Wednesday, November 5, 2014

• Alibaba's first post-IPO earnings release was very positive overall: Strong GMV growth, especially on Tmall ($90.5B, 49% Y/Y. Taobao  GMV $61.9, 38% Y/Y. Tmall GMV $28.6B, 78% Y/Y).  Mobile GMV now accounts for 36% of total GMV (up from 15% a year ago). Revenue growth beat expectations: $2.7B, 54% Y/Y. Profits were a tad weak: Overall margins at a 2- year low of 18%. GAAP $494M, -39% Y/Y (overall margins are at two-year lows on share-based compensation charge of $490M). Strong user growth, especially on mobile. MAU: 307M, +52% Y/Y. Mobile MAU 217M (up 138% Y/Y). Valuation stands at $250B, greater than that of Facebook.  Extensive coverage: Reuters, Bloomberg, NYTimes, TechInAsia

• As Singles Day approaches, Chinese Regulators met Alibaba, JD and others to warn them against (1) raising prices to lower (2) stocking out selectively (3) making superlative claims: China’s State Administration for Industry and Commerce (SAIC) recently held a meeting with ten of China’s top ecommerce companies, including Alibaba and JD, to send a clear message: platforms must take steps before sales are publicized to ensure the deals are legit. Specifically, the SAIC is worried about the following abuses, which it has gotten consumer complaints about following previous years’ Singles Day sales: (1) Artificially raising prices so that they can then be lowered to make the normal price look like a great deal (2) Claiming to be out of stock to avoid selling low-priced items to too many customers when stocks are actually sufficient to honor customer orders (3) Changing orders or canceling sales (again, to avoid having to sell too many items at a discount) (4) Advertising using superlatives like “the lowest price on the web” or “lowest price ever”, which are illegal.

• Smart in-store notifications using location targeting beacons are gaining popularity among offline retailers: Urban Outfitters is loading up 15 stores in Philadelphia, Boston, New York, Atlanta, New Jersey and Delaware with beacons—small devices that marketers place around stores that ping messages at shoppers who have downloaded the retailer's app. Swirl, the platform that powers the beacons, said that two-thirds of consumers shop in-store with a smartphone. And instead of pushing aggressive offers at smartphone-wielding consumers, the beacons plug into the Urban On loyalty program, a section in the app that gives shoppers rewards and access to events. Initially, Urban Outfitters has pinpointed three areas to focus its mobile efforts around: the checkout line, fitting rooms and the entrance. When smartphone-wielding shoppers first enter the store, a push notification prompts users to check-in via social media to unlock an offer. Then in the fitting room, beacons are being used to churn out user-generated content about products. Shoppers are prompted to take selfies and post them to Instagram with the hashtag #UOonYou for a chance to be featured on Urban Outfitters' website. Shoppers at the register may get a push notification promoting them to shake their phone to show the Urban ID—a loyalty card—and earn a digital badge.