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| Here’s your daily business briefing. - 🎧 Spotify tests e-learning courses
- 🔍 Deep Dive: China's EV market slows
- 🎢 Legoland and Madame Tussauds owner introduces surge pricing
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Spotify ($SPOT) is exploring e-learning courses as a strategy to encourage its expansive user base of over 600 million to increase platform usage and expenditures, starting with a debut in the U.K. These courses, developed in collaboration with partners such as the BBC and Skillshare, will provide at least two complimentary lessons and are accessible on Spotify's platform via web and mobile interfaces. More: - Skillshare, PLAYvirtuoso, BBC Maestro, and Thinkific are among the partners for the course initiative, offering a diverse range of topics from music production to online learning creation.
- Course revenue will be distributed among creators, publishers, and Spotify, although the exact revenue split remains undisclosed.
- Spotify's education business, led by Mohit Jitani, is testing pricing options (total course costs ranging from £20 to £80) as part of its initiative in the U.K., driven by the market's size and engagement levels.
- This strategy aligns with Spotify's plan to broaden its product line and make the most of its podcasting ventures by using analytics insights to cross-promote content and improve creative capabilities.
Zoom Out: - The e-learning market, which hit $316.2B in 2023, is forecast to nearly double to $661.6B by 2032, with an anticipated growth rate of 8.6%.
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| 2 | | 
What the numbers say: China's EV market experienced a growth slowdown in 2023, with sales increasing by 21% compared to the previous year's 74% surge, attributed to the withdrawal of government subsidies, amid intense competition fueled by the introduction of a record 158 new car models, over 70% of which were EVs. Relevance: The EV market slowdown in China and intense price competition present challenges for both local and global auto giants, reshaping the broader landscape of the electric vehicle industry. Chinese automakers, grappling with overcapacity and fierce domestic competition, are increasingly eyeing expansion abroad, reflecting shifts in global EV market dynamics amid policy changes such as subsidy withdrawals and overcapacity concerns. More data: In February, China's commerce ministry encouraged EV makers to expand abroad, suggesting collaborations with foreign partners for research and supply chains, with banks providing credit to support Chinese auto suppliers. Despite the slowdown, Chinese automakers plan to expand production capacity by five million cars, mainly EVs, between 2023 and 2025, aligning with an expected growth of approximately 3.7 million EV sales. Notably, BYD, supported by Warren Buffett, targets selling 400,000 vehicles abroad this year, bolstered by increased factory capacity in China to manufacture four million cars annually. | | | |
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| 3 | | Merlin Entertainments, which owns Legoland, Sea Life, and Madame Tussauds, aims to introduce surge pricing at its top 20 global attractions by 2024 to counter the decrease in visitor numbers experienced since the pandemic. This dynamic pricing approach, driven by machine learning technology, will enable Merlin to adapt prices according to fluctuations in supply and demand. More: - Surge pricing, traditionally prevalent in sectors such as hotels and airlines, is becoming more widespread in restaurants and entertainment venues.
- According to Merlin Entertainments CEO Scott O'Neil, surge pricing would fluctuate based on seasonality and weather, with peak periods bringing higher charges.
- In 2023, Merlin had record revenues of $2.65B, up 8% YoY because of foreign visitors to London and other locations.
- Although revenue has risen, visitor attendance at Merlin's attractions remained below pre-pandemic levels, with 62.1 million customers in 2023, down from 67 million in 2019.
- Pre-tax losses for Merlin totaled $270M, a portion of that loss attributed to depreciating Legolands constructed in South Korea and New York during the pandemic.
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| 4 | | Novo Nordisk's ($NVO) $1.08B acquisition of Cardior Pharmaceuticals aims to develop RNA-based therapies for heart disease, including a heart failure treatment in mid-stage trials. This expansion aligns with Novo Nordisk's strategy to diversify its portfolio beyond diabetes and obesity drugs, with promising trial results indicating an 18% decrease in mortality risk for patients with obesity and cardiovascular disease using their weight-loss drug Wegovy. More: - The Danish multinational pharmaceutical company is currently in late-stage phase 3 trials for cardiovascular disease, chronic kidney disease, and high blood pressure.
- With the addition of Cardior Pharmaceuticals, Novo Nordisk's portfolio of RNA-based therapeutics is expanded, building upon its 2021 acquisition of Dicerna Pharmaceuticals.
- Cardior's RNA-based medications target vital molecules that control cell activity and have the potential to alleviate symptoms of heart failure.
- Novo Nordisk intends to initiate a second mid-stage trial to evaluate Cardior's drug's efficacy in patients with cardiac hypertrophy.
Zoom Out: - Competitors such as J&J, Merck, and Boston Scientific announced over $6.4B in healthcare deals at the annual JPMorgan Healthcare Conference in January.
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| 5 | | WSJ reports that Amazon ($AMZN) is shifting its focus to emerging e-commerce rivals Temu and Shein, seeing them as significant threats, with the two platforms replacing Walmart and Target in internal meetings. Temu's monthly active user base in the U.S. surged to 51.4 million in January, while Shein's user base expanded to 26 million in the same time frame. More: - Executives at Amazon emphasize quick delivery and consumer trust as competitive advantages, concentrating on expanding the assortment available for same-day delivery in areas like electronics.
- Temu's robust advertising campaign has propelled it to become the top spender on Meta Platforms, while its expansion to include U.S. and European sellers could lower shipping costs and offer pricier products.
- In 2023, Amazon upheld its commitment to swift delivery and extensive product variety, shipping over four billion items on the same or next day within the U.S.
- Temu and Shein provide discounted prices but slower shipping by directly shipping from China, while Shein's on-demand manufacturing model aids in waste management.
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| 6 | | Walmart ($WMT) is expanding its oral care offerings by adding the Zimba and Plus Ultra brands, aiming at Gen Z and millennial shoppers. Zimba will be stocked in 4,500 Walmart stores, while Plus Ultra will be found in 600 locations, previously available at retailers like Sprouts Farmers Market and Whole Foods Market. More: - Plus Ultra prioritizes sustainability, providing electric toothbrush replacement heads crafted from recycled plastic.
- Zimba provides teeth-whitening strips in different flavors and kits, featuring LED lights and whitening pens.
- The founder of Plus Ultra and president of both companies, Christina Ramirez, emphasizes the attraction to younger
- customers looking for reasonably priced and environmentally friendly lifestyle goods.
- This action aligns with the trend of DTC brands entering significant retailers to expand reach, leveraging Walmart's focus on enhancing personal care offerings.
Zoom Out: | | | |
| 7 | | Quick Hits: - Pattern released a 30-page insights report for beauty brands selling on Amazon.*
- Boeing CEO Dave Calhoun, along with Chairman Larry Kellner and CEO of the commercial airplane unit Stan Deal, are stepping down amid mounting scrutiny over quality control issues.
- Amgen is exploring a unique injectable weight loss treatment to differentiate itself in the competitive pharmaceutical landscape, diverging from existing options from Novo Nordisk and Eli Lilly.
- Trump Media's stock market debut announcement propelled former President Donald Trump onto the Bloomberg Billionaires Index for the first time, with his net worth surging by $4B to reach $6.5B.
- Bitcoin surged at the beginning of the last week of March, reaching $70,000, with the flagship cryptocurrency rising 8% to $71,143.60, while Ether increased by 7.6% to $3,644.72, leading most other cryptocurrencies to follow suit.
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27 | | Buy-ology: How Today's Consumers Buy Online w/Mike Felix of Act-On | | | | | | * This is a sponsored event | | | |
 | 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 Shriram Jeevakumar | |
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