Using CB Insights data, we dug into the retail tech and innovation landscape in Q1’23, including:

1. The continued decline in retail tech funding in Q1’23, to its lowest level since Q2’16
2. Early-stage deal strength in retail, and where the money is going
3. A steady quarter for exits, with 9 IPOs and a slight uptick in M&A activity
   
4. The handful of mega-rounds that buoyed food & meal delivery funding
5. The 11% quarter-over-quarter increase in US funding
   

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post The State of Retail Tech in 5 charts: Funding in Q1’23 plummets to its lowest level since Q2’16 appeared first on CB Insights Research.

Last week, the retail giant sold Bonobos for $75M, a 76% markdown from the $310M Walmart paid for the men’s fashion brand in 2017.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Why did Walmart take a loss on Bonobos? appeared first on CB Insights Research.

While Andreessen Horowitz’s total annual deals fell in 2022 — by 17% year-over-year — the firm still participated in 22 investment rounds in the consumer & retail sector. Its bets spanned a range of categories that serve the travel, food, beauty, and retail industries. 

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Analyzing a16z’s investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? appeared first on CB Insights Research.

Over its 20+ year history, the China-based company has ventured into more and more industries, including cloud computing, healthcare, travel, and entertainment, among others — growing influential enough to attract intense scrutiny from a tech-wary Chinese government in recent years. And in March 2023, Alibaba announced it would split its sprawling business empire into 6 separate units.

At least 3 of these new units will focus on Alibaba’s core retail business. And they’re likely to remain committed to the behemoth’s vision for “New Retail” — a long-held aim to integrate Alibaba’s advanced e-commerce data and analytics into offline commerce to create a seamless omnichannel experience.

Using CB Insights data, we uncovered 5 of Alibaba’s most important strategic priorities in retail which will remain top-of-mind even as the company restructures. We then categorized companies by their business relationships with Alibaba across these priorities.

• Cross-border commerce
• E-commerce
• Express logistics
• Omnichannel retail
• Online grocery

This graphic includes investments, acquisitions, and business relationships for Alibaba Group, Alibaba Entrepreneurs Fund, and Tmall. These designations are not exhaustive of Alibaba’s investment and partnership activity in the analyzed period.

Cross-border commerce

Alibaba has formed several strategic partnerships via its logistics arm, Cainiao, to reach shoppers outside of China (as well as to connect foreign brands with Chinese customers). The company is particularly focused on less-mature markets where it can capture new growth.

It has partnered to enable cross-border logistics and shipping to South America (Atlas Air Worldwide Holdings), Japan (SGH Global Japan), Europe, the Middle East, and North Africa (Saudia Cargo). 

Alibaba has also formed smaller-scale partnerships with organizations like the Zhejiang China Commodities City Group Co. with the goal of helping small businesses extend their reach outside of China.

E-commerce

Alibaba’s investments in e-commerce platforms have focused on growing its reach in high-growth markets and in key product categories.

For instance, over the last 2 years, the retailer increased its stakes in Turkey-based online fashion marketplace Trendyol as well as in Singapore-based mass online marketplace Lazada. In addition to the potential for growth in Singapore, Lazada reaches even further across the competitive Southeast Asian retail landscape. Alibaba wants to extend the marketplace’s reach into Europe and other new markets as well. 

Alibaba’s investments also signal that it’s doubling down on growing categories. Its investment in online luxury marketplace Farfetch in November 2020 points to the importance of luxury shoppers and products in Asia. The deal included not only a $300M investment in Farfetch but also a $250M stake in a new joint venture called Farfetch China, both investments were in partnership with the Swiss luxury holding company Richemont. 

Express logistics

In recent years, Alibaba has increased its ownership stakes in the biggest express logistics companies in China. The companies offer fast logistics and delivery capabilities and have grown dramatically as a result of an increase in the use of e-commerce across China. 

Notably, the company fully acquired China-based logistics provider ALOG in August 2020. ALOG had been the main warehouse management provider for Tmall Mart, Alibaba’s online supermarket. 

Omnichannel retail

Alibaba continues to focus on grocery as a key building block for its store footprint and New Retail online-to-offline strategy. 

Since 2016, Alibaba has run its high-tech supermarket Freshippo, which deploys tech like electronic shelf labels, facial recognition, and robotics to enable more efficient shopping in stores as well as faster delivery. The chain now has nearly 300 locations.

Alibaba’s investments in recent years have added to its physical grocery footprint, with the aim to extend New Retail capabilities. The company’s biggest move in the sector was a $3.6B investment in Sun Art, one of the largest mass merchandiser and supermarket chains in China, in October 2020. The deal added nearly 500 stores to Alibaba’s brick-and-mortar network. Since then, Alibaba also led a $100M round for China-based T11 Food Market. 

Online grocery

Alibaba’s online grocery initiatives offer the company more ways to make New Retail connections between stores and online. They also enable the company to take advantage of the growth in online grocery, which expanded in China during the pandemic.

Its investments have reached across the grocery value chain. For instance, in February 2021, Alibaba took a minority stake in Caihuasuan, which builds pieces of the fresh food supply chain. 

Alibaba also invested 4 times in the group grocery buying platform Nice Tuan, which has since dissolved. But Alibaba’s attention to the company points to its interest in new online models like group buying, which has caught fire in the fast-growing lower-tier cities in China (as well as in India, South America, and elsewhere) where Alibaba is looking for growth.

A social commerce partnership may prove most fruitful for Alibaba’s online grocery ambitions. In August 2022, Alibaba’s online grocery platform Ele.me launched a presence on Douyin, the Chinese equivalent of TikTok (also owned by ByteDance). Douyin users can place grocery and restaurant orders directly via Ele.me on the video platform.

