News Archives - GWS https://gwsolutions.com/category/in-the-news/ GWS conducts wireless network testing, generates app analytics, and collects market data. We measure performance, behavior, and sentiment Mon, 07 Oct 2024 21:15:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://gwsolutions.com/wp-content/uploads/2018/09/cropped-GWS-favicon-32x32.png News Archives - GWS https://gwsolutions.com/category/in-the-news/ 32 32 GWS Ranks Mobile, Broadband Connectivity Performance https://www.cablefax.com/distribution/gws-ranks-mobile-broadband-connectivity-performance#new_tab Thu, 03 Oct 2024 21:13:44 +0000 https://gwsolutions.com/?p=12767 The wireless network benchmarking company Global Wireless Solutions conducted its Nationwide Connectivity Experience Awards, which looks at broadband and mobile network performance across the...

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The wireless network benchmarking company Global Wireless Solutions conducted its Nationwide Connectivity Experience Awards, which looks at broadband and mobile network performance across the U.S. Results awarded T-Mobile as the Best Mobile Experience by a major operator, Verizon as the Best Broadband Experience and AT&T as the Best Combined Connectivity Experience. GWS’ mobile testing looked at reliability, latency, upload and download network available throughputs, delivered throughputs and packet loss. T-Mobile ranked the highest in both the mean download and upload throughput rankings as Verizon and AT&T took second and third in both categories, respectively. Broadband results—which measured reliability, latency, upload and download network available throughputs, FCC benchmark, delivered throughputs and packet loss—revealed Verizon, Xfinity (second in the category), Cox (third) and Spectrum (fifth) all had mean download throughputs above 150 Mbps. Cox and Spectrum, however, both had upload speeds below 40 Mbps (Verizon and AT&T posted above 90 Mbps). GWS’ combined testing revealed the AT&T bundle had the best results when factoring the combination of metrics tested, followed by Verizon, Xfinity, Spectrum and T-Mobile. Data was collected from GWS’ opt-in consumer panel of more than 104,000 participants 18+ from Jan. 1 through June 30 this year.

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Test and Measurement: Consumers recognize the value of 5G, GWS survey finds https://www.rcrwireless.com/20241002/test-and-measurement/test-and-measurement-consumers-recognize-the-value-of-5g-gws-survey-finds#:~:text=October%202,%202024.%20Test%20and%20Measurement.%20Global%20Wireless#new_tab Wed, 02 Oct 2024 14:41:02 +0000 https://gwsolutions.com/?p=12762 Global Wireless Solutions (GWS) has released new Nationwide Connectivity Experience Awards, based on a combination of network testing plus additional insights from surveying...

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Global Wireless Solutions (GWS) has released new Nationwide Connectivity Experience Awards, based on a combination of network testing plus additional insights from surveying mobile device users. GWS gave out three awards: One that focused largely on the mobile experience, one based on the ISP experience via Wi-Fi, and one that combined the two. The winners, respectively, were T-Mobile US, Verizon and AT&T.

The survey is based on six months of data collection from an opt-in consumer panel of more than 100,000 people on Android devices that allow GWS to collect mobile information and conduct thousands of tests in the background on their received network performance, as well as enabling the users to be surveyed. CEO Paul Carter said that sas why GWS focused on the awards as a function of “experience” rather than strict network metrics, and was able to differentiate between achievable network speeds and delivered experience.

“It’s definitely clear that network achievable throughputs are quite high these days but still, what delivered throughputs are people experiencing. [Those] are much, much lower. There’s more similarity across operators from a delivered-throughputs perspective,” Carter said.

A few interesting tidbits: Based on the customer feedback, GWS concluded that “it appears that more US consumers than not are seeing a tangible impact from advanced network connectivity.” Carter explained that when consumers were asked for their thoughts on 5G, around 40% said that it was important to them that they be able to access 5G wherever they were—in other words, they recognized the value of 5G availability. Another 37% said they didn’t really pay attention to which network they were on unless the network was slow, and only 19% of consumers said that they couldn’t really tell if their performance was better while on 5G.

“Let’s not think 5G has become white noise to consumers,” Carter said. “Our polling shows that consumers are keenly aware of 5G and its intended benefits.”

GWS’ analysis found that users spend around five fours a way on their mobile devices, with about 72% of their time spent on Wi-Fi versus the mobile network. How were they using those devices? Users spent more than 50% of their time with just 10 mobile apps: Facebook, YouTube, the Chrome browser, TikTok, Google Maps, Facebook Messenger, Instagram, Google Messages, Snapchat and Gmail.

Carter said that GWS also asked mobile device users about their perspective on artificial intelligence, particularly on their devices. Nearly 40% responded with enthusiasm for AI if it improved their productivity or made their lives easier, but the responses with reservations covered a pretty broad range of reasons: they didn’t want it, worried about data privacy, thought it wasn’t sophisticated enough to be useful, or thought it was inevitable and didn’t really care.

Carter interpreted those responses on AI as: “It’s there, but it’s not really there yet. I think it’s still early days for people to understand what it’s going to do for them.”

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GWS Releases Results of Nationwide Connectivity Experience Awards https://www.isemag.com/industry-trends-and-research/news/55193305/gws-releases-nationwide-connectivity-experience-awards#new_tab Wed, 02 Oct 2024 14:30:55 +0000 https://gwsolutions.com/?p=12758 Global Wireless Solutions (GWS) released the results of its Nationwide Connectivity Experience Awards. T-Mobile earned the award for “Best Mobile Experience,” and Verizon...

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Global Wireless Solutions (GWS) released the results of its Nationwide Connectivity Experience Awards. T-Mobile earned the award for “Best Mobile Experience,” and Verizon won “Best Broadband Experience.” AT&T was awarded the “Best Combined Connectivity Experience” for overall performance of its combined mobile and broadband offering.

The results follow six months of data collection from GWS’s opt-in consumer panel of 104,000+ adult participants where the company collected data points and conducted tests related to throughput, reliability, packet loss, and latency involving the U.S.’s major mobile operators and ISPs.

In addition to the awards, GWS also collected and analyzed app engagement and consumer sentiment data from mobile users, providing further insights into the overall user experience.

Mobile Experience and 5G

In terms of what people are doing on their phones, GWS data showed that people spend most of their time on mobile devices accessing social media, communications, and navigation apps. People spend over 50% of their time on just 10 mobile apps, with Facebook at the top, followed by YouTube, Chrome Browser, TikTok, Google Maps, Facebook Messenger, Instagram, Google Messages, Snapchat, and Gmail.

Despite the prominence of online search and social media, when U.S. consumers were surveyed and asked to choose one activity as the sole function of their phone, texting/messaging came out as the most popular choice.

T-Mobile

When looking at only 5G, T-Mobile also showed the best 5G mobile experience because it had the highest throughput speeds, lowest latency, and lowest packet loss.

T-Mobile consumers were also more likely than the average American to say that it was important to have a 5G signal wherever they are – 47% versus 40% for the national average.

GWS also reported that it appears that more U.S. consumers than not are seeing a tangible impact from advanced network connectivity – when asked about their thoughts on 5G, just 19% of consumers felt they were unable to tell if their performance was better or not when on 5G.

Verizon

Based on performance test results of the U.S.’s major nationwide ISPs, GWS found that Verizon has the Best Broadband Experience out of all ISPs tested.

Performance metrics measured were reliability, latency, upload and download network available throughputs, FCC broadband benchmark, delivered throughputs, and packet loss.

Verizon, Xfinity, Cox, and Spectrum all had mean download throughputs above 150Mbps. On the flip side, Cox and Spectrum had much slower upload speeds (both below 40Mbps) when compared to Verizon and AT&T (both above 90Mbps).

All ISPs tested were similar when it came to task reliability, with each scoring near or just over 99%.

Xfinity came out on top for the percentage of time that their consumers experienced speeds over the FCC broadband benchmark (an updated baseline throughput standard announced by the FCC in March 2024 of 100Mbps for downloads and 20 Mbps for uploads).

The data shows that Xfinity consumers exceed this benchmark 41% of the time (average across all ISPs was 33%). When looking at the inverse of this statistic, it suggests that reaching this benchmark on a consistent basis may prove challenging for the broadband industry as two-thirds of the time study participants did not experience throughputs above the benchmark when tested.

AT&T

GWS analyzed the performance of partner network bundles across ISP and mobile and found AT&T to have the Best Combined Connectivity Experience. The award is the U.S.’s only performance measure that brings together results from across both mobile operators and ISP partners in one score.

Performance metrics measured were reliability, latency, upload and download network available throughputs, delivered throughputs, and packet loss.

GWS tests found that the AT&T bundle performed the best when factoring in the combination of metrics tested. In terms of mean download throughputs, AT&T, Spectrum, and Xfinity easily topped 125Mbps.

However, for upload AT&T had the fastest average combined speed (100Mpbs), doubling the average speeds provided by the nearest competitor (Verizon at around 50Mbps). When it came to reliability, AT&T and Verizon scored the highest; both were above 99% with T-Mobile, Spectrum, and Xfinity at or below 99%.

Bundling

GWS consumer polling found that the desire to switch to a bundle deal is a key factor for consumers when assessing their mobile operator or broadband provider.

Over half (52%) of U.S. consumers are considering bundle packages and their associated perks when deciding a service plan.

This article is a summary. For more from GWS report, as well as details about the methodology and data collection, you can view the whole report here.

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GWS report ranks operators’ connectivity experience https://www.lightreading.com/broadband/gws-report-ranks-operators-connectivity-experience#new_tab Tue, 01 Oct 2024 21:11:32 +0000 https://gwsolutions.com/?p=12765 Global Wireless Solutions (GWS) has released rankings of operator connectivity experience, with T-Mobile ranking highest for mobile connectivity and Verizon for broadband...

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Global Wireless Solutions (GWS) has released rankings of operator connectivity experience, with T-Mobile ranking highest for mobile connectivity and Verizon for broadband connectivity

Wireless network benchmarking specialist Global Wireless Solutions (GWS) has announced the results of its Nationwide Connectivity Experience Awards. Based on GWS’s OneScore ranking methodology, T-Mobile picked up the award for Best Mobile Experience, and Verizon has won Best Broadband Experience. AT&T has also been awarded the Best Combined Connectivity Experience for overall performance of its combined mobile and broadband offering.

The results, revealed in full in GWS’s 2024 US Mobile and Broadband Nationwide Connectivity Experience Report, follow six months of extensive data collection from GWS’s opt-in consumer panel of over 104,000 participants (18+), where the company collected nearly 4 billion data points and conducted over 3.4 million tests related to throughput, reliability, packet loss, and latency involving the US’s major mobile operators and ISPs. In addition to the awards, GWS also collected and analyzed app engagement and consumer sentiment data from real-life mobile users, providing further insights into the overall user experience.

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Gen Z Is Most Skeptical of AI: New Study https://www.newsweek.com/gen-z-most-skeptical-ai-new-study-1951710#new_tab Tue, 10 Sep 2024 22:17:22 +0000 https://gwsolutions.com/?p=12242 Despite growing up in the digital age, or perhaps because of it, Gen Z is increasingly skeptical of artificial intelligence (AI) compared to other generations, a...

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Despite growing up in the digital age, or perhaps because of it, Gen Z is increasingly skeptical of artificial intelligence (AI) compared to other generations, a new study revealed.

More 18- to 24-year-olds said they don’t want AI on their phones compared to older generations, according to a new GWS research report. While the Gen Z group said they didn’t want AI 16 percent of the time, only 9 percent of the older group surveyed said the same thing.

They also had different views on the technology in general. While nearly half, or 46 percent, of older millennials said they were in favor of AI if it boosts their productivity, only 25 percent of Gen Z said the same, revealing a significant gap despite being the generation most likely to grow up around AI.

“Gen Z’s skepticism toward AI reflects a generation that’s hyper-aware of how technology has been used to exploit them,” HR consultant and generational expert Bryan Driscoll told Newsweek. “They’ve grown up in a world where social media has wrecked mental health and algorithms prioritize profit over people. This group sees AI as more likely to replace their jobs than to actually improve their work lives.”

The survey was conducted across 3,000 American smartphone users and indicated a generational divide despite the fact Gen Z was more likely to feel they understood the newer technology tool.

Only 6 percent of Gen Z felt they didn’t understand AI enough to have an opinion on it, indicating the younger generation might feel their experiences with AI are actually more likely to make them hesitant about it.

“Recent advances in AI might have yielded some impressive new technology,” Paul Carter, CEO of GWS and mobile trends and consumer behavior expert, said in a statement. “But while many of the biggest tech firms have launched their own AI tools in recent months, our data shows that more work must be done to truly convince consumers that AI will make their mobile experience better, especially with younger audiences.”

Men were also more likely to embrace AI, regardless of age, saying they’d support the tech if it made things easier 46 percent of the time. That was compared to just 31 percent of women.

Across the board, though, the generational gap likely has roots in Gen Z’s own experiences as digital natives.

“Gen Z’s skepticism towards AI on phones likely stems from their unique experiences growing up in a digital-first world,” Dev Nag, the CEO and founder at QueryPal, told Newsweek. “Having witnessed technology’s rapid evolution and its societal impacts, they may be more attuned to potential downsides like privacy concerns and job displacement fears. Their skepticism could also reflect a desire for more authentic, human connections in an increasingly digital world.”

Gen Z’s position in the workforce could be causing a higher number to express concerns about the technology too.

“Many Gen Z workers are in entry-level or service industry jobs that haven’t yet seen significant AI integration or benefits, unlike older millennials who might be using AI tools for data analysis, content creation, or project management,” Nag said. “This limited exposure in their professional lives, combined with concerns about AI’s impact on job security in lower-skill positions, could be fueling their skepticism.”

Most Americans didn’t feel substantial privacy concerns when it came to AI on their phones, with only one in 10 saying they worried AI would be “too intrusive” on them.

And while Gen Z has expressed some skepticism over AI specifically on their phones, they have been leaning on it in many areas of their lives, especially when it comes to financial advice and budgeting.

Still, there’s a large difference between using AI to make things easier in your personal life and at your own pace than implementing the tools on phones and in the workforce, experts said.

“Unlike older generations, who might see AI as a shiny new productivity booster, Gen Z is questioning who really benefits from these tools,” Driscoll said. “On this point, they’re not being anti-technology. They’re being pro-human, pro-worker. As this generation dominates the workforce, companies pushing AI without considering its human impact will face resistance, and rightfully so.”

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Why you can never connect to train Wi-Fi https://inews.co.uk/news/technology/why-train-wifi-really-bad-3236193?ico=most_popular&srsltid=AfmBOophWmPCKKMP8MUVGfFE-qaSMO-vKPDbFMyqtjdp-SnI3God8AfR#new_tab Wed, 21 Aug 2024 20:52:42 +0000 https://gwsolutions.com/?p=12236 A perfect storm of factors makes getting connected to online spreadsheets and websites tricky while hurtling through the countryside It’s the bane...

