Rishi Taparia - Issue #7
Wrapping up a week that had Nordstrom say no thanks to inventory, Jack Ma redefining ‘go big or go home’, Chinese banks seeing a bright spot in the market otherwise dominated by tech companies, Chamath trying to create the IPO 2.0, hipster coffee getting a payday and more. Enjoy!
Commerce
Nordstrom opening merchandise-free concept
Nordstrom is starting to showroom their own wares. In a few weeks they are opening up a ‘Nordstrom Local’ store that will not have any items for purchase, instead opting for try in store, deliver to home. A fascinating play, maybe trying to puff themselves up for a potential acquirer?
Alibaba's Jack Ma Sets His Sights on a New Target
Alibaba is playing the long game. The really long game. With Jack magic on their side, it’s tough to bet against them.
Millennials find store associates 'extremely important'
An interesting study showing some surprising results regarding the in-store commerce experience: Millennials find in store associates extremely important, boomers are more likely to say people are not needed.
Whole Foods gives Amazon hundreds of return centers. A startup wants to give other e-commerce sites the same
Startup Happy Returns is trying to give retailers a collective edge against Amazon who has bought their way into hundreds of return locations around the country. Given the current onslaught from Amazon, companies supporting traditional retailers in creating better experiences for customers have a unique opportunity to build partnerships and raise capital. How long it lasts remains to be seen.
Amazon, the Price Perception Leader
Amazon loyalists shop on Amazon.com trusting that they are getting a bargain. Does perception match reality? For Amazon, does it matter?
FinTech
Indonesia's Go-Jek says Go Pay the next big thing
Go-Jek has dominated the Indonesian ride sharing market and are now expanding into additional services for consumers including food delivery, salon, auto servicing. Andre Soelistyo, Go-Jek’s co-founder talks to CNBC about how consumer finance in Indonesia is ripe for a payment solution like Alipay in China and he thinks GoPay could be it. I’m tempted to agree.
China’s Next Debt Addiction
Interest in credit cards is growing fast in China, but penetration remains low. That could be a rare bright spot for the country’s banks who are currently getting dominated by the likes of Alipay and WeChat Pay. However, with companies like Ping An and CreditEase building amazing portfolios, it could be to little to late for the traditional bankers.
How PayPal Can Continue Its Remarkable Run
Count me as one of the skeptics who thought PayPal would flounder following the split from EBay. With shares up 55% so far in 2017, clearly I was mistaken. Can they keep up the tremendous growth? Some analysts certainly think so.
China's Banks Are Leading a Surge in Overseas Lending
Banks from China, Japan and Canada have overseen a surge in overseas lending since the financial crisis, helping to cushion a deep slide in cross-border capital flows thanks especially to a retreat by European banks. This has broad implications for the balance of power, both political and financial, and should be a key metric to track over the next few years.
Technology
Chamath raises $600 million in IPO for blank-check firm Social Capital Hedosophia Holdings to create IPO 2.0
Chamath is a man of many words, never afraid to put his money where his mouth is. His latest venture will use its $600 million from its IPO to invest in well-performing tech startups, aiming to give private companies the ability to ‘go public’ without the increased scrutiny of being a publicly traded company.
Gadget assembler Foxconn harbors big-brand ambitions
Foxconn is most commonly known as the factory in China that makes the iPhone. Now, the largest manufacturer in the world is seeking to go upmarket to combat shrinking margins.
Lessons Learned Scaling Airbnb 100X
A terrific post from the former director of product at AirBnb on preparing a business for global scale and lessons learned along the way.
Random Tidbits
A New Surprise Airline Fee
The gate-service fee, a charge tied to Basic Economy fares, often erases the savings of the cheaper ticket. Is anyone surprised?
Nestle Is Said to Pay $425 Million to Buy Blue Bottle Coffee
Hipster coffee clearly pays. Nestle is acquiring a majority stake in Valley favorite Blue Bottle Coffee, valuing the business at close to $700m, hoping to bolster the U.S. presence beyond Nespresso machines. Will corporate overlords be able to maintain the brand?
The Sound of Silence
There’s too much downside in sharing any opinion that could easily be misinterpreted online. Even facts are dangerous to share if they don’t align with what people want to believe. What can technology, arguably the creator of the problem, do to solve it?
Our entire credit bureau system is broken
In the wake of the Equifax breach, it’s time to rethink the credit bureau system.