Cyber Monday set to be biggest online shopping day in U.S. history

NEW YORK/BENGALURU - Cyber Monday was set to garner up to $12.7 billion in online sales, according to industry estimates, surpassing Black Friday's digital numbers as U.S. retailers enter the last lap of an extended holiday selling season.

Retailers have given shoppers nearly two months of offers since Amazon.com held its Prime Day in October, as they sought to be competitive and recoup the sales lost in this year's coronavirus-driven closures of malls and other stores.

Latest estimates from Adobe Analytics showed this year's conclusion to Thanksgiving weekend promotions would, however, still be the largest online sales day in history, with spending between $10.8 billion and $12.7 billion.

"While I anticipate another year of discount chicken — where consumers hold out for deeper and deeper discounts throughout the season ... Cyber Monday should (still) offer a great opportunity to make a big dent in holiday shopping," said Rob Garf, VP of strategy and insights at Salesforce.

Traditionally, Cyber Monday starts with people, fresh after a long weekend, scouring for discounts online at work and driving another big day of promotions.

However, the popularity of event shopping days has faded with the emergence of online shopping and cheap deals throughout the year from retailers including Amazon and Walmart Inc, with the health crisis this year also playing with shopping patterns.

"I did a lot of my shopping even before Black Friday... I feel I've gotten mostly everything," said Caroline McCormick, 33.

The Phoenixville, Pennsylvania, sales engineer said she's been receiving "early access" Black Friday emails for several weeks now, prompting her to buy hiking boots on Columbia Sportswear's website for her mother, socks on Kohl's Corp's website and more.

Today, when she was pitched more deals for Cyber Monday, "nothing popped out that made me think 'I need to get that right now.'"

The tentpole shopping event of Black Friday, which pulled in record online sales of about $9 billion, according to Adobe, saw shoppers turning up in smaller numbers at stores as they utilized the early deals and avoided stepping out into large crowds. 

This year's Cyber Monday saw not just online sellers such as Amazon offer steep discounts for its own brands, including Fire TV stick, Echo devices, and other electronics like PlayStations and roombas, but also brick-and-mortar stores such as Lululemon Athletica and Best Buy provide online deals.

"I go online a little bit and look around and do some comparison shopping, but Amazon pretty much beats everything," said Bill Hon, 49, a cook living in Crawfordsville, Indiana, who started his holiday shopping during Amazon's Prime Day event.

Apple also held a four-day event on its website ending on Monday, offering gift cards of up to $150 on purchase of certain products.

-reuters-

Louis Vuitton, Volvo tapping Thai social commerce via Line chat app

BANGKOK - Luxury fashion and auto brands in Thailand have turned to selling their products on Japanese chat app Line during the coronavirus pandemic, tapping the country's growing appetite for social commerce, a top executive said on Thursday.

Brands like Louis Vuitton, Chanel and Volvo were among those that opened official accounts on the messaging app, which outranks Facebook's WhatsApp and Rakuten's Viber in Thailand, aiming to connect with users during a coronavirus lockdown.

"The luxury category was forced to adapt because their stores were closed," Line Thailand chief commercial officer, Norasit Sitivechvichit, told Reuters.

Thailand earlier this year imposed a nationwide curfew and closed malls for nearly two months to contain infections.

"During the pandemic, sellers became very active," Norasit said, adding that others sold cosmetics and fast-moving consumer goods.

Line, which charges sellers for sending messages and live streaming, said its monthly active users in Thailand grew from 44 million to 47 million this year, its second largest market after Japan.

Volvo successfully sold cars on the platform after launching in May and studying customer data, its Thailand head of marketing and digitalization, Jean-David Harel, said.

"We have an understanding of which models they own today, which interest they have and when they plan to change their existing car," he said.

Social commerce is widely popular in Thailand, where merchants sell directly to customers through social media like Line and Facebook's Instagram.

Line last year introduced a feature for merchants to organize inventory and online store fronts, which now has over 50,000 users.

Another tool to support sellers with customer relationship and data management is slated to launch next year.

E-commerce platform, JD Central would also launch services for sellers.

Line will soon introduce "MyRestaurant" with its food delivery app, Line Man Wongai, to support restaurants, Norasit said. The company also has video-on-demand products.

-reuters-

'Digital' Filipinos to stick with cashless payments, online shopping in new normal: Visa study

MANILA - Majority of Filipinos plan to keep on using digital payments and e-commerce even after the coronavirus pandemic is contained, a Visa study released Thursday showed.

At least 70 percent of Filipino respondents said they intend to stick with digital payments instead of cash when the crisis is over, a Visa study conducted in 40 countries worldwide showed.

Asia Pacific preference to digital payments is at 78 percent, compared to the global average of 68 percent, it said.