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A perfect storm of factors makes getting connected to online spreadsheets and websites tricky while hurtling through the countryside

Annoyed girl unsuccessfully tries to catch a cellular signal or an unstable WiFi, holding her smartphone in her hands in train

It’s the bane of every commuter’s existence. You’ve set down your laptop on the tray table in front of you ahead of a long-distance train journey, expecting to get work done, only to find that the onboard Wi-Fi connection is patchy or barely working at all.

Half of UK train travellers surveyed by Transport Focus in July said they were dissatisfied with the reliability of their internet connection. Satisfaction with connectivity was the lowest of all the aspects the rail watchdog surveyed users about, and at 51 per cent, was 35 percentage points lower than overall satisfaction about train services.

The problem is so significant, according to a 2019 survey for the Department for Transport (DfT), that most passengers simply rely on their own (patchy) mobile internet connection rather than the train’s Wi-Fi. Just 4.3 per cent of internet data traffic generated during train journeys used onboard Wi-Fi, according to the DfT report.

And according to conversations rail expert Christian Wolmar has had with those in the industry, passenger usage of Wi-Fi on UK trains is around half the 50 or 60 per cent in continental Europe.

In part, the reason why onboard train Wi-Fi is so unreliable is that it’s not true Wi-Fi at all: it often relies on the same dodgy mobile data signals that i recently reported feel like they’re getting worse.

“There’s equipment on top of the train with half a dozen SIM cards on it for each network operator,” said Wolmar. “It’s supposed to pick up the best signal and create the Wi-Fi out of that.” Each SIM card acts as a mobile data router, gathering mobile internet signal in the same way your smartphone does, and then redistributing it to the users on the train below.

The issue is that 4G and 5G mobile internet connections aren’t ubiquitous across the whole country, with just 69 per cent of rural areas covered by all four major mobile networks.

Wi-Fi performance tends to be similar across network operators, but routes closer to mobile phone masts tend to offer more consistent connections than those that operate in rural areas, far away from network coverage.

Even if a reliable signal can be gleaned from the mobile data receivers sat atop carriages, there are other issues. Whatever data is available is often capped by the train operators, because they have to pay the mobile networks for the usage. “That’s why you can’t download films or have long Zoom conversations or whatever, because there isn’t enough data,” said Wolmar.

Beyond that, the paltry signal that manages to come through to a carriage encounters another issue, highlighted by a study for DfT. If you were trying to design a system uniquely made to try and limit the spread of Wi-Fi signal, you couldn’t do much better than a modern UK train carriage.

The materials used to make train carriages, such as welded aluminum, create what’s called a “Faraday cage” – which blocks electromagnetic signals such as Wi-Fi. Even the special kind of glass used to make train carriages better insulated can weaken the strength of Wi-Fi signals. How busy the train is can also dampen signal strength – and therefore speed – as the wireless signal has to pass through bodies to get to your device.

Once the smidgen of bandwidth that can be pulled from mobile phone masts to the train, gets through the data cap, gets weakened by the almost uniquely frustrating way train carriages are designed that specifically makes signal transfer worse, there’s a further problem: you have to share the little Wi-Fi signal that remains with everyone else on the train. “It’s limited in that if 20 people are using it at the same time to check their emails, it will max out,” said Wolmar, with only a hint of hyperbole.

“Train Wi-Fi brings together a perfect storm for connectivity providers and train operators,” said Paul Carter, CEO of wireless network benchmarking company GWS. “Trains are fast-moving, often densely populated, metal boxes.”

And because onboard Wi-Fi relies on increasingly questionable mobile internet signals – which are suffering many challenges – it can seem to many passengers that things are getting worse. Past surveys of passengers by Transport Focus suggested satisfaction with Wi-Fi connections was nearly 10 percentage points higher a year ago than today.

The technology is in need of updating but comes up against more fundamental infrastructural issues, such as punctuality and train performance. Indeed, the government told train operating companies in May last year to stop offering Wi-Fi service if it freed up capacity to improve other areas.

But change could soon be coming. The new Labour Government, alongside its rejuvenated plans for Great British Railways, a state-owned company to oversee all rail transport that has not yet been devolved, has an opportunity to change the bad reputation of on-board train Wi-Fi.

“Installing fast and reliable train Wi-Fi is not impossible,” said Carter. “An often-underestimated feature of this is ensuring that the network infrastructure as a whole is in good shape. This includes deploying a combination of wired and wireless connectivity solutions and utilising technologies like 5G, trackside small cells and even satellite connections to enhance network coverage and capacity.”

Doing so requires impetus, however – and an attitudinal change. “Wi-Fi on trains ought to become like toilets,” said Wolmar. “You wouldn’t think of running a train for a long distance without a toilet. Well ditto with Wi-Fi: it should be a basic provision.”

That would have other benefits, the rail expert reckons. “It will attract people back onto the railways.”

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You’re not imagining it, train Wi-Fi really is bad https://www.msn.com/en-gb/money/technology/you-re-not-imagining-it-train-wi-fi-really-is-bad/ar-AA1p9Nx9?ocid=BingNewsVerp#new_tab Wed, 21 Aug 2024 20:49:33 +0000 https://gwsolutions.com/?p=12233 It’s the bane of every commuter’s existence. You’ve set down your laptop on the tray table in front of you ahead of a long-distance train...

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It’s the bane of every commuter’s existence. You’ve set down your laptop on the tray table in front of you ahead of a long-distance train journey, expecting to get work done, only to find that the onboard Wi-Fi connection is patchy or barely working at all.

Half of UK train travellers surveyed by Transport Focus in July said they were dissatisfied with the reliability of their internet connection. Satisfaction with connectivity was the lowest of all the aspects the rail watchdog surveyed users about, and at 51 per cent, was 35 percentage points lower than overall satisfaction about train services.

The problem is so significant, according to a 2019 survey for the Department for Transport (DfT), that most passengers simply rely on their own (patchy) mobile internet connection rather than the train’s Wi-Fi. Just 4.3 per cent of internet data traffic generated during train journeys used onboard Wi-Fi, according to the DfT report.

And according to conversations rail expert Christian Wolmar has had with those in the industry, passenger usage of Wi-Fi on UK trains is around half the 50 or 60 per cent in continental Europe.

In part, the reason why onboard train Wi-Fi is so unreliable is that it’s not true Wi-Fi at all: it often relies on the same dodgy mobile data signals that i recently reported feel like they’re getting worse.

“There’s equipment on top of the train with half a dozen SIM cards on it for each network operator,” said Wolmar. “It’s supposed to pick up the best signal and create the Wi-Fi out of that.” Each SIM card acts as a mobile data router, gathering mobile internet signal in the same way your smartphone does, and then redistributing it to the users on the train below.

The issue is that 4G and 5G mobile internet connections aren’t ubiquitous across the whole country, with just 69 per cent of rural areas covered by all four major mobile networks.

Wi-Fi performance tends to be similar across network operators, but routes closer to mobile phone masts tend to offer more consistent connections than those that operate in rural areas, far away from network coverage.

Even if a reliable signal can be gleaned from the mobile data receivers sat atop carriages, there are other issues. Whatever data is available is often capped by the train operators, because they have to pay the mobile networks for the usage. “That’s why you can’t download films or have long Zoom conversations or whatever, because there isn’t enough data,” said Wolmar.

Beyond that, the paltry signal that manages to come through to a carriage encounters another issue, highlighted by a study for DfT. If you were trying to design a system uniquely made to try and limit the spread of Wi-Fi signal, you couldn’t do much better than a modern UK train carriage.

The materials used to make train carriages, such as welded aluminum, create what’s called a “Faraday cage” – which blocks electromagnetic signals such as Wi-Fi. Even the special kind of glass used to make train carriages better insulated can weaken the strength of Wi-Fi signals. How busy the train is can also dampen signal strength – and therefore speed – as the wireless signal has to pass through bodies to get to your device.

nce the smidgen of bandwidth that can be pulled from mobile phone masts to the train, gets through the data cap, gets weakened by the almost uniquely frustrating way train carriages are designed that specifically makes signal transfer worse, there’s a further problem: you have to share the little Wi-Fi signal that remains with everyone else on the train. “It’s limited in that if 20 people are using it at the same time to check their emails, it will max out,” said Wolmar, with only a hint of hyperbole.

“Train Wi-Fi brings together a perfect storm for connectivity providers and train operators,” said Paul Carter, CEO of wireless network benchmarking company GWS. “Trains are fast-moving, often densely populated, metal boxes.”

And because onboard Wi-Fi relies on increasingly questionable mobile internet signals – which are suffering many challenges – it can seem to many passengers that things are getting worse. Past surveys of passengers by Transport Focus suggested satisfaction with Wi-Fi connections was nearly 10 percentage points higher a year ago than today.

The technology is in need of updating but comes up against more fundamental infrastructural issues, such as punctuality and train performance. Indeed, the government told train operating companies in May last year to stop offering Wi-Fi service if it freed up capacity to improve other areas.

But change could soon be coming. The new Labour Government, alongside its rejuvenated plans for Great British Railways, a state-owned company to oversee all rail transport that has not yet been devolved, has an opportunity to change the bad reputation of on-board train Wi-Fi.

“Installing fast and reliable train Wi-Fi is not impossible,” said Carter. “An often-underestimated feature of this is ensuring that the network infrastructure as a whole is in good shape. This includes deploying a combination of wired and wireless connectivity solutions and utilising technologies like 5G, trackside small cells and even satellite connections to enhance network coverage and capacity.”

Doing so requires impetus, however – and an attitudinal change. “Wi-Fi on trains ought to become like toilets,” said Wolmar. “You wouldn’t think of running a train for a long distance without a toilet. Well ditto with Wi-Fi: it should be a basic provision.”

That would have other benefits, the rail expert reckons. “It will attract people back onto the railways.”

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Amazon develops China seller network to take on Temu, Shein https://asia.nikkei.com/Business/Retail/Amazon-develops-China-seller-network-to-take-on-Temu-Shein#new_tab Fri, 16 Aug 2024 15:06:56 +0000 https://gwsolutions.com/?p=12186 SHANGHAI/PALO ALTO, California — Amazon is making a push to acquire more sellers in China, aiming to expand its offerings of affordable...

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SHANGHAI/PALO ALTO, California — Amazon is making a push to acquire more sellers in China, aiming to expand its offerings of affordable products in the U.S. and elsewhere to take on Temu and other Chinese competitors.

At the end of July, Amazon held an event for online sellers in Shenzhen, Guangdong province, telling them it would support their efforts to enter the global market.

As examples of past successes in China, Amazon cited Anker, which makes chargers for smartphones and other devices, and robot vacuum cleaner manufacturer Roborock, both of which expanded around the world.

Amazon has been scaling back its consumer-oriented businesses in China. The company ended its domestic e-commerce service in China in 2019, and recently shut down its Kindle e-book service. It continues to provide cross-border e-commerce for overseas products to Chinese consumers, but its presence is weak.

Recently, however, Amazon has been reevaluating China as a source of goods for selling outside the country and is cultivating sellers there.

This year, it opened new offices in the inland cities of Wuhan, Hubei province, and Zhengzhou, Henan province. They support sellers in nearby cities and surrounding areas, seeking to do new business with small and medium-size sellers such as factories in rural areas.

For companies lacking the know-how to export overseas or develop their brand, the offices can help them by using Amazon’s logistics network and other resources to sell their products worldwide.

Amazon’s official account on the social networking app WeChat is also working to recruit sellers, holding live seminars almost every day for people considering listing products. “In 2024, we will hold dozens of events for thousands of sellers,” Amazon China’s vice president told Chinese media in May.

The company will also begin building a framework to deliver Chinese products to the U.S. at lower prices. It has been signing new contracts with Chinese retailers from this summer that allow inexpensive daily necessities and clothing to be shipped directly to U.S. consumers, according to The Information and other U.S. media. Previously, deliveries were made via Amazon’s logistics facilities, but shipping directly is expected to reduce costs.

Amazon is rushing to develop sellers in China over concerns that its presence in the U.S. and elsewhere could decline in the face of rising low-cost online shopping services from China like Temu and Shein.

According to a survey of 1,000 U.S. consumers conducted by Jungle Scout, an analytics service for sellers, 52% of people said they first searched for products on Amazon when shopping online in April to June, down nine percentage points from two years ago.

Sales from Amazon’s direct online shopping business grew 5% year on year in the April-June period, slowing from a 7% rise in January to March.

In 2023, U.S. consumers spent 11 minutes a day using the Amazon app, according to U.S. research firm Global Wireless Solutions. Temu consumers, on the other hand, spent 22 minutes a day using its app, which draws interest by frequently issuing coupons.

At an earnings briefing on Thursday, Amazon CEO Andy Jassy acknowledged that consumers continue to seek low-priced goods.

China is becoming increasingly important as a supplier of of low-cost goods — a trend that benefits Chinese sellers, who can lift sales through exports amid sluggish domestic demand.

Cross-border e-commerce exports in 2023 amounted to $261.7 billion, up 180% from 2018, according to China’s General Administration of Customs. The U.S. was the most common destination, accounting for 37%.

Chinese internet companies like Temu, Alibaba Group’s AliExpress and ByteDance subsidiary TikTok are expanding their cross-border e-commerce businesses by utilizing the networks of business partners they have cultivated domestically, boosting export values.

Amazon is not the only foreign company aiming to expand its listings from China. Shopee, from Singapore-based Sea, is also streaming seminars on WeChat in an effort to attract Chinese sellers interested in expanding into Southeast Asian markets, where it has an advantage.

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Shein, Temu, TikTok Shop: Are Chinese e-commerce platforms an existential threat? https://www.managementtoday.co.uk/shein-temu-tiktok-shop-chinese-e-commerce-platforms-existential-threat/indepth/article/1884882#new_tab Wed, 14 Aug 2024 21:13:24 +0000 https://gwsolutions.com/?p=12183 Their use of innovative technologies and ‘gamification’ tools places them at the forefront of the digital retail revolution. What are the secrets...

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Their use of innovative technologies and ‘gamification’ tools places them at the forefront of the digital retail revolution. What are the secrets of their success and can the rest of the world measure up?

by Éilis Cronin

Every once in a while I do enjoy a frivolous scroll through TikTok, but my feed is becoming increasingly saturated with people trying to sell me stuff.

From swimsuits and slippers to makeup and toilet rolls, everywhere I turn I’m bombarded with videos of influencers urging me to stock up on the latest trending product available to buy through TikTok shop.

As I continue to scroll, there are more videos of social media users decanting piles of new clothes from plastic Shein bags or ripping open bright orange packaging to reveal a host of items from Temu. It’s not just influencers endorsing these sites; in recent years, celebrities such as Katy Perry, Khloé Kardashian, Hailey Bieber and Rita Ora have all collaborated with Shein.

While Amazon and eBay continue to lead in digital retail, these platforms, along with Alibaba and JD.com, have gained significant popularity among UK consumers as the likes of Boohoo.com, Asos and Pretty Little Thing see their revenues slump.

Is there an existential threat to the UK and perhaps even the global e-commerce sector? Or are there lessons to be learned from their success?

