Shopify, Adobe, Build A Bear Workshop discussed on Meet the Press


A blowout earnings report Build a bear workshop CEO Sharon price John on what's next for a company who shares are up about 400% year to date Talk about a rally Talk about a lot of bears Plus more from our annual Bloomberg 50 list This week's issue of Bloomberg business week magazine dedicated to the individuals and ideas that have defined 2021 First up this hour in ecommerce power player has a strong start to the holiday shopping season Shopify came out earlier this week with data saying that its merchant sales from Black Friday through cyber Monday hit a record $6.3 billion That represents a 23% increase compared with the same period a year earlier But what's interesting Tim is those figures contrast with some of the broader retail trends that we've seen so far in the early portion of the holiday shopping season We caught up with Shopify president Harley finkelstein and asked him how the cloud based commerce platform was able to overcome an otherwise lackluster weekend from consumers I think what you were seeing is that Shopify merchants really outpace the industry at frankly these astonishing rates and they continue to do so through the entire weekend We know that consumer spending has stayed strong but I don't think the FCM was simply just a measure of consumer confidence It seems like it was also barometer for consumer interest in supporting independent brands and entrepreneurs And we think that that support is stronger than ever For the entire weekend so from Friday to Monday we saw about 6.3 billion sold sales on shop planets but 23% growth as you mentioned And about 47 million consumers made a purchase from a Shopify merchant during the weekend The other thing that's really interesting is that average cart size was out from about $90 to about a $100 globally And when you look at where those sales were coming from of course we had the big names that we always talk about here companies like all birds and bombas and Jim shark and Brooklyn But we also saw some new names emerge the nugget for example our place for example And then some traditional retailers that you shot the fight like LEGO mat spanx dockers But I really relative to the numbers that you were mentioning earlier from the industry industry wide It feels like this is a tale of two different retail worlds On one side you have traditional big box stores then you have direct to consumer Well let me just remind our listeners of those numbers from Adobe So U.S. shoppers spent $10.7 billion on cyber Monday That's according to Adobe less than the $10.8 billion a year earlier and that mister Adobe's estimate of $11.3 billion So Harley it sounds like the analysis that you're providing is it's because it's a different type of shopping happening You're saying that Shopify retailers that use the Shopify platform outperformed the industry and that's why you see the dichotomy in the divergence with the data from Adobe That's exactly right Yes I think Adobe's first will only look in the U.S. where a Shopify is a global platform We have more than 1.7 million stores across a 175 countries But what we really did see is that consumers unequivocally voted with their wallets this past 40 weekend to buy from independent retailers and their favorite brands And some of these brands have now become really incumbent If you look at companies like figs or all birds these are stores that started on Shopify just a couple of years ago and now they're publicly traded companies And so I think you're going to see more of this happening where the future retail really does belong to these independent direct to consumer brands as opposed to the big box retailers In some cases that aren't really adding any real value Yeah It's an interesting you know we talked about innovation as you know Harley so much in so many different industries certainly in technology We've seen it in retail in a big way What does that mean then you think for the major retailers that are out there versus many of those that are on your platform Is there something more significant going on in terms of the retail trends Well look I've been a student of retail ecommerce for the majority of my life And I think one of the major changes that have happened here is that a lot of the retailers that were reselling other people's products simply weren't justifying their profit margin So I'm sitting here right now in Canada wearing my favorite T-shirt which is James perse which is a Shopify store years ago I was able to buy Jameis T-shirt at barneys for example And I never did And the reason was I didn't feel that I was getting any a better experience And it was certainly more expensive buying from Bernie's Whereas when I go to James first dot com powered by Shopify I get a much better experience I know that the money that I am paying for is a vote with my wallets that I want more of those brands to exist in the world I think that the other thing is that the big box retailers for a very long time they had an unfair advantage because they had distribution And the reason that we were able to go into these big box sources because they were in our cities But the Internet has completely democratized distribution so that today I can be sitting anywhere in the world and for $29 I can set up a store on Shopify and I can sell online I can offline I can sell on TikTok or Spotify on Instagram And I can be default global in a matter of minutes That's where technology is driving this really incredible innovation and commerce How do you make sure that these companies as they grow don't graduate from Shopify's platform and they're able to keep using it It's a great question The challenge of being able to make it really easy for any brand or any entrepreneur business to get started on Shopify And then when they get to some sort of scale they can do to grow that is really what shop would make Shopify quite unique So for example when you're just getting started you may just simply want to set up a very simple online store and sell to consumers But as you grow you begin to wanting to sell across a variety of different places channels I mentioned Instagram and Facebook but also you want to sell across new channels that emerge We announced a partnership to scale with Spotify So an artist on Spotify can open online stores on Shopify and sell merchandise That was Shopify president Harley finkelstein And we should note that this past week after our conversation with Harley a group of 5 educational publishers sued Shopify The group includes Pearson education and McGraw hill It filed for copyright and trademark infringement Just as we were putting our broadcast to bed shop if I had declined to comment on the specifics of the lawsuit saying that it takes actions against web stores that violate its policies You're listening to Bloomberg businessweek coming up next one of America's premier luxury auto brands is racing into the EV market The question is how.

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