Newsletter Subject

Indonesia’s D2C firms discuss the TikTok Shop ban and why offline retail still matters

From

techinasia.com

Email Address

newsletter@techinasia.com

Sent On

Thu, Oct 26, 2023 02:02 AM

Email Preheader Text

In The Checkout this week, we discuss the bright spots in Southeast Asia’s direct-to-consumer s

In The Checkout this week, we discuss the bright spots in Southeast Asia’s direct-to-consumer space and the future of ecommerce roll-up firms. [Read from your browser]( The Checkout 🛒 --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If you’re not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - The [future]( of Southeast Asia’s direct-to-consumer space - Rainforest’s positive earnings result despite troubles facing ecommerce roll-ups - Why Bukalapak’s president isn’t [too concerned]( about its falling stock prices --------------------------------------------------------------- Hello {NAME} Filters allowing consumers to toggle between lipstick colors and “test” how different shades would look on them from the comfort of their homes were game changers during the pandemic. Similar services have become commonplace these days, so brands have to innovate to stay ahead. Given the high degree of personalization in makeup - everyone has different skin tones and preferences - it’s not surprising that cosmetics and beauty products are among the most popular items sold on livestreaming platforms. Firms such as Esqa, an Indonesian direct-to-consumer makeup brand, had to quickly adapt to changing times, CEO Cindy Angelina told audiences at a panel session at the Tech in Asia Conference in Jakarta last week. In this week’s Big Story, my colleague Jofie shares key takeaways from the discussion, including the impact of TikTok Shop Indonesia’s closure on businesses like Esqa. Ecommerce platforms are working overtime to drive eyeballs to their sites. But there’s no denying how spending has gone down from the levels it reached during Covid-19. In this week’s Hot Take, I discuss ecommerce aggregator Rainforest’s upbeat 2022 results and why it’s thriving even as large rivals like Thrasio are seeking restructuring options. -- Melissa  --------------------------------------------------------------- THE BIG STORY [D2C in Indonesia: life after TikTok Shop ban and why offline retail still matters]( Young brands should focus on becoming champions in their home market before considering regional expansion, said DSG Consumer Partners’ Sameer Mehta.  ---------------------------------------------------------------  THE HOT TAKE Are the good times over for ecommerce roll-ups? Here’s what happened: - Earlier this month, Singapore-based Rainforest [reported US$37.5 million in 2022 revenue]( indicating a 9x increase. - The roll-up firm also secured US$21.5 million in a convertible note round from existing investors, bringing its total funding to over US$100 million. - Rainforest attributed the revenue boost to six brands it bought last year and the growth of its current brands. Here’s our take: Rainforest’s positive results defied what some of its global aggregator rivals are going through: the inevitable descent from a high. After shelling out billions to acquire consumer brands on Amazon to increase scale efficiencies, US-based Thrasio began exploring restructuring options in September to address its financial challenges. The move came after the company had carried out multiple rounds of layoffs. Thrasio isn’t the first roll-up firm to hit a wall, and it’s likely not the last. Last month also saw New York-based Benitago Group file for bankruptcy, blaming the fall in consumer spending to shifting consumer preferences. It had acquired some 15 brands across sectors including health, beauty, and office products. What could explain the different outcomes for these roll-ups? Detractors have long called out these businesses for their unsustainable model. After raising debt to acquire companies, roll-up firms value themselves at a multiple of their combined revenue to secure more funds. As we’ve learned the hard way, a roll-up can be worth less than the sum of its parts. Thrasio, for one, had snapped up dozens of companies, from those that sell camping gear to those that specialize in kitchen tools. In 2021, the firm said it was buying businesses at a rate of 1.5 per week and had over 200 brands in its portfolio. Indiscriminate purchases might have worked in its favor then, driving up revenue during the Covid-19-led ecommerce boom. But this approach most likely put a strain on Thrasio when spending patterns changed and the cost of capital went up. The drop in ecommerce spending, however, isn’t limited to the US. Evenflow and UpScalio, two roll-up firms based in India, were reportedly [put up for sale]( earlier this year. While both didn’t have a large portfolio of companies - about 10 each - they weren’t able to achieve their intended scale, sources say. To make things worse, efficiencies in HR, marketing, supply chain, and finance functions - a key selling point of aggregators - are often difficult to realize. When I spoke to Rainforest CEO JJ Chai [earlier this year]( he acknowledged the pivots that the firm had to make. While it started out with four main categories, these were eventually reduced to two: home goods and mom and baby products. The company also began looking beyond brands on Amazon. Chai pointed out that having too many categories makes it hard to find enough commonalities across acquired brands and to create synergies between them. In hindsight, his observations seem obvious. Despite Rainforest’s encouraging results, its reported revenue growth includes a mix of six brands acquired in 2022 and the growth of its existing brands. In the longer term, a more accurate measure of success would be revenue from organic growth, irrespective of newly acquired firms. This would indicate if scale efficiencies have truly been achieved.  ---------------------------------------------------------------  NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the ecommerce scene [here](. 1️⃣ [Navegar, East Ventures steer $34m round of SG logistics startup]( Inteluck, which offers on-demand logistics services in Singapore, Thailand, Vietnam, and the Philippines, serves over 300 enterprise clients. 2️⃣ [Foodpanda names new interim CEO for Malaysia unit]( Pichaya Thongthua’s appointment comes after regional CEO Jakob Angele left Foodpanda after over nine years at the company. 3️⃣ [Market will correctly value Sea’s business in long run, says CEO]( In a letter addressing employees on the anniversary of Sea Group's IPO, CEO Forrest Li said he did not regret his decision to take the firm public. 4️⃣ [Fave’s revenue slumps 24% in FY 2023, loss improves 78%]( Revenue for the financial year ending March 31, 2023 was the company’s lowest in five years. 5️⃣ [Amazon let its drivers’ urine be sold as an energy drink]( The waste product, left on the roadside by drivers pressed for time and intended as a stunt, allegedly passed Amazon checks and was listed on the platform for sale.  --------------------------------------------------------------- FYI  1️⃣ [Bukalapak’s president on its IPO’s ‘sheer luck’ and why he’s not worried over stock prices]( After taking the ecommerce firm public and refocusing its business, Teddy Oetomo shares what he’s learned three years into his role. 2️⃣ [Shopee, Lazada may struggle to fill void left by TikTok Shop]( TikTok must also decide whether Southeast Asia's political dynamics is worth the commitment.  --------------------------------------------------------------- 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 your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( 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](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894

