Ecommerce Market Analysis

Retail is dead. Foot traffic is down across the board. That’s the narrative we hear over and over being pushed in the media. Yet TALA - Grace Beverley’s brand born online - has opened their first physical store in Carnaby Street this weekend, to queues around Soho & a sell-out ticketed event. So rather than being dead, what if the role of brand retail has simply transformed? My take 👉 The store is no longer solely top of the funnel or entirely about discoverability. It’s the destination. The community hub. The clubhouse. It’s where content becomes tangible. Where brand world becomes real world. Where you walk through the door and it feels like stepping into their Instagram, their TikToks, their values. We’re not just talking racks and rails - there’s a coffee bar, photobooths, events, and experiences. This is community-led commerce. It’s a cultural space disguised as a high street shop. And I believe this is where we see the real revival of the high street - not as a retail destination, but as a brand world brought to life. A place to deepen connection with your community - ultimately strengthening the life time value of that customer. The blueprint is clear: Content captures. Community keeps. IRL deepens. TALA joins the ranks of Gymshark, Odd Muse and Glossier, Inc. - brands that built strong digital tribes before laying a single brick and now use their stores as destinations for the community to connect IRL. And in a world where discovery is unpredictable - spanning podcasts, group chats, TikToks and Substack - trying to funnel people in linearly is a lost cause. The smartest brands aren’t forcing a path. They’re showing up where their community already is & then inviting them in deeper. Retail isn’t dead. It’s reinventing itself & I'm so here for it. Calling it now - your favourite digital brand worlds will manifest in real life in the next 18 months whether through pop ups or permanent stores. Mark my words!

This is no surprise to us, but where does your company rank? Who are the real leaders of digital commerce growth, and who's trying to catch up? One of our ongoing research studies, conducted with our advisory board and data partners, produced some interesting results. The data from last year reveals a fascinating story about eCommerce leadership in the CPG space. L'Oréal leads with an impressive 27% contribution to eCommerce sales, while Nestlé and Procter & Gamble follow with 18% each and Colgate-Palmolive at 15%. Based on our extensive research results, most of the #CPG companies show approximately a dozen common characteristics, but #DigitalCommerce leadership requires three key elements, and they prioritize these strategic investment imperatives: 1. Making digital a core strategic investment priority with clear intent 2. Building robust organizational structure and technology capabilities 3. Establishing a significant eCommerce presence with measurable outcomes There are interesting patterns regarding #retailmedia intelligence and retailers' advertising revenue streams. - Pure-play digital platforms command a much higher advertising revenue (14-22%. - Traditional omnichannel retailers (Walmart, Kroger, Target, Tesco Carrefour) maintain lower but advanced ad revenue percentages (3-7%) compared to younger and smaller retail media networks. A very basic 2025 action plan should prioritize these 3 items, and we will get more granular and broad with our 2025 tactical recommendations in January. 1. For maximum business impact, prioritize digital capabilities development 2. Invest strategically in retail media partnerships 3. Build internal expertise for eCommerce excellence 💡Pro Tip: The key to success lies in balancing direct-to-consumer initiatives with strategic retail partnerships while maintaining profitability through smart media investments. 𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝗷𝗼𝗶𝗻 𝟭𝟮,𝟴𝟬𝟬+ 𝗖𝗣𝗚, 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗮𝗻𝗱 𝗠𝗮𝗿𝗧𝗲𝗰𝗵 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘄𝗵𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗼 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝘁® : 𝗖𝗣𝗚 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿👇 About ecommert We partner with CPG businesses and leading technology companies of all sizes to accelerate growth through AI-driven digital commerce solutions. Our expertise spans e-channel strategy, retail media optimization, and digital shelf analytics, ensuring smarter and more efficient operations across B2C, eB2B, and DTC channels. #ecommerce #strategy #FMCG #analytics Mondelēz International Unilever Coty Beiersdorf The Estée Lauder Companies Inc. Coca-Cola Europacific Partners The Coca-Cola Company Coca-Cola FEMSA Coca-Cola HBC PepsiCo Nestlé Health Science Brasil The Campbell's Company FrieslandCampina Arla Foods Kellanova Church & Dwight Co., Inc. adidas Nike Reebok Philips LIPTON Teas and Infusions The HEINEKEN Company Danone Carlsberg Group AB InBev Henkel Reckitt Haleon Bayer Kenvue Mars Ferrero

