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Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of two presentations made by Nurçin Koçoğlu, CMO, and Efsun Janset Yilmaz, E-commerce Deputy General Manager, to explain the extent to which Boyner's transformation process has challenged the company's structures and successfully reimagined every touchpoint with its customers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.

When times change, retailers need to do the same… but how? Boyner has a method.

Boyner has always been proud of its customer-centricity, and the group has often been the most innovative in Türkiye. In addition to being the first department store in the country, it introduced the first instalment credit card in 1998 and was also the first retailer to offer customer assistance in 2003. Given that the COVID-19 pandemic significantly changed consumer behaviour, especially among younger generations, the company recognised the need to recalibrate its foundation.

For this reason, Boyner embarked on a comprehensive study four years ago to decode their customers' emotional expectations. The findings revealed a desire for an immersive, boundaryless shopping experience that transcends traditional channel barriers. Customers were not merely looking for products, which was Boyner’s value proposition then, but seeking inspiration and an emotional connection akin to a seductive shopping experience.

The teams found that they had to develop new, transformational ideas to adapt. Boyner as a group had to transform itself if it wanted to go from retailer (selling products) to a “multi-brand lifestyle company” as it aimed to become, offering experiences and emotional engagement1.

To achieve this vision, Boyner launched a multi-level project in 2020 involving 120 team members across marketing, logistics, and cultural sectors to redefine the brand’s identity and experiential offerings. In addition to redefining the brand platform, values, and vision, they were tasked with imagining the company's future and presenting new ideas on every aspect of the business (including logistics, IT, marketing…, etc.) to the leadership monthly.

This reinvention was facilitated by Boyner's proprietary customer data, either directly or through its dedicated subsidiary, Hopi. It encouraged a transformation based on crafting individual interactions with customers at every step of their journey, from the store to the products offered, the digital ecosystem and how everything should interact.

A multi-layered approach for a new generation of stores 

The most visible result of this internal effort was the new store concept, with the first iteration implemented in Cadde. It took a bold approach, mixing art (including collaboration with 10 artists to decorate the store), sustainability (how the store was designed, built, and decorated), and a focus on sport and lifestyle to target younger customers.

However, the results of the study went deeper and involved more structural changes in the mindsets than simply a new store concept:

• Make the stores more experiential, planning to renovate 40% by 2024. To enhance the experience, Boyner struck a deal with Costa Coffee, a chain not present in Türkiye, to have their first store at the entrance of the new Boyner store, enticing customers with the smell of coffee. At Istinye Park, the second iteration of the new concept, Costa Coffee is integrated into the middle of the store to allow customers to relax during their purchases. Today, eight Costa Coffees have been deployed, always linked with Boyner stores.
• The introduction of Boyner Dynamic, addressing a new type of clientele by focusing on the active category,
• Collaborations with artists at the product level (launch of capsule collections) and when designing the new concept, with an art collection on display in the store, digital artworks, and a giant 3D screen. Customers can also customise their purchases and gifts. Consequently, stores feel as much like a gallery as a retail environment, designed to enrich the customer journey by stimulating all senses.
• New approach to community management with new types of events, such as the Boyner Dynamic Fest, designed to encourage interaction and inclusivity.

These changes had rapid effects: NPS in renovated stores increased by 24% on average.

A method to gather communities around the Boyner points of sales

Boyner’s community-driven events, including the Dynamic Fest and partnerships with sports and art communities, position the company as a lifestyle hub to align with modern consumers’ emphasis on experiences. The Dynamic Fest, which attracted 8,000 attendees this year (up from 7,000 last year), exemplifies Boyner’s efforts to build communities around shared interests. These events are co-created with brands and marketplace partners and designed to welcome everyone: customers can come with their friends, pets, and kids… the event had a satisfaction rating of 4.8 over five this year.

Coming to the notion of community, the Dynamic Festival is also a significant success for its disinterested approach: participants value this event for the connection and value-sharing it allows. This year, Boyner mitigates the cost by asking its partners to participate, including the marketplace brands. It is also a great opportunity to coupon special offers.

From intuition to data-driven decision-making 

Boyner's advanced data infrastructure underpins these initiatives, supporting real-time insights on their 4.4m active customers (out of a 12.1m customer base), predictive modelling, and micro-segmentation. The data strategy enhances Boyner's CRM and leverages AI for tasks like sentiment analysis in customer interactions, enabling faster responses to emerging issues. This AI and data science integration has allowed Boyner to optimise customer journeys, with 100 unique paths designed to cater to specific needs based on 154 micro attributes. It also allows “inspiration walls” powered by data.

Along with improving the customer journey, AI is deeply integrated into the company’s operation at every level. For instance, AI has been used to design a capsule collection of 32 products for Fabrica, a private label, reducing the design-to-market time from 3 to 1 month. Customer complaints are analysed and summarised weekly and forwarded to the relevant stores and contacts for action.

As a result, the customer base in the younger age segments has increased by 162% in 3 years, and 24% identify as Boyner-only customers.

Next year, the next step is to implement an approach similar to what is being done in private banking in terms of personalisation and tailor-made interactions, for online and in-store contact points with a 360° approach. It will be implemented in the loyalty scheme during the first quarter and in the omnichannel programme in the second one. By empowering sales staff with enriched customer data, Boyner aims to offer bespoke recommendations and exclusive offers, aligning perfectly with its mission to transform shopping into a memorable and meaningful experience while creating new revenue streams through more profitable omnichannel customers.

But how to reinvent itself online too?

Today, the online and omnichannel current situation at Boyner is as follows:

• 18% of total customers are considered “omnichannel” (+24% increase), who spend +35% in new concept “experience” stores and spend +25% more.
• 30% of total sales are made online and while time spent by users increased by +35%, unpaid traffic has also consistently increased by 30% over the past two years.
• 40% of total traffic is unpaid, with the goal to reach 50% next year (growth has exceeded +30% over the past two years due to using CRM), as this is a key element of Boyner’s strategy to mitigate rising user acquisition costs.

This is not an accident, as this stems from the changes brought to the business in the past years. Collaborations with sustainable and inclusive projects create emotional engagement (this approach is deeply ingrained in the organisation, as teams include a person contributing to sustainable and DEI initiatives). Boyner’s commitment to social responsibility and sustainability further enhances its brand value, especially among younger consumers who are increasingly purpose-driven.

In addition, hyper-personalisation is now integrated throughout an omnichannel journey, offering customised experiences and fostering deep customer loyalty, especially among younger consumers—a demographic that has grown significantly in Boyner’s base in recent years.

Boyner doubles down by deploying new initiatives:

• A new delivery channel, Boyner Now, offering a very energetic and much-appreciated service and experience coming as a complement to Boyner.com, the e-commerce arm,
• The launch of a marketplace,
• The launch of an influencer platform, Inclub,
• The systematic use of AI in various innovative activities related to e-commerce (customisation, gaming, efficiency, mostly).

A glimpse at Boyner Now

Boyner Now, launched in June 2022, is a fashion quick-commerce platform which addresses common online shopping challenges by offering same- (90 minutes) or next-day delivery options, enhancing convenience, and providing real-time tracking for customer satisfaction. The 'try before you buy' feature allows customers to receive products (used by 60% of customers), try them at home, and only pay for what they keep, with flexible payment options available (including paying on the spot via credit card to the delivery person). Despite a minimum delivery promise of 90 minutes, Boyner Now achieves an average delivery time of one hour, covering 40 locations with 25 stores, and grows by 20% per month.