Other

Beyond these 5 strategic focus areas, Alibaba has made noteworthy investments, partnerships, and acquisitions across a range of other categories.

E-commerce enablement: In July 2020, Alibaba invested in the Australia-based cross-border payments processor Airwallex. Then in March 2021, the company invested $30M in China-based Leyan Tech, which makes AI-powered e-commerce customer service software. 

Media & content: Alibaba has made a few investments that indicate interest in advanced e-commerce content and the metaverse. In November 2021, the company backed a Series A round to China-based DGene, which makes mixed reality content for several industries, including AI-generated actors for film and TV, as well as digital influencers. Then in March 2022, Alibaba participated in a $60M Series C round for the mixed reality equipment and tech company Nreal, which is based in China. 

Sustainability: Sustainability has come into focus for Alibaba as it grows in importance for Chinese consumers as well as for the Chinese government. Along with a 2020 investment in Hong Kong-based green packaging developer Ecoinno, Alibaba also formed a “Waste Free World” partnership with Unilever in 2021. The companies designed machines that use AI to identify types of plastic and sort them to be recycled. Users get Unilever coupons and rewards on Alibaba’s payments platform AliPay.

The post Alibaba is splitting up its business. What’s next for its retail divisions? appeared first on CB Insights Research.

AVP has $1.2B of assets under management and invests in data-driven startups that can impact healthcare, customer experience, and underwriting performance. These areas represent opportunities that are relevant to the entire insurance industry.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Analyzing AXA Venture Partners’ investment strategy: What the CVC’s investments reveal about the future of insurance appeared first on CB Insights Research.

While lots of retailers are currently struggling to figure out last-mile logistics, players who have been investing in the space for a while are moving their focus to areas like the middle mile (the leg before goods reach fulfillment centers) and intralogistics (the movement of goods within fulfillment centers).

Seeing an opportunity, Amazon is pairing its AWS cloud computing capabilities with extensive e-commerce logistics to create a suite of supply chain offerings for small to midsize businesses. It has even been extending these services beyond its marketplace clients with solutions like “Buy with Prime” which allows brands to offer Prime’s delivery speed, package tracking, and return logistics on their own e-commerce sites.

Doing so not only creates additional revenue for Amazon but also helps it optimize its own supply chains with fuller freight loads and more efficient operations. 

In this report, we break down Amazon’s strategy in the supply chain across 3 key takeaways: 

• Amazon is automating intralogistics. With Amazon’s enormous warehouse footprint, a dizzying number of offered products, and millions of packages shipped every week, automating intralogistics is key to driving e-commerce profitability for the tech giant. 
• Amazon wants to revitalize the middle mile. Amazon has been ramping up its middle mile capabilities with new products and investments in freight management and air cargo. In doing so, the tech giant is looking to capitalize on an often overlooked leg of the supply chain. 
• Amazon is betting on sustainable mobility. Amazon has taken some big swings in the electric vehicle market, striking deals to purchase fleets of vehicles and investing billions of dollars. 

Amazon is automating intralogistics

Intralogistics involves the movement of information and goods within individual fulfillment or distribution centers. 

A key enabler of Amazon Prime’s quick delivery speed is the company’s extensive network of fulfillment centers. And with over 1,100 centers in the US alone and a reportedly extremely high employee turnover rate in warehouses, Amazon is keen to automate intralogistics as much as possible. 

Amazon is one of the top players for supply chain patents, with many of its filings related to automating intralogistics processes like mapping the footprints of fulfillment centers for efficiency or detecting inventory levels.

In 2022, the tech giant introduced new intralogistics robots named Sparrow and Cardinal. Currently, these robots are designed to sort packages, move goods throughout the fulfillment center, and pick goods of different shapes, sizes, and materials (an area existing picking robots have difficulty with). 

Amazon has also made moves outside of its internal robotics development, such as: 

• Acquiring intralogistics robot maker Cloostermans in Q3’22 to boost its robot research and deployment. 
• Announcing its warehouse & distribution network in Q3’22. This is a pay-as-you-go service offering inventory management within Amazon fulfillment centers and automated distribution for sellers.
• Expanding its warehouse footprint by investing in smaller fulfillment centers — situated near major population centers and stocked with in-demand items — to enable same-day deliveries for some of its goods. 

While Amazon has been ramping up its offerings and investments in this space over the last few years, the tech giant has recently conducted the largest layoff in its history and has closed or abandoned plans for dozens of warehouses. Given the increased focus on cost control, the success of its automation bets could be more important than ever.

Amazon wants to revitalize the middle mile

The middle mile is the leg of the supply chain where goods are brought from distribution centers to fulfillment centers. This leg can include ocean, air, and ground freight. While the middle mile has traditionally been outsourced, it has recently received more attention as squeezed supply chains have made headlines for costing retailers millions of dollars in profit. 

A successful middle mile is also crucial to last-mile operations to ensure fulfillment centers have goods in time to meet the ever-shorter delivery timeframes promised to customers.

Amazon has a distinct advantage in providing middle-mile services to retailers as it has already invested heavily in its own freight technology to make Prime shipping possible. Also, with Amazon Web Services’ cloud computing capabilities, the tech giant has high visibility into logistics — a key component of successful middle-mile operations. 

Building on this, Amazon offers Amazon Freight which allows retailers to book space on its freight trucks for thousands of routes across the US. Amazon uses algorithms to determine which vehicles are operating at LTL (less than load) to offer discounted shipping rates to retailers. 

Amazon has also made strategic moves with air cargo. Previously, the e-commerce retailer relied entirely on contracts with UPS and FedEx. But in the last few years, Amazon began to shift its strategy and in 2021 opened a $1.5B air hub in Kentucky to have more ownership over its middle mile. 

