Winners & Losers October 8, 2015

Spare Me Your Sh*tty Advertising

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A winner: Subscription-based retailers of CPG products, which account for three of the six fastest growing e-commerce players. In our Personal Care Digital IQ Index, we found that the replenishment model is taking over shaving: almost 10% of razor sales now take place online, and Gillette’s web traffic is plunging as Dollar Shave Club gains dominance in search.

Is Jet.com a winner or a loser? The retailer can offer massive savings: when consumers bundle products together and waive the return option, they get a 15% discount relative to Amazon non-Prime customers. But e-commerce is becoming a winner-take-all industry, where the top 10 players earn half the revenue. We predict Jet won’t succeed, but it will be bought by Amazon, earning a happy ending for investors.

This week’s biggest winner is Business Insider. German publisher Axel Springer just acquired the media platform for almost $400 million – about 40% more than Jeff Bezos paid for WP. But the publication’s advertising-based revenue model might ultimately be unsustainable.

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