Soaring popularity

By the end of 2023, Temu racked up a staggering £27bn in revenue, with Shein boasting a smaller – but no less impressive – $2bn (£1.5bn) in UK sales. Approximately 370 million items, worth $11bn, were sold via TikTok’s shopping arm in the UK in 2023, generating a total of $2.49bn for the platform.

Asos’s 2023 revenue, meanwhile, came in at £1.5bn, while sales at Boohoo and Pretty Little Thing stood at £1bn and £634m respectively.

“[Temu] really grew in the first six months of use in the UK,” says Paul Carter, CEO of consumer insights company GWS Magnify.

“At six months, it was up to 14 million monthly users. Even 17 months ago, Shein’s UK users were already at four million. By comparison, Amazon has around 25.5 million monthly users.”

The popularity of these platforms speaks to wider macroeconomic and social media trends: sites like Shein, Temu and TikTok Shop sell countless products at very low prices and are quick to tap into the latest home and fashion trends, often offering cheaper ‘dupes’ of more expensive mainstream brands to scores of cash-strapped consumers across the UK.

But with low prices can come low or inconsistent quality, with customers complaining about shoddy stitching or poor quality materials from some Chinese e-commerce platforms, produced in factories with less-than-ideal working conditions. In fact, workers’ rights campaigners have called for a potential Shein listing on the London Stock Exchange to be blocked, citing concerns around the company’s labour practices.

Consumption demands

Frightening stories have come from people who claim to have worked in the factories of some of these companies. In December 2020, a young woman died after finishing a shift at a factory owned by Pinduoduo, whose parent company PDD also owns Temu, sparking concerns that she died due to the infamous ‘996’ culture, where employees can work from 9am to 9pm, six days a week (some work even longer).

In 2021, Swiss advocacy group Public Eye reported that a number of workers across six Shein sites in Guangzhou, a city northwest of Hong Kong, were doing excessive overtime. According to the group, which interviewed 13 factory workers, excessive overtime is common.

The domination of these – and other ecommerce – platforms can also come at a high price for the environment. They are often accused of selling ‘fast fashion’ – inexpensive clothing rapidly mass produced to keep up with the latest trends. According to the UN Environment Programme, the fashion industry is the second biggest consumer of water and is responsible for almost 10% of global carbon emissions.

Poor product quality, working conditions and sustainability practices have “been an issue for as long as [e-commerce] platforms have been around,” says Michael Zakkour, founder of retail consultancy 5 New Digital. Even e-commerce behemoths like Amazon have “reams of paperwork” detailing complaints from customers.

“The easiest remedy for complaints,” says Zakkour, “is free returns. You don’t like it, you send it back. These new platforms now have the same policy.”
He also believes customers “know what the deal is” when buying products from these sites. If someone is “ordering a men’s polo shirt for £6, it might be OK when it gets to you, or it could suck”, he says.

Consumption is “human nature”, according to Michelle Lai, director of Yonder Consulting. “If you’re a 16 year-old and you want a new handbag or t-shirt, you’re going to shop where you can get it cheaper. Whether it’s been sourced ethically or dyed responsibly isn’t going to be a consideration.” She believes that there is a “mismatch” between what consumers say they want – ethically sourced, sustainable products – and the behaviour they exhibit – buying products that do not meet these standards.

“These platforms are simply answering a demand.”

The gamification of e-commerce 

Aside from offering cheap products, much of what makes these sites so successful is the ‘gamification’ of online retail.

Zakkour says e-commerce is evolving into “immersive commerce” through the use of “gamification, 3D product pictures [and the] live streaming [of] shoppable content”.

“We’re connecting that ‘immersivity’ with online shopping, which has helped set the stage for the rise of these Chinese e-commerce platforms.”

Dr Paul Carter says these platforms take the consumer on a “purchase journey” to try to keep them in the app as long as possible, usually by enticing them with rewards or promotions – something with a “perceived urgency”. As the customer learns more about what products are available, these sites learn more about them and what their interests are – making them more likely to return frequently.

These platforms also spend “an incredible amount of money on digital advertising”, says Michael Zakkour. Last year, in fact, Temu spent $2.5m on digital advertising alone – “you can’t open a website or social media app without seeing those funky little Temu ads”. Two years ago, the company even bought two 30-second adverts during the Superbowl (one advert costs around $7m).

While their marketing may not be sophisticated, says Zakkour, they have mastered the algorithm that keeps people on their sites.

“People don’t shop anymore. Algorithms shop for them. The algorithm is telling them whether they like something or not, whether they are conscious of it or not. Once you set foot onto these sites, they use a very sophisticated algorithm to keep you coming back to buy more.”

The question of whether these platforms are an ‘existential threat’ to the UK – and potentially global – e-commerce sector could in part depend on how quickly established players can adopt some of these immersive technologies. Walmart is among those to bet on their importance. In May this year, it launched Walmart Realm, a “metaverse-style” immersive digital shopping platform, which allows shoppers to buy products from within three virtual environments.

As we witness the meteoric rise of Gen AI technology, the global digital frontiers are constantly shifting.

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Temu and Shein’s soaring popularity has Wall Street eyeing China’s influence on tech earnings https://www.cnbc.com/2024/07/29/temu-shein-soaring-popularity-could-hit-amazon-meta-ebay-earnings.html#new_tab Tue, 30 Jul 2024 13:40:41 +0000 https://gwsolutions.com/?p=12180 Earnings reports from Amazon, Meta and eBay could all raise questions about the ongoing impact of discount retailers Temu and Shein. The...

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  • Earnings reports from Amazon, Meta and eBay could all raise questions about the ongoing impact of discount retailers Temu and Shein.
  • The two China-linked companies have seen huge growth in the U.S. thanks to a marketing blitz and rock-bottom prices.
  • They’ve been spending heavily on Google and Facebook, while generating fresh competition for e-commerce players like Amazon, eBay and Etsy.
  • Temu and Shein have exploded in the U.S. by going on an online marketing blitz and offering consumers inexpensive goods from China, whether it’s a $3 pair of shoes or a $15 smartwatch.

    The rise of the discount shopping apps, along with TikTok Shop from China’s ByteDance, have generated fresh competition for U.S. e-commerce companies Amazon, eBay and Etsy.

    Much of their growth, according to some industry experts, is the result of a trade loophole, known as the de minimis exception, which allows for packages shipped from China valued at under $800 to enter the U.S. duty free. Amazon’s top public policy executive, David Zapolsky, says it’s an issue that state attorneys general should be asking about, and added that the lack of scrutiny of China’s supply chain is a “concerning trend” among U.S. and European officials.

    “I think there’s a question about the extent to which some of their business models are subsidized,” Zapolsky told CNBC in a recent interview, speaking broadly about Chinese companies. “At a very tactical level, there are rules around what you can show as your list price vs. the sale price, and I think those rules are not always enforced.”

    The topic of Temu and Shein’s growth will hover over tech earnings this week, as Amazon reports second-quarter results alongside Meta, eBay and Etsy. Investors will be watching for any commentary about the impact of Temu and Shein on e-commerce marketplaces and for discussion of their ad spending, which has helped fuel Meta’s recent expansion.

    Tech earnings season got off to an ominous start last week. Late Tuesday, Alphabet reported a slight beat on revenue, but missed estimates on YouTube ad sales, pushing the stock down 5% on Wednesday. Tesla shares plunged 12% that day, the biggest drop since 2020, on weaker-than-expected earnings and a second straight quarter of declining auto revenue.

    In Amazon’s report on Thursday, the company is expected to show revenue growth of about 11% to $148.6 billion, according to LSEG. However, net income is expected to increase 63% from a year earlier, reflecting the company’s hefty cost-cutting moves, including eliminating tens of thousands of jobs.

    While retail is no longer Amazon’s growth engine, it’s still the business that makes up the bulk of revenue. And third-party sellers now account for over 60% of goods sold on the site. That’s where Temu and Shein come into play, as merchants now have new ways to get products to American consumers. They’re able to offer such low prices in part because they cut out intermediaries by selling direct from factories in China to consumers across the world, and they use slower delivery options.

    Shein launched in the U.S. in 2017, and has recently flooded Google and Facebook with ads to fuel expansion. It’s reportedly valued at $66 billion. Temu, owned by PDD Holdings, debuted in the U.S. in 2022, and quickly plowed billions of dollars into marketing, most noticeably through its “Shop like a billionaire” TV spot that ran during this year’s Super Bowl.

    Amazon has continued to highlight its delivery prowess and its focus on speed in the face of growing competition from Temu and Shein. CEO Andy Jassy noted in February that recent changes to the company’s fulfillment network have allowed Amazon to invest in faster deliveries, while profitably expanding its roster of cheap products.

    “We have a saying that it’s not hard to lower prices, it’s hard to be able to afford lowering prices,” Jassy said on the company’s fourth-quarter earnings call. “The same is true with adding selection. It’s not hard to add lower [average selling price] selection, it’s hard to be able to afford offering lower ASP selection and still like the economics.”

    Regarding the economic advantage for Temu and Shein, officials in the U.S., the European Union and elsewhere are considering whether to close the trade loophole and increase duties on cheap goods, which could dent the continued growth of those platforms.

    A Temu spokesperson told CNBC in a statement that its growth isn’t dependent on the de minimis exemption. The site’s prices are competitive, the representative said, because of the company’s direct-from-factory model that eliminates the need for “numerous middlemen and their associated costs.”

    Shein didn’t respond to requests for comment.

    Does the ad blitz continue?

    Meta has other concerns, as there are some signs that Temu may be pulling back its ad spend. Barclays data from May noted that the number of new shoppers on Temu peaked in the third quarter of 2023, and has declined in each of the last two quarters. The firm said Temu may have been adjusting its marketing efforts to focus on existing shoppers instead of new app metrics.

    “Meta investors have been worried about a possible US slowdown from outbound China advertisers, particularly Temu, and this data around new buyer activations would suggest that some of these fears are warranted, and likely baked into the 2Q guidance which shows around a 6 point deceleration in ad revenue growth,” Barclays wrote in a note to clients in May. The firm recommends buying Meta shares.

    In April, Meta issued a weaker-than-expected forecast, sending the stock tumbling. Finance chief Susan Li said on the earnings call that the company wasn’t quantifying the contribution from China in the quarter, but she said advertising revenue in the Asia-Pacific region increased 41% from a year prior, making it the fastest growing region, and that it was boosted by online commerce and gaming.

    A Meta spokesperson declined to comment for this story.

    EBay has shrugged off the idea that Chinese rivals are stealing share, with CEO Jamie Iannone telling analysts in May that its differentiated selection sets the site apart. Etsy, meanwhile, has taken steps to emphasize its sellers’ role in sourcing or creating artisan goods.

    Temu and Shein may represent just a short-term phenomenon in the U.S. Wish, founded in San Francisco in 2010, surged in popularity with its ultracheap direct-from-China goods pushing the company to a valuation of $14 billion at the time of its initital public offering in 2020. Then users fled and the business faltered. Wish was acquired by Singapore-based Qoo10 earlier this year for $173 million.

    Bank of America analysts said in a May note that Amazon and Walmart are the most “insulated” from Chinese competitors.

    “Data on shipping times suggest Temu/TikTok/Shein shipping speeds trail industry leaders, which could limit traction over time,” the analysts wrote. “We think reducing shipping times will be an important factor in long-term competition.”

    Temu’s shipping times vary from four to 22 days on average, while Shein items take three to 14 days to arrive, Bank of America said. Amazon has moved to increase delivery speeds from two days to a day or less.

    Amazon remains by far the largest online retailer in the U.S., and is projected to capture roughly 40% of e-commerce sales in the country this year, according to eMarketer. However, while it’s long touted itself as the “lowest-priced U.S. retailer,” Amazon has shown that it’s well aware of Temu and Shein’s increasing popularity.

    At an event with Chinese sellers in June, Amazon said it plans to launch a discount store that will feature mostly unbranded items priced below $20, according to a presentation viewed by CNBC.

    The storefront would take advantage of the same de minimis rule used by platforms like Temu and Shein, The Information reported last month, citing a person familiar with the company’s plans.

    Amazon’s Zapolsky said the company hasn’t taken a stance on whether lawmakers should clamp down on de minimis shipments. Regardless, he said, Amazon has to win over consumers.

    “We know we have to compete with them,” Zapolsky said, “to convince customers that they can get the best quality and best prices from Amazon.”

    Clarification: The story is updated to provided clarity around the context of Zapolsky’s quote in the third paragraph.

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    Amazon shows resilience in UK https://ecommercenews.eu/amazon-shows-resilience-in-uk/ Thu, 18 Jul 2024 20:49:21 +0000 https://gwsolutions.com/?p=12105 Despite the rapid rise of Chinese platforms, Amazon remains immensely popular in the United Kingdom. The company has managed to maintain the...

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    Despite the rapid rise of Chinese platforms, Amazon remains immensely popular in the United Kingdom. The company has managed to maintain the number of monthly active users since the beginning of this year. Shein is growing, but Temu saw a decline in the number of users.
    This is evident from figures by GWS Magnify. According to the mobile analytics and business intelligence firm, approximately 26 million Britons visited Amazon in June, indicating that interest in the United Kingdom’s ecommerce market leader remains as high as at the beginning of the year.

    Amazon and eBay at the forefront
    Last year, Amazon lost shoppers to growing competition, particularly from China, but now the platform is holding its position. ‘The latest data shows that Amazon remains more resilient than ever’, reports Direct Commerce based on GWS’ figures.

    With 17.5 million active monthly users, the American eBay is also managing to stay ahead of Chinese competition in the United Kingdom.

    Shein and Temu
    Shein is the big grower, with 10.5 million monthly active UK users in June, compared to just under 8.0 million half a year ago. Temu, on the other hand, saw a slight decrease in interest, attracting 4 percent fewer active visitors than around the turn of the year. However, with approximately 16 million monthly users, Temu is still significantly larger than Shein and Asos. That local player is echoing Shein to increase turnover and profitability.

    Furthermore, Temu leads in terms of engagement: users – mainly women – spend an average of 18 minutes daily on the platform, spread over six visits.

    British Temu users visit the app six times a day.

    Shein engages users for just over 8 minutes daily, while Amazon’s engagement time is slightly lower (almost 8 minutes per day), spread over four visits.

    Acknowledgement of the threat
    “Amazon seems to have withstood the storm”, comments Paul Carter, CEO of GWS Magnify. “Its resilience over the last year against challenger brands is a testament to its market dominance and future growth. But despite growth remaining steady, Amazon’s recent moves to bring in its own direct-from-China discount section is an acknowledgment of the threat posed by the likes of Temu and Shein.”

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    Virgin Media O2 offers Best Broadband Experience in UK- GWS https://www.telecompaper.com/news/virgin-media-o2-offers-best-broadband-experience-in-uk-gws--1506738 Wed, 17 Jul 2024 21:32:23 +0000 https://gwsolutions.com/?p=12101 Virgin Media O2 has won two awards for Best Broadband Experience and Best Combined Connectivity Experience (broadband and mobile bundle) at the...

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    Virgin Media O2 has won two awards for Best Broadband Experience and Best Combined Connectivity Experience (broadband and mobile bundle) at the GWS connectivity experience awards. EE came top for Best Mobile Experience.