"In this new normal, we’re seeing a shift – Filipinos are becoming more digital, and the COVID-19 situation has forced consumers to adopt this change in behavior," Visa Country Manager for the Philippines & Guam Dan Wolbert said.

A total of 73 percent of consumers said they were likely to "increase" or "sustain" their current online shopping behavior compared to 72 percent global average, Visa said. 

Thirty-seven percent of Filipino respondents said online shopping is a positive experience, compared to 35 percent global response, the study showed.

One in 6 active Visa cardholders also made an e-commerce purchase for the first time this year, shopping for essential goods, medicines and paying bills, the financial firm said.

Online shopping and cashless payments surged in the Philippines after the COVID-19 lockdown was imposed in March. Delivery of essential goods were allowed, while cashless payments were encouraged to reduce human to human contact. 

Metro Manila remains under general community quarantine until July 31, where services, businesses and restaurants are operating at a limited capacity. 

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Puregold expands online grocery footprint for new normal

MANILA - Puregold Price Club Inc said Wednesday it would expand its online grocery service as consumers take their purchases online due to the COVID-19 pandemic.

At least 100 Puregold stores from the current 40 stores on its mobile app will offer online shopping by the end of 2020, the supermarket chain operator said in a statement.

"This will provide our shoppers better convenience especially now that travel is limited due to quarantine," Puregold said.

Puregold in January launched its mobile app where consumers can order and pay for grocery items anytime, anywhere. Paid items are available for pickup in designated lanes, skipping long lines, the operator earlier said.

The group reported consolidated core net income of P6.75 billion in 2019, up 16 percent compared to the P5.82 billion the previous year.

As of December, Puregold has 436 stores nationwide.

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Lazada sellers back online as customers tap to new normal

MANILA -- Online marketplace Lazada said Monday a "majority" of its sellers in the Philippines are back online, reflecting how small and medium enterprises have begun to reboot from the COVID-19 pandemic.

Ahead of the last day of the lockdown in Metro Manila and other urban areas on May 15, SMEs and those involved in the logistics chain have secured rapid passes to move around, Lazada Philippines COO Carlos Barrera said.

"More and more people are coming online. People are shopping from home. They value convenience," he said.




From food and essentials, looser restrictions elsewhere allowed Lazada to offer more products such as office supplies and hardware, Barrera told ANC's Market Edge.

Lazada is "ready" for the new normal in e-commerce in coordination with trade authorities on which products can be delivered, he said.

There's also a "very good recovery" on the customer side, he said.

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Google to make online shopping service free to merchants

SAN FRANCISCO - Google is opening its online shopping service to merchants free of charge as it competes with Amazon in precious e-commerce and digital ads.

Merchants in the US will be able to use Google Shopping for free to proffer their wares by the end of April, and the goal is to do the same for sellers around the world before the end of the year, according to commerce unit president Bill Ready.

Google Shopping had previously showcased only retailers who paid to promote products to consumers searching online for items.

"As consumers increasingly shop online, they're searching not just for essentials but also things like toys, apparel, and home goods," Ready said in a blog post.

"While this presents an opportunity for struggling businesses to reconnect with consumers, many cannot afford to do so at scale."

The closing of physical shops due to the pandemic has accelerated Google's plan to make it free for merchants to sell with its online commerce service, according to Ready.

Beginning next week, results for searches in the Google Shopping tab will be mostly free listings. Google will display paid ads on results pages as well.

"For advertisers, this means paid campaigns can now be augmented with free listings," Ready said.

Online retail colossus Amazon uses a similar formula, mixing sponsored product posts with offerings by merchants and has been making an increasing amount of revenue from digital ads in the process.

Google said it is working with PayPal to allow merchants to use the financial transactions service for sales on the Shopping platform, making it easier for potential vendors to join.

Online shopping has surged, with Amazon center stage, as people sheltering at home to avoid coronavirus risk have relied on e-commerce for groceries, medicine, household staples and more.

"Solutions during this crisis will not be fast or easy, but we hope to provide a measure of relief for businesses and lay the groundwork for a healthier retail ecosystem in the future," Ready said.

Agence France-Presse

Lazada says it can now deliver essential goods

MANILA -- Online shopping platform Lazada announced on Monday that it can now deliver essential goods to customers in the Philippines.

In a Facebook post, Lazada said users can now order alcohol and hand sanitizers, personal care and baby care items, vitamins and supplements, household cleaning supplies, fresh meat and vegetables, canned goods, snacks, beverages, and pet care items, among others.

Its cash on delivery option, however, is temporarily suspended "to facilitate faster deliveries as well as ensure the safety and well-being of our staff and customers."

"We seek your patience as delays in delivery are expected," Lazada said. "Our team is working tirelessly to uphold the best service standards."

Read the full statement 

Lazada earlier suspended its logistics operations in the Philippines as the country's battle against the novel coronavirus continues.

