Q2 insights into Digital Commerce.

Alessandro Casartelli, Executive Director at GP Bullhound, said: “In our latest report, we have highlighted the key digital commerce trends in Q2 2023. Virtual dressing room technology becomes mainstream thanks to AI, drone deliveries are growing in popularity as a quicker and more cost-effective delivery method, and public-to-private deals and hostile takeovers attempts have made a comeback as some companies are perceived as undervalued. While the IPOs remain quiet and valuations are still off their highs, the market is showing initial signs of recovery.”

“Virtual dressing room” technology enters the mainstream thanks to AI

• Google’s new tool lets customers try on clothes virtually, revolutionising the way consumers shop for clothes online. Until now, augmented reality has had limited success in bringing virtual dressing into the mainstream
• The capability is similar to a store assistant bringing customers choices based on colour, style, patterns and price. Unlike a physical shop, it’s not limited to in-stock inventory and can recommend products to shoppers across brands
• AI and virtual dressing rooms could significantly reduce the number of returns, creating savings for ecommerce retailers. Fewer returns will also limit the fashion industry’s negative impact on the climate

Drones proving to be a more convenient and sustainable delivery option

• Studies show drones could result in cost savings of 70% for ecommerce companies when compared to more conventional techniques
• The ecologically benign aspect of drone delivery can draw in clients who are concerned about the environment. PwC predicts a reduction of 2.4 million tons of carbon by 2030, which is equivalent to removing 1.7 million cars from the road for a year
• Governments and aviation authorities are working to establish guidelines and regulations to ensure safe and responsible drone operations

Take privates and hostile takeover attempts for seemingly undervalued assets

• P2P transactions on the rise as private equity investors are willing to take a longer-term view than their public equivalents
• Valuation also plays a part – volatility in public markets has long equated in opportunities for both public and private investors to discover undervalued stocks
• While takeover opportunities exist, the right valuation will always be important and investors need to find the right balance between value and capitalisation

Enquiries
For enquiries, please contact:
Alessandro Casartelli, Executive Director, at alessandro.casartelli@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 14 offices spanning Europe, the US and Asia.