Additionally, Amazon has struck several deals for minority stake investments and strategic partnerships in this area, including: 

• A minority stake in Air Transport Services Group, an aircraft leasing and air cargo transport provider, in Q2’21
• A minority stake in Hawaiian Airlines to operate 10 airbus freight plans starting in fall 2023
• A partnership with Azul Cargo Express in Q4’22 to expand its delivery reach in Brazil
• A partnership with India-based Quikjet Cargo in Q1’23 to expand its reach in India

Amazon has been operating these planes under the brand Amazon Air which has expanded rapidly since its inception in 2015. With air cargo’s high barrier to entry both from a regulatory and capital standpoint, expect Amazon to begin creating additional revenue streams from its investments similar to what it has done with Amazon Freight. 

Amazon is betting on sustainable mobility

Fuel costs account for around 15% of last-mile expenses and volatile fuel prices can sometimes push this proportion even higher. However, it’s estimated that using electric last-mile vehicles can reduce fuel costs by more than half — attracting interest from big fleet operators. 

Amazon (which has a 2040 net-zero emissions goal) has already made significant moves to electrify its delivery fleet and has made some big bets on sustainable mobility, including: 

• Backing California-based EV maker Rivian and pledging to order 100,000 delivery vehicles from the company. Amazon has reportedly delivered 10M+ packages with Rivian EVs.
  
• A commitment to deploy 10,000 electric delivery vehicles in India and entering into partnerships with India-based companies (Tata Motors, Mahindra Electric, Magenta Mobility, and TVS Motor) to produce those EVs. 
• Amazon is also still wanting to deploy battery-powered delivery drones under its Prime Air program, which has already made some test deliveries in California and Texas. However, this division has been heavily affected by the Q1’23 layoffs. 

Source: Amazon

With Amazon shipping well over a million packages a day, meaningful progress toward sustainable mobility could have a big impact. However, even with its carbon reduction efforts, Amazon’s total emissions grew by 18% in 2021 as demand for its services went up — signaling that the company will need to make additional investments in making its supply chain more sustainable to hit its net-zero goal by 2040.

The post Amazon in Supply Chain: How the tech giant is building on its e-commerce investments to offer B2B supply chain services appeared first on CB Insights Research.

Many of this year’s winners focus on boosting the efficiency of retail operations across channels. To this end, AI is being deployed by winners across categories, to automate everything from inventory forecasting and management to counterfeit tracking. Additionally, platforms that integrate tech stacks — whether in stores or for digital selling — are gaining traction in developed as well as emerging markets. 

Other companies in this year’s winning cohort help retailers create more engaging shopping experiences, via tools like chat commerce, shoppable video, and NFTs. Sustainable shopping solutions for both consumers and retailers make a notable appearance as well.

Using the CB Insights platform, our research team picked these 100 private market vendors from a pool of over 7K companies, including applicants and nominees. 

The list includes early- and mid-stage startups driving innovation across store tech, e-commerce, loyalty & rewards, supply chain & logistics, and digital engagement. They were chosen based on factors including funding, proprietary Mosaic scores, market potential, business relationships, investor profile, news sentiment analysis, competitive landscape, team strength, and tech novelty. The research team also reviewed hundreds of Analyst Briefings submitted by applicants.

Clients can access the entire Retail Tech 100 list and interactive Collection here. (If you don’t have a CB Insights login, create one here.)

Companies are categorized by their primary focus area and client base. Categories in the market map are not mutually exclusive. Please click to enlarge.

Want to be considered for future rankings? Fill out this initial application form (it’ll take no more than a few minutes). If selected, you’ll be asked to complete our Analyst Briefing Survey so that our analysts can better understand your products, customers, and market traction.

RETAIL TECH 100 COHORT HIGHLIGHTS

Overall funding & valuation trends: The cohort has raised nearly $5B across more than 250 equity deals since 2019 (as of 3/2/23). In 2022 alone, companies on the list raised more than $3.1B across 106 deals. This year’s list features 3 unicorns: self-checkout company Mashgin, delivery management platform Veho, and omnichannel operations and loyalty tool Swiftly. 

Funding leaders: Cart.com, which makes end-to-end e-commerce technology, is the most well-funded company on the list, with $323M in total equity funding. Delivery management unicorn Veho comes in second with $299M in funding. New unicorn Swiftly rounds out the top 3 with $216M in total equity funding.

Global reach: This year’s winners come from 20 different countries. Fifty-six of the selected companies (56%) are headquartered in the US. The United Kingdom comes in second with 6 (6%) and China and Australia are tied for third with 5 companies (5%) each. 

Notably, 12 companies on the list (12%) represent emerging market economies. Local companies in these markets are increasingly looking to deploy tech to make fragmented and informal retail processes more efficient and trackable.

Some of the companies in these geographies — like Majoo (Indonesia) and Dot (India) — offer omnichannel retail operations platforms that help retailers digitize operations across in-store and online channels. Other solutions — such as Khazenly (Egypt) — are focused on delivery management.

Top investors: Insight Partners is the top investor in this year’s list. It has invested in 8 of this year’s winners since 2019, including 3D digital content producer and manager nfinite, food traceability solution iFoodDS, and delivery management platform Shipium. Tiger Global is close behind with 7 companies, followed by Accel with 5.

Digital content and engagement rules: The biggest category for this year’s list is digital shopper engagement, which has 16 companies (16%). The companies in this category allow retailers to connect with shoppers across platforms and channels, with a focus on personalization and loyalty. 