The platform's sales account for 6% of Boyner's total, a significant achievement given its limited geographical reach compared to Boyner.com's nationwide presence. Boyner Now is performing especially well during the gifting season (sales are tripling) thanks to its ease of use (customers pick a product that is almost immediately delivered to their loved ones). This is why Boyner has developed an AI-powered gift assistant that simplifies the gifting process for customers (Now Gifting).

Understanding the marketplace strategy

In July 2024, Boyner expanded its digital footprint by launching a marketplace operation, adding over 500 new brands and 40 new categories to Boyner.com within three months. This marketplace includes popular fashion and lifestyle brands such as Dyson, Seiko, Casio, and Apple, which are unavailable in Boyner's physical stores. The marketplace aims to contribute 15-20% of Boyner's turnover in the coming year, and expansion to international brands is underway, hopefully contributing EUR 30m next year, after a year of existence.

Nurturing influencers with Inclub

Boyner's influencer platform, Inclub, launched as an MVP, which supports 200 influencers (influence marketing contributes 15% of sales, and Inclub is here to amplify this strategy). Onboarding has been designed to be extremely simple, and the app offers detailed reporting in real-time, allowing sales to be tracked. The next iteration of this idea will be to develop a system that will enable micro-influencers to sell products directly from Boyner’s website in 2025.

Going all-in with AI

Boyner is reimagining its website and app to create a more fashion-forward, content-rich, and interactive platform, positioning itself as a social commerce channel thanks to AI technologies. It is all about personalisation, gamification, and efficiency strategies:

The company's AI-driven projects include Türkiye's first AI-designed collection, developed in collaboration with Design Studio. This initiative reduces the design-to-production timeline from two to three months to just one month, resulting in an 80% sell-through rate for the 8,000 products manufactured (basic, clean looks, everyday products).

Additionally, Boyner utilises AI for demand forecasting and planning, allowing real-time capacity planning, monitoring demand and tracking allocations. This cascades to the customer level, with personalised shopping recommendations, enhancing the overall customer experience at checkout: AI helps Boyner make additional recommendations to customers (either based on the most successful items or the items viewed by the customer during the purchase journey) to suggest new styles, similar products, or complete the look.

AI is also infused into the customer experience through gamification, ensuring that every time the customer returns online, the experience differs and brings surprises. A hundred different journeys have been created and based on micro-segmentation of customer profiles, as identified using AI.

The search function being crucial in e-commerce, Boyner partners with Google, Meta, and TikTok, focusing on predictive audience analysis and creative enhancements. The company emphasises the importance of dynamic media and micro-segmentation in its digital marketing efforts, aiming to move away from static displays and deliver tailored messages across platforms. There is also an ongoing collaboration with Microsoft to implement natural language search.

Product reviews and comments are essential for Boyner, as they can increase conversion rates by 15-20% compared to products without comments. An AI-powered comment summariser helps condense customer feedback, making it easier for shoppers to make informed decisions. This is also contributing to significantly reduced return rates.

In an era defined by rapid shifts in consumer behavior and rising expectations, Boyner stands out as a retailer that has successfully transformed itself into a “multi-brand lifestyle company.” By embracing customer-centricity as its guiding principle, leveraging data and AI to personalise experiences, and creating immersive, emotion-rich store environments, Boyner has managed to engage younger audiences and deepen loyalty across its customer base. Its multifaceted strategy—reimagining physical spaces, building vibrant communities, expanding through marketplace offerings, and integrating influencer platforms—demonstrates how a legacy retailer can adapt and thrive in the age of omnichannel commerce. As Boyner continues to experiment, refine, and scale its innovative initiatives, its journey offers valuable insights into how retail can evolve to meet the evolving needs and desires of today’s consumers.

Credits: IADS (Selvane Mohandas du Ménil)

1We started to report this new strategy in 2022: <https://www.iads.org/web/iads/5469-iads-exclusive-boyner-the-multi-brand-lifestyle-company.php>

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The fastest growing major economy in the worldi, India has an unconventional approach to spending. Generally a saving economy, consumer spending around festivals in India is significantly boosted across categories like clothing, jewellery, groceries and confectionery, and luxury goods. The festival season in India refers to an approximately 45-day period starting in September with pre-festival sales and ending with Diwali, occurring usually at the end of October or the start of November. With a population of over a billion people, the consumer expenditure over this festival period is a key economic driver for the country.

Parallelly, the Indian retail industry is a major component of its economy (see our report following the Retailers Association of India presentation during the FIRA meeting in 2023 here). It contributes over 10% of the GDP and accounts for around 8% of employmentii. Combining a substantial middle class with increasing purchasing power and a largely unexplored retail market, India is a new favourite for global retail giants. This is evident with behemoths like IKEA, Decathlon and Sephora to name a few. Luxury brands have also garnered traction in the Indian market with the propensity of consumption for luxury goods in India rising with the expansion of the middle class. The advent of the Unified Payments Interface (UPI) transformed the Indian retail industry. UPI is a real-time digital payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). According to a PwC India report, UPI accounted for over 78% of total retail digital payments in India and expects that it will contribute 90% of total retail digital payments by 2026iii.

Experiences driving economic value

In this analysis, a festival refers to a day or period of celebration, typically for religious reasons. While Indian festivals are primarily religious, they are culturally significant and may have linkages across religious and regional communities. While Indian festivals occur throughout the year, festival season refers to a broadly two-month period (September and October, with the possibility of including the start of November) that covers a nine-day festival called Navratri (literally ‘nine nights’, it is known as Dussehra or Pujo in some parts of the country) followed by the five days of Diwali. In some states, this season can start as early as mid-August. The periods before and in between these festivals are also interpreted as festival season due to continuity and commercial activities.

The economic value of festivals in India is underscored by providing an experience that brings together over a billion people. These festivals combine:

• Co-creation: individual or community participation in various events like dances, music and other cultural activities,
• Storytelling: a religious or cultural narrative that surrounds the emergence and importance of the festival,
• Connection: broader community engagement through aesthetics, gifting, and so on,
• Escapism: a break from everyday life and connection with something larger than self,
• Loyalty: faithfulness to the concept ensuring ideological continuity.

![HBR Pine and Gilmore (1999)

Pine and Gilmore’s theory on the experience economy explains this further. Based on the four posited realms of an experience, each Indian festival is a vast enough concept to offer options for all possible combinations envisioned. For example, escapism is achieved at the intersection of active participation and immersion during Navratri by participating in traditional dances in large communal spaces. Each festival also requires its specific kind of decoration developing the aesthetic sense of the experience. During Diwali, the festival of lights and prosperity, places are decorated with various kinds of lights including traditional oil lamps, ‘diya’.

The theory goes on to expand on how experiences can command premium pricing as the most differentiated category of economic goods. While this theory revolves around companies selling experiences, it is applicable to the case of these large Indian festivals. From street hawkers to multinational companies, every seller commoditises festivals to increase sales.