It has since been encouraging users to donate to medical frontline workers and families affected by the COVID-19 crisis through the platform.

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US to unveil crackdown on counterfeit, pirated e-commerce goods

WASHINGTON - The Trump administration plans to unveil efforts on Friday to crack down on counterfeit and pirated goods sold on major e-commerce sites and urge companies to do more to vet third-party sellers and increase self-policing efforts.

Acting Department of Homeland Security Secretary Chad Wolf and White House adviser Peter Navarro will be among officials at a news conference on Friday to discuss the effort at the National Intellectual Property Rights Coordination Center in Arlington, Virginia, administration officials said on Thursday.

Foreign sellers face little risk of prosecution, an administration official told Reuters, so strong US government action "is necessary to fundamentally realign incentive structures."

Law enforcement agencies are planning "immediate actions" to identify counterfeit goods and seek "all available statutory authorities to pursue civil fines and other penalties against these entities," according to a DHS report reported by the Wall Street Journal on Thursday and confirmed by an administration official.

The Trump administration is also seeking legal authority "to explicitly permit the government to seek injunctive relief against third-party marketplaces and other intermediaries dealing in counterfeit merchandise," the official confirmed.

The official said that if companies adopt the best practices, the administration believes it will substantially reduce trafficking in counterfeit and pirated goods.

In April, President Donald Trump ordered a crackdown on counterfeit products on third-party online marketplaces, asking for more information on how the United States can better track and curb such sales.

A memo signed by Trump said that the value of global trade in counterfeit and pirated goods may rise to half a trillion dollars a year, with about 20 percent of this trade infringing on US intellectual property.

"The president has decided it is time to clean up this Wild West of counterfeiting and trafficking,” Navarro said in April.

Companies including Amazon.com Inc, eBay Inc and China’s Alibaba Group Holding Ltd have policies that ban counterfeit goods and have pointed to their investments in programs to keep fakes off their platforms.

Amazon said last year it "invests heavily in proactive measures to prevent counterfeit goods from ever reaching our stores. In 2018 alone, we spent over $400M fighting counterfeits, fraud, and other forms of abuse." Amazon declined comment ahead of Friday's announcement.

A China-US trade deal signed this month requires China to adopt improved criminal and civil procedures to combat online infringement, pirated and counterfeit goods.

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Apple News users reach 100 million, App Store sales rise

SAN FRANCISCO -- Apple Inc's news service has reached 100 million monthly active users and customers spent more than $1.4 billion in the App Store between Christmas and New Year, the latest signs of growing revenue from the iPhone maker's services business.

With demand for smart phones and other hardware peaking, Apple has been striving to boost sales from purchases of apps and subscription services like its newly launched Apple TV+ streaming service or Apple Care maintenance packages.

The company said that between Dec. 24, 2019, and Jan. 1, 2020, its customers spent $1.42 billion in the App Store, a 16 percent increase over the previous year, and $386 million on Jan. 1 alone, a 20 percent increase.

The number of users of the News app rose nearly 18 percent from a year ago, although the company did not break out subscriber numbers for the Apple News+ service, which costs $9.99 per month.

The numbers also point to a big shift in spending in the Thanksgiving to Christmas holiday season in the United States, with consumers splurging on apps and online shopping rather than in brick-and-mortar stores.

Mastercard Inc's data tracking retail sales from Nov. 1 through Christmas Eve showed US shoppers spent almost a fifth more online during this year's holiday shopping season than a year ago, accounting for 15 percent of all retail sales.

The App Store growth numbers were roughly in line with the overall trend for Apple's services segment revenue, which rose 16 percent to $46.3 billion in its most recent fiscal year ended in September. In comparison, iPhone sales fell 14 percent to $142.4 billion in the same period.

Apple keeps between 15 percent and 30 percent of the sales through its App Store, depending on whether users buy software as a one-time purchase or recurring subscription.

The company launched several new services in 2019, including the streaming service, a video game service and a credit card.

Shares of the company were marginally down in early trading.

Agence France-Presse

How online shopping affected holiday sales in Metro Manila

Online shopping and changes in local government policies are affecting sales of small vendors across Metro Manila this holiday season. ANC, Business Nightly, December 23, 2019

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Amazon bets on cosmetics with Lady Gaga beauty line

Pop star Lady Gaga on Tuesday announced a line of beauty products exclusively for sale on Amazon in a boost to the online retailer's cosmetics business.

The brand, Haus Laboratories, will launch in September for shoppers in nearly a dozen countries, including the United States, Germany and Japan, Amazon said.

The move underscores how the world's biggest online retailer is increasing competition with traditional cosmetics sellers like Ulta Beauty and Sephora-parent LVMH, which recently launched a beauty brand by singer Rihanna.

Lady Gaga, who shared an Academy Award this year for the original song "Shallow," said Amazon was the right partner because it embraced her message of self-acceptance.