For instance, Charles and Postscript both make chat commerce platforms that enable marketing and checkout via text. Meanwhile, Arianee, METAV.RS, and Novel help brands develop NFTs and use Web3 tools to boost loyalty and authenticate their products. 

Automation is driving efficiency: Automation solutions reach across categories on this year’s list as retailers and brands look for tools to make their operations faster and smarter. 

Alloy, for instance, makes a platform to connect e-commerce teams’ apps and automate tasks. Several other companies build supply chain integration platforms that aggregate tools and use AI to optimize decision-making. Meanwhile, Vue.ai, Lily AI, and Pixyle use AI to automate product tagging and broader catalog management online, which can ultimately boost the accuracy of shoppers’ searches and drive more buying. 

Early-stage innovation: More than half of the winners in this year’s cohort are early-stage companies (seed/angel or Series A). These companies are developing innovative solutions to promote more specialized and personalized shopping experiences.

For example, EQL’s e-commerce platform is specialized for “hype commerce,” or limited-time drops for hot products. EON creates digital IDs (or digital twins) to make apparel traceable. And Nibble Technology uses AI and chat commerce to inject negotiation into e-commerce shopping.

What we didn’t find: Despite retailers’ acute challenges in a few areas — namely loss prevention and employee empowerment — our research turned up fewer-than-expected earlier-stage companies solving these problems in new ways. 

However, a few tools still stood out in these areas. For example, Spot’s AI-powered video intelligence system helps retailers track everything from shoplifting to employee issues. Meanwhile, SparkPlug’s platform helps retailers reward employees in a tough labor market through the gamification of tasks.

THE RETAIL TECH 100 CLASS OF 2022: WHERE ARE THEY NOW?

The 2022 Retail Tech 100 winners have accomplished a great deal since March 2022. Together, they have seen:

• Over $2.5B in equity funding across 25+ deals (as of 3/2/23)
• 10 mega-rounds (deals worth $100M+), including a $300M round to cross-border payments company Xendit
• 2 exits: 1 merger and 1 acquisition
• 1 new entrant to the $1B+ unicorn club

If you want to learn more about the Retail Tech 100 Class of 2022, check out the full list of previous winners.

The post Retail Tech 100: The most promising retail tech startups of 2023 appeared first on CB Insights Research.

This has created opportunities for tech companies that are able to increase visibility and improve efficiencies, particularly using AI and ML (machine learning). In 2023, an estimated 60% of global organizations plan to invest in digital supply chain technologies.

Big tech players’ access to a wide range of data — from weather patterns to e-commerce transactions — and their proprietary AI/ML systems make them uniquely positioned to serve the supply chain industry from first mile to last.

Google in particular is relying on its strength in cloud computing and its access to real-time logistics data via Google Maps to deliver new supply chain tools. This could help Google upsell existing Cloud clients on a wider range of services and ultimately take market share from more dominant cloud providers like AWS. 

In this report, we break down Google’s strategy in supply chain across 3 key takeaways: 

• • Google is leveraging its own AI/ML capabilities for supply chain offerings. The search giant is using existing consumer products like Google Maps to release software that helps supply chain managers deploy fleets more quickly and plan routes more efficiently.
  • Google is modernizing the supply chain with digital twins. Google is an early mover in simulating supply chains via digital twins to more accurately track and predict logistics issues. 
  • Google is investing in supply chain sustainability. Through multiple areas of its business, Google is creating products and inking partnerships that promote supply chain sustainability by tracking resources like raw materials and fuel. 

Google is leveraging its own AI/ML capabilities for supply chain offerings 

Google has released numerous software applications for supply chain managers recently that piggyback on its existing AI/ML capabilities. These include:

• Optimization AI, released in 2022, is a cloud fleet routing API for first- and last-mile delivery fleets. It helps supply chain managers optimize fleet planning for fuel and time efficiency by solving small-route planning problems like traffic and reducing delivery estimates.
• Last Mile Fleet Solution, also launched in 2022, syncs with the API to give employees a user-friendly Google Maps interface to help guide speedy deliveries.

Currently, these products can be used in addition to a supplier’s existing technologies or as an end-to-end solution. This go-to-market strategy is especially important given that many customers will need time to migrate over from legacy systems. 

Google’s Last Mile Fleet Solution. Source: Google

Additionally, Google has partnered with logistics leader XPO to support its customers with cloud-optimized loads and routes. Google has also paired up with supply chain automation provider Dematic to offer AI/ML technologies for e-commerce and omnichannel fulfillment. 

Historic inflation, rising fuel costs, and labor shortages have made the supply chain increasingly expensive. To mitigate these forces and increase profitability, companies have been investing in owning more of their supply chain. 

Google Cloud already supports large players in a variety of industries from retail to healthcare. As Google Cloud covers more ground with its supply chain features, it’s aiming to embed itself in these clients’ expanding supply chain ambitions.

Incorporating logistics data from Google Maps also helps differentiate Google’s supply chain offering from Amazon’s long-standing third-party logistics (3PL) business.  

Google is modernizing the supply chain with digital twins

Digital twins are virtual simulations of real-world physical objects and systems that can model potential scenarios.

In supply chain planning, they can combine data from various sources — like a user’s supply chain stack, weather, and traffic patterns — to improve visibility, predict environmental patterns, optimize inventory, and identify process improvements.  

Big tech players with advanced cloud platforms and computing capabilities have been early leaders in developing these solutions for supply chains. In Q3’21, Google announced its Supply Chain Twin, a digital twin creator within the Google Cloud ecosystem.

Armed with this tool, supply chain leaders can make strategic decisions to create more efficient operations or reduce delays when unexpected logistics issues occur. Google customers have seen up to a 95% reduction in analytics processing time using Supply Chain Twin.

