Don “eCommerce” Brett’s Post

eCommerce: P&G vs Unilever Great write up by our friend Joshua Novick: 👇🏼 🚀 Procter & Gamble vs. Unilever: Who is the master of ConsumerGoods sector❓ 📊 Revenue: 🥇P&G’s revenue ($84B TTM) is 27% above Unilever’s ($66B TTM). 🥈Unilever is still only about half the size of P&G (if you exclude their business in food/nutrition where they compete with giants like Nestlé and Danone , with brands like Lipton, Hellmann's, or Ben & Jerry's). 📊 Growth Rates: P&G (Tide , Pantene , Olay , Crest , Gilette, etc)  has grown faster Unilever (Dove , Axe , Pond's , Vaseline, etc) in the past 5 years: 4.5% CAGR vs. 3% % CAGR but slower in the past decade: 1.1% versus 1.7% 🥉Other Players: Henkel: $24B (Persil, Schwarzkopf, Fa) Kimberly-Clark: $20B (Kleenex, Huggies, Scott) Colgate-Palmolive: $20B (Ajax, Colgate, Palmolive) Reckitt: $19B (Durex, Lysol, Finish) The sum ($83B) is less than the billings of P&G ($84B) 💸 Profitability: 🥇P&G (almost $15B Net Profit) is substantially more profitable than 🥈Unilever ($7B Net Profit), more than 2❎. 📈 MarketCap: 🏆P&G is the sweetheart of investors. Its market cap is 3X Unilever ($390B versus $135B). 🤑Unilever is currently trading at 14X EV/EBITDA (TTM) and 2.5X Sales (TTM). P&G is trading at a premium 17X EV/EBITDA (TTM) and 5X Sales (TTM). 🌍 Global Presence: Both companies have a global footprint but with brands and products often adapted to the local tastes of consumers. They have grown through a combination of #acquiring existing successful brands and developing their own new brands. 🔍 Differences: Procter: A pure player in home care and personal care. P&G's Sales Breakdown: 🔹Fabric & Home Care: 35% 🔹Baby, Feminine & Family Care: 25% 🔹Beauty: 18% 🔹Health Care: 14% 🔹Grooming (Gillette): 8% Geographic Sales: 🔹North America: 50% 🔹Europe: 21% 🔹Greater China: 9% 🔹Asia Pacific: 8% 🔹Latin America: 7% 🔹India, Middle East & Africa (IMEA): 5% Unilever: Formed in 1929 from the merger of Margarine Unie and Lever Brothers. Unilever's Sales Breakdown (2023): 🔹Personal Care: 23% 🔹Home Care: 21% 🔹Beauty and Wellbeing: 21% 🔹Food Segment, Ice Creams, and Nutrition: 35% Geographic Sales: 🔹Asia/Pacific/Africa: 44% 🔹Americas: 36% (USA 20%) 🔹Europe: 20% 🔬 R&D Investment: 💊Both companies invest substantially in R&D, but P&G invests $2B (2023), twice as much as Unilever’s $1B. #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin #thecpgview

eCommerce: Driving Marketplace Dominance with Strategy & Growth 🌐 Fun Facts: 1. $325B — Amazon is projected to achieve $325 billion in sales this year from third-party sellers alone, surpassing the combined sales of other top U.S. marketplaces. 2. $18B — TikTok Shop aims to reach $17.5 billion in sales for its U.S. e-commerce business this year, positioning itself as a formidable player in social commerce. 3. $10B — Walmart's third-party marketplace sales are expected to reach $10.37 billion, marking significant growth alongside its retail operations. Core Question:(1) How can U.S. brands optimize their marketplace strategies to capitalize on the dominance of Amazon, Walmart, and emerging platforms like TikTok Shop? Key Strategies: (2) 🎉 Transparent Communication — Identify and leverage the unique strengths of each marketplace to maximize brand visibility and sales growth. 🎉 Fish where the fish ARE — Embrace innovative marketing tactics, such as live streams and exclusive content, to engage with TikTok Shop's audience effectively. Key Themes:(3) 🥤 Marketplace Differentiation — Tailor product offerings and pricing strategies according to the marketplace dynamics and customer demographics. 🥤 Performance Tracking — Implement analytics tools to monitor sales performance and optimize listings across multiple platforms. 🥤 Adaptability — Stay agile and responsive to marketplace changes, ensuring swift adjustments to marketing and inventory strategies. Impact on Brand Strategy: (3) 🔥 Channel Selection — Focus resources on Amazon, Walmart, and TikTok Shop, aligning with their respective strengths and market positioning. 🔥 Market Expansion — Explore opportunities for international growth, particularly in regions where platforms like TikTok are gaining traction. 🔥 Competitive Advantage — Leverage marketplace data and insights to maintain a competitive edge in a rapidly evolving e-commerce landscape. #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