"There are companies that see me and what I stand for and the way that I view the world, and if it's not perfectly in line with what they do ... they'll be like, 'Can you just change half of the equation?'" the singer told publication The Business of Fashion, which reported the news earlier Tuesday. "The answer is no. No deal."

Amazon's push into cosmetics includes a private label skin care brand called Belei.

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Not just a ‘tito brand’: How Levi’s captures young, ‘fickle’ market

MANILA—Denim brand Levi's stays relevant by focusing on consumer needs, highlighting product durability and creating standout campaigns, its marketing manager said Thursday.

The quality of its products also helped capture a younger market, Levi's Philippines marketing manager Kat Costas told ABS-CBN News at the sidelines of the Philippine Retailers Association's OFR Awards Night held Thursday.

"What’s good with Levi’s is a heritage brand it has been around for 150 years, people know it as an iconic brand so sometimes people will say it’s my dad’s brand, it’s my uncle’s brand but it’s still known for its durability," Costas said.

"This is the generation with already so many options, they are fickle . . . What’s good today is that Levi’s also resonate with the younger audience because I guess we put the consumer first, so we try to keep up with what they want, the values also that they’re looking for."

Levi's has also "embraced" e-commerce and is working towards an "omnichannel" retail strategy to reach consumers. The brand is already available in online shopping sites Lazada, Zalora and Shopee, Costas said.

"The landscape is more aggressive now, but I think the consumers are also very discerning . . . So it’s really important for brands to understand the consumer," she added.

Despite the rise of e-commerce, brick and mortar shops are here to stay, Costas said, as the Filipino culture of hanging out together is unlikely to change.

"Here, the malls are really thriving. I think it’s the culture of Filipinos, it’s the place where they hang out. That will always be there, but of course we should embrace e-commerce because that is also the way of the future so we want to capture the audience wherever they want to shop," she said.

Levi's Philippines received the "Outstanding Marketing Campaign" award at the recently concluded Outstanding Filipino Retailers 2019 Awards for its father and son ad, which featured a custom jacket with braille design

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Spanish retail giant Corte Ingles in deal with Alibaba

MADRID, SPAIN -- Spain's top department store chain El Corte Ingles on Thursday announced a collaboration with Chinese e-commerce giant Alibaba.

Under the deal El Corte Ingles ("The English Cut"), currently present only in Spain and Portugal, will be able to sell its products worldwide through Alibaba platforms like Tmall and AliExpress.

For its part AliExpress -- an e-commerce platform offering smaller-quantity orders and instant online transactions -- will gain "physical spaces" in Corte Ingles stores to create "new and attractive buying experiences" and move into the Spanish market.

AliExpress will also be able to pick up products bought online at the stores.

"We are looking forward to joining forces with them to provide consumers in China and worldwide with the greatest products and experience," said Rodrigo Cipriani Foresio, the Alibaba group's managing Director for Spain.

The debt-riddled Spanish retailer posted turnover of 15.9 billion euros ($18 billion) last year, with consolidated net profits of 202 million euros, a 25 percent increase over the previous year.

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Cyber Monday on track for US online shopping record

Cyber Monday was on track to bring in a record $7.8 billion in U.S. online sales, as millions of shoppers scoured for steep discounts on everything from Lego sets to big-screen TVs.

The marketing event was expected to pick up steam Monday evening as West Coast shoppers nab deals after work and those on the East Coast make purchases before bedtime, according to Adobe Analytics, which measures transactions from 80 of the top 100 US retailers.

"Many shoppers have waited on certain purchases, with three hours tonight expected to bring in as much revenue as an average full day," said Taylor Schreiner, director of Adobe Digital Insights.

Target Corp and Amazon.com Inc were pulling out all the stops, offering free delivery with no minimum order requirement and bombarding shoppers with promotional emails. Companies had logged $531 million in sales as of 10 a.m. ET (11 p.m. in Manila), Adobe Analytics found.

On Wall Street, investors showed their enthusiasm. Shares of Amazon closed up 5 percent. Macy's Inc, Kohls Corp and Target shares rose as well.

In another estimate, Mastercard SpendingPulse forecast a 25 percent jump in e-commerce sales to at least $3 billion, based on sales via the Mastercard payments network and estimates for other payment forms such as cash and check.

These US forecasts still paled in comparison to Alibaba Group Holding Ltd's "Singles Day" earlier this month, when the Chinese e-commerce giant raked in $30.7 billion in sales.

Some industry observers saw a down side to the US shopping frenzy.

Bob Phibbs, chief executive of New York-based consultancy the Retail Doctor, warned of potential store closures if brick-and-mortar players discounted items too heavily this holiday season.

"Online discounts and free shipping are significantly cutting into retailers' profits," he said. "Retailers are just spending money in the hopes that they don’t lose too much more."

