ETtech Top 5: Dipping online shopping spends, Google’s blue collar job foray & more

ETtech Top 5: Dipping online shopping spends, Google's blue collar job foray & more

Declining online shopping spends

What’s the news?

Consumer spending on online shopping sites is estimated to be down by about a fifth in the first half of the year to June as etailers have cut discounts and the growth slump has hit buying sentiment across sectors, according to a report by market research firm Kantar.

While the average ticket size has fallen 27% in the first six months compared with the same period last year, average spending is down 21%

What are the trends like?

The number of buyers dropped across several key categories with mobile phones clocking a 17% decline, while fashion saw a 16% drop. ET reported last month that e-marketplaces are expected to register 25-27% sales growth during the festive season, slower than last year’s 35%, owing to sluggish consumer sentiment and a slowing economy.

Stanford Angels founder Paula Mariwala said these companies are focussing on unit economics, which is why deep discounts have been withdrawn “Earlier, there was a lot of competition in fashion, for instance. We have seen a consolidation there and ecommerce companies don’t need to discount anymore to get customers,” Mariwala said. Read more.

ETtech Top 5: Dipping online shopping spends, Google's blue collar job foray & more
Low-priced fashion lines for e-commerce firms

What’s the news?

Top apparel brand owners including Aditya Birla’s Madura Fashion & Lifestyle, the Landmark Group, and the Bestseller Group are deepening their partnerships with online retailers Flipkart and Amazon, as they seek to expand their distribution and consumer base by introducing lower-priced, exclusive ranges that are not made available in physical stores.

Luggage brands are also selling their products exclusively through these ecommerce sites. These include Georgia, Copa, and Camp from American Tourister, the Thorium range of Safari and Skybags’ Rubik.

Why is this significant?

Ecommerce channels offer brands the opportunity to tap a younger, more digital-savvy 18-24 age group, while curbing the costs of distribution, technology and supply chain. E-commerce firms say that brands have realised the potential that online holds and the reach it has, due to which they are actively collaborating closely over the past few years.

Launching unique online-only lines also helps brands distinguish their retail stores’ experience, and at the same time assure offline franchise that their business is not competing with online. Read more

ETtech Top 5: Dipping online shopping spends, Google's blue collar job foray & more
Regulatory framework for non-personal data

What’s the news?

Infosys cofounder S Gopalakrishnan said the broad strokes of data regulations lie in trying to leverage the economic value of data for the benefit of the citizens, not just for corporations, and protecting them from the vulnerabilities inherent in the digital era.

On Friday, MeitY formed a committee headed by Gopalakrishnan to look at non-personal data and recommend a regulatory framework to handle such information.

What data will this committee look into?

These data could include aggregated data, derived data, anonymous data, ecommerce data, AI training data, etc. — for example, the traffic data collected by taxi aggregators such as Uber and Ola, consumption data from food aggregators like Swiggy and Zomato, search data from Google and ecommerce data from Amazon and Flipkart. The business data can be anonymised so as to ensure individual privacy. The aggregate data on consumer behaviour will help in formalising public policy.

Access to and control over various kinds of data are critical for economic advantage, the ministry said in its notification on the formation of the committee.

ETtech Top 5: Dipping online shopping spends, Google's blue collar job foray & more
Google’s foray into entry-level job market

What’s the news?

Google will venture into India’s entry-level job search market with Kormo. It has been undertaking pilots in the country since early this year through its next billion users (NBU) unit, said people familiar with the matter. These involved ground research on how entry-level hires were made in various sectors.

What’s the importance?

Kormo helps users look for jobs rarely posted online and for which there is no structured, searchable repository. It was initially developed by Area 120 Labs, the company’s in-house incubator and “workshop for experimental projects.”

The app debuted in its home market of Bangladesh in September last year, before it was launched in other key NBU markets like Indonesia. In Bangladesh and Indonesia, Kormo focuses on three sectors, including retail, hospitality and logistics.

ETtech Top 5: Dipping online shopping spends, Google's blue collar job foray & more
PayU, Fosun may back DotPe

What’s the news?

PayU and Chinese conglomerate Fosun International are closing in on a $10 million equity financing round in DotPe, the fin-tech startup founded by Shailaz Nag, a former managing director at the Naspers-owned fintech major. The round could also see Info Edge, which owns India’s largest jobs portal Naukri, join the startup’s investor cap table.

Why does it matter?

The investment in DotPe by PayU will mark a rare instance of a major corporate investing in a former employee’s venture. Nag previously led PayU’s payments business in India, having spent over eight years at the company, for which India is a core market.

DotPe will also be the latest instance of a venture started by a well-known entrepreneur, particularly those operating in the broader fin-tech space, and which has managed to raise a substantial amount of capital, while still largely in stealth mode.

[“source=tech”]