eCommerce: Nike will return to formally selling on Amazon within 18 months Great write up by Malte Karstan below: 👇🏼 “Bombshell: Nike will return to formally selling on Amazon within 18 months.” Their shift towards a larger, more controlled, DTC strategy isn't reaping the rewards it set out to achieve when it ended its relationship with Amazon in 2019. Sure, it got a bump during COVID but the drums are now beating. Their share price took a 20% hit, wiping out $28B USD in value. Thats the largest single decline in Nikes 4 decades since going public. 2024 results are flat, and its 2025 outlook is a single digit loss. Nike isn't used to going backwards. They need the worlds largest eCommerce retailer. Sean Walsh (credits) Chronic: Nike once left Amazon with a huge bang: https://lnkd.in/dU45icjT Me, already predicting in many LinkedIn posts that Nike had made the worst move possible. https://lnkd.in/dTjdq6vw https://lnkd.in/dZwr-N3y It became clear, that Nike is planning its return to Amazon when: Nike Inc. named Muge Erdirik Dogan, a longtime Amazon.com Inc. fashion executive, to be its new chief technology officer, according to an internal email reviewed by Bloomberg. Ergo, the only outcome of Nike‘s move ending relationship with Amazon 1P / 3P was: loosing control over a marketplace that once had been so significant for the entire business: https://lnkd.in/dVRby24U All that reminds of Nike in 1999 being so hesitant entering the E-Commerce space.. https://lnkd.in/dM9KN6EB In fact Nike never really left Amazon when many 100k items got sold TTM through Amazon‘s MPs globally. But Nike gave up control over its brand appearance. While Nike cut ties to Amazon it ramped up relation to fashion MPs like #Zalando, #Aboutyou and #Asos - not really a pure D2C strategy at all. PS: also Miele is going to return the Amazon sooner or later. https://lnkd.in/dSbsQaXM Ways to reach us: Pattern® The CPG View The Retail eCommerce Club #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin #thecpgview

eCommerce & AI: CEOs expect efficiency, cost savings from generative AI by 2025 Great visual by the EMARKETER team. Key Stats: (3) 🔥52% — Over half (52%) of CEOs worldwide anticipate generative AI to achieve efficiency and cost savings next year, according to an April 2024 survey from IBM Institute for Business Value (IBV) conducted by Oxford Economics. 🔥 51% — “We predict that 37.0 million people will use AI at work in the US this year, marking a 51 % year-over-year growth.” 🔥 48% — “A February 2024 survey by Adobe and Econsultancy reveals that 48% of senior marketing executives globally prioritize advanced AI skills training for key staff in preparation for generative AI in 2024.” Questions for consideration: (2) 🍿 How are you preparing for elevated investments in AI technologies? 🍿 How are you benchmarking current generative AI implementations? Now what: (1) 💰“Other crucial preparations for generative AI include providing basic AI understanding to all employees, establishing policies for ethical AI use and data security, and developing and implementing AI governance frameworks, according to the survey.” #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

