E-commerce

Surge in online grocery shopping

According to CNN, the outbreak of the coronavirus is pushing many Americans to buy their groceries online. With shoppers stuck in their homes, downloads of Walmart's grocery app and Shipt increased by 160%, and 124%, respectively, in early March compared with the same period last year. Instacart more than tripled, increasing by 218%!

While shopping for books and electronics online, and ordering dinner through delivery apps, have become the norm in American life, before the coronavirus outbreak most customers still preferred to purchase their meat and vegetables at the store. Last year, only 4% of grocery sales in the United States were made online.

According to a survey by analysts at Gordon Haskett Research Advisor, a third of consumers said that they had purchased groceries for online pickup or delivery in March, 2020. Around 41% said they were buying groceries online for the first time.

Fast Fashion: Is it worth the cost?

It comes in red, mustard and black, in sizes 6 up to 16; the Boohoo minidress is, according to the online retailer, "perfect for transitioning from day to play". It is not so much the styling and colour, but the price of the £5 dress which attracts thousands of the thriving retailer's U.K. customers to buy it.

The £5 dress epitomises a fast fashion industry that pumps hundreds of new collections onto the market in a short time at pocket money prices. On average, such dresses and other products are discarded by consumers after five weeks. 

But behind the price tag, there is an environmental and social cost not contained on the label of such products. The textile industry creates more CO² a year than international aviation and shipping combined. It also creates chemical and plastic pollution—as much as 35% of micro-plastics found in the ocean come from synthetic clothing, not to mention the scrapped clothing piling up in landfills. 

Rakuten Seiyu Netsuper delivery

Walmart and Rakuten will co-create an online grocery service in Japan that will launch in 2018. The service will be operated by Rakuten and Seiyu GK, a Walmart subsidiary, and will be called “Rakuten Seiyu Netsuper.”

Walmart, via Seiyu, has operated a grocery delivery business in Japan since 2000. This new co-branded service will replace that, the company says.

Some customers’ orders will continue to be fulfilled by their local Seiyu store, as before. But depending on their geography, other customers’ orders may come from a new, dedicated fulfillment center operated by Walmart and Rakuten. The center, which is an existing building Walmart owns, will be exclusively used for online grocery.

Online shopping and crowded streets

Online shopping is skyrocketing. So what are cities going to do about it?

The rising numbers of deliveries are adding to concerns about traffic and pollution in rapidly growing cities around the world. In Europe and Asia, cities have barred deliveries during certain hours, built warehouses to centralise distribution and provided millions in funding to encourage firms to switch to quieter, greener equipment. In the U.S., discussions about how to handle the glut of online shipments were somewhat slower to start, but they're happening now.

In response to the increasing congestion, New York Mayor Bill de Blasio announced a test ban on deliveries during commuter hours on some of the city's most crowded streets. Cities in Europe have taken other kinds of steps. Paris, for example, has sponsored logistics hubs, while one of London's bus operators is looking at the possibility of using buses for parcel delivery.

Walmart Rakuten e-book partnership

Walmart is taking aim at Amazon's Kindle business and diving into the business of selling e-readers, e-books, and audiobooks through a partnership with Japanese e-commerce giant Rakuten.

As part of the deal, Walmart will start selling Aura-branded e-readers made by Kobo, a division of Rakuten, in stores and online at Walmart.com. Kobo is one of Amazon Kindle's biggest competitors. 

Walmart will also offer customers access to Kobo's vast library of nearly six million titles from more than 30,000 publishers, Michael Tamblyn, CEO of Rakuten Kobo, told Business Insider. 

Customers will be able to access the e-books and audiobooks through a co-branded Walmart-Kobo app that will be available on smartphones, desktop computers, and Kobo's e-readers.   

ZOZOSUIT for the perfect fit

ZOZOTOWN, Japan’s largest fashion e-commerce company, has announced the launch of the ZOZOSUIT, a revolutionary body measurement device. The suit’s technology will allow the company to create clothes that are guaranteed to fit, every time.