    The results are included in the GWS 2024 Nationwide Connectivity Experience Report, based on six months of data collection from 6,000 panel participants. Vodafone came second in the Best Broadband Experience category, followed by TalkTalk, Sky Broadband, EE, BT, Plusnet and Three Broadband in 8th place. Vodafone came second in the Best Mobile Experience Award category, followed by 3 UK and O2 UK.

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    Withholding the storm: Online challengers fail to break Amazon’s dominance as Temu growth plateaus https://retailtechinnovationhub.com/home/2024/7/17/withholding-the-storm-online-challengers-fail-to-break-amazons-dominance-as-temu-growth-plateaus Wed, 17 Jul 2024 21:30:55 +0000 https://gwsolutions.com/?p=12098 Despite the recent meteoric rise of low cost Chinese e-commerce brands, Shein and Temu, Amazon remains more resilient than ever, new research...

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    Despite the recent meteoric rise of low cost Chinese e-commerce brands, Shein and Temu, Amazon remains more resilient than ever, new research finds.

    Consumer usage data from mobile analytics and business intelligence firm GWS Magnify reveals that Amazon has shored up its market dominance in 2024.

    Since the start of the year, its monthly active user numbers in the UK have held steady at around 26 million since January 2024.

    Challenger Shein has seen the most impressive retail growth in 2024 so far. In January, it had nearly eight million monthly active users. But today it boasts over 10.5 million users – up 37% since the turn of the year.

    For the first time Temu’s growth rate appears to be plateauing, with user numbers down slightly (4%) since the seasonal highs at the turn of the year.

    But user figures remain high at around 16 million monthly active users today, which is significantly more than Shein or Asos, and only slightly lower than eBay’s nearly 17.5 million.

    While Amazon’s user figures remain high, challenger brands continue to outperform the US online giant in terms of engagement figures. In 2024 so far, the average Temu user spends 18 minutes on the app each day; over double that of Amazon at nearly eight minutes.

    Shein is also outdoing Amazon in terms of engagement with users averaging over eight minutes on its app each day. Overall, user engagement has remained steady this year in the UK with little change in app engagement across most brands.

    As well as spending longer on the app, Temu users are also visiting the retailer more often than Amazon users. In 2024, the average Temu user opens the app over six times a day, compared to an average of four openings a day for Amazon.

    While Amazon’s user base remains resilient, Shein and Temu are proving especially popular amongst one group in particular: women.

    81% of Shein users are female at present in the UK, compared to 54% for Amazon. Shien’s typical user is also much younger than the typical Amazon user – 39% of Shien’s customers are under the age of 34, compared to 30% for Amazon.

    Likewise, Temu has a heavily female user skew as 63% of its customers are women. But, like Amazon, Temu also proves popular with older audiences as 30% of Temu’s UK audience are over the age of 55 compared to 31% for Amazon.

    Dr Paul Carter, CEO, GWS Magnify, comments: “Amazon seems to have withheld the storm – its resilience over the last year against challenger brands is testament to its market dominance and future growth.”

    But despite growth remaining steady, Amazon’s recent moves to bring in its own direct from China discount section is acknowledgement of the threat posed by the likes of Temu and Shein.”

    “In a market where price rules, Amazon can afford to join the race to the bottom. But it also needs to ensure it’s winning the battle for user engagement if it’s to remain the dominant player in the market.”

    “The gamification of shopping is something that Temu in particular has mastered with great reward which sees customers coming back and opening the app many more times a day than Amazon. But Amazon’s robust and wide audience means it is, at least for now, still the top of the pile in UK online retail.”

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    Amazon Prime Day in the UK: Challengers Fail to Break Amazon’s Dominance – as Temu’s Growth Plateaus https://homeofdirectcommerce.com/news/amazon-prime-day-in-the-uk-challengers-fail-to-break-amazons-dominance-as-temus-growth-plateaus/ Tue, 16 Jul 2024 20:41:22 +0000 https://gwsolutions.com/?p=12095 Amazon Prime Day has quickly become one of the most anticipated retail events of the year, with discounts offered by brands beyond...

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    Amazon Prime Day has quickly become one of the most anticipated retail events of the year, with discounts offered by brands beyond the retail giant. However, despite the recent meteoric rise of low-cost Chinese eCommerce brands Shein and Temu, the latest data shows that Amazon remains more resilient than ever.

    Consumer usage data from mobile analytics and business intelligence firm GWS Magnify reveals that Amazon has shored up its market dominance in 2024:

    Since the start of the year, Amazon’s monthly active user numbers in the UK have held steady at around 26 million since January 2024
    Challenger Shein has seen the most impressive retail growth in 2024 so far. In January, Shein had nearly 8 million monthly active users. Today, the eCommerce company boasts over 10.5 million users—up 37 percent since the turn of the year.
    After its meteoric rise since launch, for the first time Temu’s growth rate appears to be plateauing, with user numbers down slightly (4 per cent) since the seasonal highs at the turn of the year. But user figures remain high at around 16 million monthly active users today, which is significantly more than Shein or Asos, and only slightly lower than eBay’s nearly 17.5 million.
    While Amazon’s user figures remain high, challenger brands continue to outperform the eCommerce giant in terms of engagement figures. In 2024 so far, the average Temu user spends 18 minutes on the app each day; over double that of Amazon at nearly 8 minutes. Shein is also outdoing Amazon in terms of engagement with users averaging over 8 minutes on its app each day. Overall, user engagement has remained steady this year in the UK with little change in app engagement across most brands.

    As well as spending longer on the app, Temu users are also visiting the retailer more often than Amazon users. In 2024, the average Temu user opens the app over 6 times a day, compared to an average of 4 openings a day for Amazon.

    While Amazon’s user base remains resilient, Shein and Temu are proving especially popular amongst one group in particular: women.

    Over four out of five (81 per cent) Shein users are female at present in the UK, compared to 54 per cent for Amazon. Shien’s typical user is also much younger than the typical Amazon user – nearly two-fifths (39 per cent) of Shien’s customers are under the age of 34, compared to 30 per cent for Amazon. Likewise, Temu has a heavily female user skew as 63 per cent of its customers are women. But, like Amazon, Temu also proves popular with older audiences as 30per cent of Temu’s UK audience are over the age of 55 compared to 31 per cent for Amazon.

    Dr Paul Carter, CEO, GWS Magnify, commented: “Amazon seems to have withheld the storm – its resilience over the last year against challenger brands is testament to its market dominance and future growth. But despite growth remaining steady, Amazon’s recent moves to bring in its own direct-from-China discount section is acknowledgement of the threat posed by the likes of Temu and Shein.

    “In a market where price rules, Amazon can afford to join the race to the bottom. But it also needs to ensure it’s winning the battle for user engagement if it’s to remain the dominant player in the market. The gamification of shopping is something that Temu, in particular, has mastered with great reward, which sees customers coming back and opening the app many more times a day than Amazon. But Amazon’s robust and wide audience means it is, at least for now, still the top of the pile in UK online retail.”

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    Virgin Media O2, EE top GWS UK connectivity experience study https://www.computerweekly.com/news/366593629/Virgin-Media-O2-EE-top-GWS-UK-connectivity-experience-study Tue, 16 Jul 2024 20:37:56 +0000 https://gwsolutions.com/?p=12093 Real-life testing of UK mobile and fixed connectivity services shine light on connectivity experiences as consumers spend nearly third of waking time...

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    Real-life testing of UK mobile and fixed connectivity services shine light on connectivity experiences as consumers spend nearly third of waking time on their phones

    A study from independent wireless insights consulting firm GWS has pinpointed Virgin Media O2 (VMO2) as offering the country’s best combined connectivity experience for its broadband and mobile experience.

    The study collected data from 1 December 2023 to 31 May 2024 from an opt-in consumer panel of just over 6,000 participants of real-life users who use their phones and tablet devices as normal throughout the day. GWS conducted a series of tests in the background, measuring and analysing mobile and ISP broadband network performance involving download and upload available throughputs, delivered throughputs, latency, reliability, packet loss and video streaming – such as resolution, freezing and loading.

    In total, GWS collected 573 million data points and conducted over 1.5 million tests during the six-month test period to determine the results. Tests were run at random times, seven days a week, on both mobile and Wi-Fi networks. For the Combined Connectivity Experience Award, scoring was based only on tests from a mobile network and that operator’s broadband partner.

    Looking at general trends, app engagement data collected by GWS showed UK consumers spend nearly one-third of their waking day on their smartphones, and most of that time (78%) is spent on Wi-Fi networks. In addition, a typical household was found to have between 13 and 14 different connected devices, with examples including smartphones, tablets, laptops, game consoles, smart TVs, smart appliances and security cameras.

    Looking at mobile devices specifically (smartphones and tablets), households typically have at least four connected. Over half of all households say the majority of the members in their house use the internet simultaneously for more than five hours a day, showing the importance of stable and fast broadband connections for hybrid work.

    Looking at the companies offering the best experiences, VMO2 topped two categories for best broadband and best combined connectivity, with EE coming top for best mobile experience.

    Looking at broadband performance test results, VMO2 edged out Vodafone Broadband and then TalkTalk, Sky Broadband and EE, offering throughput of over 170Mbp to users. Vodafone broadband provided less than half the throughput, over 75Mbps, illustrating, said GWS, a significant divide in performance regarding download throughput. VMO2 also performed best in video streaming, finishing top with best resolution and quickest time to load.

    Read more about network experiences
    BT tops UK fixed broadband customer experience rankings: Research from network quality of experience testing and monitoring firm pinpoints UK’s largest leading broadband provider as offering best quality of experience.
    EE claims network experience leadership among UK mobile operators: Latest guide to understanding the true experience on offer from the UK’s mobile operators sees not one market best company, but BT-owned comms provider scoops lion’s share of awards.
    Vodafone and Virgin Media O2 announce long-term network-sharing agreement: Network-sharing agreement aims to transform experience for tens of millions of customers across the UK and rebalance the mobile market by creating a third scaled network operator.
    How an improved network experience enhances business: At Cisco Live 2024, leaders discussed how AI can support business objectives. Companies like CSL Behring and Room & Board improved their network experience with ThousandEyes.
    GWS’s test results for mobile showed that operators were managing the everyday throughput requirements for consumers due to the fact that the apps they use require far less throughput from the mobile network than what the network is capable of providing. In contrast, broadband requires much higher throughputs due to the number of devices accessing the network at any one point in time from the same household.

    The study showed EE provided the best mobile experience by a major operator in the UK, performing top in most of the test categories, including reliability, video streaming and latency. EE led from Vodafone, Three UK and O2 respectively.

    In terms of throughputs, Three UK offered the highest download throughput at 63 Mbps, and was tied with EE for the highest upload throughput at 17Mbps.

    VMO2 won best combined connectivity experience, beating the Sky Mobile and Broadband combination; EE/BT; Vodafone/Vodafone Broadband; EE/EE; and Three UK, Three Broadband. When looking at throughputs, the fastest average download throughput by a combined provider was offered by VMO2 at over 150Mbps – well over double the average of closest rival EE/BT with an average download throughput of over 65Mbps. When looking at uploads, Virgin Media O2 was also top with an average throughput of 34Mbps.

    GWS CEO Paul Carter said: “What we need from our networks varies depending on where we are – if you’re going to be using your phone at home while sharing a network with other people or devices, most of the time it will require higher speeds than if you’re on the go using your mobile network. Our life isn’t one-dimensional running on one network, so nor should our testing be. That’s why we’ve tested the different types of networks people are accessing on their phones, to provide a more meaningful overview of the UK’s connectivity experience today.”

    The post Virgin Media O2, EE top GWS UK connectivity experience study appeared first on GWS.

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    Eurobites: Virgin Media O2 panned and praised on same day https://www.lightreading.com/customer-experience/eurobites-virgin-media-o2-panned-and-praised-on-same-day Tue, 16 Jul 2024 20:36:46 +0000 https://gwsolutions.com/?p=12091 It’s a confusing time for Virgin Media O2. The UK converged operator has, on the same day, been panned by Which? –...

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    It’s a confusing time for Virgin Media O2. The UK converged operator has, on the same day, been panned by Which? – the high-profile consumer rights organization – for its broadband customer service and praised for its broadband “experience” by testing company Global Wireless Solutions (GWS). According to Which?, VMO2 received “dismal scores across the board,” with the long wait to speak to an actual human topping the familiar list of customer gripes. GWS, however, draped not one but two gongs around the proverbial neck of VMO2 – Best Broadband Experience and Best Combined Connectivity Experience. Go figure.

    Finland’s Elisa saw second-quarter EBITDA (earnings before interest, tax, depreciation and amortization) climb 4% year-over-year, to €190 million (US$207 million), on revenue that increased 2% to €541 million ($589 million). The upward trajectory was driven by mobile service revenue, efficiency improvements and improving momentum in the B2B segment, said the company, which has made a name for itself as one of the more forward-thinking operators. Since June it has been building out its fiber network using XGS-PON technology, while this month it acquired fiber networks in the eastern and northeastern parts of Finland from Kaisanet. (See Finland’s Elisa bucks trend of telco decline.)

    London’s High Court has thrown out a lawsuit launched by carmaker Tesla, which had sued InterDigital and Avanci in a bid to gain a patent license ahead of its launch of 5G-connected vehicles in the UK. As Reuters reports, Judge Timothy Fancourt ruled that Tesla’s bid for a license was to be rejected but its attempt to revoke three of InterDigital’s patents can continue.

    The recently concluded Euro 2024 soccer tournament predictably piled heaps more data onto BT’s UK broadband network, with traffic reaching 30 times its average volume when the live matches were being screened, particularly those involving the two “home nations” of England and Scotland – BT estimates that fans burned through more than 11,000 terabytes of data watching those two teams play. The highest peak in broadband traffic during the final came as Cole Palmer equalized for England just after 9.30 p.m. and then… well let’s not go into that.

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    EE is top mobile network with Virgin Media O2 best for combined mobile and broadband says GWS after six month test programme https://www.mobilenewscwp.co.uk/News/article/ee-top-mobile-network-virgin-media-o2-best-combined-mobile-broadband-says-gws-six-month-test-programme Tue, 16 Jul 2024 20:34:59 +0000 https://gwsolutions.com/?p=12089 Virgin Media O2 was the top provider when combining mobile and broadband experience, followed by Sky Mobile, EE, Vodafone, and Three. EE...

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    Virgin Media O2 was the top provider when combining mobile and broadband experience, followed by Sky Mobile, EE, Vodafone, and Three.

    EE performed best in most test categories, including reliability, video streaming, and latency. In terms of throughput,

    Three had the highest download throughput at 63 Mbps and was tied with EE for the highest upload throughput at 17 Mbps. Vodafone came second, followed by Three and O2.

    Data collected from just over 6,000 participants

    WS tests also showed Virgin Media O2 performed at or near the top in a majority of the metrics with Sky also performing well in video streaming and reliability.