Impact and adaptations

Indian festivals generate enormous primary and secondary economic activity. A significant amount of consumer goods categories such as garments, FMCG, jewellery, liquor, automobile, traditional industries and more make a notable portion of their sales (between 30 and 40% of sales for automobiles and appliances to as high as 50% on groceries and confectionary) during festival season. The country also has a significant informal market which is highly engaged during this time. Despite inflation, consumer spending during the 2024 festive season has remained steady with industries escalating their sales expectations and targets.

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) traditionally observe ‘muhurat trading’ which refers to a 60-minute window to trade on Diwali as the festival signifies prosperity and good luck. Various studies have been conducted to research the economic impact of festivals on stock indices with differing results. The broad consensus is that the pre-festival effect is significant due to the large quantities of products bought and sold. One study on the BSE indices over a three-month period shows that they absorb the effects around Diwaliiv.

It is around Diwali that most households purchase high-value items such as appliances, jewellery, smartphones and automobiles given the combination of auspicious timing for consumers and robust promotional offers. Around 30-40% of sales of automobiles occur during the festive seasonv. The appliance industry has also seen around 30% growth driven by e-commerce sales and heightened demand for premiumisation. Jewellery, another paramount sector, saw domestic prices surge by over 15%. However, the All India Gem and Jewellery Domestic Council (GJC) still anticipated a 30% increase in gold jewellery retail sales during the 2024 festive season. Local and international brands found new ways to combine luxury and affordability to engage customers.

International e-commerce platforms and brands in general have adapted their strategies to take advantage of the Indian festive season. For example, Amazon India in 2024 strengthened its workforce with around 110,000 new hires in tier two and three regions to meet festive demandvii. All global brands present in India have promotions and events during this period. This is also a time for new launches and campaigns, collector’s editions of luxury products, and specialised gifting.

The Indian diaspora also provides a notable market for Diwali-related products and events. For example, in the UK, the 2021 census showed that 3.1% (or approximately 1.86 million people) identified as having Indian ethnicity. In recent years, brands have also held Diwali events outside India with high-level diaspora and Indian invitees; Condé Nast Traveller and Cartier hosted a Diwali Ball in London studded with VIPs and artistsviii.

Business case: Amazon India

Amazon India is one of the best examples of an e-commerce brand adapting to the Indian market and its specificities. Amazon India launched the Amazon Great Indian Festival(AGIF) in 2015 which is now its biggest sale event of the year in India. What started off as a five-day sale in October, has surpassed itself year-on-year with a duration of over a month (between September 27 and October 29) in 2024, its best performing year so far.

Amazon India saw a 70% increase in sellers crossing INR 10 million (EUR 112,923) compared to 2023. Over 42,000 sellers experienced their highest-ever single-day sales during this period. The usage of Amazon Pay ICICI Bank credit card surged 50% over last year. One-third of all customers embraced Amazon Pay UPI during AGIF 2024 - a staggering 20% yearly jump, with 80% users from tier two and three cities.

One of the first e-commerce movers to create a special event for festival sales, Amazon India set the standard for both international and Indian brands to adapt to consumers’ growing expectation of intense promotional offers during festivals. Following the Covid-19 pandemic, the company shifted its focus to targeting consumers outside of metropolitan cities, in tier two and three regions. In 2024, over 85% of customers of the AGIF were from non-metro cities. This is a key development as the expansion of India’s middle-class hinges on growth outside major cities. Though Amazon India has significant competitors in the Indian market, international companies can draw inspiration to reach the non-urban Indian consumer that constitutes the bulk of the middle class.

The potential for Galeries Lafayette’s India ventures

Galeries Lafayette announced in 2022 that it would open two locations in India: in New Delhi and Mumbai. It is clear that to establish their salience in the Indian market, the veteran French department store will have to cater to regional differences between the political and commercial capitals while matching up to the advanced e-commerce ecosystem of India.

Festival season will, without a doubt, be a key timeframe. Luxury brands are already taking note of the Indian festival season. From Jimmy Choo’s Diwali capsule collection to Christian Louboutin’s collection entitled ‘The Diwali Edit’, there are an increasing number of brands catering to Indian luxury shoppers. Giving its shoppers a unique experience during festival season could set Galeries Lafayette apart. With differing clientele in Mumbai and New Delhi, this may mean tailored events for each city while ensuring it doesn’t lose customers to FOMO (‘fear of missing out’).

Domestic travel

There is also a rise in domestic travel during festival season. The three main categories are individuals returning to their native places to celebrate with extended family and domestic travel for spiritual reasons as well as for leisure. Post the COVID-19 pandemic, there has been a rise in spiritual tourism. In 2024, Agoda, a travel booking platform, reported a notable 10% increase in searches for spiritual destinations during festival season. Across religions, Indians seem to have a higher propensity for pilgrimage and holy destinations.

About three-quarters of urban Indians planned travel during the festive September to December period with similar preferences regarding domestic and international across generations with more than 20% of respondents to the survey citing the festive atmosphere as a reason to travel during this periodix. Shorter vacations and long weekends along with festive promotional deals drive this tendency.

Conclusion

While the concept of festivals is not unique to India, they manifest in a distinctive manner at a colossal scale in the country. Moreover, having not just singular but multiple festivals to create a season subsequently enables economic actors to capitalise on the seasonal peak as a whole. It is tempting to compare the duration from Black Friday to Christmas in the West and Lunar New Year in China and though similar in certain economic aspects such as commercialisation, there is no discernible festival economy in those countries.

India’s expanding middle class, growing preference for premium products, and rising disposable income, combined with the traditional festival economy results in a notable and planned consumer spending spike annually. Innovative brands and platforms are tapping into this by fabricating similar experiences to boost sales. For example, India saw a record number of Black Friday deals which were used by many sellers to get rid of excess stock left over from the festival season.

Festivals in India are vast experiences that generate economic value within its social and cultural fabric. Brands must constantly innovate to fully capture the potential of this unusual period while understanding its cultural underpinnings. These events are also celebrated in different manners across different states, regions and communities. The diversity of India reflects the need to make sure that brand offerings and communication is in line and relevant to its target group. A one-size-fits-all approach has hardly ever provided fruitful results in the massive nation and during a time as important as the festival season, the margin for error can be very low. A final example to illustrate this - during Diwali, it is common in North India and among certain communities to gamble as this is considered an auspicious time. However, in the south and among other communities, gambling is considered an unholy activity during a spiritual time. A wide betting campaign in this case is likely to do more harm than good given its dispersed audience. Understanding micro contexts in India is key and even more so to maximise the opportunity presented by the Indian festival economy.

Credits: IADS (Anchita Ranka)

i] [IMF World Economic Outlook – July 2024

ii] [https://www.ibef.org/industry/retail-india

iii] [https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/publications/the-indian-payments-handbook-–-2023–2028.pdf

[iv] Chougule, A.R., & Khamborkar, A. (2014). A Study of Seasonality in Stock Market: With Special Reference to Diwali Effect.