The ZOZOSUIT features patented sensor technology that is capable of capturing 15,000 precise measurements unique to each customer. Enabled with Bluetooth, the ZOZOSUIT seamlessly syncs with the ZOZO app and allows customers to upload their measurements from the comfort of their own home. Once their measurements have been captured, customers can shop the ZOZO collection, men’s and women’s high-quality basics including denim, t-shirts and coats, in the world’s first size-free e-commerce experience.

With the ZOZOSUIT and ZOZO collection, shoppers will never again have to debate which size to select or struggle with common fit issues.

World's richest man: Jeff Bezos

Jeff Bezos, Amazon CEO, became the world's richest man, defeating Bill Gates, co-founder Microsoft.

The recent surge in Amazon stock has pushed Bezos' fortune to over $90 billion, vaulting him past Bill Gates. Bezos has been chasing Gates for the number one spot for a few years now and finally succeeded in superseding him. But this dream run was short-lived. On Thursday, Bill Gates was crowned again as the world's richest man as Amazon stocks went down by 1%. 

Because their wealth is largely a result of the shares they own of their company and its fluctuating price, it is possible that the wealthiest title may go back and forth between Gates and Bezos.

Big Data Meets Big Brother in China

Imagine a world where your daily activities were constantly monitored and evaluated: what you buy at the shops and online; where you are at any given time; who your friends are; how many hours you spend watching content or playing video games; and what bills and taxes you pay (or not).

Now imagine a system where all these behaviours are rated as either positive or negative and distilled into a Citizen Score, according to rules set by the government. It's getting underway in China, where the government is developing the Social Credit System (SCS) to rate the trustworthiness of its 1.3 billion citizens.

The government hopes, "[The law] will forge a public opinion environment where keeping trust is glorious. It will strengthen sincerity in government affairs, commercial sincerity, social sincerity and the construction of judicial credibility."

Uniqlo's change in strategy

Uniqlo has made the most of inexpensive labor in Asia to become a leading global SPA player. But making goods overseas is not necessarily compatible with responding quickly to customer needs. That is why the company is rethinking the typical approach of churning out products in emerging economies.

To more swiftly respond to customer needs, the company is working on a system for sending out goods in as few as 10 days. To achieve that, airplanes will be essential, although costly.

Not every product needs to be delivered by air. But how to decide which item, and how many, should be shipped via plane? That is what the Ariake office is working on. It has established a system that suggests the best course of action after factoring in such variables as production status, inventory level, shipping time, shipping capacity for surface and air options, and delivery to the store.

Amazon Japan seeks delivery drivers

Amazon Japan aims to build a team of 10,000 independent couriers in the Tokyo region by 2020 to continue offering same-day delivery service without relying on major parcel delivery companies.

In Tokyo, the epicenter of demand, private couriers will be organized by logistics company Maruwa Unyu Kikan, which handles deliveries for such clients as online grocers. The company will take on Amazon's same-day delivery by organizing a team of independent couriers and outsourcing the work. It has already begun the same-day service in some parts of Tokyo's 23 wards.

Maruwa aims to fence in private couriers by strictly regulating work hours while guaranteeing steady work and revenue. It will also offer worker dormitories, fuel discounts and training. When necessary, it will also rent out mini-trucks that are easy to drive even in metropolitan areas and will encourage new drivers to sign on.

Why is Amazon buying Whole Foods?

Amazon swooped in to buy the high-end grocer Whole Foods on Friday, paying $13.7 billion, or $42 a share—a healthy 27% premium on the previous day's closing price.

So what's in it for Amazon?

There are a couple of strategic plays at work for the online retail giant.

For starters, acquiring Whole Foods' 440 US stores—many of them in prime locations—could bolster the network for AmazonFresh, the company's grocery delivery service.

"To efficiently ship groceries to consumers, you need physical distribution (item-picking to put parcels together, click-and-collect points) close to the consumer," analysts at Bernstein wrote in a research note. "Stores are ideally located for that. They won't look like stores in five years' time, but they will be in those locations."