Manish M. ‘s sharp op-ed in The Economic Times provides a thought-provoking lens on the contrasting IPO trajectories of PhonePe & Flipkart emphasizing narrative clarity and structural simplicity as key to market success. Given my interest in digital companies going the IPO route, it got me to study Flipkart’s performance in-depth. While Manish’s insights on "razor-sharp" focus are valuable, they seem to miss how Flipkart's integrated ecosystem is driving impressive results and turning perceived complexity into a competitive strength. Flipkart Internet achieved revenues of ₹20,493 cr. up 14% from FY24, while net losses narrowed by 37% to ₹1,494 cr. Both clear signs of operational efficiency & a deliberate path to profitability. In fact, consolidated revenue grew 17% to ₹82,787 cr. fuelled by high-margin diversification as advertising surged 27% to ₹6,317 cr. (contributing 31% of topline) and marketplace services more than doubled to ₹7,751 cr. Expenses increased modestly by 8% to ₹22,311 cr. with marketing costs rising 37% to ₹4,100 cr. for strategic customer acquisition. Employee costs dipped 8% to ₹4,748 cr. indicating cost discipline. Ekart Logistics achieved profitability for the first time with 10x revenue growth over 4 years, a 50x expansion in customer base to nearly 1,000 external clients. It is now extending to B2B warehousing, B2C deliveries & returned goods refurbishment beyond internal operations. Myntra too has been performing well, growing revenue while cutting losses, another proof point that Flipkart’s portfolio companies are moving in the right direction & strengthening the ecosystem. The seller ecosystem expanded with a ~25-30% rise in transacting sellers over 6 months, empowered by AI tools enabling MSMEs in small towns to scale nationally. QCom venture Flipkart Minutes, operating 350+ dark stores across 20 cities, balances Qcom innovation with a focus on profitability over rapid expansion. As redomiciling to India advances, for a potential 2025-26 IPO targeting a $60-70B valuation, this data underscores that Flipkart's approach is about building resilient, inclusive scale, aligning global resources with local needs for long-term value. Investors will recognize that Flipkart is focused on building long-term value across multiple growth engines. Flipkart’s ecosystem makes it resilient to cycles in any one category and gives investors exposure to the full spectrum of India’s digital economy. Manish's take on “design for separation” is insightful, yet Flipkart's achievements in the last year show that a well-managed multi-pronged model can actually deliver compelling results in India's dynamic market. In fact it is less about choosing between Flipkart & PhonePe and more about recognizing that comparing the two is an oversimplification, since they are dissimilar businesses with very different strategies. Would love to hear thoughts on how ecosystem integration impacts IPO success? #Flipkart #Ecommerce #IPO

I analyzed 1,200 abandoned carts last month. The top reason people didn’t finish their order? They couldn’t picture actually getting the package. Sounds weird, but watch how this plays out: Someone adds protein powder to their cart. Then they leave. Later, they see a retargeting ad saying “Still thinking about it?” That doesn’t help. They already know what the product is. Here’s what does help: Email subject: “Your package would arrive Thursday” Body: “Your order of [Product] ships today and arrives Thursday by 8 p.m. Here’s what happens next: Today: We pack your order in Austin Tuesday: FedEx picks it up and you get your tracking number Thursday: It’s delivered to your area Friday morning: You try it for the first time Want this timeline? Finish your order in the next 4 hours.” A supplement brand tested this against their usual cart reminder emails. The usual version said: “Don’t forget your cart! Here’s 10% off.” The new version showed the delivery timeline. Here’s what happened: 3.2x higher open rate 2.7x higher conversion rate No discount needed Why did it work? Because people can picture the product. They just can’t picture it arriving, the box on their doorstep, opening it up, trying it out. Your job is to make that moment feel real. So instead of focusing on the product in your cart emails, focus on the delivery. Help people see the package showing up at their door, sitting on their counter, being used the next day. P.S. I analyzed these via inboox.ai - our soon to release AI-driven, searchable database of 1M+ real emails from the fastest-growing Shopify brands. Get on the wait list today!