[v]<https://www.grantthornton.in/en/insights/thought-leadership/festive-auto-survey-2024-report/>

[vi] <https://retail.economictimes.indiatimes.com/news/consumer-durables-and-information-technology/consumer-electronics/festive-sales-buoyed-by-online-sales-premiumisation-appliance-makers-expect-up-to-30-growth/114672455?action=profilecompletion&utmsource=Mailer&utmmedium=newsletter&utmcampaign=etretailnews2024-10-28&dt=2024-10-28&em=YXJhbmthQGlhZHMub3Jn>

[vii] <https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/amazon-india-strengthens-workforce-to-meet-festive-demand-in-tier-2-3-regions/114455833>

[viii]<https://www.cntraveller.com/article/conde-nast-traveller-diwali-party-2024>

[ix] <https://travel.economictimes.indiatimes.com/news/research-and-statistics/research/three-quarter-of-urban-indians-plan-festive-season-travel-domestic-destinations-leads/112884913>

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*Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of a presentation by Yalin Ozcan (who was CEO at the time) of Hopi, the loyalty business unit within the Boyner Grup. In ten years, Hopi evolved from a points-based loyalty programme to a retail media offering and a fintech, offering a wide array of services to customers and other retailers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.*

Introduction: from loyalty to FinTech

Hopi’s origins are deeply tied to Türkiye’s unique credit card and instalment culture. In 1998, Boyner (then known as Çarşı, the first name of the department store unit) took the notable step of issuing its own credit card without bank backing. Instalments became a loyalty incentive in response to local economic constraints, preceding the introduction of points-based rewards. This venture was eventually sold to HSBC, but it laid the groundwork for future programmes.

By the time Hopi launched in 2015, Boyner was, therefore, no stranger to credit-based loyalty and already had gift cards and other payment options, which were widely accepted and used by customers. Yet Hopi was conceptualised as a multi-merchant coalition from its inception, as the plan was to create a totally new type of business.

Hopi has evolved in less than ten years from a straightforward loyalty initiative into an expansive B2B2C platform delivering not only traditional loyalty services but also advanced marketing, advertising, and financial solutions.

A multi-merchant loyalty programme

In its initial incarnation as a loyalty programme, Hopi took root within Boyner department stores but was conceived from the outset to transcend that origin. The reason behind its expansion beyond Boyner’s walls lay in the realisation that instalment offerings alone had ceased to provide competitive differentiation on the Turkish market. Consequently, Hopi quickly broadened its scope to include over 300 merchant partners spanning various retail categories, from gas stations to supermarkets. Some of these partners are Boyner’s competitors, reflecting Hopi’s strategy of building a genuine coalition of retailers that enhances the programme’s national appeal.

Operating independently from Boyner, Hopi recorded 25 billion TRL (707 million USD) in GMV 2023, with the plan to double that figure in 2024. It handles some 80,000 transactions daily, supported by strict adherence to privacy regulations that mirror Europe’s GDPR standards. Such compliance ensures that while Hopi can extract insights from customer data, this information remains securely protected.

The technical integration with merchant cashier systems facilitates instant reward transactions at the point of sale, fostering a frictionless customer experience. With a membership base of 18.2 million in a nation of approximately 85 million people, Hopi’s loyalty programme coexists with individual retailers’ own initiatives, demonstrating its flexibility and inclusiveness.

Transition into MarTech capabilities towards an AdTech provider

As Hopi accumulated detailed customer knowledge, it seized the opportunity to enhance its value proposition from a simple loyalty platform to a marketing technology provider. Central to this shift was the introduction of Paracik, an in-app currency functioning as a versatile tool to incentivise spending and refine consumer engagement strategies creatively. Campaigns like the so-called “lollipop campaign” allowed brands to reward customers with Paracik upfront while retaining the option to reclaim unused balances. This approach has proven effective, driving turnover increases up to 2.3 times in certain segments, such as electronics retail.

Hopi also encouraged sharing Paracik balances among friends and relatives, recognising that socially connected rewards could motivate additional customers to join and spend more. In practice, for every Hopi user who shared Paracik, an average of 1.6 friends became active shoppers, boosting cart sizes, GMV, and overall engagement. By leveraging its data-driven insights, Hopi expanded its client base beyond traditional retailers to include brands eager for targeted and innovative marketing approaches.

Building on this MarTech progress, Hopi logically extended its capabilities into advertising technology. Its ability to segment consumer data and precisely target audiences made it an appealing partner for over 100 brands across diverse sectors like finance, cosmetics, and technology—some of whom are not even participants in the original loyalty programme. Hopi’s AdTech services deliver a competitive advantage over conventional loyalty-based promotions by offering advanced audience segmentation and selecting optimal advertising channels. This evolution from a consumer rewards platform to a fully-fledged marketing and advertising partner positioned Hopi to help businesses navigate a complex digital landscape and optimise their marketing investments.

Adding FinTech services to the range of activities

Hopi’s foray into FinTech represented a significant strategic pivot. While credit cards and loyalty points had long dominated the Turkish retail environment, roughly 20 million individuals remained without access to banking services, with a substantial proportion being women who manage their finances indirectly through family accounts. Recognising an opportunity to broaden its customer base and foster financial inclusion, Hopi introduced prepaid cards and mobile payment solutions. Rather than developing the economic infrastructure from scratch, Hopi partnered with Türkiye’s largest FinTech company, selling a stake in Hopi to this strategic ally to ensure a seamless integration of embedded finance services.

These new financial offerings include digital loans and credit services that can be approved quickly and easily within the Hopi app, removing traditional barriers to accessing credit. Within just ten months of launching these FinTech capabilities, Hopi received nearly one million finance applications, approving over half—significantly above the typical 30-35% approval rate seen among local banks. This surge translated into substantial extra transaction volumes surpassing 450 million TRL (13 million USD) in GMV and adding a lucrative, commission-based revenue stream to Hopi’s portfolio.

A journey leading to the creation of a comprehensive B2B2C ecosystem

Hopi's current incarnation epitomises a versatile B2B2C platform serving multiple stakeholders. Approximately 18.3 million users interact with the platform, generating around 83,000 daily transactions, with 300,000 daily users benefiting from a comprehensive shopping, loyalty, marketing, and financial ecosystem. On the business side, 550 partners rely on Hopi’s robust framework for building or enhancing their loyalty and customer relationship management programmes. Crucially, Hopi can provide a retailer with an entire loyalty or CRM solution from the ground up—something that would typically be resource-intensive and complex to develop independently.

Hopi’s underlying approach is enabled by its broad and varied data sources, surpassing what any retailer could accumulate individually. Complementing their existing loyalty programmes, partners gain additional insights and capabilities through Hopi, which has established itself as a leader in B2C loyalty services. The company’s ambition now is to secure its position as an indispensable partner for consumer-facing businesses, both domestically and, in time, internationally.

Hopi’s evolution encapsulates more than just the story of a loyalty programme growing into a multifaceted ecosystem—it highlights a strategic vision shaped by data, innovation, and market responsiveness. By continually adapting to consumer behaviors, regulatory frameworks, and the technological demands of modern commerce, Hopi has created an environment where retailers, brands, and customers all find tangible benefits. Its journey from credit-based instalment incentives to a fully integrated B2B2C platform—offering loyalty solutions, advanced marketing campaigns, targeted advertising, and accessible financial services—demonstrates its foresight and resilience in a rapidly shifting landscape. As Hopi now looks beyond national borders, its pioneering blend of capabilities stands as a model for how businesses can transcend traditional boundaries, ultimately becoming indispensable partners for consumer-facing enterprises worldwide.

Credits: IADS (Selvane Mohandas du Ménil)

What: Retail industry faces unprecedented complexity in tariff management, requiring strategic approaches from supply chain restructuring to M&A considerations, as outlined by tariff expert Jim Pratt.

Why it is important: With consumer confidence showing its sharpest decline since 2021 due to tariff concerns, retailers must master complex tariff management strategies to protect both their operations and customer relationships.

The retail industry is navigating a complex landscape of tariff regulations that demands sophisticated management strategies. These changes encompass three key areas: country-specific tariffs that can be swiftly implemented, commodity-specific tariffs with long-term implications, and reciprocal tariffs aimed at equalising international trade relationships. The elimination of traditional avoidance methods, such as the de minimis exemption, coupled with stricter enforcement policies, has forced retailers to develop more nuanced approaches to tariff management. Companies are exploring various mitigation strategies, from supply chain restructuring to product classification optimisation, while also considering the impact on mergers and acquisitions. This evolving situation requires retailers to maintain flexibility in their approach while seeking expert guidance to navigate the increasingly complex regulatory environment. The implications extend beyond immediate operational concerns to fundamental questions of business strategy and long-term viability.

IADS Notes: The retail industry's response to tariff pressures reflects a fundamental transformation in operational strategies. As reported in March 2025, major retailers like Costco and Walmart are actively negotiating with Chinese suppliers to mitigate impact, while BCG's January 2025 analysis projects staggering additional import costs of USD 640 billion. This has triggered innovative responses, exemplified by Shein's February 2025 initiative offering 30% higher procurement prices to relocate manufacturing to Vietnam. The impact extends beyond operations to corporate strategy, as evidenced by Hudson's Bay's recent challenges highlighting how tariff considerations are reshaping retail valuations and M&A decisions. Consumer sentiment has responded accordingly, with confidence indices showing their sharpest decline since 2021, forcing retailers to balance cost management with pricing strategies. These developments underscore the article's emphasis on the need for strategic flexibility and expert guidance in navigating the complex interplay between trade policies and retail operations.

Tariffs: What brands and retailers need to know and do

What: Research involving 3,268 consumers demonstrates that responsible AI features, particularly privacy and auditability, can increase product adoption rates by up to 63% while generating significant economic returns for retailers.

Why it is important: As retailers increasingly adopt AI technologies, with 87% of implementations leading to revenue growth, understanding consumer preferences for responsible features becomes crucial for successful market differentiation and adoption.

Recent research reveals a compelling business case for responsible AI (RAI) implementation in retail, challenging the notion that ethical considerations conflict with profitability. The study, involving 3,268 consumers, identified five key product design attributes: auditability, autonomy, personalisation, privacy, and understandability. Among these, privacy emerged as the most critical factor, with an average importance score of 31%, followed by auditability at 26%. Even when considering price and performance factors, privacy remained a crucial driver of consumer choice. The research demonstrates that incorporating responsible AI elements can dramatically increase adoption rates, from 2.4% to 63.19% for certain applications. However, despite 87% of managers acknowledging RAI's importance, only 15% feel well-prepared to implement these practices, highlighting a significant gap between awareness and execution. The findings suggest that companies must reconsider their resource allocation in product design, particularly when facing trade-offs between advanced capabilities and responsible implementation.

IADS Notes: The importance of responsible AI implementation is strongly supported by recent market developments. As noted in November 2024, transparency is crucial, with 75% of consumers expecting disclosure when interacting with AI-driven tools. This aligns with the growing demand for personalization, as 67% of customers seek personalised interactions with proper privacy safeguards. The business impact is significant, with companies reporting revenue increases of 6% or more, while meeting consumer expectations remains critical - 71% expect personalised interactions. The success of responsible implementation is evident in the 80% satisfaction rate among AI tool users, demonstrating the strong connection between responsible practices and business success.

How responsible AI protects the bottom line

What: The second-hand fashion market has grown to USD 100 billion globally, driven by price-conscious consumers and environmental concerns, yet most platforms struggle to achieve profitability despite rapid growth.

Why it is important: The contrast between rapid market growth and profitability challenges highlights the need for innovative business models in the circular economy, as demonstrated by Vinted's successful no-seller-fee approach.

The second-hand fashion industry has undergone a remarkable transformation, evolving from niche charity shops to a USD 100 billion global market. This growth is primarily driven by price-conscious consumers, with Vestiaire Collective reporting that second-hand designer items are 33% cheaper than firsthand fast fashion alternatives. The sector's expansion has attracted mainstream attention, with luxury resale platforms featuring in popular media and major retailers entering the market. However, profitability remains elusive for many platforms, with companies like The RealReal and thredUp experiencing significant stock value declines since their public listings. To address operational challenges, platforms are investing in technological solutions, from AI-powered listing tools to innovative authentication methods. The industry holds substantial growth potential, with analysts estimating USD 200 billion worth of luxury goods in wardrobes ready for resale, though only 3% currently reach the market. As the sector matures, companies like Vinted are demonstrating that alternative business models, focusing on user experience and operational efficiency, may hold the key to sustainable profitability.

IADS Notes: The second-hand fashion market's trajectory in 2024-2025 reveals a complex landscape of growth and challenges. While ThredUp's March 2024 projection of a USD 350 billion market by 2028 aligns with the article's reported growth from USD 30-40bn to USD 100bn, the path to profitability remains elusive for most players. Vinted's breakthrough to profitability in April 2024, achieving EUR 17.8 million in net profit, stands as a rare success story, achieved through strategic pricing and revenue diversification.

Traditional retailers' increasing participation, exemplified by H&M's French market entry in September 2024 and Harvey Nichols' Luxury Promise partnership, validates the article's observation about mainstream retail integration. Consumer behaviour data from December 2024 showing 84% of shoppers planning second-hand purchases reinforces the article's findings about price consciousness and environmental awareness driving adoption. The integration of new technologies, particularly in authentication and inventory management, addresses the operational challenges highlighted in the article, though profitability remains the sector's primary challenge as we move through 2025.

The business of second-hand clothing is booming

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The French department store Printemps is making a bold leap into the U.S. market by opening its first American outpost in Manhattan’s Financial District. After four years in the making, the 2-story, 4,000 square meter location at One Wall Street opened last 21st of March (on Spring Day, which means Printemps in French). Interestingly, it is not advertised as a store but as an immersive luxury experience, blending fashion, gastronomy, and hospitality.

With around one-tenth of the Paris Haussmann flagship store surface, Printemps aims to challenge the traditional department store model by focusing on experiential retail, offering visitors a space to linger, discover and indulge. Also, the opening of Printemps, a new retailer name for US consumers, is expected to contribute to the renewal of the Financial District, introducing a new luxury shopping option in NYC. Advertised as “not a department store” on local cabs and billboards, Printemps is a very ambitious project. What is it all about? Many retailers have bit the NYC dust in the past. What is Printemps’ plan to differentiate, in a crowded market, to oversollicited customers?

It starts with the real estate

One Wall Street: from New York landmark…

One Wall Street is an architectural and historical gem that has played a prominent role in New York City's skyline since its construction in the early 20th century. Originally built as the headquarters of the Irving Trust Company, the building was completed in 1931. At the time, it was one of the tallest buildings in the Financial District, standing at 199 meters and 50 stories tall. One Wall Street is most famous for its stunning Art Deco interiors, particularly the Red Room, a large reception hall embellished with over 2.5 million red and gold mosaics designed by artist Hildreth Meière. The space was initially conceived as a banking hall meant to impress clients and reinforce the prestige of the Irving Trust Company. A 35 story annex was added to the original building in 1965.

