Global retail markets are beginning to reopen. The question remains whether consumers are ready to go back into public. With lockdown restrictions now being eased by some governments, small green shoots of recovery are beginning to emerge. Modern Retail and Glossy reporters took a (virtual) trip around the globe to see where shopping is beginning to restart and if shoppers are ready to spend money once again in the real world.
At this point, many factory and facility workers have stopped going to work, due to quarantine orders and restricted transit. And following last month’s Chinese New Year holiday, the result is a backlog of unfulfilled shipments that continues to grow. While dips in overall sales figures aren’t yet being seen by all, the fear of running out of stock going into the coming months has sellers on high alert to plan ahead.
Japanese retailer Muji announced that the U.S. arm of its business will file for Chapter 11 bankruptcy. Muji currently has 18 stores in the United States, and is reportedly mulling scaling back that footprint. It's certainly not the only retailer facing similar hardships, but the Japanese company has had its own set of problems since before the pandemic.
On Monday, Amazon announced a partnership with brick-and-mortar chain Future Retail, that will allow customers to order products from the company through Amazon India. With six different chains and more than 1,500 stores, Future Retail is one of the largest brick-and-mortar retailers in the country. Amazon has had a 3.58% stake in Future Retail since February, and also has stakes in Indian supermarket operator More, and fashion label Shoppers' Stop. Meanwhile, its biggest competitor Walmart completed a $16 billion acquisition of Flipkart, the biggest e-commerce player in the country, in August. It was Walmart's biggest acquisition to date.
In April, Lululemon set a five-year-strategic plan with an aggressive goal for its international business: to quadruple sales generated outside of North America by 2023. In order to do so, Lululemon is opening stores in Europe and Asia at an aggressive pace -- of the 45 to 50 stores Lululemon is projecting it will open this year, about 30 of those will be outside of North America. But it also sees hosting localized events and developing customized e-commerce sites for each country it wants to gain market share as critical to its goals.
Alibaba wants US small-to-medium sized business to use its platform to sell wholesale. It's a clear move to both enter the North American market and compete with Amazon. The question remains: will US companies be interested?
The retailer, first opened by tailor Fred Segal in 1961, had its heyday in the nineties and early aughts, when it became the first to sell Kate Spade and Juicy Couture, and served as a popular haunt of Paris Hilton and the Olsen twins. Though it’s recently faced instability, its growth plans are unprecedentedly ambitious. As its new owner sees it, with today’s consumers craving authenticity, the brand’s reputation is the ultimate foundation.
Through the official partnership, VF gets access to data from Alibaba’s 654 million-customer database across its marketplaces, including Tmall and Taobao. With that data and TMIC, VF can more readily identify customer trends, test new products before launching them, build customer data profiles and track products post-launch in order to judge how well they’re performing with Chinese customers.
Lululemon is seeing positive results from its investments in new categories like men's, e-commerce capabilities and international growth. During its first quarter earnings report on Wednesday, the company saw revenue increase 20% over the same period last year, to $782 million.
Alibaba and Office Depot are launching a joint B2B site in order to thwart competition from Amazon.
At the Modern Retail Virtual Forum, we’ll bring together senior retail marketers online to discuss the challenges they’re facing and the solutions they’re seeking in the era of smarter retail.Register