80k orders into TikTok Shop, here's what I've been surprised to learn.   1. Samples have only driven 7% of our TikTok Shop sales.   40% of orders come from product card. Of the 60% are driven by videos.   Product card: Customers organically finding our product on TikTok. These orders aren't charged commission. 🤌   Video: Most video sales are from affiliates who already have our product or they show our product image. On samples sent to affiliates, we get a 3 ROAS. Factoring halo sales on Amazon & DTC, it's a 6 ROAS (more in point 3). Half of our revenue from samples are from one affiliate. If you remove them, omni-channel ROAS is closer to a 3.   Product drop video posts from our own account can really work. Without commission owed, we can afford to put ad spend behind them.   2. TikTok Shop sales haven’t driven meaningful Simple Modern TikTok followers.   In the 6 months we sold 80k units on TikTok Shop, Simple Modern's TikTok follower count grew less than the previous 6 months.   Surprising to me considering we've driven 186m product impressions.   3. Over 100% halo effect between Amazon and Website.   When a product has a successful video driving TikTok Shop revenue, the bump on other eComm channels is clear. Typically we see more sales driven by TikTok videos on Amazon + DTC than TikTok Shop.   Customer trust is higher on Amazon and brand's websites.   The real magic is when TikTok videos goose Amazon listing placement permanently.   4. Revenue/video is flat once affiliates have more than 50k followers.   Followers: Revenue/video 0-1K: $13 1k-5k: $25 5k-10k: $40 10k-50k: $75 50+: $100   Affiliates with 50k followers have performed the same as 1m follower accounts. We have not engaged multi-million follower accounts with highly engaged audiences (celebrities).   5. Amazon best sellers don't drive our TikTok Shop business.   Products that have worked have had at least one of these qualities:  - Interesting  - New  - Relevant to culture or season  - Niche cult following (ex: Winnie the Pooh)   Our best sellers in retail typically don't have these qualities. These factors make inventory planning for TikTok Shop challenging.   6. Affiliates asking for 4+ samples are taking advantage of you.   We've sent 51 affiliates 4+ samples. Only one generated a sale.   13% of our total samples have been sent to grifters. 🙃   ************* TikTok Shop is a uniquely valuable channel since it's also a marketing engine.   It has required a different strategy from us and has been fun to learn.   I'd love to read what others have learned in the comments.