Over the decades, One Wall Street has changed hands several times, reflecting shifts in the financial industry. After serving as Irving Trust's headquarters, the building became home to the Bank of New York Mellon, following a series of banking mergers and acquisitions. In 2014, the building was acquired by Macklowe Properties for USD 585 million (and backed by Dilmon LLC, the family office of Qatar’s Sheikh Hamad bin Khalifa Al Thani) to embark on a massive redevelopment project to convert the office tower into a luxury residential and retail destination. Macklowe then secured a USD 750 million construction loan from Deutsche Bank in 2018 to fund the project.

… to a mixed-use destination with problems

Besides Printemps, One Wall Street offers local residents a 4,000-square-meter Whole Foods grocery store and a 5,000-square-meter Life Time wellness and fitness club. The project also boasts 9,000 square feet of resident amenities, including a private dining room and a pool.

Estimated to be a USD 1.5 billion project, the building repurpose is the largest office-to-residential conversion in NYC history. It also illustrates a significant shift in the Financial District as it transforms into a more family-friendly residential area, with ongoing office conversions, high-end retail, and cultural attraction openings, including the Perelman Performing Arts Center. On the corporate side, a new breed of companies have been settling down: tech companies, media companies such as Condé Nast and up-and-coming fashion labels like Theophilio, Rosie Assoulin and Bode. These changes will contribute to making the Financial District more lively and generating traffic.

However, as of November 2024, One Wall Street has faced significant challenges, with sales figures far from expectations. Out of 566 available units, only 113 had been sold since sales began in 2021 for USD 230 million, representing 14% of the anticipated USD 1.7 billion in sales. In 2022, developers were already looking for a USD 1.1 billion loan to help refinance the project. In 2023, in response to these slow sales, Macklowe secured a USD 300 million inventory loan from Deutsche Bank to manage the unsold units. Macklowe dumped two sales brokerages and now markets the units with his team.

One Wall Street is not the only project facing issues in the Financial District, as new residents are not flocking quickly. In addition to numerous rentals, the area has more than 220,000 condo units, with thousands unsold despite the median price dipping from USD 1.275 million in the second quarter of 2023 to USD 985,000 in the third quarter of 2024.

New York, New York: if I can make it there

From Galeries Lafayette and others…

New York has always been a retail magnet. Galeries Lafayette previously attempted to establish a presence in NYC. In 1991, they opened a store in Trump Tower on Fifth Avenue. After a promising debut, customers considered the store too French and complained that the supposedly exclusive brands were not. The targeted USD 65-70 million turnover could never be achieved, only reaching USD 24 million in sales in 1993. With high operating costs and stiff competition, losses peaked at 97 million in 1992 and 93 million in 1993. The store closed in November 1994. Other foreign retailers entered the U.S. and eventually shut down: Takashimaya, Topshop, Tesco, Carrefour and Joe Fresh.

… to Printemps

Luxury has never thrived in the Financial District in the past. Big names failed: Saks Fifth Avenue and Milan’s 10 Corso Como both left the area after less than five years, though Tiffany & Co. and Hermès opened stores on Wall Street in the past decade. Located close by, the Brookfield Place mall houses Gucci, Bottega Veneta, Louis Vuitton and Zegna. Also illustrating the area evolution, other high-street retailers are available close to One Wall Street: Zara, Anthropologie and Urban Outfitters.

Printemps didn’t disclose how much turnover the store is expected to generate, but CEO Jean-Marc Bellaiche says they have a “reasonable business plan.” Printemps bets on 150,000 people entering the store daily and targets local residents with a household income estimated at USD 170,000. Commuters and visitors from out of town are also targeted but should not account for the most significant chunk of customers. Echoing the new Selfridges’ loyalty programme, which rewards purchases and time spent using the store services and amenities (such as the skateboard room and the cinema, for example), Printemps says they will measure success in terms of the time customers spend in-store, not only in terms of sales per square foot. However, is this strategy relevant enough to generate the necessary volumes to make the store viable? They give the store two seasons to know if it’s a success or not.

When it comes to finances, Printemps has a special link with the building as the department store is owned by the Qatari-backed investment fund Divine Investments SA, which is supported by Dilmon LLC, a company financing the project along with Macklowe. As a result, it’s most likely that Printemps’s rent is very low or close to nothing. Low rent will certainly be necessary to help compensate for other significant costs as described in Vogue Business: “Printemps will own the products that are sold there. Printemps will employ the people who work there. […] It’s both an experiment and a gauntlet thrown.” Not to mention the cost of building this ultra-luxurious store concept.

Finally, Printemps wants to develop its e-commerce presence in the U.S. The company has launched a dedicated U.S. website to complement the store opening, us.printemps.com. This platform will be designed to provide American customers with access to Printemps' curated luxury offerings, aligning with its strategy to create a seamless omnichannel experience locally.

Don’t call it retail, but hospitality

Design and interior aesthetics

Parisian architect Laura Gonzalez was in charge of the store's interior. Shoppers will encounter mirrored walls, marble staircases, lavish hardwood floors and intricate detailing that echo the brand's Parisian flagship, as well as vintage furniture that is all moveable and for sale. The landmarked Red Room has been transformed into a beautiful shoe salon with a forest of “trees” lighting up footwear displayed on circular onyx tables. It is an impressive introduction to the store.

Printemps New York is not designed to be a conventional department store. Instead, Bellaiche describes it as a “hospitality project” where “French sophistication and curation meets American hospitality,” that encourages visitors to spend time inside rather than rush through quick purchases.

Inspired by a Parisian apartment and dubbed an “apartment store” by Thierry Prevost, General Manager of Printemps America, the store is divided into ten uniquely designed rooms, each offering a distinct shopping experience. The Boudoir houses eveningwear in a gold and lacquered ambiance, while La Garçonnière (translating to bachelor pad) houses menswear, and the Playroom features casualwear, gifts, and sneakers displayed under an LED ceiling that changes visuals (Nike takeover at the time of the opening). The Salle de Bain beauty and spa area, with four beauty cabins, offers luxurious treatments such as facials and nail services, reinforcing the store’s hospitality-driven approach.

Curated offerings

The store doesn’t advertise itself as a concept store even though it could be considering its surface, its layout and its interior designs. The store will sell men’s and women’s ready-to-wear, casual wear, outerwear, vintage, active, accessories, beauty, wellness and gifts. Unlike traditional department store layouts and the usual branded shop-in-shop model in fashion or beauty departments, Printemps NYC favours a multi-brand, curated selection of luxury goods from 450 established brands and niche labels landing in NYC for the first time. Dior, Manolo Blahnik, Valentino, Maison Margiela, JW Anderson, Jacquemus, Jean Paul Gaultier, Manolo Blahnik, Aquazzura, Balenciaga, Nike, Acne Studios, Simone Rocha, Carven, Jil Sander and Bottega Veneta are among the roster of brands, which will be completed by niche brands such as Vautrait, Le Monde Beryl, Corsi Design, Aeyde and Magda Butrym as well as small and artisanal French brands such as Joseph Duclos, Pinel & Pinel and Capulette. Big names such as Louis Vuitton are missing. As a result, the store offers a mix of exclusive items from high-end brands, artisanal products and vintage offerings. Additionally, Printemps integrates its private label, Saison 1865. Encouraging circularity, the Atelier & Repair service offers customers options beyond standard retail transactions.