The promotional efforts also drew the ire of customers who complained they woke up to even more Cyber Monday emails than in years past.

"Yes retailers, I'm aware it's Cyber Monday even without the 150 emails," tweeted Keina (@RealMamaEagle), a user from Delaware.

DEEP DISCOUNTS ON TOYS

Drawing an estimated 75 million shoppers, the day was a test of retailers' online platforms and delivery operations.

Without the right IT infrastructure, the heavy traffic could have caused hours of glitches like those during Amazon's Prime Day marketing event in July.

But as of 5:30 p.m. ET on Monday, no big US chain had notable technical difficulties, according to outage tracker DownDetector.com. On Black Friday some websites including apparel retailer J.Crew and home improvement chain Lowe's Cos Inc had temporary outages.

Consumers are increasingly doing their holiday shopping online, diluting the importance of Black Friday, when shoppers traditionally flocked to brick-and-mortar stores for the best deals.

"I find Cyber Monday to be more convenient than Black Friday," said Jeissy Casilla, 23, a retail worker in Puerto Rico. "I think that Cyber Monday is better in terms of how much you can get done while doing so little - basically a better chance at the best deals."

Toys were expected to have the biggest discounts, Adobe Analytics said, as retailers rush to fill the void left by the bankruptcy of top US toy retailer Toys 'R' Us.

Target offered 30 percent off on select toys, while Kohl's discounted Lego sets between 30 percent and 40 percent.

"This year, retailers are much clearer about where their strengths lie, rather than just attempting to beat Amazon at its own game," said retail analyst Carol Spieckerman.

Social media conversation tracker Brandwatch said out of 13,000 social media mentions of #Cybermonday, the Apple Watch and the Red Dead Redemption 2 video game were two products that were highly discussed.

The National Retail Federation forecast US holiday retail sales, including online, in November and December will increase between 4.3 percent and 4.8 percent over 2017, for a total of $717.45 billion to $720.89 billion.

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Lazada to sell limited edition MINI cars on 11.11

MANILA– E-commerce platform Lazada Philippines will sell a few limited edition MINI luxury cars for the first time during the global shopping festival 11.11, the local distributor of the British brand said Friday.

Twenty units of the limited edition MINI Monte Carlo, priced at P3,650,000 each, will be available for sale through Lazada with a special promo deposit of P50,000 instead of the usual P200,000 deposit, MINI Philippines said in a statement. 

British United Automobiles Inc., the local distributor of MINI cars in the Philippines, has tapped the online platform Lazada as part of its foray into the “future of retail,” its Marketing Manager Mae Angelie Pacatang-Valdez told ABS-CBN News.

The online space will help MINI reach a wider market, she said. 

“Future retail is convenience, experiential and exclusivity, and knowing that we have all of these as a strong basis of our marketing strategy, we can be game changers of the Philippine automobile landscape,” Valdez said.

“This is one of the first steps in getting digital and MINI is very excited to be part of this campaign. In this fast-paced world that we live in, we need to be faster than anyone else,” she said. 

The sale will still be finalized with MINI’s accredited sale consultants, Valdez said. 

"We're very proud that Lazada has been exclusively chosen by MINI for the sale of their MINI Monte Carlo Edition. The possibilities of e-commerce are limitless; now, people can even buy cars online," Lazada Philippines CEO Ray Alimurung said. 

Earlier this year, Lazada introduced LazMall to fight “fakes”while targeting “premium shoppers.”

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Amazon boss Jeff Bezos rockets to richest person on the planet

As Amazon became the second US firm to hit a trillion-dollar value on the stock market, founder Jeff Bezos regained the crown as the richest person on the planet.

Amazon's share price has climbed during the year, lifting the personal wealth of the company's 54-year-old founder with it. Forbes estimated his net worth about $166 billion.

He has gone on record with a formula for success that includes taking bold bets, riding change and rebounding from setbacks.

"You need to be nimble and robust so you need to be able to take a punch and you also need to be quick and innovative and do new things at a higher speed, that's the best defense against the future," Bezos said in an interview published in Vanity Fair magazine last year.

"You have to always be leaning into the future. If you're leaning away from the future, the future is gonna win, every time."

- Tinkering toddler -

Jeffrey Preston Bezos's penchant for experimenting reportedly dates to a young age -- with one widely-recounted story telling that he tried to dismantle his own crib as a toddler.

His mother was a teenager when she gave birth to Bezos in Albuquerque, New Mexico, on January 12, 1964.

"You shaped us, you protected us, you let us fall, you picked us up, and you loved us, always and unconditionally," Bezos said in a Twitter message thanking his mom "for everything" on Mother's Day in May.

She remarried when her son was about four years old, and he was legally adopted by his Cuban immigrant stepfather who worked as an engineer at a major petrochemical company.