Google has augmented its digital twin offering through acquisitions and partnerships. For instance:

• Google’s 2022 acquisition of environmental data provider BreezoMeter allows it to more accurately model local environmental conditions throughout the supply chain.
• Google has partnered with C3.ai to integrate elements of the enterprise AI firm’s product suite into Google Cloud. The combination is helping supply chain managers more accurately model potential risks to their drivers, fleets, and cargo.

Source: Google

Similar to Google’s other supply chain offerings, Supply Chain Twin is another way the big tech company has extended its cloud computing abilities to drive additional revenue. 

The logistics space is highly fragmented, which could make it challenging to build out digital twins for entire networks. However, Google’s existing cloud product and customer breadth, as well as its external acquisitions and partnerships, could help it put together more pieces of the supply chain puzzle. 

Google is investing in supply chain sustainability

In many industries, supply chains account for over 80% of greenhouse gas emissions.

Across Google’s efforts in supply chain management, the tech giant has sought to help clients reduce emissions by building more sustainable and resilient supply chains. Google itself currently operates carbon-neutral with the goal of running its data centers using carbon-free energy sources by 2030.

Google’s cloud-based offerings like Supply Chain Twin enable supply chain leaders to receive more accurate analysis to determine where processes can be improved. For instance, fleets can be loaded more effectively, be tracked more accurately, and drive more fuel-efficient routes. Delivery giant UPS, for instance, has used Google Cloud’s analytics platform to reduce fuel consumption by 10M gallons annually. 

Google’s data can be implemented even earlier in the supply chain to meet sustainability goals. For instance, Unilever has used Google Earth’s satellite imagery and AI to detect deforestation in its supply chain. Google also partnered with Boston Consulting Group and energy provider Eni in 2021 to found Open-es, a platform to help companies measure the environmental impact of their supply chains and collaborate on the energy transition.

Going beyond data analytics, Google has also been experimenting with delivery vehicles. As of 2022, its parent company Alphabet has completed over 250K last-mile deliveries with its drone division Wing.

As regulators and consumers warm up to the idea of using drones for delivery, it’s possible that Google may offer a full end-to-end supply chain solution that incorporates these vehicles — which release 84% fewer emissions and use 94% less energy per package than diesel trucks. 

The post Google in Supply Chain: How the tech giant is turning Google Cloud into a full-scale supply chain solution appeared first on CB Insights Research.

Now, it’s establishing itself as a tech provider — similar to the likes of Amazon — by launching high-margin, high-growth-rate tech businesses for the retail industry. This could change financial markets’ perception of the company’s growth potential and help it achieve a higher valuation than traditional grocery retail.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Mining Walmart’s partnerships to identify its next product launches appeared first on CB Insights Research.

We covered all of these developments and many more across the food & beverage space to help affected players make informed tech-buying decisions.

For example, grocery retailers focused on omnichannel enablement can discover relevant tech solutions in our omnichannel enablement market map for grocery leaders, determine which markets to prioritize with our corresponding MVP framework, and decide which companies are ideal for partnerships or investments using our market-specific ESP Vendor Rankings, including this one covering grocery microfulfillment. 

Our predictions for the upcoming year include:

• Companies will continue to invest in AI and robotics to increase customer engagement as well as address both labor shortages and increased labor costs. For example, these technologies will help fast food chains leverage automation to make kitchen operations more efficient and cost-effective.
• Restaurants, food & beverage brands, and grocery retailers will shift more of their focus toward managing costly food waste and meeting their climate goals. Expect these players to turn to tech such as food monitoring hardware, surplus food marketplaces, and more.
• To build more resilient food supply chains, farmers will likely continue to deploy easy-to-install precision agriculture tech, like farm management software, which improves farm efficiency at a relatively low capital cost.

To kick off 2023, we brought together our top food & beverage research in the curated list below.

GROCERY RETAIL TECH

• The Future of the Supermarket: How technology is making grocery shopping more personalized, efficient, and sustainable
• [Client Research] 157 companies helping grocery leaders adapt to the omnichannel shopper journey
• [Client Research] How grocery retailers should prioritize these 11 technologies supporting omnichannel enablement
• [Client Research] What are Walmart, Kroger, and Albertsons doing in microfulfillment?
• [Client Research] Analyzing Ocado’s growth strategy: How the grocery tech giant is shaping the future of the supermarket
• [Client Research] What this $37B grocery giant is doing to optimize its inventory management
• [Client Research] Tech Market Map Report: Supply Chain Optimization in Grocery
• [Client Research] MVP Technology Framework: Supply Chain Optimization for Grocery Retailers
• [Client Research] Analyzing Carrefour’s growth strategy: How the retailer is digitizing its operations to improve profitability

RESTAURANT TECH

• Unbundling McDonald’s: How the traditional fast food industry is being disrupted
• The Future of Fast Food: How robot chefs, virtual ordering, and autonomous delivery will feed us in 2030
• How restaurants can increase profitability and reduce food waste using robotic food preparation
• How restaurants can reduce the cost of R&D using AI tongues and social listening
• How restaurants can increase check size using conversational AI and AI-powered recommendation engines
• How restaurants can capture high-value customers using NFT loyalty programs
• How restaurant chains can use the metaverse to create a new digital channel for orders
• How restaurants can reduce reliance on gig workers using autonomous delivery
• [Client Research] 160 companies helping food service leaders to automate and digitize their restaurants
• [Client Research] Prioritizing the 12 technologies automating and digitizing the restaurant and food service industry