    Reliability across all combined providers remained constant. The fastest average download throughput by a combined provider was offered by Virgin Media O2 at over 150Mbps. This was over double the average of its closest rival EE/BT with an average download throughput of over 65Mbps. Virgin Media O2 was also top at uploads with an average throughput of 34Mbps

    The conclusions were drawn from data collected from GWS’ opt-in consumer panel of just over 6,000 participants who used their phones and tablets as normal.

    Data was anonymously collected from Android smartphones/tablets between December and May from background tests.

    GWS collected 573 million data points

    GWS collected 573 million data points and conducted over 1.5 million tests during the six-month test period. Tests were run at random times, seven days a week, on both mobile and WiFi networks.

    These tests measured mobile and ISP broadband network performance, including download and upload available throughput, delivered throughput, latency, reliability, packet loss, and video streaming (resolution, freezing, and loading).

    “Test results for mobile show that operators are all managing the everyday throughput requirements for consumers,” said GWS.

    This is because the apps that consumers use require far less throughput from the mobile network than what the network is capable of providing.

    GWS measured the throughput delivered to consumers while using their apps and found that throughput is generally much lower than the maximum throughput the networks are capable of providing. In contrast, broadband requires much higher throughput due to the number of devices accessing the network at any one point in time from the same household.”

    GWS data shows that people spend most of their time on mobile devices accessing social media, communications, and navigation apps. In fact, people spend over 50 percent of their time on just 10 connectivity and social media apps, with Facebook at the top, followed by Chrome Browser, WhatsApp, Google Maps, YouTube, TikTok, Facebook Messenger, Instagram, Gmail, and Snapchat.

    The post EE is top mobile network with Virgin Media O2 best for combined mobile and broadband says GWS after six month test programme appeared first on GWS.

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    GWS Rank Virgin Media and EE Best for UK Broadband and Mobile in H1 2024 https://www.ispreview.co.uk/index.php/2024/07/gws-rank-virgin-media-and-ee-best-for-uk-broadband-and-mobile-in-h1-2024.html Tue, 16 Jul 2024 20:33:25 +0000 https://gwsolutions.com/?p=12087 Network testing firm Global Wireless Solutions has today published the results of a new study that examined connectivity experiences in the UK, which saw Virgin...

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    Network testing firm Global Wireless Solutions has today published the results of a new study that examined connectivity experiences in the UK, which saw Virgin Media (O2) win two awards for ‘Best Broadband Experience‘ and ‘Best Combined Connectivity Experience‘, while EE came top for ‘Best Mobile Experience‘.

    The results from GWS’ 2024 Nationwide Connectivity Experience Report are based on the collection of 573 million data points and over 1.5 million tests conducted across key performance metrics (i.e. throughputs, reliability, latency, packet loss, and video streaming metrics). The tests were conducted on the devices of real-life users from GWS’ proprietary opt-in consumer panel of 6,000 participants (18+).

    In addition to running network performance tests, GWS generated insights into app usage and polled consumers on their wireless experiences. For example, this revealed that people have between 13 and 14 connected devices running on their home broadband networks. What’s more, over half of all households say that the majority of members in their house are using the WiFi simultaneously for more than 5 hours a day.

    The data also reveals that when on their Smartphones, Brits spend 78% of their time connected to WiFi (much of this will be from when they’re at home or in an office) and 22% on 4G/5G (mobile data). But the main focus of all the testing was to establish which broadband and mobile providers delivered the best experience.

    The Results

    Best Fixed Broadband ISP

    In terms of fixed broadband, Virgin Media was found to have the Best Broadband Experience out of all ISPs tested. As a highlight, Virgin Media led the pack when looking at mean download throughputs (across all panellists), offering over 170Mbps. The next closest provider was Vodafone, which offered less than half the throughput (over 75Mbps), illustrating a significant divide in performance (this probably has more to do with the fact that Virgin has a higher take-up of faster speeds).

    Virgin Media also performed best in video streaming, finishing top with best resolution and quickest time to load. In addition, GWS also measured the percentage of time that ISPs were able to maintain high definition (HD) resolution during the streaming tests (i.e. maintaining video resolution at 720p or greater). Virgin Media led the way at 94%.

    Broadband Provider Ranking for H1 2024

    1. Virgin Media
    2. Vodafone
    3. TalkTalk
    4. Sky Broadband
    5. EE
    6. BT
    7. Plusnet
    8. Three Broadband (mobile)

    Best Mobile Operator

    GWS found that EE provided the Best Mobile Experience by a major operator in the UK. EE performed top in most of the test categories, including reliability, latency, and all three video streaming tasks. In terms of HD streaming, EE came top with 80%. When looking at throughputs, Three UK had the highest download throughput at 63Mbps and was tied with EE for the highest upload throughput at 17Mbps.

    Mobile Operator Ranking for H1 2024

    1. EE
    2. Vodafone
    3.Three UK
    4.O2

    Best Combined Mobile and Broadband Provider

    Finally, Virgin Media and O2 were found to have provided the Best Combined Connectivity Experience. While VMO2 performed at or near the top in a majority of the metrics, Sky Mobile also performed well in video streaming and reliability. Interestingly, reliability across all combined providers remained constant when compared to last year’s results.

    When looking at throughputs, the fastest average available download throughput by a combined provider was offered by VMO2 at over 150Mbps – well over double the average of its closest rival (EE/BT with an average download throughput of over 65Mbps). When looking at available uploads, VMO2 was also top with an average throughput of 34Mbps.

    Combined Mobile and Broadband Ranking for H1 2024

    1. O2 + Virgin Media
    2. Sky Mobile + Sky Broadband
    3. EE + BT
    4. Vodafone + Vodafone Broadband
    5. EE + EE
    6. Three UK + Three Broadband

    Dr Paul Carter, CEO of GWS, said:

    “We’ve released this report to provide a holistic look at the state of the UK’s wireless connectivity – which includes whether you’re connecting via an ISP or mobile network. What we need from our networks varies depending on where we are – if you’re going to be using your phone at home while sharing a network with other people or devices, most of the time it will require higher speeds than if you’re on the go using your mobile network. Our life isn’t one-dimensional running on one network, so nor should our testing be. That’s why we’ve tested the different types of networks people are accessing on their phones, to provide a more meaningful overview of the UK’s connectivity experience today.”

    Sadly, we don’t get a more detailed breakdown of the results for each individual provider, which is a pity as the vague ranking table doesn’t really provide much in the way of useful information. The use of WiFi terminology also suggests that the broadband testing was conducted over a local wireless network, which leaves connections open to all sorts of performance issues due to the highly variable nature of wireless signals in different environments and at different distances. It’s often far better to test over a wired link.

    Finally, the study also included ‘Three Broadband’ as an option in the broadband table, which is slightly confusing as they use broadly the same 4G / 5G technology as Three’s regular mobile broadband network. But being able to fairly compare a highly variable mobile network with a modern fibre-based fixed line one is fraught with difficulty.

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    Meta is still betting that Threads can beat Elon Musk’s X — but Zuckerberg faces an uphill battle https://www.businessinsider.com/threads-meta-betting-defeat-x-twitter-elon-musk-mark-zuckerberg-2024-7 Tue, 16 Jul 2024 19:31:20 +0000 https://gwsolutions.com/?p=12084 Mark Zuckerberg’s Twitter-killer, Threads, celebrated its first birthday last week. The platform became the world’s fastest-growing app shortly after it launched, hitting 100 million...

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    Mark Zuckerberg’s Twitter-killer, Threads, celebrated its first birthday last week.

    The platform became the world’s fastest-growing app shortly after it launched, hitting 100 million users in just five days.

    A year on, Threads is still growing, albeit not as quickly. Zuckerberg said last week that the X rival now has more than 175 million monthly active users.

    Threads owes much of its early success to its close links with Instagram.

    Users were able to sign up with their Instagram login, making it easy to create an account and find contacts. It also launched when some were seeking an alternative to Twitter following Elon Musk’s takeover.

    In contrast, X’s growth is stalling. The platform said its number of global daily active users increased by 1.6% to 251 million in the second quarter of this year, the Financial Times reported Tuesday.

    That represents a 1.6% year-over-year increase and contrasts with the double-digit growth the platform generally posted before Musk bought it.

    In a recent interview with Platformer, Threads and Instagram boss Adam Mosseri said the aim was still to overtake X. However, Threads was focusing on differentiating itself from X in a bid to win more users.

    “Another key focus is how do we double down on one of our differentiators, which is just to be a less angry space,” Mosseri told the outlet, adding that undertaking some “basic content moderation” had helped.

    Zuckerberg originally promoted Threads as a “friendlier” alternative to X. But a year on, it does not yet appear to have become a genuine threat to Musk’s platform.

    “In the short term at least, Threads does not pose a significant challenge to X,” Paul Carter, CEO of the telecommunications firm GWS, told Business Insider.

    “Threads needs to do more to set itself apart if it’s going to pose a significant challenge or even look to overtake X in the future,” he said.

    Engagement issues

    Meta says Threads has 175 million active monthly users. Still, data provided to the FT from the analytics company Sensor Tower estimates the platform only has 38 million visitors daily, which suggests that users open the app less often than other platforms.

    In April, Sensor Tower estimated that Threads averaged 28 million daily active users in the US, while X had an average of 22 million.

    However, according to data provided by GWS, Threads still had a problem engaging users.

    “Despite recent growth, it is struggling to keep its users on the platform for a sustained period,” Carter said. “As of June 2024, users spent just six minutes on the app each day, compared to X at 23 minutes or Instagram at 36 minutes.”

    “New entrants into the social-media market can succeed — just look at the rise of TikTok. For Threads, however, the platform simply isn’t sufficiently setting itself apart,” he added.

    An Instagram add-on

    While Meta still backs Threads to overtake X, the platform still very much exists alongside Instagram.

    “Threads remains highly dependent on Instagram. In fact, it is hard to see how Threads would have amassed its audience without Instagram,” Carter said.

    Mosseri acknowledged that the platform was still “deeply integrated with Instagram,” but said he planned to make it more independent.

    “We’re working on things like Threads-only accounts and data separation,” he said. “As we iterate on the product, it’s gonna differentiate more and more.”

    But given that it’s so intrinsically linked to Meta’s vastly more popular app, it’s difficult to see Threads fully escaping from Instagram’s shadow in the near future.

    The post Meta is still betting that Threads can beat Elon Musk’s X — but Zuckerberg faces an uphill battle appeared first on GWS.

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    Shein looks to boost sales with price hike ahead of London IPO https://www.proactiveinvestors.com.au/companies/news/1049785/shein-looks-to-boost-sales-with-price-hike-ahead-of-london-ipo-1049785.html Fri, 14 Jun 2024 11:34:57 +0000 https://gwsolutions.com/?p=12103 Shein Group has raised its prices, with some of its top products being upped by over a third as the Chinese fast-fashion...

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    Shein Group has raised its prices, with some of its top products being upped by over a third as the Chinese fast-fashion giant prepares itself for a London IPO.

    Prices at the company rose at a faster rate than its high-street rivals H&M and Zara in a bid to boost its revenue before its £50 billion listing, research from retail intelligence company Edited found.

    Famed for its low prices that undercut both high street retailers and European rivals, analysts said the price cuts were part of the company’s plan to demonstrate its ability to charge more ahead of a float.

    Examples of the price rises include a Shein dress which rose to £24.12 in the UK, increasing by 15% in a year, while the same product in Germany, Italy and France lifted by 36%.

    “If they can demonstrate that these prices stick then the valuation increases significantly,” Alex Romanenko at Pearson Ham Group said to Reuters in an interview.

    New research also highlighted that talk of Shein’s listing in the UK has caused a 45% rise in its customer base in the country since the start of 2024, according to GWS Magnify.

    As of May this year, Shein had around 10.5 million monthly users in the UK, marking a 28% rise in the last twelve months.

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    Trump’s Truth Social struggles to grow its user base, according to new data https://www.nbcnews.com/business/markets/trump-media-truth-social-struggles-grow-user-base-rcna154015#new_tab Thu, 30 May 2024 21:03:14 +0000 https://gwsolutions.com/?p=12022 Nearly two-and-a-half years after its launch, Truth Social is struggling to hang onto its small U.S. user base, according to new data...

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    Nearly two-and-a-half years after its launch, Truth Social is struggling to hang onto its small U.S. user base, according to new data on the microblogging platform launched by former President Donald Trump’s media company.

    So far in May, U.S. daily visits to Truth Social have dropped more than 21% from April, and more than 35% compared to March, according to digital intelligence platform Similarweb.

    The site’s average number of monthly visits over the past year — just over 4 million from May 2023 to April 2024 — plummeted more than 39% from the prior 12-month period, from May 2022 to April 2023, Similarweb reported.

    The traffic has declined even as Trump — the most prominent Truth Social user and the majority shareholder of its parent company, Trump Media — has saturated the national news with coverage of his criminal trial and White House bid.

    And while the app saw a surge in visitors in the lead-up to Trump Media’s public trading debut in March, Similarweb’s most recent data show that those gains have already been erased.

    The user and engagement data from Similarweb and two other data firms, collected and analyzed exclusively for CNBC, offers a glimpse into how Trump Media’s flagship product is developing — one that the company itself has yet to provide.

    The company claims it does not track key indicators that social media platforms traditionally use to monitor their performance. Those include metrics like a site’s active user accounts and its daily and monthly visitor numbers, as well as its revenue per user and ad impressions.

    Trump Media says it believes tracking those stats “might not align with the best interests” of the company or its stockholders, according to its most recent filing with the Securities and Exchange Commission.

    The company also said it “may never collect, monitor, or report any or certain key operating metrics.”

    CNBC reached out to Trump Media for comment on the firms’ findings, and asked if it could provide any data of its own.

    “Why would we comment on a fake news network reporting on fake analyses?” the company said through a spokesperson.

    But the new analyses could be warning signs for Trump Media, whose business depends in large part on growing its user base.

    “If you can’t demonstrate that you have a sizeable, active, engaged, growing audience, I don’t understand how you create a successful ad-supported social media business,” said David Carr, Similarweb’s editor of insights, news and research, in an interview.

    Trump Media relies entirely on ad sales for its revenue, and discloses in its SEC filings that a decline in user engagement could hurt its business by making Truth Social less attractive to advertisers.

    The data firms’ findings could also harden Wall Street analysts’ view of the company as a “meme stock” whose sky-high market capitalization is untethered to its business fundamentals.

    “We basically don’t see anything in these digital indicators that would explain why the valuation is as high as it is,” Carr said.

    Trump Media on Tuesday reported a first-quarter net loss of nearly $328 million on revenue of about $771,000, most of which came from advertising.

    Nonetheless, as of Friday, the company had a market cap of slightly more than $8 billion.

    The stock closed on Friday at $45.81 per share, which is roughly in the middle of the wide range of share prices, from a low of around $22 per share to a high of around $70, that TMTG shares have traded at since the company went public in March.

    A single surge

    Truth Social’s monthly active user numbers declined significantly in the U.S. in the final months of 2023, three different data firms told CNBC.

    But the platform’s traffic rebounded in the first quarter of this year, as Trump Media closed in on a deal allowing it to start trading on the Nasdaq under the ticker DJT.

    Similarweb tallied 781,954 active iOS and Android users on Truth Social in the U.S. that month, a more than 58% surge from February. GWS Magnify offered an even rosier analysis, calculating that Truth Social’s monthly user numbers hit a new peak of 1.4 million in March, which carried over into April.

    Data firm Sensor Tower, meanwhile, calculated that the social media platform’s U.S. monthly active user level in the first quarter of 2024 rose 10% year over year.

    But all three analysts linked that rise to the heavy press coverage surrounding Trump Media’s public merger and its highly volatile trading kickoff, when the stock rocketed up as much as 50%.

    That meme-fueled frenzy seems unlikely to establish a long-term gain in traffic: In the four-week period ending May 19, for instance, daily active U.S. Truth Social users were down 19.7% year over year, according to Similarweb.

    Truth Social’s headwinds

    Truth Social also faces two major obstacles to building an engaged user base, according to GWS Magnify.

    The first is a retention problem. Truth Social users on average check the site fewer than two days a week — falling behind apps like Facebook, X, TikTok, Reddit and Pinterest.

    Truth Social users also clock fewer minutes of engagement on the platform that do the users of other social media networks. The vast majority of Truth Social users, 87%, also use Facebook. Another 51% are also on X, GWS Magnify reported.

    “Compared to other social media platforms, Truth Social users are accessing the app much less frequently and are spending much less time on it per session,” the firm’s CEO, Dr. Paul Carter, told CNBC in an email.

    “That will have a bigger impact on the prospects for Truth than any media limelight,” Carter said.

    He added that a future decline in Truth Social’s numbers “will be because the platform has failed to engage users in the way that the most successful social media companies — TikTok most prominently — have mastered.”

    The second problem is that Truth Social doesn’t offer anything to set it apart from bigger microblogging sites, especially X, which it closely resembles.

    Trump Media says it is focused on adding new features to Truth Social, including live TV streaming, according to its latest earnings report.

    But for now, its most unique feature is of Truth Social is Trump himself, who uses the app regularly and occasionally makes news in his posts.

    But despite the wall-to-wall national press coverage of Trump’s criminal trial and his campaign to President Joe Biden, Trump’s presence on Truth Social alone has not been enough to draw users away from its competitors.

    “It just hasn’t happened,” Carr said.

    The post Trump’s Truth Social struggles to grow its user base, according to new data appeared first on GWS.

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    Truth Social Usage Plummets as the Platform Launched by Donald Trump Struggles to Attract, Keep Users https://www.vcpost.com/articles/126857/20240525/truth-social-usage-plummets-platform-launched-donald-trump-attract-users.htm#new_tab Sat, 25 May 2024 21:00:20 +0000 https://gwsolutions.com/?p=12019 Truth Social, the social media platform launched by former President Donald Trump’s media company, Trump Media & Technology Group, is struggling to maintain its US user base...

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    Truth Social, the social media platform launched by former President Donald Trump’s media company, Trump Media & Technology Group, is struggling to maintain its US user base almost two and a half years after its debut. 

    According to the digital intelligence platform Similarweb, recent data shows a sharp decline in user engagement and visits.

    Donald Trump’s Truth Social Struggle to Increase its US User Base

    Similarweb reported that in May, daily visits to Truth Social in the US decreased by over 21% compared to April and over 35% compared to March.

    From May 2023 to April 2024, the platform’s average monthly visits were only over four million, marking a drop of more than 39% compared to the period from May 2022 to April 2023.

    According to CNBC, despite Donald Trump’s prominent presence in the national news, the traffic still dropped. Although there was a spike in visitors before Trump Media’s public trading debut in March, those gains have already diminished, Similarweb reported.

    Similarweb and two other data firms have collected and analyzed the app’s user and engagement data for CNBC. The three firms reported a decrease in Truth Social’s monthly active users in the US during the final months of 2023.

    However, there was a rebound in the first quarter of this year as Trump Media neared its Nasdaq trading debut under the ticker DJT. Similarweb recorded 781,954 active users on iOS and Android in the US in March, a 58% rise from February, while GWS Magnify reported a peak of 1.4 million users in the same month, which persisted into April.

    On the other hand, Sensor Tower reported that the platform’s US monthly active users in the first quarter of 2024 surged 10% year over year.

    Challenges of Truth Social in Retaining US Users 

    According to GWS Magnify, Truth Social faces two major challenges: retaining and engaging users. On average, users check the site less than twice a week, trailing behind other social media apps like Facebook, X, TikTok, and other prominent platforms.

    Users also spend fewer minutes on Truth Social than on these other platforms. GWS Magnify reported that around 87% of Truth Social users also use Facebook, and 51% also use X.

    “Compared to other social media platforms, Truth Social users are accessing the app much less frequently and are spending much less time on it per session,” GWS Magnify CEO Dr. Paul Carter told CNBC. “That will have a bigger impact on the prospects for Truth than any media limelight.”

    The post Truth Social Usage Plummets as the Platform Launched by Donald Trump Struggles to Attract, Keep Users appeared first on GWS.

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    Trump’s Truth Social struggles to grow its user base, according to new data https://www.msn.com/en-us/money/markets/trump-s-truth-social-struggles-to-grow-its-user-base-according-to-new-data/ar-BB1n0sAL#new_tab Fri, 24 May 2024 20:57:06 +0000 https://gwsolutions.com/?p=12016 Nearly two-and-a-half years after its launch, Truth Social is struggling to hang onto its small U.S. user base, according to new data...

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    Nearly two-and-a-half years after its launch, Truth Social is struggling to hang onto its small U.S. user base, according to new data on the microblogging platform launched by former President Donald Trump’s media company.

    So far in May, U.S. daily visits to Truth Social have dropped more than 21% from April, and more than 35% compared to March, according to digital intelligence platform Similarweb.

    The site’s average number of monthly visits over the past year — just over 4 million from May 2023 to April 2024 — plummeted more than 39% from the prior 12-month period, from May 2022 to April 2023, Similarweb reported.

    The traffic has declined even as Trump — the most prominent Truth Social user and the majority shareholder of its parent company, Trump Media — has saturated the national news with coverage of his criminal trial and White House bid.

    And while the app saw a surge in visitors in the lead-up to Trump Media’s public trading debut in March, Similarweb’s most recent data show that those gains have already been erased.

    The user and engagement data from Similarweb and two other data firms, collected and analyzed exclusively for CNBC, offers a glimpse into how Trump Media’s flagship product is developing — one that the company itself has yet to provide.

    The company claims it does not track key indicators that social media platforms traditionally use to monitor their performance. Those include metrics like a site’s active user accounts and its daily and monthly visitor numbers, as well as its revenue per user and ad impressions.

    Trump Media says it believes tracking those stats “might not align with the best interests” of the company or its stockholders, according to its most recent filing with the Securities and Exchange Commission.

    The company also said it “may never collect, monitor, or report any or certain key operating metrics.”

    CNBC reached out to Trump Media for comment on the firms’ findings, and asked if it could provide any data of its own.

    “Why would we comment on a fake news network reporting on fake analyses?” the company said through a spokesperson.

    But the new analyses could be warning signs for Trump Media, whose business depends in large part on growing its user base.

    “If you can’t demonstrate that you have a sizeable, active, engaged, growing audience, I don’t understand how you create a successful ad-supported social media business,” said David Carr, Similarweb’s editor of insights, news and research, in an interview.

    Trump Media relies entirely on ad sales for its revenue, and discloses in its SEC filings that a decline in user engagement could hurt its business by making Truth Social less attractive to advertisers.

    The data firms’ findings could also harden Wall Street analysts’ view of the company as a “meme stock” whose sky-high market capitalization is untethered to its business fundamentals.

    “We basically don’t see anything in these digital indicators that would explain why the valuation is as high as it is,” Carr said.

    Trump Media on Tuesday reported a first-quarter net loss of nearly $328 million on revenue of about $771,000, most of which came from advertising.

    Nonetheless, as of Friday, the company had a market cap of slightly more than $8 billion.

    The stock closed on Friday at $45.81 per share, which is roughly in the middle of the wide range of share prices, from a low of around $22 per share to a high of around $70, that TMTG shares have traded at since the company went public in March.

    A single surge

    Truth Social’s monthly active user numbers declined significantly in the U.S. in the final months of 2023, three different data firms told CNBC.

    But the platform’s traffic rebounded in the first quarter of this year, as Trump Media closed in on a deal allowing it to start trading on the Nasdaq under the ticker DJT.

    Similarweb tallied 781,954 active iOS and Android users on Truth Social in the U.S. that month, a more than 58% surge from February. GWS Magnify offered an even rosier analysis, calculating that Truth Social’s monthly user numbers hit a new peak of 1.4 million in March, which carried over into April.

    Data firm Sensor Tower, meanwhile, calculated that the social media platform’s U.S. monthly active user level in the first quarter of 2024 rose 10% year over year.

    But all three analysts linked that rise to the heavy press coverage surrounding Trump Media’s public merger and its highly volatile trading kickoff, when the stock rocketed up as much as 50%.

    That meme-fueled frenzy seems unlikely to establish a long-term gain in traffic: In the four-week period ending May 19, for instance, daily active U.S. Truth Social users were down 19.7% year over year, according to Similarweb.

    Truth Social’s headwinds

    Truth Social also faces two major obstacles to building an engaged user base, according to GWS Magnify.

    The first is a retention problem. Truth Social users on average check the site fewer than two days a week — falling behind apps like Facebook, X, TikTok, Reddit and Pinterest.

    Truth Social users also clock fewer minutes of engagement on the platform that do the users of other social media networks. The vast majority of Truth Social users, 87%, also use Facebook. Another 51% are also on X, GWS Magnify reported.

    “Compared to other social media platforms, Truth Social users are accessing the app much less frequently and are spending much less time on it per session,” the firm’s CEO, Dr. Paul Carter, told CNBC in an email.

    “That will have a bigger impact on the prospects for Truth than any media limelight,” Carter said.

    He added that a future decline in Truth Social’s numbers “will be because the platform has failed to engage users in the way that the most successful social media companies — TikTok most prominently — have mastered.”

    The second problem is that Truth Social doesn’t offer anything to set it apart from bigger microblogging sites, especially X, which it closely resembles.

    Trump Media says it is focused on adding new features to Truth Social, including live TV streaming, according to its latest earnings report.

    But for now, its most unique feature is of Truth Social is Trump himself, who uses the app regularly and occasionally makes news in his posts.

    But despite the wall-to-wall national press coverage of Trump’s criminal trial and his campaign to President Joe Biden, Trump’s presence on Truth Social alone has not been enough to draw users away from its competitors.

    “It just hasn’t happened,” Carr said.

    This article was originally published on NBCNews.com

    The post Trump’s Truth Social struggles to grow its user base, according to new data appeared first on GWS.

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    Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway https://www.nasdaq.com/articles/truth-social-nasdaq%3Adjt-reveals-earnings-flop-investors-cheer-anyway#new_tab Wed, 22 May 2024 22:05:24 +0000 https://gwsolutions.com/?p=12013 So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied...

    The post Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway appeared first on GWS.

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    So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied as to why its share price moves in the direction it does. Announcements that should be good news have little effect, while the price will race up or down on virtually nothing happening. Today, Truth Social rolled out its earnings, and despite a hefty loss, share prices rose fractionally in the closing minutes of Wednesday’s trading.

    The centerpiece of the report featured a loss of $327.6 million for the first quarter. That is significantly more than the losses posted this time last year when it lost just $210,300. Those massive losses were essentially connected to Truth Social’s initial public offering.

    So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied as to why its share price moves in the direction it does. Announcements that should be good news have little effect, while the price will race up or down on virtually nothing happening. Today, Truth Social rolled out its earnings, and despite a hefty loss, share prices rose fractionally in the closing minutes of Wednesday’s trading.

    The centerpiece of the report featured a loss of $327.6 million for the first quarter. That is significantly more than the losses posted this time last year when it lost just $210,300. Those massive losses were essentially connected to Truth Social’s initial public offering.

    But perhaps worse was the revelation that Truth Social pulled in just $770,500 worth of revenue, which is the second time in a row that it couldn’t even bring in $1 million. That prompted amazed notes from analysts, like Renaissance Capital senior IPO market strategist Matthew Kennedy, who declared: “I can’t emphasize enough how unusual it is for a company with this little revenue to have this high a valuation.”

    Venting Users

    Meanwhile, new reports suggest that one of Truth Social’s biggest problems is keeping users in the fold. A study from GWS Magnify found that 22% of users had used the app in the last seven days. Meanwhile, nearly half, 49%, of users hadn’t used it in the last 61 days. Both compare poorly to X, formerly Twitter, where 57% of users have used the app in the last seven days, and only 22% haven’t touched it in 61 days.

    Is DJT Stock a Good Buy Right Now?

    Turning to Wall Street, there are still no analysts covering DJT stock, so instead, we turn to the last five days of trading. And indeed, those last five days have not been kind, as shares are down 13.84% during the period in question. Indeed, a major reversal hit on Tuesday that sent shares into a slump.

    The post Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway appeared first on GWS.

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    Truth Social struggles to grow its U.S. user base, new data on Trump Media app shows https://www.cnbc.com/2024/05/24/truth-social-traffic-trump-media-djt-data.html#new_tab Wed, 22 May 2024 22:03:51 +0000 https://gwsolutions.com/?p=12010 Truth Social is struggling to hang onto its U.S. user base, according to data on the microblogging platform launched by former President...

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  • Truth Social is struggling to hang onto its U.S. user base, according to data on the microblogging platform launched by former President Donald Trump’s media company, Trump Media.
  • While traffic spiked after Trump Media went public and started trading on the Nasdaq under the ticker DJT, the most recent data show that those gains have already been erased.
  • Blanket press coverage of Trump’s criminal trial and his campaign to unseat President Joe Biden, have not been enough to draw users away from Truth Social’s competitors like X, formerly Twitter.
  • The Truth Social network logo is seen on a smartphone in front of a display of former U.S. President Donald Trump in this photo illustration from February 21, 2022.

    Nearly two-and-a-half years after its launch, Truth Social is struggling to hang onto its small U.S. user base, according to new data on the microblogging platform launched by former President Donald Trump’s media company.

    So far in May, U.S. daily visits to Truth Social have dropped more than 21% from April, and more than 35% compared to March, according to digital intelligence platform Similarweb.

    The site’s average number of monthly visits over the past year — just over 4 million from May 2023 to April 2024 — plummeted more than 39% from the prior 12-month period, from May 2022 to April 2023, Similarweb reported.

    The traffic has declined even as Trump — the most prominent Truth Social user and the majority shareholder of its parent company, Trump Media — has saturated the national news with coverage of his criminal trial and White House bid.

    And while the app saw a surge in visitors in the lead-up to Trump Media’s public trading debut in March, Similarweb’s most recent data show that those gains have already been erased.

    The user and engagement data from Similarweb and two other data firms, collected and analyzed exclusively for CNBC, offers a glimpse into how Trump Media’s flagship product is developing — one that the company itself has yet to provide.

    The company claims it does not track key indicators that social media platforms traditionally use to monitor their performance. Those include metrics like a site’s active user accounts and its daily and monthly visitor numbers, as well as its revenue per user and ad impressions.