"My dad came here from Cuba all by himself without speaking English when he was 16 years old, and has been kicking ass ever since," Bezos said in a Father's Day tweet in June.

"Thank you for all the love and heart, Dad!"

His mother's family were settlers in Texas, where Bezos spent many a summer working at a ranch owned by a grandfather retired from a job as a regional director at the US Atomic Energy Commission.

Bezos was enchanted by computer science when the IT industry was in its infancy and he studied engineering at Princeton University.

After graduating, he put his skills to work on Wall Street, where by 1990 he had risen to be a senior vice president at investment firm D.E. Shaw.

He surprised peers by leaving his high-paid position about four years later to open an online bookseller called Amazon.com, which according to legend was started in a garage in a Seattle suburb. Bezos was backed by money borrowed from his parents.

Bezos went from being a boy with a love for how things work to being the man who built Amazon.com into an internet powerhouse.

Amazon grew to dominate commerce and become a formidable contender in cloud computing, streaming television, and artificial intelligence with its digital assistant Alexa.

- Long-term thinking -

Bezos has such a proven track record for shaking up the business sectors he enters that he has been dubbed "disruptor-in-chief."

Like his company, Bezos has transformed with time, shaving his head and bulking up his body with exercise. The results were immortalized in a series of photos taken at a conference last year.

A fan of science fiction and in particular the British author Iain Banks, Bezos has passions other than Amazon.

Bezos called Banks "a huge personal favorite" in a tweet early this year while announcing that Amazon Prime video service was working on a television series based on one of the author's novels.

Bezos has invested some $42 million in the building a 150-meter-tall clock designed to keep time for 10,000 years. Built inside a mountain in Texas, the clock will be powered by geothermal energy.

"Humans are now technologically advanced enough that we can create not only extraordinary wonders but also civilization-scale problems," Bezos said in a blog post devoted to the clock project.

"We're likely to need more long-term thinking."

Bezos is also behind private space exploration operation Blue Origin, into which he usually invests money from selling Amazon shares.

Blue Origin has outlined plans to build a spaceship and lunar lander capable of delivering cargo to the moon, perhaps to support colonies there.

With the purchase of The Washington Post in 2013, the Internet entrepreneur added a prestigious news operation to his investments.

The Post, and Bezos himself, have been targeted by US President Donald Trump. An open critic of Trump, Bezos has jokingly offered to send him into space.

Bezos has been married to Mackenzie Bezos, a writer, since 1993. They have four children. 

source: news.abs-cbn.com

Amazon goes from books to a trillion-dollar valuation

Amazon's journey from an online bookseller started in a garage to a global e-commerce powerhouse valued at a trillion dollars has centered on obsession with the long road.

The company initially incorporated as "Cadabra" by Jeff Bezos in 1994 and backed with money borrowed from his parents joined Apple as the second US technology firm to be valued at $1 trillion on Tuesday.

"It's funny comparing Apple and Amazon because they are very different companies," said independent technology analyst Rob Enderle.

"Apple is basically a one product company nowadays; Amazon is anything but."

While Apple makes most of its money from iPhones, the Amazon empire includes global e-commerce operations, cloud computing, artificial intelligence, streaming television, groceries and more.

Created in a garage in a suburb of Seattle, Washington, the company renamed "Amazon" sold its first book -- Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought by Douglas Hofstadter -- to a computer engineer in mid-1995.

By the end of that year, Amazon was selling books online throughout the US. Amazon went public in early 1997.

The company for more than a decade put growth over profit, investing heavily in warehouses, distribution networks, and data centers.

"Every cent they made they put back in the company," Enderle said of Amazon.

"They kept their eye on the prize, which was initially to take over most of commerce."

Innovation sans scandal

Neil Saunders of the research firm GlobalData said Amazon's success comes from the fact that it innovates unlike any other.

"This heady pace of creativity is the key reason why it stays several steps ahead of the market and is able to generate so much growth," Saunders said.

Bezos has kept firm control of Amazon, steering clear of hedge fund investors inclined to short-term tactics aimed at getting share prices to jump.

The founder and chief executive also avoided scandals or other distractions, keeping revenue and costs close enough to manage and easing into "adjacent markets" that play into Amazon strengths or interests, according to Enderle.

For example, Amazon Web Services cloud computing business is a lucrative business built on technology infrastructure that the company needed to run its own operations.

Investing in warehouses, trucking, drones, shipping and other distribution systems not only enables Amazon to drive down costs they position the company to compete with the likes of FedEx and UPS.

Buying Whole Foods grocery chain last year got Amazon established real world outlets while putting its delivery and retail smarts and systems to work in the brick-and-mortar world.

Drugs and digital ads

Prescription medicine would be a natural market for Amazon to expand into, according to Enderle Meanwhile, Amazon is reportedly beefing up its digital advertising business to better compete in an online ad market dominated by Google and Facebook.