It’s unsure whether these offerings will be enough to lure the affluent customers the store is targeting. But the mix of highs and lows indeed adds flair to the store. Printemps is not the only department store looking to behave more like an independent multi-brand store. Many luxury department stores try adding flair to the succession of shop-in-shops, thanks to curated multi-brand areas meant to differentiate and demonstrate the specific store's taste. For example, this is the case with L’Endroit and Le Market in Printemps and la Creative Galerie in Galeries Lafayette, in their Paris's Boulevard Haussmann flagship stores.

Finally, to differentiate from the department store’s traditional layout, one of the first contact points for shoppers will be a café, a similar strategy seen at the Boyner’s Cadde store, which has a Costa Coffee right at the entrance. Also, similar to the Printemps Haussmann store, a gift section featuring cheaper items such as candles will be featured at the store entrance.

Culinary experiences and events 

Now integral to any elevated retail experience, food offerings have become a department store staple. Research by Harrods showed that when customers engage with their 26 restaurants and bars, they spend twice as long in the building and twice as much money. Printemps follows a similar strategy and dedicates a third of the shop floor to F&B offerings. They have appointed Chef Gregory Gourdet as its culinary director who created five different concepts for the store: an all-day casual café, a classic Parisian-inspired raw bar called Salon Vert, the Red Room Bar for cocktails, and The Champagne Bar. There is also a French wine shop. However, the most critical F&B option is undoubtedly the Maison Passerelle restaurant. It aims for a Michelin star and is considered one of the 10 most important restaurant openings in NYC in 2025. It is instrumental to the strategy, and bookings are said to be already flooding in. Fine dining is increasingly vital to department store success: El Corte Inglés also successfully opened a Michelin star restaurant, RavioXO, in Castellana stores in 2022.

Beyond fashion and dining, Printemps integrates culture into its retail experience. The store will host curated events, brand takeovers (Jacquemus at the time of the opening), and even meditation sessions, further positioning itself as a destination rather than just a place to shop. With a focus on retail-tainment, Printemps hopes to fill the void left by Barneys New York and Jeffrey, former fashion landmarks that once led the city’s luxury shopping scene.

Printemps certainly plays by the book and ticks many boxes of what a department store is nowadays: a beautiful store concept, F&B options, a curated multi-brand offer, services and events, all with a Parisian flair that New Yorkers will probably like.

The story of One Wall Street and Printemps’ arrival in the Financial District is emblematic of a broader transformation in urban retail and real estate. As traditional office spaces become increasingly obsolete in a post-pandemic world, developers and retailers alike reimagine the possibilities of mixed-use destinations. One Wall Street’s conversion reflects this shift, blending residential and retail to attract affluent buyers.

Yet, with sluggish condo sales and a volatile retail market, Printemps’ long-term viability remains uncertain. Will Printemps and One Wall Street rewrite the narrative, or will they become yet another cautionary tale in the city’s high-stakes retail experiment? As stated in the Financial Times by Neil Saunders, managing director of Global Data, “they are definitely launching at a challenging time. Consumers are becoming a little more reluctant, the luxury market is a lot softer than it has been, and the environment is very competitive. That said, there is a case to have something else that’s a bit different. There is an opportunity for them to carve out a niche, but it won’t necessarily be easy.” Only time will tell, but one thing is sure: nothing is ever static in New York, and reinvention is the game's name.

Credits: IADS (Christine Montard)

What: Southeast Asian markets face significant investor pullback amid 18% decline in Jakarta's composite index and widespread currency depreciation, reflecting growing regional economic uncertainties.

Why it is important: This market response represents a key moment in Southeast Asia's retail evolution, testing the resilience of major investments like the USD 3.2 billion One Bangkok project and USD 665 million Central Retail digital transformation amid changing investor sentiment.

Southeast Asia's financial markets are experiencing significant turbulence, with Indonesia's Jakarta composite index plummeting 18% since mid-September 2024, including a dramatic 5% single-day drop that triggered trading suspension. Thailand's SET index faces similar challenges, with both countries' currencies weakening against major international currencies. This market volatility stems from a complex interplay of domestic and external factors. Internally, Thailand grapples with a struggling export-oriented economy and questionable stimulus measures, while Indonesia confronts weakening consumer purchasing power, corporate bankruptcies, and governance challenges at state-owned enterprises. The new Indonesian government's creation of a super-holding investment fund and tax revenue shortfalls have further eroded investor confidence. External pressures, particularly global trade disputes and economic uncertainty, are prompting investors to seek safer, more liquid assets in established markets. This shift reflects a broader trend of capital outflow from emerging markets during periods of heightened global risk, though the impact varies across the region's economies.

IADS Notes: Recent market data provides crucial context to the current investment climate in Southeast Asia. In March 2025, while the Jakarta composite index's 18% decline and Thailand's market contraction signal immediate challenges, the underlying retail sector shows a more nuanced picture. Central Retail's USD 665 million investment in AI integration (February 2024) and MM Mega Market's USD 20 million Vietnam expansion (November 2024) demonstrate continued confidence in the region's potential. The USD 3.2 billion One Bangkok project (October 2024) exemplifies Thailand's emergence as a luxury retail hub, even as the broader market faces headwinds. Vietnam's projected retail market growth to USD 350 billion by 2025 suggests that investors are taking a longer-term view despite current market volatility. This aligns with the broader trend of strategic adaptation, as evidenced by the region's increasing omnichannel penetration and tourism-driven recovery, indicating that while investors may be recalibrating their approaches, they are not fundamentally retreating from Southeast Asian markets.

Are investors pulling out of Southeast Asia?

What: A faulty security software update triggered the largest IT outage in history, affecting 8.5 million devices and exposing retailers' dependence on third-party technologies.

Why it is important: This incident reveals how non-malicious technical failures can cause more financial damage than cyberattacks, forcing retailers to reassess their technology dependency and disaster recovery strategies.

The Crowdstrike Falcon update incident of 2024 marked an unprecedented disruption in global retail operations, resulting in a staggering USD 5.4 billion in losses for Fortune 500 companies alone. This non-malicious technical failure affected 8.5 million Windows devices worldwide, disrupting essential retail operations from payment processing to inventory management. The incident's significance lies not just in its immediate impact but in its revelation of how deeply integrated third-party software has become in retail operations. While Crowdstrike's anti-malware solution typically protects against threats, this incident demonstrated that the same mechanisms enabling rapid security updates could also become vectors for system-wide failures. The retail sector's response highlighted a crucial paradox: while technology dependency creates vulnerabilities, it remains essential for modern retail operations. The incident has prompted a fundamental shift in how retailers approach technology risk management, emphasising the importance of rapid recovery capabilities over complete risk avoidance. This event serves as a watershed moment for the industry, demonstrating that resilience in modern retail requires both technological advancement and robust contingency planning.