India’s most lucrative sector for startups may not be in fintech or SaaS, but quietly growing 60L cr jewellery Jewellery has been predominantly offline. The industry has been dominated by families. Legacy brands, both large and small win. Technology adoption is minimal, maybe meaningless. Far from being open to disruption, the industry seems run by an iron grip But diving deeper reveals a glittering startup playground, powered by 50,000 Cr of giant exits Adornment is as old as India. Diamonds have been sought since 300 BC. Golconda produced the famous “Koh-i-Noor” or Hope diamond. India exported jewellery heavily between 500 and 1500 AD. 1600-1800 AD saw an explosion in making. Kundan, Meenakari, Polki works proliferated. By the 1900s, India became the Sone ki Chidiya. Hurt by British taxes, India’s production declined Yet at independence, India’s jewellery journey was restarted BIS was formed in 1947. By the 1960s, family businesses profilerated. By the 80s, Surat became a diamond giant. Zaveri, PC, GRT scaled. By 1991, the restrictive Gold control act was abolished. In 1994, Tanishq was formed as a Tata subsidiary. Tanishq pioneered organized jewellery retail. BIS started hallmarking in the late 90s By the early 2000s, India’s new and young population was looking for new styles Organized retail picked. Kalyan and Malabar scaled globally. As India’s GDP exploded by 2007, Indian tastes shifted. As the internet arrived, a small website CaratLane was born. By 2010, it had a competitor in BlueStone. Jewelers laughed at buying diamonds on the internet But the online storm was coming, to hit India soon Gold formalized by 2013 through ETFs and SGBs. By 2016, digital gold was sold. In the same year, Tanishq would acquire 62% of CaratLane. In a move that would be prescient by both the founder and Tata, a new shift was afoot. By 2019, India’s jewellery market was 32% organized, from 6% in 2007. As India entered a new decade, the online storm would explode 2020’s pandemic would accelerate online and jewellery spend Insurgent brands like CaratLane, BlueStone and Melorra would rise. Better marketing, prices and products would beat legacy. By 2022, tech would come in via try-ons. By 23, consumers became richer with more preferences. Different metals, occassions, use cases would emerge. India was no longer just wedding jewellery, but a young fashion seeker CaratLane’s 17,000 Cr exit would cement the rise of startup disruption By 24, BlueStone would file to go public. More than 30 startups would rise and scale, each attacking a new vertical. Lab grown diamonds would become hot. By ’25, new age startups would have raised 5,000 Cr. More than 50,000 Cr of exit value would be generated. Unlike other industries, real revenue, profit and liquidity was being created. Rather than being small and irrelevant, startups had become as large as the the incumbents With details here (https://bit.ly/426HqfQ), jewellery could result in startup diamonds

India is the world’s largest exporter of diamonds. Will this shift from natural to lab grown? Before I get into the debate, the numbers are big. We exported over $23.9 billion of diamonds in 2022. However, this figure dropped by more than 25% from April to October 2023. One factor stands out prominently - the rise of lab-grown diamonds (LGD). It seems everyone I know is talking about it. And, in the US LGD is now 36% of engagement rings. India has quickly become the second-largest producer and exporter of lab-grown diamonds, having over 15% global market share. So, while the export of natural diamonds fell, the sales of lab-grown diamonds have tripled in value from 2019 to 2022. Why are customers moving to LGD: → Climate-conscious consumers see significantly lower environmental impact (5.5x less CO2 emissions and 7x less water usage per carat) compared to mined diamonds. → With an increase in supply, the price gap between a 1-carat lab-grown diamond and its natural counterpart widened from 10% in 2016 to as much as 80% by 2022. A natural diamond per carat will cost you around INR 3.5-4 lakhs, whereas an LGD per carat will cost you approximately INR 55,000. This could come down even further. → Lab-grown variants are "visually indistinguishable" to the naked eye, even to seasoned diamond dealers. When put to thermal conductivity tests, both natural and LGDs show the same results. So, you just can’t tell the difference. In the West we’ve seen major retailers being impacted by the shift. The world’s biggest natural diamond jewelry retailer, Signet Jewelers, has reported a 9.6% drop in same-store sales revenues for the latest quarter. While, the world’s largest fashion jewelry maker, Pandora, saw an 87% year-on-year sales jump for lab-grown diamonds. In India itself, I’ve seen multiple startups designing and selling lab-grown diamond jewelry only. Some notable ones include: True Diamond, Aukera, Jewelbox, Svaraa Jewels. My view: Traditionally, jewelry in India was bought as a store of value more than a product of fashion. With the younger generation, this is changing. Consumers are buying it as an accessory and so, the price difference will start to matter. Having said this, smart watches didn’t kill the luxury watch industry. I think both diamonds will co exist. But, if you’re looking for rapid growth - it’s coming in LGD! PS - This is a picture from when I proposed in 2017 (with a natural diamond 😜). #india #jewelry #market #business #diamond