Rising tides… 🙏🏼💯 🌟 Drumroll, please! 🌟 Recap of May’s Download Dominators for The CPG View!🎙️ If you share our passion for podcasts, these exceptional episodes and guests are an absolute must for your listening pleasure! Uncover May's most downloaded episodes that deserve a spot on your playlist: 1️⃣ Andrew Lipsman - Media, Ads + Commerce 2️⃣ Liz Buchanan - NielsenIQ 3️⃣ Sam Martz - Sanofi 4️⃣ Darren Silverman - Petmate 5️⃣ Vivek Rastogi - Colgate-Palmolive 6️⃣ Lee Dunbar - Starcom 7️⃣ Graham Robertson - Beloved Brands ❤️ 8️⃣ Tom Gordon - The Citadel Stay up to date by subscribing below! We have many talented guests airing from June on The CPG View. 🔥 The CPG View Podcast (Apple, Spotify, Google, etc) Page: 👇🏼🎧 https://lnkd.in/gApBXpZZ

eCommerce's Era of Profitability: 3 Bets Retailers & Brands Can't Afford to Miss 🎯 Awesome report by the team at VTEX. Brands and retailers have been on a rollercoaster ride these past few years, and it isn't stopping anytime soon! Fun Facts: (4) 🎊 70% of all carts are abandoned by consumers 🎊 55% of retailers/brands are in the early stages of the omnichannel maturity curve 🎊 38% reduction in ad effectiveness post iOS 14.5 update 🎊 37% of retailers say eCommerce isn’t meeting their profitability targets Key Themes: (3) 1️⃣ Customer Loyalty Over Acquisition: Forget the 'growth at all costs' mantra. It's time to nurture the relationships you already have. Did you know that 80% of your profits come from 20% of your most loyal customers? Shift gears from acquiring new customers to turning first-timers into lifelong brand champions. Gather that precious first-party data and be present on every channel your customers use. 2️⃣ Omnichannel Fulfillment Mastery: Omnichannel isn't just a buzzword anymore, it's a necessity. Treat fulfillment like a product, not an afterthought. Unify your inventory across all channels, embrace marketplace models, and watch those profit margins grow. 3️⃣ Reimagine Customer Engagement: Boring, cookie-cutter online stores won't cut it anymore. Step outside the box and create immersive experiences. Think video commerce, interactive product pages, and virtual stores. Take a cue from China, where they're already revolutionizing the online shopping game. Happy to share (23 pg). #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

eCommerce and CPG: Innovation Reboot Great write up by the team at Boston Consulting Group (BCG). “Without a sharp innovation strategy aligned with a clear business strategy—offering clarity on target customers and the most attractive innovation domains—even the most efficient and flexible innovation system will fail to create value, particularly in disruptive times.” Fun Fact: (1) 🎊 “More Than Half of Respondents Cite Unclear Strategy as a Top-Three Challenge for Their Organization.” (Unclear strategy, Rising cost of capital, Talent pool constraints) 💪🏼 What do the best Innovators do: (6) 1. Senior executive ownership (83%) 2. Clear sense of purpose (82%) 3. Focus on competitive advantage (84%) 4. Specified domains (78%) 5. Target portfolio structure (61%) 6. Qualified objective’s (69%) 🔥 What are the playbook dimensions: (7) 1. Ambition 2. Domains 3. Governance 4. Porrfolio/Performance Management 5. Organization 6. Talent/Culture 7. Idea to impact Happy to share (22 pg). #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

eCommerce & Strategy: Where is advertising spending going? �� Size and Growth summary below: Q4, 23’ — Google = $48B Meta = $39B Amazon = $15B YouTube = $9B 3YR, CAGR — Google = +15% Meta = +12% Amazon = +26% YouTube = +10% #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

eCommerce: Cannes Lions 24’ Tom Fishburne 😂

eCommerce & CPG strategy: State of Europe Grocery Terrific report by the McKinsey & Company team. Fun facts: (2) 🎈“Grocery sales in Europe grew by 9% in 2023. This growth was a result of 13% food price inflation, a downtrading effect of 2%, and a 2% volume decline.” 🎈 “Online grocery and meal delivery are expected to outpace offline growth.” * +9% — meal delivery * +7% — online grocery * +2% — offline grocery Key Themes: (3) 🔐 “Retail media continues to grow; Amazon remains in a league of its own.” 🔐 “Margin pressure and downtrading remain at the top of CEOs' minds.” 🔐 “Compared with 2019, margins in 2023 were lower for both retailers and consumer packaged goods companies.” Trends that will characterize EU grocery: (8) 📊 Cost and margin pressure 📊 Return of polarization 📊 Food to go 📊 Sustainability 📊 Online — the liberation from offline 📊 Retail media 📊 Conversational commerce 📊 Talent Happy to share (44 pg). #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin