An Old Beef, The Pendulum & A Modern QVC 🥩

View this email in your browser
A Modern Marketplace for U.S. Startups

A modern twist on QVC has made millions for savvy U.S. startups.

Three years ago, Welden, a high-end US handbag startup, was struggling to build a brand in the States. Now it sells 20% of its bags through the Chinese live-streaming market. 

It all started in 2017, when founder Sandy Friesen sold 10 of her Welden bags over a single weekend on Taobao Live, an Alibaba-owned live-stream shopping channel. During the following Thanksgiving break, Welden’s vice president of sales, Cori Adams, went on a Black Friday live-stream sale. Adams smiled as she held the brand’s purses, while the show’s main host, Zoe, a fashion influencer, interacted with Chinese customers in Mandarin.

Tens of thousands of viewers watched the session on their phones and clicked to buy Welden’s woven leather bags, priced around $350. The startup’s two-day sales: $350,000.

Welden is one of a bevy of international businesses that have capitalized on China’s fast-growing live-streaming shopping market.

Anthom, a New York-based boutique shop selling independent designer products has been working on live-stream shows since 2016. Each 3-hour live streaming session generates $6-$12k in sales, with 10-20k Chinese customers watching, according to the store’s co-founder, Ashley Turchin.

This see-now-buy-now marketing approach, which started to take off in 2016, is China’s modern twist on QVC.

Live-streaming market in China (in billion yuan)

The ecosystem is supported by big-name celebrities selling products on the channels and the millions of live-stream viewers.

Some stats:

  • China had more than 500 million webcast viewers in 2018. 
  • In 2018, the most profitable live-stream host on Taobao Live, Wei Ya, raked in $390m in sales through live streaming. Another beauty influencer, dubbed Top Lipstick Seller, is said to sell one lipstick every 30 seconds during his live streams.
  • Alibaba’s Taobao Marketplace, the biggest live stream platform and e-commerce site in China, generated more than $15B in sales volume through live streaming sessions in 2018.

Alibaba’s Tmall Live and bourgeoning platform Xiaohongshu are some of the other live-streaming shopping platforms in the ecosystem.

Chinese influencer Wei Ya selling over 3 billion yuan of products a day
Agricultural influencers live streaming farm products

How can startups tap into the market? 

There are specific digital marketing agencies such as ShopShops that collaborate with international retailers of luxury fashion and “fast fashion,” or items that appeal to a massive audience in China. 

The agencies help boutique stores, contemporary retailers, and independent designers:

  • Market their items to China through live streaming.
  • Create content on Chinese social media.
  • Handle international shipping and product distribution for their partnering retailers.

An Old Beef With Rules

A new House subcommittee report has unveiled a flagrant violation of rules. Meat-packing companies exaggerated product shortages during the pandemic to keep factories open.

Tyson, Smithfield, JBS, National Beef, Hormel, are just some of the meat producers named in the report. In fact, Tyson even drafted the executive order issued by former President Trump in April 2020 to keep factories open. Since these companies account for the majority of the US’ beef and pork industry, they had the power to influence regulation. 

Result: Covid spreading rapidly through factories and killing 269 employees during the first year of the pandemic.

Approximately 334,000 Covid cases across the country can be linked to meat-packing factories, and per capita infection rates doubled in towns where such facilities were open, according to research from the University of California.

Where Will The Pendulum Stop?

In just three trading days, Big Tech has lost a total of $1 trillion.

For Meta or Netflix, such falls are common, as previous declines have been based on low growth numbers. But a number of VC-backed companies that recently debuted on the market such as Coinbase, Rivian or Robinhood are trading at 70% below their starting price.

The cryptocurrency market is also sharply down with most coins losing over 50% of their value.

What explains this sudden downturn? 

  • A looming economic crisis: Rising interest, supply shortages and high inflation leading to a feeling of uncertainty in the market.
  • Tech Regulation: A new generation of antitrust rules making life harder for big tech.
  • Extra Inventory: E-commerce giants like Amazon practically doubled the number of warehouses during the pandemic to serve increasing demand. Now they’ve got to a point where inventory is out-sizing orders as demand slows due to inflation.

Where are we headed from here? 

Signs are that this is no minor correction.

For a while, investors will be conservative. But eventually, companies that truly represent value might emerge from the crisis stronger. We may even see a new wave characterised by worsening climate emergency and the emergence of clean technologies.

Shorts ⏳
Want More Dollars - The U.S. Dollar hit a 20-year high last week as imports get expensive and demand for USD rises.

A Meaty No - 37% American support an extra 10% meat tax to cut consumption.

Gas Caps - Spain and Portugal approve a price cap on natural gas to tame rises prices. 

Another Shortage - Alminium inventories in London Metal Exchange warehouses hit a record low, signalling more shortages. But prices are still not rising

Hungry Babies - US retailers including CVS are rationing baby formula as shortages hit 50%.