In the past quarter, Amazon posted its best-ever profit of $2.5 billion as Bezos, whose Amazon stake has made him the world's richest person, highlighted the importance of the digital assistant Alexa that powers Amazon electronics along with cars, appliances and other connected devices.

According to the research firm eMarketer, Amazon's e-commerce revenue will grow more than 28 percent this year to reach $394 billion, and will account for 49 percent of US online retail sales and nearly five percent of all retail spending.

One of Amazon's revenue drivers is its Prime subscription service which offers streaming video and music, free delivery and other perks and which has more than 100 million members worldwide.

Arrogance trap

Some fear Amazon is becoming too dominant a force, especially in retail, sparking antitrust discussion even as the company keeps expanding globally and searches for a second headquarters in North America.

"It wasn't that long ago that people were freaking out about Walmart, and Amazon basically stepped on Walmart," analyst Enderle said.

"What Amazon means is disruption and people don't like to be disrupted."

Critics of the company include US President Donald Trump, who has expressed ire at the Bezos-owned Washington Post newspaper that has published stories the president didn't like.

Bezos bought the Washington Post five years ago for $250 million from his personal funds.

While his skills could be advantageous in the content-oriented business, getting into news comes with the risk of displeasing politicians.

"The Post was a mistake because it results in him going to war with people he wouldn't otherwise go to war with," Enderle said.

"You really don't want to go to war with the government."

Amazon's huge cloud computing segment powers systems for government clients, and contracts could be influenced by politics.

Amazon must also guard against the kind of arrogance that can undo companies that come to dominate markets, according to the analyst.

"When companies get big, it starts being about what you have the power to do and not what is right to do," Enderle said.

"If Amazon does have a downfall, it will be arrogance in dealing with the customer."

source: news.abs-cbn.com

Amazon to launch food and drink sales in Mexico

MEXICO CITY - Amazon.com Inc will begin selling food and drinks online in Mexico, including snacks, sweets and wines, it said on Thursday, a move that could intensify its competition with Wal Mart de Mexico to claim shoppers in a nascent e-commerce market.

Online shopping represents a fraction of total retail sales in Mexico but has grown swiftly, putting Amazon and its rivals in a race to ramp up investments in logistics, technology and product offerings.

Amazon views food and drink sales as key to growth, eyeing routine purchases to stock pantries as a way to generate other types of sales, but has yet to dominate the category.

The new items on its Mexico site, which it launched in 2015, span coffees, teas, liquors, wines and beers, as well as cooking ingredients, non-perishable snacks and sweets.

"We're committed to offering our clients as many products as we can," Fernando Ramirez, Amazon Mexico's senior product manager, said in a statement.

The launch shows Amazon's intent to claim more of Mexicans' wallets, said Gene Munster, research head at Loup Ventures.

"Non-perishables are the first step to capturing food spending, and likely indicate Amazon's ambitions to increase its offering related to fresh food," he said.

In the United States, Amazon moved into online grocery sales through a $13.7 billion purchase of Whole Foods Market last year. It offers two-hour delivery and lets shoppers pick up Amazon products from Whole Foods stores.

Walmart, meanwhile, aims to deliver groceries to over 40 percent of US households by year's end.

The company plans to accelerate its online grocery business in Mexico as well, Walmart International's Chief Executive Judith McKenna said earlier this year.

Soriana, La Comer and Chedraui are among Mexican grocers that also offer delivery services, along with online marketplace MercadoLibre.

Walmart's Mexico unit, Walmex, is counting on its 2,390 stores to help execute speedy deliveries.

Amazon may struggle to match the selection of traditional stores, said Jose Acosta, a former Walmex executive who is now CEO of digital payments application Pagamobil.

"Brick-and-mortar players have done a very good job of defining a very wide catalog, and that's not something you develop so fast," he said.

Small warehouses stocked with snacks and drinks will be crucial for Amazon to deliver fast, said Alfredo Garcia, business development head at Mexican e-commerce delivery service Skydrop.

Convenience is also important.

"If you have a party ... what a drag if you go to Amazon to buy beer and potato chips, but you have to use another application to buy meat and tomatoes," Garcia said.

source: news.abs-cbn.com

Amazon takes on pharmacy sector with new acquisition

WASHINGTON -- Amazon set its sights on the pharmacy market Thursday with the acquisition of tech-focused retailer PillPack, sending shock waves through the sector over prospects of disruption by the US online colossus.

Amazon has long been rumored to be interested in the pharmacy business, and the entry by a powerful new player could unsettle a business dominated by large American chains including CVS and Walgreens.

Terms were not disclosed on the deal for PillPack, an online pharmacy which operates in all 50 US states and offers pre-sorted dose packaging and home delivery. Some media reports said Amazon paid $1 billion and outbid rival retail giant Walmart.

