On June 15th, Costco stock was trading at $180. The next day Amazon announced its deal to acquire Whole Foods which sent supermarket stocks and Costco shares tumbling. Investors feared that Amazon would destroy the supermarkets much like it did with bookstores and electronics retailers. If retailers don't adapt or have some kind of advantage, then they very well may fall by the wayside. However others will adapt and thrive. One such case is Costco who carries a huge value proposition that Amazon will struggle to combat.
Today almost all of the headlines are about Apple's iPhone launch and that is well deserved. I've been a iPhone user myself for 10 years and am excited for the new phone (but not the rumored $1000 price tag). Since the iPhone news will be covered by a million different sites, let's look at the other side of the globe where China is a very different market and one changing at breakneck pace. Did you know that last year, Chinese consumers spent $5.5 trillion (yes Trillion) through mobile payment platforms? To put that in perspective that's about 50 times more than their American counterparts where Apple pay just hasn't caught on. So why is China succeeding where Apple is not? Let's take a look at China's mobile payment market.
Every year, analyst Mary Meeker delivers her internet trends report and it is a must watch for all those interested in technology. Her report is 335 slides with tons of information.
While many of us in America look to Silicon Valley for innovation, perhaps we need to look even further west as China's e-commerce giant JD.com is leading the way in drone delivery. The company has already delivered packages via drone and last month announced plans to build 150 drone launch facilities for unmanned aerial vehicle delivery (UAV) parcel delivery. They have already secured government approval (which Amazon has had trouble with in the US) in select provinces in China to make deliveries.
'Tis the season. Yesterday, I read this WSJ article Consumer Keeping Growth Afloat. It's not surprising at this time of year where the lion share of retailers' fortunes are made that we are reminded that 70% of spending in the USA is consumer-based. Yet, we also read about a manufacturing slump. This got me to thinking about Santa and the Elves.
The US service sector slowed more than expected in October, marking the second straight month of slower growth and its lowest level since June. However employment hit a new nine-year high. The survey showed the key service sector, which accounts for roughly two-thirds of US GDP, remained solidly in growth mode.
The Institute for Supply Management (ISM) reported that its service index fell to 57.1 from 58.6 in September. This was slightly below economists' forecasts of 58. This marks the 57th consecutive month of growth. A reading above 50 indicates the sector is expanding.
The June non-farm payrolls report from the Bureau of Labor Statistics indicated that 288,000 non-farm payroll jobs were added during June – beating economists’ expectations of an increase by 211,000 jobs. The unemployment rate dropped from 6.3 percent to 6.1 percent.
According to the national employment report compiled by payroll processor Automatic Data Processing, the U.S. private sector added 281,000 new jobs last month, the fastest pace since late 2012. Of the new jobs added in June, 82% were service-sector, 5% were factory-sector, and 13% were construction.
The US service sector accelerated in April, rising at the fastest pace in eight months as new orders jumped and overall activity quickened by the most since 2008.
The Institute for Supply Management (ISM) reported that its service index rose to 55.2, up from 53.1 in March. This was ahead of analyst expectations of 54.1. This marks the 52nd consecutive month of growth. A reading above 50 indicates the sector is expanding.
The US service sector accelerated in March thanks to stronger employment.
The Institute for Supply Management (ISM) reported that its service index rose to 53.1, up from 51.6 in February. This was slightly below analyst expectations of 53.5. This marks the 51st consecutive month of growth. A reading above 50 indicates the sector is expanding.
Last week, I attended the Northland Growth Conference in NYC. It was an exciting day spent with some of the fastest growing SaaS (software as a service) companies in America. One of the intriguing meetings was when I sat down with ServiceSource (SREV) International's CEO Mike Smerklo and CFO Ashley Johnson. In the past two years, ServiceSource has unbundled its service offering and essentially built its own startup SaaS company on the fly. It's been no easy task from a business perspective but it was the best decision for its long term growth prospects.
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