Feb 6

1. #pharmacy Pharma giant Merck announces it is spinning off some of its products into a new business (Finimize)

What’s going on?

The title says it all :)). The company cut off its legacy products, women healthy and biosimilar drug divisions while holding onto its oncology, vaccine and hospital/animal health business. Its shares slumped

Why do I need to know?

It’s a strategic move from Merck. The spinned-off company contains low-growth but reliable existing products, while the other one is a high growth but risky R&D business. This will make it easy for investors to invest based on their risk interest. Many consumer health businesses are doing the same.

2. #banking Goldman Sachs and Amazon are collaborating (Financial Times)

What’s going on?

Goldman Sachs is close to striking a deal with Amazon to offer small business loans to its US customers. The project could be launched this March

Why do they collaborate?

• Amazon could (1) Extend its SMEs lending platform without associated credit risk of regulatory obligations and (2) Attract more business to its platform
• Goldman Sachs could increase revenue from new sources as its CEO has stated: consumer banking and wealth management. 

3. #retail Key Takeaways from BCG x Tencent 2020 China Social Retail Playbook

What’s going on?

The vast majority of Chinese consumers’ daily lives have become intertwined with social media. This January, the BCG and Tencent jointly published a whitepaper to help brands and companies better understand the landscape of Social Retail in China.

Zooming out (4 key findings)

• Consumer touchpoints become diversified (through various platforms like WeChat, TikTok, Weibo,..) and socialized, esp in the pre-purchase stage. 
• Decentralized distribution channels trigger “social fission.” Brands need to trigger customers to  repost product-related information. 
• Generating private domain (private chat or group chat) traffic is crucial to maximize customer lifetime value.
• Brands have to be specific, fast-paced, and flexible.