CML Pro members I am speaking about $FTCH in Community.
Some thoughts on $FTCH
With Farfetch, we have a third leg to the story — China.
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As you will read with our earnings review in a couple of weeks, Farfetch has a fabulous position in China — unusually strong for a non Chinese brand.
We got news from Alizila, which is Alibaba’s for profit news outlet, that Farfetch has launched its Luxury Pavilion.
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Here’s a snippet:
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Farfetch officially debuted its digital store on Tmall Luxury Pavilion on Monday – a move that drastically expands the range of products available to millions of shoppers on the Alibaba-owned platform for luxury and designer brands.
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Then we got a rather warm reaction from the General Manager of Tmall Luxury Janet Wang when she said:
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"The launch of the Farfetch Tmall flagship is a very exciting moment for China’s booming online luxury market.
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"In partnership with Farfetch, we will continually enhance our product selection, marketing strategies and membership services for our consumers. We aim to set the standard in the industry and lead the digitization of luxury shopping."
Source: Alizila
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Farfetch will likely increase marketing expenses for the full year of 2021, but for good reason. As far as we can tell, no analyst on Wall Street has modeled material revenue for 2021 from this massive China opportunity — which means we see substantial upside.
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For the record, Alibaba has 779 million shoppers, although not all of them are luxury targets.
We detail the opportunity in China further in CML Pro.(bit.ly/CMLPro)
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Now, either all of that is bullish for you — seeing the exuberant growth in e-luxury in China, or it is bearish for you — the risk of reliance on China.
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That final point is for you to decide and we’re not sure any kind of analysis of earnings will help. It’s a bigger question that spans well past a quarter.
You can learn more about CML Pro and the 5-year auditor verified track record here:
This may be the largest thematic we cover, perhaps eclipsing the size of the genomics space.
In the future we believe that research shops and analysts will begin to use the word "engament" not as verb to describe activity on a platform but as a thematic.
Let me explain...
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(Virutally) every company in the in world, digital or otherwise, sews sales rise as engament rises.
First, some non obvious examples:
* More time in an aisle at a grocery story means more sales and loyalty.
* More time at an auto dealer means a more likely sale.
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This is how negotiations work. It's game theory, specifically it's called "anchoring."
* Biden puts out a $2.7T infra proposal, knowing that won't fly, but in a hope to get lawmakers attached to the $2.7T number. The idea is "how much lower than $2.7T will it be."
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* GOP knows this, ofc, so they try to re-anchor with a $550B infra proposal, to get lawmakers attached to that number. They too know that won't fly. The idea is to change it from "how much lower than $2.7T will it be," to "how much above $550B will it be."
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* Biden also knows this, ofc, so he starts tugging on raising taxes, knowing full well those numbers won't fly but anchoring on "capital gain tax increase and personal income tax increase."