For anyone in ecom or performance marketing, this podcast is a must listen. Forget ROI and ROAS, think unit economics, says former investment banker (her last big deal was the Myer float) turned entrepreneur Carla Penn-Kahn. She was early into ecom and left Credit Suisse to launch four of her own – Kitchenware Australia, A Gift Worth Giving, Everten and Buy My Thing. But she sold her last venture last year when she realised it had hit peak profitability. With performance ad prices doubling in four years, and Amazon reaching full speed, the unit economics weren’t going to get any better. Penn-Kahn thinks direct-to-consumer trailblazers have likewise lost their mojo – and their moats – and face the same dilemma, because they can no longer sustainably scale through advertising and VCs are sharpening their bottom line focus as much as the top. Meanwhile, Amazon has just signed an exclusive deal with Australia Post to deliver on weekends. “I can’t see other brands like Myer and DJs getting Aus Post to do the same for them … which 100 per cent gives Amazon an edge in this market over Australian businesses.” Hence she’s cool on the outlook for many, but particularly the likes of The Iconic, Temple and Webster, Adore Beauty and Australian marketplaces like Woolworths-owned Catch, which last week put a $96m dent in Wesfarmers’ balance sheet. Loyalty programs and retail media offers a lifeline for some, per Penn-Kahn, but most DTC brands don’t have the latter option. But Amazon might not have it all it’s own way. She suggests Microsoft might be gearing up to buy Shopify (which in Australia lays claim to controlling 25 per cent of all ecom transactions). If it happens “they will own the space”, suggests Penn-Kahn. “You will be advertising on Bing through the Shopify network as an ecom brand and leveraging Microsoft’s AI to build your website, build the content. It could be a full ecosystem roll up if it happens. It’s very possible.”
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Why ANZ is doubling down on its people in the AI era of marketing
Good Things Australia, in collaboration with Microsoft and Telstra, is launching the ‘Digital Sisters: AI for Good’ project. The initiative aims to support refugee and migrant women in building their understanding and use of Artificial Intelligence (AI).
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Good Things Australia, in collaboration with Microsoft and Telstra, is launching the ‘Digital Sisters: AI for Good’ project. The initiative aims to support refugee and migrant women in building their understanding and use of Artificial Intelligence (AI).
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Bendigo Bank names chief marketing, customer and digital officers amidst executive shakeup
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Former Aurora Expeditions CMO takes on Sydney nightlife challenge in latest career move
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Catch takes a fall in Wesfarmers’ full year results, ecommerce unit posts 25.9% revenue revenue slump as Bunnings, Kmart, Officeworks hold steady
Bunnings, Kmart and Officeworks have all held firm, chalked up single-digit revenue and earnings gains for the full year to 30 June 2024, but fellow ecommerce offering in the Wesfarmers stable, Catch Group, has taken a massive tumble into the red.
Telstra, Microsoft partner with Good Things to launch AI initiative that empowers migrant and refugee women
Good Things Australia, in collaboration with Microsoft and Telstra, is launching the ‘Digital Sisters: AI for Good’ project. The initiative aims to support refugee and migrant women in building their understanding and use of Artificial Intelligence (AI).
Lego and Nike team up to champion creative play and sport
In a move that promises to celebrate creative play and sport, the LEGO Group and NIKE, Inc. have announced a multi-year partnership. The collaboration is set to offer new opportunities for children and families worldwide, with activities commencing next year.
Ecom roars back to life as Coles and Woolies power; Banducci bows out with a wrap for retail media unit Cartology but Coles 360 growth rate outstrips rival
Ecommerce revenues at Australia’s two giant grocery chains Coles and Woolworths are roaring back into life, barely 18 months after pandemic-fuelled growth went into sharp reverse. Big long-term investments across retail media, loyalty, digital transformation, supply chain, and fulfilment upgrades are paying off. They say timing is everything and new Coles CEO Leah Weckert and incoming Woolies counterpart Amanda Bardwell have landed just as the sun has started shining again on online sales. But there’s still a lot of work to do. Outgoing Woolworths CEO Brad Banducci for instance flagged slowing growth at Cartology which grew ‘just’ 9 per cent – although that’s after half a decade of robust growth (and a 34 per cent CAGR over five years). Its younger, smaller retail media rival, Coles 360, grew north of 20 per cent. Both of the retail giants also flagged the growing importance of AI within their operations – but their strategies are divergent.