    Trump Media says it believes tracking those stats “might not align with the best interests” of the company or its stockholders, according to its most recent filing with the Securities and Exchange Commission.

    The company also said it “may never collect, monitor, or report any or certain key operating metrics.”

    CNBC reached out to Trump Media for comment on the firms’ findings, and asked if it could provide any data of its own.

    “Why would we comment on a fake news network reporting on fake analyses?” the company said through a spokesperson.

    But the new analyses could be warning signs for Trump Media, whose business depends in large part on growing its user base.

    “If you can’t demonstrate that you have a sizeable, active, engaged, growing audience, I don’t understand how you create a successful ad-supported social media business,” said David Carr, Similarweb’s editor of insights, news and research, in an interview.

    Trump Media relies entirely on ad sales for its revenue, and discloses in its SEC filings that a decline in user engagement could hurt its business by making Truth Social less attractive to advertisers.

    The data firms’ findings could also harden Wall Street analysts’ view of the company as a “meme stock” whose sky-high market capitalization is untethered to its business fundamentals.

    “We basically don’t see anything in these digital indicators that would explain why the valuation is as high as it is,” Carr said.

    Trump Media on Tuesday reported a first-quarter net loss of nearly $328 million on revenues of about $771,000, most of which came from advertising.

    Nonetheless, as of Friday, the company had a market cap of slightly more than $8 billion.

    The stock closed on Friday at $45.81 per share, which is roughly in the middle of the wide range of share prices, from a low of around $22 per share to a high of around $70, that TMTG shares have traded at since the company went public in March.

    A single surge

    Truth Social’s monthly active user numbers declined significantly in the U.S. in the final months of 2023, three different data firms told CNBC.

    But the platform’s traffic rebounded in the first quarter of this year, as Trump Media closed in on a deal allowing it to start trading on the Nasdaq under the ticker DJT.

    Similarweb tallied 781,954 active iOS and Android users on Truth Social in the U.S. that month, a more than 58% surge from February. GWS Magnify offered an even rosier analysis, calculating that Truth Social’s monthly user numbers hit a new peak of 1.4 million in March, which carried over into April.

    NEW YORK, NEW YORK - MARCH 26: News of Trump Media & Technology Group public trading is seen on television screens at the Nasdaq Marketplace on March 26, 2024 in New York City. Trump Media & Technology Group, the owner of struggling social media platform Truth Social owned by former President Donald Trump, began trading as a public company at Nasdaq's opening bell under the ticker symbol “DJT.” The stock rose about 50% at the market open. (Photo by Michael M. Santiago/Getty Images)
    News of Trump Media & Technology Group public trading is seen on television screens at the Nasdaq Marketplace in New York City on March 26, 2024.
    Michael M. Santiago | Getty Images

    Data firm Sensor Tower, meanwhile, calculated that the social media platform’s U.S. monthly active user level in the first quarter of 2024 rose 10% year over year.

    But all three analysts linked that rise to the heavy press coverage surrounding Trump Media’s public merger and its highly volatile trading kickoff, when the stock rocketed up as much as 50%.

    That meme-fueled frenzy seems unlikely to establish a long-term gain in traffic: In the four-week period ending May 19, for instance, daily active U.S. Truth Social users were down 19.7% year over year, according to Similarweb.

    Truth Social’s headwinds

    Truth Social also faces two major obstacles to building an engaged user base, according to GWS Magnify.

    The first is a retention problem. Truth Social users on average check the site fewer than two days a week — falling behind apps like Facebook, X, TikTok, Reddit and Pinterest.

    Truth Social users also clock fewer minutes of engagement on the platform that do the users of other social media networks. The vast majority of Truth Social users, 87%, also use Facebook. Another 51% are also on X, GWS Magnify reported.

    “Compared to other social media platforms, Truth Social users are accessing the app much less frequently and are spending much less time on it per session,” the firm’s CEO, Dr. Paul Carter, told CNBC in an email.

    “That will have a bigger impact on the prospects for Truth than any media limelight,” Carter said.

    Former US President and Republican presidential candidate Donald Trump speaks during a campaign rally in the South Bronx in New York City on May 23, 2024.
    Former US President and Republican presidential candidate Donald Trump speaks during a campaign rally in the South Bronx in New York City on May 23, 2024.
    Jim Watson | AFP | Getty Images

    He added that a future decline in Truth Social’s numbers “will be because the platform has failed to engage users in the way that the most successful social media companies – TikTok most prominently – have mastered.”

    The second problem is that Truth Social doesn’t offer anything to set it apart from bigger microblogging sites, especially X, which it closely resembles.

    Trump Media says it is focused on adding new features to Truth Social, including live TV streaming, according to its latest earnings report.

    For now, the most unique feature of Truth Social is Trump himself, who uses the app regularly and occasionally makes news in his posts.

    Yet Trump’s presence on Truth Social alone has not been enough to draw users away from its competitors, nor has the wall-to-wall national press coverage of Trump’s criminal trial and his campaign to defeat President Joe Biden.

    “It just hasn’t happened,” Carr said.

    The post Truth Social struggles to grow its U.S. user base, new data on Trump Media app shows appeared first on GWS.

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    Truth Social Has a Retention Problem, Analysis Suggests https://www.newsweek.com/truth-social-donald-trump-social-media-retention-problem-1903364#new_tab Wed, 22 May 2024 22:02:30 +0000 https://gwsolutions.com/?p=12002 Donald Trump’s social media platform Truth Social has a problem with retaining users, a market data and analysis consultancy has said. Truth Social launched...

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    Donald Trump’s social media platform Truth Social has a problem with retaining users, a market data and analysis consultancy has said.

    Truth Social launched in February 2022, about a year after the former president was banned from X (formerly Twitter) and Facebook for posts about the January 6 riots at the U.S. Capitol. While he has since been reinstated to the platforms, he opts to use Truth Social. The app has vastly lower numbers of active users in comparison to Reddit and X, which have been around for longer.

    According to an analysis by GWS Magnify, Truth Social is failing to convert people into regular users of the platform. It found that 22 percent of Truth Social users had used the app in the last seven days at the time of analysis compared to 57 percent of X users. It found that 49 percent of Truth Social users had not used the app for at least 61 days, compared to 22 percent of X users. The analysis is based on the number of active mobile device users i.e. users who accessed the Truth Social app at least once in a given month, as opposed to the total number of accounts or downloads.

    It found that the average Truth Social users access the platform less than two days a week while Facebook users access the app the most at 4.6 days a week.

    Donald Trump
    Donald Trump talks on the phone in the McLaren garage prior to the F1 Grand Prix of Miami at Miami International Autodrome on May 05, 2024, in Miami, Florida. His social media platform Truth Social…  PHOTO BY CLIVE MASON/GETTY IMAGES

    However, it also said that the number of active users has increased from 500,000 in December 2023 to 1.4 million in March 2024.

    The analysis shed light on the demography of Truth Social users. It found that 57 percent of active users are men while 43 percent are women. It also found that 65 percent of app users are over the age of 55 and 77 percent are white.

    A spokesperson for Truth Social’s parent company Trump Media & Technology Group (TMTG) said: “This is a fake news outlet describing a fake analysis, so it’s unclear why Newsweek expects anyone would believe a word of this story.”

    Shares of TMTG fell on Tuesday following the release of the company’s first-quarter earnings report on Monday.

    The post Truth Social Has a Retention Problem, Analysis Suggests appeared first on GWS.

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    Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway https://www.tipranks.com/news/truth-social-nasdaqdjt-reveals-earnings-flop-investors-cheer-anyway#google_vignette#new_tab Wed, 22 May 2024 22:01:40 +0000 https://gwsolutions.com/?p=12006 So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied...

    The post Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway appeared first on GWS.

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    So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied as to why its share price moves in the direction it does. Announcements that should be good news have little effect, while the price will race up or down on virtually nothing happening. Today, Truth Social rolled out its earnings, and despite a hefty loss, share prices rose fractionally in the closing minutes of Wednesday’s trading.

    The centerpiece of the report featured a loss of $327.6 million for the first quarter. That is significantly more than the losses posted this time last year when it lost just $210,300. Those massive losses were essentially connected to Truth Social’s initial public offering.

    But perhaps worse was the revelation that Truth Social pulled in just $770,500 worth of revenue, which is the second time in a row that it couldn’t even bring in $1 million. That prompted amazed notes from analysts, like Renaissance Capital senior IPO market strategist Matthew Kennedy, who declared: “I can’t emphasize enough how unusual it is for a company with this little revenue to have this high a valuation.”

    Venting Users

    Meanwhile, new reports suggest that one of Truth Social’s biggest problems is keeping users in the fold. A study from GWS Magnify found that 22% of users had used the app in the last seven days. Meanwhile, nearly half, 49%, of users hadn’t used it in the last 61 days. Both compare poorly to X, formerly Twitter, where 57% of users have used the app in the last seven days, and only 22% haven’t touched it in 61 days.

    Is DJT Stock a Good Buy Right Now?

    Turning to Wall Street, there are still no analysts covering DJT stock, so instead, we turn to the last five days of trading. And indeed, those last five days have not been kind, as shares are down 13.84% during the period in question. Indeed, a major reversal hit on Tuesday that sent shares into a slump.

    The post Truth Social (NASDAQ:DJT) Reveals Earnings Flop, Investors Cheer Anyway appeared first on GWS.

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    The Upsides—And Downsides—of ‘Over-the-Top’ Digital Disruption https://mediaadsandcommerce.substack.com/p/the-upsidesand-downsidesof-over-the#new_tab Thu, 18 Apr 2024 21:16:22 +0000 https://gwsolutions.com/?p=11975 Dollar Shave Club’s ‘Over-the-Top’ Ad Launched the D2C Movement I walked into my B-school class one day in 2012 to find my...

    The post The Upsides—And Downsides—of ‘Over-the-Top’ Digital Disruption appeared first on GWS.

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    Dollar Shave Club’s ‘Over-the-Top’ Ad Launched the D2C Movement

    I walked into my B-school class one day in 2012 to find my friends huddled around a laptop, snickering. “You’ve gotta check out this video,” one of them said, waving me over to watch a YouTube clip.

    “I’m Mike, founder of DollarShaveClub.com,” the video began. “What is DollarShaveClub.com? For a dollar a month, we send high-quality razors right to your door. Yeah, a dollar! Are the blades any good? No. Our blades are f**king great.”

    The irreverent ad went on to mock a market-leading razor blade brand (read: Gillette) for its over-engineered technology and bloated prices that paid for Roger Federer’s endorsement rather than a superior shave.

    It might be the most brilliant and cost-effective marketing campaign ever done. For $4,500 in production costs, the ad has garnered 28 million views on YouTube to date.

    It used “over-the-top” language to break through, going “over-the-top” of traditional distribution channels—TV ads and brick-and-mortar retail—to sell direct-to-consumer and disrupt the most powerful CPG brand advertiser in the process.

    This was ground zero for the eventual rise of the D2C movement: the ad that would launch a thousand B-school product epiphanies.

    The Dollar Shave Club example is over-the-top digital disruption at its finest. And to date, I don’t think I’ve seen anything else come close. The company used its viral fame to grab a foothold in the Gillette-dominated razor blade market and carve out enough market share to generate ~$200 million in revenue and get acquired by Unilever for a cool $1 billion in 2016.

    These are the upsides of over-the-top disruption.

    Over-the-Top Disruption is the Story of Digital

    Dollar Shave Club isn’t just the story of one plucky challenger brand. It’s emblematic of the primary mechanism by which most digital disruption happens.

    Over-the-top disruption, the defining model of the digital era, is represented by the new media value chain that I described in detail in “The Creator Era is Here: Feb. 11, 2024 – Current”.

    Digital’s low barriers to entry have enabled a D2C model that’s upended the businesses of traditional gatekeepers and middlemen. The conversation of course begins with “over-the-top” streaming services, and their disruption of linear TV broadcasters. Digital news and media brands obviated the need for printing presses and physical distribution. And D2C brands like Dollar Shave Club bypassed traditional retail. This model even explains how digital-era politicians like Barack Obama and Donald Trump (speaking of “over-the-top”) surmounted their respective party establishments, going D2C to win voters.

    Over-the-top disruption begins with identifying and serving an unmet customer need. Dollar Shave Club put its finger on the pulse of what many consumers had already intuited—that spending $20 on a package of razor blades was ridiculous. DSC figured out a way to deliver most of the product value while cutting out most of the costs in the existing value chain, including TV and traditional retail, to pass that value onto the customer. The key to executing this strategy effectively was distinctive branding, from its over-the-top commercial to its bright orange color palette.

    When executed well, over-the-top digital disruption enables a brand to break through, sell direct-to-consumer, and own the relationship with their customer. The downside is that this method is hard to scale, as evidenced by an ecommerce landscape now littered with the rotting carcasses of once-hot D2C brands.

    In fact, it’s now the established brands like Nike and Lululemon driving faster ecommerce sales growth than digitally native brands, per EMARKETER data.

     

    Tesla is the Ultimate D2C Brand, and Musk the Ultimate Over-the-Top Disruptor

    Perhaps the best—and certainly most consequential—example of executing the D2C playbook is Tesla. In the most “old model” of all industries, auto manufacturers had always been heavily reliant on traditional gatekeepers like TV advertising and car dealerships.

    Tesla and Elon Musk were unafraid to defy convention, famously eschewing advertising in favor of earned media and building their own showrooms to bypass traditional dealerships.

    As the most valuable car company today, the strategy has unquestionably worked. And it worked because Tesla had distinctive branding while addressing an unmet customer need for high-performance, environmentally-friendly vehicles that signaled status.

    It also worked because of Elon Musk’s unparalleled ability to garner attention, primarily by playing cheeky provocateur on his favorite social media channel, Twitter. Musk became a master of vertical integration, completely collapsing the value chain. He went D2C to his followers (and ultimately, customers) to drive interest and demand in the most disruptive auto brand in more than a century, becoming the world’s richest man in the process.

    Those were the upsides of Tesla’s and Musk’s over-the-top disruption.

    Then Musk Went Really “Over-the-Top”

    There’s a fine line between genius and insanity, and it’s hard to argue against the genius that Musk exhibited on his and Tesla’s rise to the top.

    But it now seems he’s crossed over to what looks more like the “insanity” side of the ledger. Maybe becoming the world’s richest man corrupted his thinking. Maybe it was being surrounded by too many sycophants who failed to check his worst impulses. Maybe it was his obvious addiction to social media.

    Whatever the cause, Musk is now encountering the downsides of over-the-top disruption.

    It’s because he took the D2C playbook he had so successfully co-opted and—rather than calibrate it to forge a more durable brand—decided to put it on steroids instead.

    It wasn’t enough to be provocative—he had to go “over-the-top” with his rhetoric. It wasn’t enough to have toadies in the board room—he had to court legions of them on social media. It wasn’t enough to fire off the occasional tweet—he had to go out and buy the company.

