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The combination of public e-commerce and marketplace companies grew 68%+ throughout the year and saw a combined market cap  appreciation of $1.3 Trillion in value – stunning value creation

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E COMMERCE’S KA CHING! YEAR 2020 Year End Review

EXECUTIVE SUMMARY – Marketplace & E-commerce Sector Wrap-Up

»2020 will be remembered as an historic inflection point in the growth of e-commerce and marketplace adoption globally

‒16.5% worldwide e-commerce growth with a projected 15% CAGR through 2024 in the US alone

»The combination of public e-commerce and marketplace companies grew 68%+ throughout the year and saw a combined market cap  appreciation of $1.3 Trillion in value –stunning value creation

»5 landmark IPOs throughout the year including Poshmark, AirBnB, DoorDash, Wish, The Hut Group; and several SPACs including Vroom, Shift and CarLotz (and more to come in 2021)

‒IPOs expected in 2021 include Instacart, ThreadUp, and Deliveroo

»39 M&A significant transactions across the market segment including:

‒A number of notable transactions around the food delivery market such as Nestle’s acquisition of Freshly for $1.5Bn and Just Eat’s acquisition of GrubHub for $7.5Bn

‒Viagogo’s acquisition of StubHub for $4.0Bn

»Some excellent reports covering all aspects of trends in e-commerce in 2020 that we enjoyed and highlight in this report including:

‒Shopify’s “The Future of Ecommerce Report 2021” 1, which highlights several trends in the future or e-commerce such as:

The importance of customer retention tactics as a customer acquisition costs spoke
The challenge of brand building amidst a marketplace-dominated environment

‒Catalyst/Kantar’s “The State of Ecommerce 2021” 2, which drills down into the developing and changing customer journey:

66% of all pre-shopping touch points are now online, but spread over several channels including search, email, and social media

‒Oliver Wyman’s “Are You Ready for E-Commerce Acceleration?” 3which touched on numerous elements of change impacting the retail world

The critical role that supply chain design plays in winning customer satisfaction and the importance of alternative and multiple fulfillment options

»Our sector spotlight focuses on the outdoors –the great outdoors which we have all embraced as we navigate through the pandemic

‒Outdoor retailers, brands and online e-commerce companies saw significant growth –public companies have seen 99%+ growth

‒63% increase in bike sales; 51% increase in golf equipment; even birdwatching saw a 22% growth (a new outdoor activity in urban markets)

‒The RV market saw huge growth and consolidation as well –GCA client RVshare successfully raised expansion capital from KKR in Q4

‒And there has been $1.5BN of transaction activity in this segment of the market alone

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