SUSTAINABILITY & FOOD WASTE MANAGEMENT

• [Client Research] 88 companies reducing food waste across the supply chain
• [Client Research] Analyzing Nestlé’s growth strategy: How the company is prioritizing health & sustainability across its portfolio
• [Client Research] Analyzing Danone’s growth strategy: How the CPG giant is creating a more sustainable food supply chain
• [Client Research] Analyzing PepsiCo’s growth strategy: How the CPG giant is improving supply chain sustainability and reducing emissions

FOOD & MEAL DELIVERY

• [Client Research] Analyzing DoorDash’s operational strategy: How the delivery leader is investing in local commerce
• [Client Research] 60+ early-stage companies reshaping food & meal delivery
• [Client Research] 40+ early-stage companies transforming food & beverage product development and distribution

AGTECH

• [Client Research] The Future of the Farm: How technology is making farms more connected, efficient, and sustainable
• [Client Research] 107 companies developing precision agriculture tech to enhance farm operations and environmental impact
• [Client Research] Prioritizing 12 precision agriculture technologies streamlining farm operations
• [Client Research] Analyzing John Deere’s growth strategy: How the American manufacturing giant is betting on agtech

The post Our top food & beverage research and trends to watch appeared first on CB Insights Research.

Retailers are facing last-mile pressures on all sides. Consumers have grown accustomed to the free and fast shipping options that giants like Amazon, Walmart, and Alibaba provide, while execution has grown increasingly expensive for retailers due to inflation, fuel costs, and labor shortages.  

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Prioritizing 12 technologies helping retailers improve last-mile delivery economics and visibility appeared first on CB Insights Research.

For example, those focused on reducing the cost of the last mile can discover relevant tech solutions in our last-mile market map, understand where delivery leaders like DoorDash are making strategic bets, and get an idea of what last-mile delivery might look like in 2030.

Our predictions for the upcoming year include:

• As retailers continue to invest in their own supply chain operations, we expect to see them increasingly experiment with new retail formats that position brick-and-mortar locations for distribution and fulfillment. Retailers that are early movers in supply chain investments could tap into B2B services as an additional revenue stream. 
• CPG brands will invest more heavily to scale their sustainability efforts — such as those related to production and waste management  — to meet previously set benchmarks, regulatory frameworks, and consumer demands. 
• With supply chain security top of mind, big tech companies will leverage their expansive data lakes to provide B2B offerings that make the supply chain more connected, efficient, and traceable.

To kick off 2023, we brought together our top supply chain & logistics research in the curated list below.

RETAIL

• [Client Research] Tech Market Map Report — Supply Chain Optimization In Retail
• Unbundling SHEIN: How fast fashion is being disrupted
• [Client Research] How American Eagle and Gap are entering the third-party logistics space
• [Client Research] Analyzing Walmart’s growth strategy: How the retail giant is building e-commerce and boosting profits
• [Client Research] Unbundling Sephora: How the beauty retail experience is being disrupted
• [Client Research] Analyzing Alibaba’s growth strategy: How the tech giant is reimagining retail to drive its global ambitions
• [Client Research] Market Trend Report: Delivery Management Software for Retailers

FOOD & GROCERY

• [Client Research] Tech Market Map Report: Supply Chain Optimization in Grocery
• [Client Research] MVP Technology Framework: Supply Chain Optimization for Grocery Retailers
• The Future of the Supermarket: How technology is making grocery shopping more personalized, efficient, and sustainable
• [Client Research] 40+ early-stage companies transforming food & beverage product development and distribution
• [Client Research] Analyzing Carrefour’s growth strategy: How the retailer is digitizing its operations to improve profitability
• [Client Research] What this $37B grocery giant is doing to optimize its inventory management
• [Client Research] Analyzing Ocado’s growth strategy: How the grocery tech giant is shaping the future of the supermarket
• [Client Research] What are Walmart, Kroger, and Albertsons doing in microfulfillment?
• The Future of Fast Food: How robot chefs, virtual ordering, and autonomous delivery will feed us in 2030

SUSTAINABILITY

• [Client Research] Analyzing PepsiCo’s growth strategy: How the CPG giant is improving supply chain sustainability and reducing emissions
• [Client Research] Tech Market Map Report: Sustainability in the Supply Chain for Retailers
• [Client Research] 13 technologies making the supply chain more sustainable — and the ones that retailers should prioritize now
• [Client Research] 107 companies helping advanced manufacturers make their operations more sustainable
• [Client Research] 88 companies reducing food waste across the supply chain
• [Client Research] Analyzing Nestlé’s growth strategy: How the company is prioritizing health & sustainability across its portfolio
• [Client Research] Analyzing Danone’s Growth Strategy: How the CPG giant is creating a more sustainable food supply chain
• [Client Research] Analyzing Unilever’s growth strategy: How the CPG giant is doubling down on sustainability and digital transformation

LAST-MILE FULFILLMENT 

• The Future of Last-Mile Delivery: How technology is tackling the complexity and cost of fulfillment
• [Client Research] 60+ early-stage companies reshaping food & meal delivery
• [Client Research] 218 companies helping retail leaders make last-mile operations faster, cheaper, and more efficient
• [Client Research] Analyzing DoorDash’s operational strategy: How the delivery leader is investing in local commerce
• How restaurants can reduce reliance on gig workers using autonomous delivery

FLEET & FREIGHT MANAGEMENT

• [Client Research] Unbundling Maersk: How one of the world’s largest shipping companies is being disrupted
• [Client Research] The Future of the Fleet: How technology is making transporting freight more efficient and sustainable
• [Client Research] Tech Market Map Report: Fleet & Freight Optimization in Retail
• [Client Research] MVP Technology Framework: Fleet & Freight Optimization for Retail
• [Client Research] Analyzing Amazon’s growth strategy: How the tech giant is shaping the future of transportation and logistics
• [Client Research] Analyzing Ryder’s growth strategy: How the transportation giant is becoming a leader in supply chain & logistics tech 

The post Our top supply chain & logistics research and trends to watch appeared first on CB Insights Research.