"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology," said Jeff Wilke, head of Amazon Worldwide Consumer, in a statement.

"We want to help them continue making it easy for people to save time, simplify their lives, and feel healthier."

CVS shares slid 6.1 percent in closing trading on the news, while Walgreens Boots Alliance slumped 9.9 percent.

Neil Saunders of the research firm GlobalData Retail called the Amazon acquisition "a warning shot" for the pharmacy sector.

"Not only has Amazon finally made a solid move into pharmacy, it has done so via an innovative supplier which helps patients manage and organize their prescription drugs," Saunders said in a research note.

He added this "is only the first play in an increasingly aggressive strategy" by Amazon in the sector.

"This is incredibly bad news for traditional players, like Walgreens and CVS, who stand to lose the most from Amazon's determination to grow its share," Saunders said.

Saunders added that "Amazon's entry into any market will put downward pressure on prices and upward pressure on costs as others try to match its service," and that CVS and Walgreens could be vulnerable.

Walgreens CEO Stefano Pessina told a conference call on its quarterly results Thursday that "we are not particularly worried" about Amazon but added that "we know that we have to change the level of our services to the customers and we are working quite hard on that."

HACKING MEDICINE

PillPack was launched by two members of the "hacking medicine" initiative at the Massachusetts Institute of Technology, and helps people manage multiple medications with a software platform that offers reminders, dose-specific packaging and delivery.

The Boston-based company said it raised $118 million from investors and venture funds since its launch in 2013.

"Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the US who can benefit from a better pharmacy experience," PillPack co-founder and CEO TJ Parker said in a statement.

Amazon and PillPack said they expected to close the deal by the end of the year, subject to regulatory approval.

Seattle-based Amazon, which began two decades ago as an online bookseller, has mushroomed into one of the world's largest companies.

It has retail operations across the globe, a large cloud computing business, a video service that competes with Netflix and a hardware division that makes devices powered by its digital assistant Alexa, which is available to makers of appliances, cars and other products.

Last year, Amazon closed a deal to acquire the Whole Foods grocery chain and has begun offering discounts to consumers who are members of its Prime subscription service.

Separately Thursday, Amazon announced plans to expand its own delivery fleet to reduce its dependence on services like Fedex and the US Postal Service.

Amazon said it committed $1 million to a fund to help individuals and entrepreneurs set up a contractual delivery service with Amazon.

"Individual owners can build their business knowing they will have delivery volume from Amazon, access to the company's sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including vehicle leases and comprehensive insurance," an Amazon statement said.

"Over time, Amazon will empower hundreds of new, small business owners to hire tens of thousands of delivery drivers across the US."

source: news.abs-cbn.com

Lazada ramps up operations for Christmas season, 'online revolution'

MANILA - For Lazada, fashion, health and beauty, baby products and electronics are among the most sought after goods today from the 29 million products available online, its chief said Monday.

Lazada CEO Inanc Balci he himself said, he bought six months worth of toiletries including shampoo and tootppaste to take advantage of the ongoing 'online revolution.'

The e-commerce platform offers up to 95 percent discount during the promotion happening from Dec. 7 to Dec. 12, 2017. To keep up with the demand, the platform prepares three months in advance.

"We have 24/7 staff during the year, I think they go as much as 10x for certain divisions of the company, for example call center gets really big, warehouse it gets really really busy," Lazada CEO Inanc Balci told ANC's The Boss.

The Lazada founder banks on the country's potential to dominate the global e-commerce stage despite challenges when it comes to Internet connectivity.

"When you look a Philippines several years ago, its the biggest SMS capital, today, the social media capital, Philippines is number on in terms of Facebook penetration in the world, tomorrow it will be the e-commerce capital of the world in 5 to 10 years," he added.

With 10 million e-commerce users in the country, Lazada remains optimistic despite the expected decrease in sales after the holidays.

"It doesn’t die down but it goes to normal level, e-commerce industry is a multi-billion dollar industry in the Philippines anyways on the normal days," Balci said.

To drive the country's global e-commerce potential, Balci said, payment and banking system, fintechs, and logistics should be improved.

Next year, Lazada will open a warehouse in Mindanao to optimize operations in the region. Lazada, 
Balci said, is unfazed with the region's political unrest.

"It didn’t hinder, what we do is, we don’t see it as a business opportunity but as something that we have to give back," Balci said.

Catch full episodes of The Boss on iWantTV and tfc.tv. New episodes premiere on ANC at 7:30 p.m. Thursdays with replays on Thursday, 11 p.m.; Friday, 3:30 a.m. and 1 p.m.; Saturday, 4:30 a.m. and 10 a.m.; Sunday, 10 p.m.; and Monday, 9:30 a.m.

source: news.abs-cbn.com