2023 Kickoff - Special Edition
Greetings, Pulse Subscribers!
Happy New Year! Before we kick off 2023, we’re going to take a look back at the biggest stories and startups of last year and see what’s developed in the time since they were showcased here in Pulse. These are the Essential Reads and Startup Deals that grabbed your attention and got the most clicks in 2022:
Bain Presents the Hybrid Future of Retail
The Metaverse: 101
Whale Watching
Ghost Kitchens
Supply Chain Logistics
Here’s to a great 2023!
Top Essential Reads
Future of Retail: New Era, New Challenges
by Marc-André Kamel (Bain partner and global leader of Retail):
Our most clicked article of the year came in July when Marc-André Kamel laid out the case that the future of retail is a hybrid model, where the traditional strength of retailers will be combined with the innovation of disrupters to create a new path forward. The new era that Kamel predicted seems to be arriving faster than expected with retailers of all stripes embracing new technologies to deliver hybrid experiences that engage and delight customers. While the industry evolves and new challenges like inflation will continue to rise, the key principles and tips for success that Kamel lays out in this video, as well as how to navigate short-term turbulence, are still incredibly valuable and timely and continue to make this essential viewing.
At the beginning of 2022, the only idea being hyped more than the metaverse was crypto. This explainer by Meagan Loyst at Lerer Hippeau introduces the various technologies and concepts that make up the metaverse and shows why it’s suddenly risen to prominence despite having existed in one form or another for 20-plus years. While crypto has had a turbulent few months, despite Meta’s faceplant the metaverse is still going strong and continues to grow, particularly with retailers. Brands like Louis Vuitton have been leveraging the metaverse to their advantage, while world-building games like Roblox continue to grow and offer retailers new revenue streams in the virtual world.
In this read, Jason Bornstein of Forerunner Ventures introduces us to the concept of retail “whales”—the top 20% of customers who can drive 80% of revenue—and explains how focusing on them can drive businesses to greater success. With advice on how to identify and bring more customers into that top 20% (think customer data, personalization, targeted ads, etc.), and suggestions for how to mitigate the damage created by “piranhas”—customers who create new accounts to reuse discount codes, or only buy steeply discounted items and return often—this essential evergreen read lays out a unique path to business growth and argues that the future of retail isn’t the store—it’s the customer.
Top Startup Deals
Kitchen United Mix:
For those just joining us, ghost kitchens are food preparation facilities for delivery or takeout meals. Like a food court on steroids, ghost kitchens cut costs for vendors—they’re a shared space—and increase customer options. Kitchen United MIX is a leader in the ghost kitchen industry. Since we featured them back in August, they have grown from 15 to 29 locations across the US. In addition, their partnership with Kroger has continued, with expansion into three sites in Ohio. Proving that delivery (and pickup!) isn’t dead, Kitchen United Mix continues to grow, with the aim of opening 500 locations in the next five years.
Flexport:
Back in February, we reported that Flexport, an inventory tracking and global logistics platform, had just finished its Series E funding round and was planning to expand—and expand they have. With supply chain still being a major concern for retailers and businesses of all types, Flexport is signing huge executives to help lead the way. While other sectors are making cuts, Flexport is on a hiring spree. With origins in Y Combinator, Flexport is now valued at over $8 billion, with 2022 revenue expected to be around $5 billion. Ryan Petersen, Flexport founder, has a straightforward goal: He wants his company to be “the most important company in global supply chain.” If 2022 is any indication, they just might do it.
High Impact Power Players
We are launching a new campaign to highlight the best and brightest in the CommerceTech industry and we want your input. Our first annual High Impact CommerceTech Power Players, a collaboration between Bain & Company, Coresight Research, and Bain Capital Ventures, will highlight the most innovative commerce and customer marketing tech venture-backed companies.
Please click here to complete our 5-minute survey to nominate who you think are the most innovative venture-backed companies and providers by Tuesday, January 17th.
If you enjoyed reading this edition of Retail Pulse, please subscribe below to receive our future editions and early invitations to our Forge Retail Showcase events.
See you in two weeks!