Marketing emails from techinasia.com

View More
Sent On

08/12/2024

Sent On

06/12/2024

Sent On

09/11/2024

Sent On

03/11/2024

Sent On

30/10/2024

Sent On

28/10/2024

Email Content Statistics

Subscribe Now

Subject Line Length

Data shows that subject lines with 6 to 10 words generated 21 percent higher open rate.

Subscribe Now

Average in this category

Subscribe Now

Number of Words

The more words in the content, the more time the user will need to spend reading. Get straight to the point with catchy short phrases and interesting photos and graphics.

Subscribe Now

Average in this category

Subscribe Now

Number of Images

More images or large images might cause the email to load slower. Aim for a balance of words and images.

Subscribe Now

Average in this category

Subscribe Now

Time to Read

Longer reading time requires more attention and patience from users. Aim for short phrases and catchy keywords.

Subscribe Now

Average in this category

Subscribe Now

Predicted open rate

Subscribe Now

Spam Score

Spam score is determined by a large number of checks performed on the content of the email. For the best delivery results, it is advised to lower your spam score as much as possible.

Subscribe Now

Flesch reading score

Flesch reading score measures how complex a text is. The lower the score, the more difficult the text is to read. The Flesch readability score uses the average length of your sentences (measured by the number of words) and the average number of syllables per word in an equation to calculate the reading ease. Text with a very high Flesch reading ease score (about 100) is straightforward and easy to read, with short sentences and no words of more than two syllables. Usually, a reading ease score of 60-70 is considered acceptable/normal for web copy.

Subscribe Now

Technologies

What powers this email? Every email we receive is parsed to determine the sending ESP and any additional email technologies used.

Subscribe Now

Email Size (not include images)

Font Used

No. Font Name
Subscribe Now

Copyright © 2019–2025 SimilarMail.