As uncertainty and volatility grew in 2022, retailers and brands zeroed in on tech to boost conversion and grow revenues.

No matter the environment, our research helps retail players make tech-buying decisions. For example, discover tech solutions in merchandising in our merchandising tech market map, determine which tech markets to prioritize with our corresponding MVP framework, and decide which companies are ideal for partnerships or investments with our market-specific ESP Vendor Rankings, including this one covering trade promotion optimization.

Looking ahead to 2023, we’ll be watching:

• Tech that helps build new revenue streams as well as the solutions that help retailers cut costs and drive efficiency, across stores as well as e-commerce.
• Continued growth in emerging markets across the globe, creating new opportunities for digitization.
• New media platforms and modes of digital content production.
• New types of customer journey tracking and personalization tech.

The points above are in focus as we develop the 2023 Retail Tech 100, our annual list of the most innovative B2B retail companies in the world. Look for it in March 2023.

In the meantime, we’ve created a guide below to help you check out our top research in retail and e-commerce — and prep for the year to come. 

OMNICHANNEL RETAIL 

• The Big Tech in Retail Report: How Meta, Amazon, and Google are transforming retail
• The Retail Tech 100: The top retail tech companies of 2022
• 13 tech solutions to help recession-proof retail businesses
• The Future of the Post-Purchase Experience: How technology is transforming the way we shop
• The Future of Fashion: From design to merchandising, how tech is reshaping the industry
• The shift to a circular economy: How tech is shaping the future of sustainable retail
• [Client Research] Analyzing Walmart’s Growth Strategy: How the retail giant is building e-commerce and boosting profits
• [Client Research] Unbundling Sephora: How the beauty retail experience is being disrupted
• [Client Research] Tech Market Map Report: Merchandising Tech for Brands & Retailers
• [Client Research] These 15 technologies are helping brands & retailers supercharge merchandising — here are the ones to prioritize
• [Client Research] Tech Market Map Report: Hourly Employee Management Tech
• [Client Research] Prioritizing the 13 technologies combating labor shortages for hourly employees across industries
• [Client Research] Analyzing Alibaba’s growth strategy: How the tech giant is reimagining retail to drive its global ambitions 
• [Client Research] 157 companies helping grocery leaders adapt to the omnichannel shopper journey
• [Client Research] How grocery retailers should prioritize these 11 technologies supporting omnichannel enablement
• [Client Research] Analyzing Carrefour’s growth strategy: How the retailer is digitizing its operations to improve profitability
• [Client Research] Tech Market Map Report: Loyalty & Retention Tech in Consumer & Retail
• [Client Research] 10 technologies that strengthen customer loyalty and retention — and the ones retail leaders should prioritize now
• [Client Research] Analyzing 7-Eleven’s growth strategy: How the world’s largest convenience chain is improving customer experience and engagement
• [Client Research] 70+ early-stage companies reimagining luxury retail
• [Client Research] Analyzing Kering’s growth strategy: How the luxury giant behind Gucci and Balenciaga is innovating across sustainability, the metaverse, and more
• [Client Research] Tech Market Map Report: Customer Service in Consumer & Retail
• [Client Research] MVP Technology Framework: Customer Service for Consumer & Retail Leaders
• [Client Research] 54 companies using AI to automate customer service interactions
• [Client Research] Analyzing H&M’s growth strategy: How the fashion giant is innovating in sustainability and omnichannel commerce
• [Client Research] These 134 companies are transforming how brands & retailers acquire customers

E-COMMERCE AND DIGITAL SHOPPING

• The Future of E-Commerce: How AI advisors, crypto wallets, and the metaverse will enable shopping in 2030
• Unbundling SHEIN: How fast fashion is being disrupted
• [Client Research] The virtual fitting room: How Amazon, Walmart, Alibaba, and others are using AI and AR to transform shopping
• [Client Research] Unbundling TikTok: How influencer marketing and the creator economy are getting disrupted
• [Client Research] 74 companies powering super apps like WhatsApp and WeChat
• [Client Research] Analyzing Shopify’s growth strategy: How the e-commerce platform is expanding its merchants’ reach and speeding up delivery
• [Client Research] Tech Market Map Report: E-Commerce Tech in Consumer & Retail
• [Client Research] MVP Technology Framework: E-Commerce Tech for Consumer & Retail
• [Client Research] 100+ startups driving innovation in recommerce tech
• [Client Research] Analyzing eBay’s growth strategy: How the company is prioritizing category specialization & luxury authentication

STORE TECH

• The Future of the Supermarket: How technology is making grocery shopping more personalized, efficient, and sustainable
• 5 new formats reinventing the physical retail store experience
• [Client Research] 160 companies making retail stores more profitable, efficient, and engaging
• [Client Research] Prioritizing 13 technologies digitizing and automating retail stores

SUPPLY CHAIN, FULFILLMENT, & DELIVERY

• The Future of the Fleet: How technology is making transporting freight more efficient and sustainable
• The Future of Last-Mile Delivery: How technology is tackling the complexity and cost of fulfillment
• [Client Research] What are Walmart, Kroger, and Albertsons doing in microfulfillment?
• [Client Research] How American Eagle and Gap are entering the third-party logistics space
• [Client Research] 218 companies helping retail leaders make last-mile operations faster, cheaper, and more efficient
• [Client Research] Analyzing DoorDash’s operational strategy: How the delivery leader is investing in local commerce
• [Client Research] Tech Market Map Report: Supply Chain Optimization in Grocery
• [Client Research] MVP Technology Framework: Supply Chain Optimization for Grocery Retailers
• [Client Research] Analyzing Ocado’s growth strategy: How the grocery tech giant is shaping the future of the supermarket
• [Client Research] 60+ early-stage companies reshaping food & meal delivery