After months of studying customer buying behaviors at Rubans Accessories, I discovered something quite unique. Gen Z isn’t buying jewellery the way Millennials did. For them, jewellery isn’t about inheritance.  It’s about intention. They care less about how many grams it weighs, and more about what it says when they walk into a room. Is this jewellery losing relevance? No, I’d rather say, it’s shed its stiffness. And in doing so, it’s found new life. In a recent market survey we ran, over 80% of Gen Z shoppers said they’d rather wear a necklace that speaks to them than one that doesn’t. Because Owning is no longer the flex. Expression is. Personalization is the new economy. Think about it: Your nani wore her wedding bangles for a lifetime. Your mom saved hers for special family occasions. But your daughter? - She’ll borrow a matha patti for a Friday night out. - Pair silver Jhumkas with Jordan 1s for a shopping trip. - Style a Kundan choker with cargo pants at a music fest. She is not invested in building a safe locker. She wants to build a mood board.  An identity – Curated & Personal. As a brand builder, this made me pause. If we’re only designing for price points and catalogs, we’ll miss what this generation is really asking for: Connection. Context. Character. So now the real challenge isn’t just designing something beautiful. It’s designing something believable & personalized. That’s where the magic lives. And that’s where the future is headed. Do you agree? Would love to know your insights!

Most teams treat cart abandonment like a “mystery.” They test buttons. Move CTAs. A/B test colors. Add urgency pop-ups. And the abandonment rate stays exactly the same. Because most checkouts don’t break at the surface. They break deeper – inside the system that leads to the checkout. Here’s the real pattern I see across Shopify stores: Cart abandonment isn’t a single problem. It’s a chain reaction. A slow cart page → 𝗵𝗲𝘀𝗶𝘁𝗮𝘁𝗶𝗼𝗻 Too many promo hunters → 𝗹𝗼𝘄 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 Mobile-heavy traffic → 𝗱𝗲𝘀𝗸𝘁𝗼𝗽-𝗱𝗲𝘀𝗶𝗴𝗻𝗲𝗱 𝗰𝗵𝗲𝗰𝗸𝗼𝘂𝘁 Large basket size → 𝗯𝗶𝗴𝗴𝗲𝗿 𝘀𝗲𝗰𝗼𝗻𝗱 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 Wrong payment mix → 𝘀𝗶𝗹𝗲𝗻𝘁 𝗱𝗿𝗼𝗽-𝗼𝗳𝗳𝘀 When you don’t map the system, you only see the last step: “User didn’t finish the order.” But when you do map it, everything becomes obvious. So I turned this logic into a small cheat sheet: + a complete driver tree + real diagnostic steps + segment patterns + the mistakes I see most often Everything on one page. Because if you want to fix cart abandonment, you don’t start with the checkout. You start with the forces that shape it.

E-commerce is evolving in two radically different directions and most people haven't noticed yet. While we're all debating AI chatbots and generative art, something bigger is happening beneath the surface: the entire infrastructure of how we buy, sell, and transact online is being reimagined. And it's happening on opposite sides of the world, following completely different directions. I spent my time diving deep into this, analyzing how China and the West are building the future of AI-powered commerce. The differences aren't just technical: they're architectural, cultural, and strategic. And they'll shape the next decade of digital business. This is a longer read, but I've included detailed comparison tables that break down exactly what's different and why it matters. If you're building in retail, e-commerce, fintech, AI, or digital platforms, this framework might change how you think about your strategy. If you find value in this analysis, I'd genuinely appreciate a like or comment, it helps me understand what resonates and motivates me to keep researching these emerging trends. And of course with much pleasure, feel free to chat with me if you think that I can bring value to your business. Let's dive in! 👇 #ecommerce #AI #technology #agents #retail #digital