Shopify, Adobe And Harvey Harley Finkelstein discussed on Bloomberg Businessweek

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That is a Bloomberg business flash All right Charlie thank you so much So Shopify out earlier today saying that Black Friday cyber Monday sales hit a record 6.3 billion climbing 23% compared with the same period a year earlier So Tim let's get into what's going on when it comes to the shopping trends that we've seen so far early in this season Harvey Harley finkelstein is president of Shopify He joins us on the phone from Ottawa Harley great to have you on the program today So take us through the data here And really why we're seeing this dichotomy because Carol and I were just talking about the data that we saw from Adobe showing that cyber Monday sales were kind of weak here So how do you reconcile those two things Great to be on the show And it is quite remarkable I mean 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 plans 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 at new Shopify like LEGO Mattel 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 a shop to buy 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 only looking U.S. were Shopify as 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 we talk 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 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 and Jameis first T-shirt and Barney's 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 barneys 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 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 in commerce Carla you mentioned all birds the company just reporting earnings a few minutes ago by the way figs also a newly public company as to people to organizations that you Shopify is platform 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 continue 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 artists on Spotify can open online stores on Shopify and sell merchandise This idea that you can sell anywhere you want across every geography is really important but also scales important Jimmy Butler recently launched his new coffee line big face coffee on Shopify Kylie Jenner launched highly cosmetics on shop

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