    Musk has made Twitter (now X) irrevocably worse through a series of bad, ego-driven decisions. He killed a strong, distinctive, and approachable brand in favor of a sterile, monosyllabic one. He told advertisers—the ones who contribute the majority of Twitter’s revenue—to go fuck themselves. His flurry of ill-advised product decisions amplified the voices of racists and antisemites, alienating large segments of users along the way.

    His impact on Twitter’s usage is clear, and it isn’t pretty. According to data from GWS Magnify, Twitter US app usage hit a peak in November 2022—the month Musk officially took over the company—and it has been trending downward ever since. Monthly active users and daily active users both reached lows in March 2024 that the platform hasn’t seen in 3 or 4 years, when usage was still on its way up.

    This comports with other recently reported data from Sensor Tower which similarly identified November 2022 as the high-water mark before hitting the skids.

    Musk responded to that report by sharing his internal analytics showing the opposite. But this self-serving view almost certainly doesn’t filter considerable amounts of bot traffic—which is frankly ironic for someone so critical of bot traffic prior to the acquisition.

    Twitter is Unraveling—And It’s Not Because of Threads

    Like Musk’s apparent descent into insanity, Twitter too is unraveling before our eyes. A social network’s rise is predicated on network effects, which foster a virtuous cycle of growth that exhibits exponential growth characteristics and becomes self-sustaining on the way up. The same effects can be just as powerful on the way down.

    That’s exactly what appears to be happening to Twitter right now. The network is fraying.

    Not only is Twitter seeing declines in its DAUs and MAUs, but the ratio of the two is getting worse. In November 2022, it peaked at 49.3%, per GWS Magnify. Since that time, it’s declined to 45.7% and looks to be deteriorating quickly.

    One might begin to wonder if Musk rival Mark Zuckerberg is getting the better of him as unhappy Twitter users migrate to Threads. But there’s not much evidence to support that, with DAUs of Threads comparatively tiny.

    Twitter’s unraveling appears to be primarily its own doing, and it may soon reach a tipping point where the deterioration of network effects begins to accelerate. We could be witnessing the beginning of the end of Twitter and its eventual relegation to the dustbin of history alongside MySpace and Friendster.

    The Downsides of Over-The-Top Digital Disruption

    Twitter and Elon Musk are now experiencing the painful downsides of over-the-top digital disruption. It could all have been avoided, of course, by evolving beyond the over-the-top strategy.

    What all D2C brands must learn is that what got them from Point A to Point B won’t get them from Point B to Point C. At some point, brands must mature if they want to endure.

    Unilever learned this lesson the hard way with Dollar Shave Club, eventually selling its majority stake to private equity in October 2023 for an undisclosed sum after admitting the brand failed to meet expectations. The over-the-top strategy worked well enough to grow the brand to a few hundred million in sales, but a brand predicated on being cheap lost its edge once it had to rely on traditional media and retail distribution to grow. Despite the brand’s attempts to mature, it found there was nowhere for it to go.

    Rather than cultivate his brands for long-term growth, Musk instead doubled down on the over-the-top strategy. This of course only accelerated Twitter’s and Tesla’s descent.

    Musk may finally be coming to this realization, albeit too late. He went on an apology tour in Israel, chastened by the backlash to his antisemitic provocations. His Twitter controversies have metastasized and may be contributing to Tesla’s recent struggles, with alienated users refusing to buy Teslas.

    To bolster demand, Musk has even resorted to paid advertising on major media channels—including on Meta!—according to data from Pathmatics. The ad spend remains a pittance compared to other auto brands but nevertheless represents a departure from his previous ideology.

    These are the acts of an increasingly desperate man trying to undo severe damage to his brands.

    Musk had reached the pinnacle of business. But for him, it wasn’t enough. He couldn’t help but peer over the ledge to see what was waiting for him on the other side of over-the-top disruption. And he’s dragged two of the most consequential companies in the modern era down with him.

    Over-the-top disruption is an incredible mechanism by which the brands that break the mold can break through—with a select few even able to break the system.

    But those that fail to calibrate their over-the-top strategy only end up breaking themselves in the end.

    The post The Upsides—And Downsides—of ‘Over-the-Top’ Digital Disruption appeared first on GWS.

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    Temu plans to change its strategy on extended delivery times https://www.retailbrew.com/stories/2024/04/04/temu-plans-to-change-its-strategy-on-extended-delivery-times#new_tab Thu, 04 Apr 2024 15:11:22 +0000 https://gwsolutions.com/?p=11925 The Better Business Bureau gives Temu a C+ rating, compared to Amazon’s B. ByKatishi Maake April 4, 2024 · 3 min read Over the...

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    The Better Business Bureau gives Temu a C+ rating, compared to Amazon’s B.

    ByKatishi Maake

    April 4, 2024

    · 3 min read

    Over the past year, Temu has made a splash on the e-commerce scene with its very low prices and wide array of products.

    However, this approach has come at a cost: delivery times. It’s one of the main complaints cited about Temu’s operations, alongside product quality. But now the company is shifting its strategy, inviting US-based warehouses to join its platform.

    • Under the previous model, Temu would have products primarily shipped directly from China, which is also known as the “managed marketplace” framework.
    • This strategy centralized inventory and led to longer delivery times but lower prices. Now, in order to gain even more ground on the likes of Amazon, Temu needs to make sure customers are able to get their purchases in their hands as quickly as possible, Business Insider notes.

    Under the new model, sellers in the United States would handle fulfillment and logistics on their own as opposed to being handled in China. Temu plans to highlight the specific products on listings that will identify if it will be shipped from a warehouse in the United States. Those sellers will also be identified with a badge that reads “faster delivery.”

    In addition to cutting down on delivery times, the new format helps Temu diversify its product assortment to include larger, bulkier SKUs and cut back on long-haul shipping costs, per Business Insider.

    Retail Brew reached out to Temu, which declined to comment.

    “To have more local warehouses, quicker delivery times, allowing brands to sell directly through Temu—it’s got so many advantages to them,” Paul Carter, CEO and co-founder of GWS Magnifytold Retail Brew.

    Be better: Customers aren’t imagining these issues surrounding delivery times. The Better Business Bureau (BBB) gives Temu a C+ rating. The company has received more than 2,000 complaints in the past three years. For comparison, Amazon has a B rating and has received 652 complaints in the same time frame.

    • The BBB’s rating is a reflection of how the business is likely to interact with its customers. The BBB looks for and uses information directly from businesses and from public data sources to reach its rating.

    “They’re making delivery promises, and people aren’t getting their stuff when they’re supposed to be,” Melanie McGovern, director of public relations and social media for the BBB, told Time.

    New kid on the block: Improving delivery times would help Temu expand what has already been a thriving e-commerce operation since its inception. Between January of this year and 2023, Temu’s sales grew 840% and exceeded 1,100% during the holiday shopping season, according to data from Earnest Analytics.

    • And even with poor delivery times, Temu’s customers remain loyal. Earnest found that nearly 30% of Temu customers made a transaction on the platform 16 months after their first purchase, nearly double the rate of Walmart and Target customers, and around half the rate of Amazon.

    “When you see the Amazon trucks, they’re just everywhere. They’re coming from the local distribution centers, and it’s a machine,” Carter said. “Temu needs to mimic that to a certain degree.”

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    Is Temu legit? The Chineseshopping site debunked by one ofits shoppers https://inews.co.uk/news/is-temu-legit-debunk-2989390#new_tab Thu, 04 Apr 2024 15:05:52 +0000 https://gwsolutions.com/?p=11922 Suspicions have been raised about the seemingly too-good-to-be-trueshopping app – but are fears justified? Hello and welcome back to i’s science and...

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    Suspicions have been raised about the seemingly too-good-to-be-true
    shopping app – but are fears justified?

    Hello and welcome back to i’s science and tech newsletter. I’m Chris Stokel-Walker, a freelance journalist and regular contributor to i.
    This week, we’re focusing on Temu, the on line shopping app that has taken the world by storm. According to one third-party analysis, Temu has 15.6 million monthly users – perhaps better described as bargain hunters – in the UK.
    That’s around one-in-four people. “Temu has built a significant and resilient user base, with particular popularity amongst older women,” said Paul Carter, CEO of Global Wireless Solutions, which compiled the user data. “Key to Temu’s enduring success is its clear focus on user engagement. The company has not just succeeded in securing user downloads and sign-ups, but encouraging long-term engagement on its app.”
    But lately Temu – and its seemingly too-good-to-be-true prices – has been in the headlines and dominated the social media discourse.

    What is Temu and where has it come from?
    Temu is a shopping app with eye-poppingly low prices – T-shirts can cost just a few pounds – and the tagline “shop like a billionaire”.
    It was born in China out of a larger company, POD Holdings, which runs the Chinese e-commerce app Pinduoduo, a general online retailer that bolstered its reputation by helping farmers sell their produce during the Covid pandemic.· poo Holdings is the largest e-commerce company in China by market capitalisation,” said Rui Ma, a Chinese tech analyst who has been tracking Temu’s rise in the West.
    At the end of 2023, PDD Holdings – worth around $157bn – overtook Alibaba as the largest e-commerce company in China. Previously Alibaba had dominated the space, and through its website and platform, AliE:xpress, offered cheap products from Chinese manufacturers to ship to the West. Ali Express was regularly used by businesses to bulk ship items. Think of it more as a cash and carry-style shop, similar to Costco, where you have to buy in bulk, compared to a high street retailer where you can buy individual items. ·Alibaba and JD.com [similar to Amazon]
    confirmed the Western world’s appetite for cheap goods delivered quickly from China,· said retail analyst Miya Knights. “Temu is doing that on steroids, basically.”

    Temu took inspiration from Alibaba and from another Chinese e-commerce success story – Shein – and decided to try and enter the US in 2022, and the UK last year.
    “Temu looked at what Shein was doing and said that’s a good model: said Rui Ma. “They thought: ‘We can also do the same business – international e-commerce – and can basically make it a full consignment model:· In short, that means that rather than acting solely as a shop front and asking manufacturers to then ship the
    products themselves, which can be slow, cumbersome and result in variable quality of packaging, Temu took that all under their wing.
    “Most of the goods from Temu are shipped directly from China: said Charlie Xiaofeng Gu, head of intelligence at Jing Daily, a Chinese consumers strategy and insights company. The manufacturers produce the items and deliver them to Temu, which then distributes them. It can seem impossible to escape the grasp of Temu, with adverts for the app peppering social media feeds and
    offering too-good-to-be-true prices. That visibi lity is deliberate, said Knights, and the result of massive advertising spending by its parent company. “They’ve invested so much over the last few years in acquiring customers. Temu has deep pockets, and that’s why it’s been able to make the headway it has so quickly.”

    How can they do things so cheap?
    Load up Temu and one of the first things you’ll notice is how cheap a lot of the products are. In part, it’s down to that consignment model that means Temu can take advantage of economies of scale. But there’s plenty more going on there.
    “Temu leverages the efficiency and relatively low cost of Chinese manufacturing, which saw a decline in demand since the pandemic: said Gu. Temu also knows that it has market power – not just thanks to the 15.6 million Brits that log on every month, but also the hundreds of millions more that use the products developed by its parent company. “Temu could also leverage the tremendous negotiating power of its parent company Pinduoduo to get products at very competitive prices,” said Gu. Ma admits that PDD Holdings’ bargaining hand is a strong one, and that it often uses it. “If you go online, and watch videos of merchants tell ing each other which platforms are the best (to sell their products), they’ll typically say Temu makes you drop your prices. “[Temu will) keep on asking you. It’s not like they can force you to, they’ll just ask you like, ‘Hey, can you drop this more?’ Because they can always go to another supplier making something very similar and just be like, ‘Hey, can you make this price cheaper?'” she said.
    That drive to push down prices does cause a vicious circle in which Temu optimises products for price, rather than quality, suggests Ma.
    Full disclosure: Drawn in by the low prices, I have bought a number of items from Temu including spider kitchen strainers, holiday cotton shirts and canvas trainers. A decent proportion have broken or have not been precisely as described, and for which, to Temu’s credit it has given no-quibble refunds. I have an informal policy of rarely buying electronics from the app.
    However, Gu doesn’t agree that low prices mean low quality. “Many of its competitors try to suggest that Temu’s low price was achieved at the cost of product quality, but the platform seemed to have found the sweet spot between price and quality for it to remain competitive: Retail analyst Knights explains that Temu’s growth is unlikely to be welcomed by competitors. “They drive down prices, but they also set up some really high expectations in the mind of the consumer, in terms of cost versus speed: Orders can arrive within a week, even from China.
    Beyond all that, there are other factors at play. A US government report published in June last year warned American consumers over the “extremely high risk that Temu’s supply chains are contaminated with forced labour”. But the prices could also be subsidised. “It’s also not unheard of for Chinese ecommerce companies to subsidise the cost of the products in order to capture market share,” said Gu. In essence, he reckons that Temu could be offering some products below the price it costs to make and ship them as loss leaders to build market share – similar to how Uber, for instance, undercuts taxi prices.

    Is it safe to shop on Temu?
    This is the multi -billion dollar question for Temu and its customers – because if the latter abandon the platform over safety fears, Temu has lost its income. On Temu, what you order will arrive and often speedily, even if it won’t always be as high-quality as you might hope.
    For instance, I’ve had short sleeve shirts that were marketed as 100 per cent cotton that were 100 per cent polyester, and odd-sized shoes that likely wouldn’t last long wear and tear. But beyond the quality of some items, others are concerned about deeper issues. Some shoppers on social media have claimed that Temu’s user agreements are unusually draconian. One post on X, formerly Twitter, went viral for claiming that “signing away the right for Temu to use your likeness and voice, worldwide, forever, with no legal protection for £40 is wild “.
    The user was referring to an issue that brought concerns about Temu to a head: a new user referral campaign that offered shoppers £40 or £50 credit to buy items through the app if they referred enough new users to Temu. The terms and conditions of the offer stated that the company could use and publish – “in perpetuity” – customers’ “photo, name, likeness, voice, opinions, statements, biographical information, and/or hometown and state·.
    The UK’s Information Commissioner’s Office, the data watchdog, said it was “considering the concerns raised· by some about the overly broad data collection. But Temu has since changed the terms and conditions to “make it clear that we only ever use username and profi le pictures in this promotion for referral functionality and winner announcements”.
    The firm previously said that the initial terms and conditions were standard – which is true. I’ve been covering tech for a decade or more, and we’re only just realising how much data we’re required to give over to tech companies in exchange for low prices. If something is cheap or free, it often turns out you’re the product not what you’re buying. So yes, it’s safe to shop on Temu. But no, I’ll still generally shy away from electronics. It’s personal preference.
    Responding to this story, Temu said: MTemu is a secure shopping platform used by millions of customers. Our app holds D£KRA certification, meeting the Open Web Application Security Project’s Mobile Application Security Verification Standard. Customer transactions are protected by the Payment Card Industry’s Data Security Standard, and access is secured with two-factor authentication. For additional security, we collaborate with HackerOne on a bug bounty programme and are a member of the Anti-Phishing Working Group.
    “Temu offers lower prices by enabling consumers to purchase directly from manufacturers. This eliminates the costs and markups associated with traditional retail middlemen, offering significant savings to buyers.”

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