Apple Dethroned - Apple is no longer the world’s most valuable company. That position goes to Saudi Aramco.

Celebs Escaping Ukraine - Maria Alyokhina of punk band Pussy Riot disguised herself as a food delivery worker.

Popular Plates - Amazon searches for Wheat straw plates” are up 62% over the last 90 days

Stash Recommends: Tools to Explore
🚦FiddlerA tool that captures network traffic between the Internet and test PCs to help you debug web applications.

☄️ MeteorAn open-source framework for creating and distributing Javascript web, mobile, and desktop applications.

🕓 TiemchartA multi-award-winning web-baed corporate project management system for businesses of all shapes and sizes.

🈁 Susy: A trendy tool for developing responsive web pages with a grid-like style.

Copyright © 2021 StartupStash, All rights reserved.

Drop us a line:

This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
StartupStash · Yirmiyahu 43 · Tel Aviv 62747 · Israel

Older messages

Mad Mannequins, DIY Butler & The Sorting Robot 🤖

Tuesday, May 10, 2022

Plus, Solution to The Sexist Algorithm View this email in your browser Mannequin Gardens and Christmas We live in an era where you can find small businesses making millions of dollars in industries

Eggsy, Oily, and the New Breastmilk 🐣

Tuesday, May 3, 2022

Plus, A Windy Island for Danes View this email in your browser The Chicken and Egg Solution The cost of scrambled eggs recently waxed to 300% in one week. The average American eats 245 eggs a year, and

The Fungus, Victor's Secret & Couch Drinking 🍄

Tuesday, April 26, 2022

Plus, Corporate Taxes: America vs. Europe vs. Asia View this email in your browser The Thrill of Wearing Fungus Clothes Think about clothing made from fungus. Does the idea of fungus touching your body

Street's Hires, Timepieces & An Inside Story💰

Tuesday, April 19, 2022

Plus, The Best Time to be an Intern View this email in your browser Inside Ukraine's Startup Industry During this war-time, Ukraine's startup industry has set a fortuitous example by providing

Underwater Farming, Lion Burgers & Mobile Money 🦁

Tuesday, April 12, 2022

Plus, Miami to Madrid in an hour View this email in your browser Farming in Nemo's Home Could the future of farming be under the sea? Nemo's Garden - an Italian company - is revolutionizing

Sustainable retail = $21M sale 🌿

Friday, July 1, 2022

Plus, you want to sell. What's next? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Joining TinySeed Europe, with Nick Swan

Friday, July 1, 2022

This week's episode of the Bootstrapped podcast is ready for you. Hi Bootstrappers, When I started my own company, I was deadset on keeping it forever as a 1-person company. I enjoyed the challenge

BlockFi's fire sale, Meta's memo, and confirmed: founders say venture investors are offering tougher terms

Friday, July 1, 2022

View in browser Top News The S&P 500 suffered its worst first half since 1970 but analysis by S&P Dow Jones Indices says historically there has been little to no correlation between the

How to build hype like Spotify 🎵

Friday, July 1, 2022

Web3 startups to watch | Our day at a metaverse expo | Balderton's portfolio letter View this email in your browser Powered by Sapphire Ventures Hi Sifted Reader, From the Sifted podcast studio

VC falls

Thursday, June 30, 2022

Cash cushion. Bitcoin energy. Yikes: this bar chart. View in browser CBINSIGHTS CBINSIGHTS June 30, 2022 On cue Hi there, Here is this week in charts. This Week In Charts Source: Bloomberg Get low. The

📰 SaaS Tribune Weekly - 30 Jun

Thursday, June 30, 2022

SaaSHub Weekly - 30 Jun Our weekly list of useful, trending and featured products Zimyo logo Zimyo Cloud-based Employee experience platform dedicated to driving productivity by creating efficient

Asking Users to Complete Tough Mudders to Use Your Product

Thursday, June 30, 2022

Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here.​ ​Asking Users to Complete Tough Mudders to Use Your

🔥 CRProxy, Devign, Flowmeter, Unicorn Dev

Thursday, June 30, 2022

Today's Trending Products and Posts. CRProxy A reverse web proxy for developers. View Devign An automated bug reporting tool View Flowmeter Machine learning tool to classify network packets. View

Today's startups in 10 words

Thursday, June 30, 2022 Discover new apps and startups in 10 words or less Listen2It: Amplify your content with voice deicare: Measure and improve Diversity, Equity and Inclusion RADAAR: RADAAR is a powerful social

The House of Sounds, Vocally, monse, Parma CRM, JoinSlip, and more

Thursday, June 30, 2022

Be the leader you wished you had BetaList BetaList Daily ZenLeadr Exclusive Perk Be the leader you wished you had The House of Sounds Everything music ecosystem Vocally Exclusive Perk Create, Host