| |
| Hello Insiders!! Today’s Business newsletter covers: - 📉 China slows LVMH owner's sales
- 🔍 Deep Dive: TikTok closes shopping in Indonesia
- 💼 Atlassian acquires Loom for $975M
If you enjoy reading this newsletter, please share it with your friends and colleagues. Make sure to continue reading the Quarterly Earnings Report and the Quick Hits. Thank you!! Shriram
p/Shriram | |
| 1 | | LVMH Moët Hennessy, the luxury goods retailer, noted a substantial sales growth deceleration, particularly in the Asia market, primarily driven by China, which saw an 11% increase over a three-month period ending on Sept. 30, compared to the 23% rise in the first half of the year. China's economic challenges are affecting LVMH and the broader luxury industry, resulting in declining sales. More: - Luxury brands are depending on Chinese buyers to make up for declines in other markets brought on by things like inflation and increased interest rates.
- The slower rate of sales growth in China is ascribed to the country's economy's persisting structural problems and harder YoY comparisons.
- Sales for LVMH in the U.S. climbed by only 2%, a decline from what was once a major factor in post-pandemic growth.
- Guiony, LVMH's CFO, stated, "The third quarter of last year was the company's strongest in China, just before a wave of COVID-19 infections ravaged the nation."
- The third quarter sales reported by LVMH were $21.16B, representing a 9% organic rise over the same period last year.
Zoom Out: - In 2022, the Chinese luxury market saw a 10% YoY decline, breaking a five-year streak of rapid growth due to pandemic-related disruptions.
Q: How can luxury brands adapt and thrive in a changing global economy? Join the conversation here. |     | |
| 2 | | TikTok Shop was closed down as a result of Indonesia's recent imposition of new restrictions that forbid online shopping to protect local businesses. 
What the numbers say: In 2022, the Indonesian e-commerce sector was estimated to be worth $52B, with TikTok's revenues accounting for about $2.5B of that total. TikTok introduced TikTok Shop in its Indonesian market with 125 million users, and it has since expanded to several other countries, including the U.S. Relevance: Indonesian officials had expressed worries about TikTok Shop's potential effects on the nation's small companies. The crackdown in Indonesia can create a standard and have an effect on TikTok Shop in other nations. In Indonesia, the platform hosts 6 million sellers. More data: TikTok's CEO committed to a significant investment in Southeast Asia, with a substantial user base of approximately 325 million. While TikTok faced restrictions in several nations for political and security reasons, it was in preliminary discussions with Indonesian authorities to secure a payment license. | | | |
| A message from our sponsor, Edward Jones. |  | | Reimagine your career as a financial advisor. Enjoy paid training, a flexible schedule, and unlimited earning potential. Join other associates who have the same goals as you and are motivated by collaboration, not competition. We thrive on doing what’s best for our clients, our communities and one another. Change your career. Change your future. Learn More Edward Jones is an equal opportunity employer. | |
|
| 3 | | Atlassian Corp. is making its largest-ever acquisition by purchasing video-messaging startup Loom for $975M. Loom's platform allows users to create and share screen-recorded videos for various work-related tasks, including onboarding, code reviews, feedback sharing, and all-hands meetings. More: - Mike Cannon-Brookes, co-CEO of Atlassian, believes that Loom's emphasis on video is in line with the future of remote work, when individuals collaborate across various schedules and time zones.
- In addition to being integrated into other Atlassian collaboration products like Jira and Confluence, Loom will continue to exist as a standalone product.
- With a completion date anticipated for the March 2024 quarter, the acquisition will cost $880M in cash and the remaining amount in stock awards.
- Although revenue growth has slowed, Atlassian still has a positive outlook for future sales of cloud apps.
- Loom, a company that was formed in 2016, has more than 200,000 users, grew during the epidemic, and was valued at $1.53B in a funding round that took place in May 2021.
Zoom Out: | | | |
| 4 | | Cruise operators such as Carnival and Royal Caribbean are raising ticket prices above pre-pandemic levels to meet strong post-pandemic travel demand. The average price for a five-night Caribbean cruise in December is now $736, marking a 37% increase from the previous year and a 43% rise from 2019, while Carnival achieved record net revenue per passenger per day in Q3, along with record-high booking volumes. More: - Both seasoned travelers and first-time cruisers are driving up demand for cruises in the sector.
- The demand for cruise vacations has been influenced by high airfare costs, which are up 26% from 2019.
- Due to the great demand, experts in the industry believe that prices may continue to rise and that cruise lines won't need to reduce rates or provide many incentives.
- Additionally, beverage packages and add-on facilities are becoming more expensive, according to cruise companies.
- Major parent firms in the sector (Carnival, Royal Caribbean, and Norwegian Cruise Line Holdings) continue to oversee considerable debt accrued during the pandemic.
| | | |
| |
| 6 | | According to Delta Air Lines' president, Glen Hauenstein, the recent strikes by United Auto Workers (UAW) union members and celebrities in Hollywood are affecting the market for business travel. UAW strikes in their fourth week follow failed contract negotiations with Detroit automakers, while Hollywood actors (represented by the Screen Actors Guild-American Federation of Television and Radio Artists) remain on strike. More: - With a market share of more than 70% at Detroit Metropolitan Wayne County Airport and over 20% at Los Angeles International Airport, Delta has a substantial presence in the automobile and entertainment sectors.
- Hollywood actors and the Alliance of Motion Picture and Television Producers' negotiations have been put on hold because no agreement has been reached.
- Despite these strikes, the third quarter saw double-digit growth in demand from clients of technology and financial services, which helped Delta's business travel sector recover.
- According to a company poll of corporate clients, most anticipate that their travel will either stay the same or rise in the final three months of 2023 and into 2024.
Zoom Out: | | | |
| 7 | | Quick Hits: *This is a sponsored listing. | | | |
| Upcoming Events | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | | OCT
30 | | Discover the latest digital experience innovations, updates, and breakthroughs at Opticon Online.* | | | | | | | NOV
17 | | Join the Docker AI/ML Hackathon to help shape the exciting new frontier of AI and have a chance to win cool prizes!* | | | | | | * This is a sponsored event | | | |
Term of the Day Whitepaper: In marketing, a white paper is a detailed document explaining a problem and how a specific product, service or company provides a solution. Question of the Week What perks would convince you to return to the office? Join the conversation Today's Knowledge Hub Is Brought To You By Symon.AI - The All-in-One Data Tool for Startups. Start your free trial here.* |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
| |
| |
|
| |
