photo credit: Pikist Despite India’s ban on TikTok, the future of social commerce in the country could still be bright. Shortly after the popular short-video app’s operations in the country came to a screeching halt last June, reports began flooding in about influencers who lost their fan following - and source of income - overnight. But with homegrown platforms scrambling to fill the vacuum, the influencer industry has bounced back with a vengeance. India’s short-form video apps now have 4x more content creators than TikTok did in the country. Currently, the South Asian nation has about 42 million short-form content creators who can rake in over US$6,800 a month from apps such as ShareChat’s Moj, Dailyhunt’s Josh, Times Internet’s MX TakaTak, and Roposo (owned by InMobi-backed Glance). Why it matters: After [Shopee dismissed rumors]( about launching an app to take on TikTok, it’s possible that the ecommerce site will test a new social feature to complement its existing gaming, livestreaming, and social feed services. Regardless of what the Singapore-based firm’s new social feature is, it’s clear that the status quo in ecommerce is shifting in favor of social media influencers. [According to this report]( from Econsultancy, 58% of consumers surveyed said that a quarter of their online shopping was swayed by social media. In fact, 44% of respondents said they had made three or more online purchases in the past month after seeing posts or ads on social media. India’s short-form video apps are looking to tap into this marketing powerhouse. However, these apps will most likely take some time to reach their full potential. Users on local apps reportedly spend [only 55%]( of the time they used to on TikTok. Some see this as a signal to improve both content and product experience. TikTok has definitely left behind big shoes to fill. 2️⃣ [Carousell breaks into unicorn club with $100m raise]( Carousell co-founders (from left): Quek Siu Rui, Marcus Tan, and Lucas Ngoo / Photo credit: Carousell Carousell has raised US$100 million in a round led by Stic Investments, a South Korean private equity firm. the round saw the Singapore-based online classifieds marketplace operator’s valuation shoot up to US$1.1 billion. From seeing a [significant decline]( in fraud rate - a 67 percent drop - in 2020 to going on [an acquisition spree]( there’s a lot going on at Carousell, and recommerce in general. Why it matters: Recommerce’s appeal is likely to outlast that of Marie Kondo’s Netflix series on leading a clutter-free life. At least investors seem to think so. Only a few weeks ago, a South Korean online marketplace for secondhand goods also [raised a US$162 million series D]( round that pushed the firm’s valuation to US$2.2 billion. Investors are betting that consumers have become more price conscious and environmentally aware due to the ongoing Covid-19 pandemic. [A McKinsey survey]( found that 71 percent of consumers would be more interested in resold, rented, or refurbished fashion after the Covid-19 pandemic ends. As Carousell lines up to [go public in the US via a SPAC merger]( later this year, according to a Bloomberg report, it lends weight to the theory that recommerce might just be the next big play in retail. 3️⃣ [Chinese tech giants are squeezing retailers with group-buying platforms. Analyst predicts tighter regulations to level playing field]( Photo credit: Pinduoduo With community group buying set to become a US$232 billion industry in China by 2023, [according to estimates from Guosen Securities]( consumers on the hunt for unbeatable deals are flocking to platforms run by the country’s tech giants. But this has resulted in a bulk-discounting onslaught to undercut retailers. Giants like Alibaba, Tencent, Meituan, and Pinduoduo obviously don’t share a level field with smaller retailers, who are taking a hit in a discount-laden world. As the losses pile up for these merchants, this story in the South China Morning Post dives into why experts see the current scenario ultimately resulting in stringent regulations for the segment. Why it matters: The David-versus-Goliath narrative seems to become more relevant with time. Newton’s third law may apply: Governing authorities may oppose big tech’s moves but the reaction won’t necessarily be equal. We’ve already seen how heavily the state came down against edtech companies in China. It’s not just retailers who are suffering because of the discounts from big ecommerce firms, but also neighborhood grocers who can’t compete with the rebates - reportedly as high as 50% sometimes. There seems to be no place for small or medium-sized businesses in the industry and experts believe that big tech will be the last man standing in the war of discounts. Retail industries in other countries could learn a thing or two from China. We’re already seeing [pushback]( against leading players like Amazon and Shopee across Asia. 4️⃣ [China’s first offline JD Mall to open in Xi’an on September 30]( Photo credit: Daniel Cukier (CC 2.0) JD.com, the Chinese ecommerce major, is set to open the first JD Mall on September 30, according to Pandaily. This new offline shopping center will be located in Xi’an and have five floors, housing about 200,000 products in an area of 42,000 square meters. The mall will also double as a product exhibition center. It will also have holographic project capabilities, virtual reality equipment, and robots. Why it matters: This isn’t JD.com’s first offline outing. In fact, JD Mall is an upgrade to [E-Space stores]( which were launched in 2019 in a bid to improve the shopping experience. In 2018, JD.id, the company’s Indonesian affiliate, also launched [an unmanned convenience store]( in the archipelago. On Tuesday, JD.id also opened its [first offline electronics store in Jakarta](. JD.com's latest move reflects a broader trend: Online-first companies are leaving no stones unturned to sign up more customers. Alibaba’s first brick-and-mortar mall, which launched in Hangzhou in 2018, boasted unmanned registers allowing purchases through Alipay, the tech giant’s digital payment service. Digital-first companies are increasingly seeing offline strategies as a crucial part of growth, not just in China but also in India, where [beauty retailer Nykaa]( being one of many to adopt the tactic. Online car-buying platforms like Carro and Carsome are also expanding their [offline strategies]( in Southeast Asia. Amazon also [reportedly plans to roll out]( its first large departmental stores in Ohio and California. It is increasingly looking like offline retail therapy might just be the trump card for ecommerce stars to boost growth even during a pandemic. STARTUP WATCH 1️⃣ [Bangladeshi grocery delivery platform Chaldal raises US$10m]( Dhaka-based [Chaldal]( which says it is the second-largest grocery player and largest grocery ecommerce platform in the country, recently bagged US$10 million, according to a TechCrunch report. The company initially helped fulfill orders from local grocery stores but soon realized the need for more dependable sources for supplies. It has been building its own network of warehouses ever since.  2️⃣ [Beauty products platform in talks to raise US$50m to US$75m]( India-based [Purplle]( hopes to raise US$50 million to US$75 million, which could raise the startup’s valuation to over US$500 million. Purplle has witnessed significant demand from Tier 2 and Tier 3 cities in its home country.  3️⃣ [Hobbyist shopping platform Mercular extends series A to US$4m]( Thailand-based [Mercular]( a hobby-and-lifestyle ecommerce startup, has raised US$4 million. The platform, which offers products such as gaming gear, toys, and computers and their accessories, said it plans to expand into categories such as collectibles and cameras.  4️⃣ [D2C personal care brands’ parent company gets US$2.5m funding from Sanjay Nayar, others]( The India-based parent company for two direct-to-customer brands, Bare Anatomy and Chemist at Play, has raised US$2.5 million. The company plans to use the funds to double down on research and development, besides expanding manufacturing and distribution capabilities. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you next week! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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