Rishi Taparia - Issue #47
This week we look at Zara’s use of technology, JD partnering with Google, the Supreme Court ruling on ecommerce taxes, money-hungry rodents, Russia’s goals for US elections and more. Enjoy!
Commerce
Zara looks to technology to keep up with faster fashion
Zara posted record Q1 earnings but the fast fashion pioneer is feeling the heat. Trends and fads are changing by the day and as we’ve discussed before, technology is required to skillfully adapt. Now looking to add AI and drive further automation into the supply chain, the fashion retailer is recruiting talent from startups and partnering with Jetlore, which offers an AI-powered consumer behavior prediction platform, and El Arte de Medir, a Spanish big data company. The company is also working with Intel on hardware that measures clothing volume in boxes.
JD.com And Google - A Perfect Friendship
Google is buying their way into Chinese distribution. The company took a $550 million stake in JD as part of a strategic partnership. The companies complement each other quite nicely and, probably more relevant, have a common enemy in Amazon.
By applying JD’s supply chain and logistics expertise and Google’s technology strengths, the two companies aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and frictionless shopping experiences. JD also plans to make a selection of high-quality products available for sale through Google Shopping in multiple regions.
This article pegs JD as the big winner here but I think Google may have finally found the right approach to tackling China after suffering through many false starts.
Nike's SoHo store gets a 'super cool' remake
Dynamic. Fashionable. Cool. Words commonly associated with Nike as a brand and their products, but not necessarily of their retail space. Now it seems they are trying to bring some of those same trends to their stores, with their SoHo flagship in New York having undergone a massive renovation. Take a look - some great pics!
Supreme Court’s internet sales tax ruling may be a nightmare for small businesses
This week the Supreme Court ruled that states can collect sales tax on ecommerce purchases, reversing a precedent set in 1992 by the case Quill v. North Dakota. Now, following the court’s decision, states can start charging sales tax on internet purchases even when a retailer has no physical presence in that state. This has the opportunity to be incredibly burdensome for small businesses that sell goods online, largely through third parties.
FinTech
Rats shred $17,600 inside ATM in India
It seems like being money-hungry isn’t limited to the human race! A rat broke into an India bank ATM and chewed through nearly $18,000 in cash - clearly a digital payments advocate.
SoFi rolls out mobile checking account aimed at millennials
SoFi is (as expected), expanding their product offering for their HENRY customers with a checking account.
SoFi Money will give users the ability to make peer-to-peer payments, bill payments, transfers and wires on mobile devices. Those who use it for direct deposit will get 1 percent interest along with opportunities to add more value with the debit card, he said, without specifying what those are. Transactions also will be faster than big banks typically are, he said. App users also will get personalized financial advice based on their spending patterns.
What I expect is that the company restarts their pursuit for a banking license. They had previously applied and then stopped but, as they continue their growth and with a desire to go public, lowering their cost of capital makes only makes sense.
For a day, I was one of the millions of Americans without a bank account. It was humbling
27% of the US population is considered underbanked or unbanked by the FDIC. This LA Times writer joined a FinX conference and experienced what it was like to transact without access to the typical financial and banking infrastructure.
Technology
What the Airline Knows About the Guy in Seat 14C
I’ve discussed at length how consumers are looking for highly curated experiences that feel tailored to them and their individual needs. While most of the discussion has been focused on retail, this trend is not limited to commerce. This was an interesting look at how airlines are taking advantage of data, apparently the biggest fear being ‘creeping out customers’. I think the reality is most consumers are happy to get better service, with fears of customer backlash over use of data that customers have willingly provided (address, birthday, drink order) likely overblown.
Random Tidbits
“The Russians Play Hard”: Inside Russia’s Attempt to Hack 2018—And 2020
Nick Bilton, who formerly covered technology for the New York Times before moving to Vanity Fair, goes deep on Russia, US elections and what Russia could do to further meddle in the 2018 midterms and the 2020 elections. Sobering, to say the least.
How George Orwell Predicted the Challenge of Writing Today
Masha Gessen on George Orwell’s essay “The Prevention of Literature” and what it says about the modern condition of creating art in the face of a totalitarian state. A terrific piece, excerpts below.
And yet I think this is the job of writers right now: to describe what we do not yet see, or what we see but cannot yet describe, which is a condition almost indistinguishable from not seeing.
I want to find a way to describe a world in which people are valued not for what they produce but for who they are—in which dignity is not a precarious state.
I want to find a way to describe economic and social equality as a central value—a world in which inequality is, therefore, shrinking.
I want to find a way to describe prosperity that is not linked to the accumulation of capital.
Quote I’m thinking about: “Who controls the past controls the future. Who controls the present controls the past.” - George Orwell, 1984