DIGITAL CONTENT & MEDIA

• • Unbundling Meta: How the tech giant’s digital advertising business is being disrupted
  • What L’Oréal, Nike, and LVMH are doing in Web3
  • [Client Research] Tech Market Map Report: Retail Media Networks
  • [Client Research] These 14 technologies are helping retailers build out their media networks — here are the ones to prioritize
  • [Client Research] 171 companies helping brands scale and automate their digital content offerings
  • [Client Research] 95+ early-stage companies using AI to create and edit digital content

The post Our top retail & e-commerce research and trends to watch appeared first on CB Insights Research.

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post 88 companies reducing food waste across the supply chain appeared first on CB Insights Research.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Analyzing PepsiCo’s Growth Strategy: How the CPG giant is improving supply chain sustainability and reducing emissions appeared first on CB Insights Research.

Demand forecasting and inventory optimization platforms utilize sales data and other relevant metrics to improve the inventory planning process.

Artificial intelligence (AI)-based demand forecasting solutions help retailers enhance supply and demand planning, pricing and promotion initiatives, and replenishment efforts. As a result, they have the potential to reduce waste and out-of-stock events and, ultimately, boost the bottom line for retailers across categories.

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Market Trend Report: Demand forecasting and inventory optimization for brands and retailers appeared first on CB Insights Research.

Auto-replenishment tech uses machine learning to automatically ship orders to customers for frequently purchased items, often on a subscription basis. In forward-looking applications, auto-replenishment tech can include smart containers that utilize Internet of Things (IoT) technology to automatically reorder products that are running low.

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Market Trend Report: Auto replenishment for grocery retailers appeared first on CB Insights Research.

At the same time, retailers are facing challenges around tracking inventory across stores and distribution centers, which can further impact profit margins.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post How American Eagle and Gap are entering the third-party logistics space appeared first on CB Insights Research.

Amid a plateau in e-commerce growth and profit challenges — which have led to drops in Shopify’s stock price as well as layoffs — the e-commerce infrastructure leader continues to invest in solutions that will help its roughly 1.8M merchants grow. 

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Analyzing Shopify’s growth strategy: How the e-commerce platform is expanding its merchants’ reach and speeding up delivery appeared first on CB Insights Research.

This is an even greater challenge as customers have grown accustomed to the free and fast shipping options used by the likes of Amazon, Walmart, and Alibaba to lure shoppers. 

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post 218 companies helping retail leaders make last-mile operations faster, cheaper, and more efficient appeared first on CB Insights Research.

As it looks to adapt to the changing logistics landscape — which is recovering from pandemic-related supply chain shortages and facing increased demand for faster, cheaper shipping — Ryder is spearheading advances in supply chain & logistics tech.

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Analyzing Ryder’s growth strategy: How the transportation giant is becoming a leader in supply chain & logistics tech appeared first on CB Insights Research.

Investors are making smaller bets: funding from mega-rounds ($100M+ deals) dropped 38% QoQ. And only 3 new retail unicorns emerged in Q3’22, down from 13 births in Q2’22. The new unicorns are India-based fulfillment management tech company Shiprocket (valued at $1.3B), Thailand-based food delivery company LINE MAN Wongnai (valued at $1B), and Italy-based omnichannel payments platform Satispay (valued at $1B).

Below, check out a few highlights from our 127-page, data-driven State of Retail Tech Q3’22 Report. For deeper insights, all the record figures, and a boatload of private market data, download the full report.

Q3’22 highlights across the retail tech ecosystem include:

• • • The top 3 most active investors in Q3’22 invested in 38% fewer companies than the top 3 in Q2’22.
    • Europe led in mega-round funding, with $1.5B spread across 3 deals. In Asia, the number of mega-round deals collapsed 81% from its peak in Q3’21.
    • E-commerce was the only sector with a funding increase (10%), with investment reaching $4.6B across 372 deals in the quarter.
    • Supply chain & logistics tech funding fell by 57% QoQ. Deals were concentrated primarily in the US and Asia.
    • In 2022 so far, early-stage deals are making up a higher share of retail tech deals (64%) than they did in 2021 (60%).

Download our Q3’22 State of Retail Tech Report to learn more about all these trends and more.

The post State of Retail Tech Q3’22 Report appeared first on CB Insights Research.

Consumer spending is steadily rising, according to the US Bureau of Economic Analysis, while e-commerce growth has put pressure on warehouse operators to improve fulfillment speed and inventory visibility — all while the industry faces labor shortages and rising inflation.

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Prioritizing the 12 technologies digitizing operations for warehouse operators appeared first on CB Insights Research.

In response, grocery retailers are increasingly exploring opportunities in microfulfillment, which involves using small, highly-automated storage facilities in existing grocery stores or in “dark” warehouses that are closer to the end customer — improving delivery speeds while reducing costs through automation. 

Want the full post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post What are Walmart, Kroger, and Albertsons doing in microfulfillment? appeared first on CB Insights Research.

The hiring challenge is acute for companies that employ hourly workers. In retail, 70% of jobs remain unfilled, while in manufacturing and hospitality around half of open jobs don’t have hires, according to the US Chamber of Commerce and the Labor Department.

Want the full expert post? Become a CB Insights customer.

If you’re already a customer, log in here.

The post Prioritizing the 13 technologies combating labor shortages for hourly employees across industries appeared first on CB Insights Research.