IADS Notes: The Crowdstrike outage of March 2025 represents a watershed moment in retail technology vulnerability, echoing several significant incidents from the past year. In November 2024, the Blue Yonder ransomware attack demonstrated how third-party software disruptions can paralyze retail operations, affecting 3,000 retailers worldwide. The ripple effects of such incidents were further illustrated in March 2025 when El Corte Inglés faced a major data breach through an external provider, while El Palacio de Hierro's payment system disruption in August 2024 showed how even routine server updates can severely impact customer transactions. The complexity of retail technology integration was highlighted by Asda's USD 21 million inventory discrepancy during their SAP implementation in October 2024. However, success stories like Stripe's handling of USD 31 billion in Black Friday transactions while blocking nearly 21 million fraudulent attempts in December 2024 demonstrate that robust technology infrastructure and preparedness can effectively manage large-scale operations. These incidents collectively underscore the article's emphasis on the critical importance of rapid recovery capabilities and comprehensive contingency planning in modern retail operations.

How retailers can protect against costly IT outages and cyber disruptions

What: Amazon defies social media boycott with 1% sales increase during the February 28th protest, demonstrating the platform's resilience and the gap between online activism and actual consumer behaviour.

Why it is important: This development underscores the challenge of translating social media movements into meaningful economic impact, particularly against platforms that have successfully integrated themselves into consumers' shopping habits.

Amazon's resilience during a planned February 28th boycott reveals the growing disconnect between social media activism and actual consumer behaviour. Data from Momentum Commerce shows transactions rose 1% compared to typical Friday patterns, with early-day performance reaching 6.8% above average before moderating in the afternoon. The e-commerce giant's ability to maintain sales growth during the protest highlights the platform's deeply embedded role in consumer shopping habits. While the People's Union USA plans additional boycotts, including a week-long action specifically targeting Amazon from March 7-14, the initial results suggest that transforming social media campaigns into significant economic impact remains challenging. The data demonstrates how established e-commerce platforms can withstand short-term consumer activism, raising important questions about the effectiveness of such protests in influencing shopping behaviour.

IADS Notes: Amazon's performance during the February 2025 boycott aligns with its demonstrated market resilience throughout 2024. In December 2024, the company achieved record-breaking holiday sales, with global online transactions reaching $74.4 billion despite economic challenges. This was followed by dominant performance in European markets, as evidenced by its Christmas 2024 success in France. The platform's ability to maintain growth during social pressure periods reflects its successful adaptation to changing consumer behaviors, supported by robust data analytics and strategic expansion into new retail segments.

Amazon defies ‘economic blackout’ as sales climb during boycott

What: Consumer spending patterns face imminent transformation as Trump's 25% tariffs on Canada and Mexico, plus 10% on Chinese goods, threaten to reshape retail pricing and shopping behaviour.

Why it is important: The convergence of tariffs with existing inflation concerns signals a transformative moment in consumer behaviour, pushing retailers to restructure their operations while creating opportunities for alternative retail channels like secondhand and off-price.

The imminent implementation of Trump's tariffs is creating significant anxiety in the US retail market, with consumers and brands alike preparing for substantial changes. The comprehensive tariff package includes 25% duties on Canadian and Mexican imports, alongside an additional 10% tariff on Chinese goods, all set to take effect next week. Consumer sentiment has already responded, with 62% expressing concern about rising apparel costs due to new trade policies. The Conference Board's Consumer Confidence Index reflects this anxiety, showing its largest monthly decline since August 2021.

The impact extends beyond immediate price concerns, as retailers anticipate shifts in shopping behaviour. Industry experts predict a two to three-month lag before consumers feel the full effect of tariff increases, as retailers work through existing inventory and gradually adjust prices to maintain market stability. The changes are expected to particularly affect full-price fashion brands targeting aspirational consumers, while luxury brands may remain relatively insulated. Alternative retail channels, including fast fashion, off-price retailers, and secondhand markets, are positioned to benefit as consumers seek more affordable options.

IADS Notes: The current consumer anxiety about Trump's tariffs reflects significant market developments throughout 2024 and early 2025. In January 2025, BCG projected that a 60% tariff on Chinese goods would add USD 640 billion to US import costs, fundamentally reshaping retail economics. This concern has already manifested in concrete policy changes, with February 2025 seeing the elimination of the USD 800 de minimis rule, affecting millions of daily shipments and forcing retailers to restructure their operations. The impact extends beyond direct cost implications; October 2024 port strikes disrupted over 100,000 shipping containers, compelling retailers to adopt more agile supply chain strategies. Companies are actively responding, as evidenced by Shein's February 2025 initiative offering 30% higher procurement prices to manufacturers willing to relocate to Vietnam. Consumer confidence has responded accordingly, with the Conference Board's index showing its largest decline since August 2021, reflecting broader market anxiety about potential price increases and economic uncertainty.

How will consumers respond to Trump’s tariffs?

What: China prioritises consumer spending over technology development in its 2025 economic strategy, introducing a YEN 300 billion stimulus package to boost domestic consumption.

Why it is important: This strategic pivot reflects China's recognition that balanced economic growth requires stronger domestic consumption, particularly as household spending remains 20 percentage points below global averages and international trade tensions persist.

China's government has announced a significant shift in its economic priorities for 2025, elevating consumer spending above technology and industrial production in its national agenda. Premier Li Qiang's parliamentary report outlined a "special action plan" to boost consumption and domestic demand, supporting a target of roughly 5% growth. This strategic reorientation is evidenced by the term "consumption" appearing 31 times in the report, compared to 28 mentions of "technology." The government plans to issue ultra-long special treasury bonds valued at 300 billion yuan to support an expanded trade-in scheme for various consumer goods. This initiative represents a departure from previous hesitancy to implement direct consumer stimulus measures. The policy shift addresses a significant imbalance in China's economy, where household spending comprises less than 40% of annual economic output, approximately 20 percentage points below global averages. While technology remains important, particularly in areas like AI and quantum computing, the focus has clearly shifted towards encouraging consumer expenditure.

IADS Notes: This policy shift builds upon evolving retail trends in China, where January 2025 data showed retail sales reaching YEN 44.2 trillion alongside 230 million consumers embracing AI-powered retail solutions. The transformation of retail spaces, with major cities allocating 16% to entertainment zones, demonstrates the market's readiness for increased consumer focus. Early 2024 performance showed promising signs with a 5.5% year-on-year increase in retail sales and 15.3% surge in online transactions, while December 2024 data revealed stronger growth in rural areas, suggesting the potential effectiveness of these new consumer-focused policies.

China shifts focus to consumer spending over technology amid economic concerns

What: A large-scale study of 776 Procter & Gamble professionals reveals that AI-enabled teams outperform traditional work groups, with individuals using AI matching the performance of two-person teams while reducing work time by 12-16%.

Why it is important: These findings provide a concrete blueprint for retailers seeking to optimise their workforce, as the industry grapples with implementing AI solutions that have already shown 15-30% efficiency improvements in customer service operations.

The comprehensive study of P&G professionals demonstrates AI's transformative impact on team dynamics and productivity in knowledge work. The research reveals that individuals working with AI can match the performance of traditional two-person teams, while AI-enabled teams achieve the highest overall performance, particularly in producing exceptional solutions ranking in the top 10% of quality. The study also shows that AI effectively bridges professional silos, enabling both technical and commercial specialists to produce balanced solutions regardless of their background. Notably, less experienced employees working with AI performed comparably to experienced teams, suggesting AI's potential to democratise expertise. The emotional impact was equally significant, with AI users reporting higher levels of positive emotions and lower levels of anxiety and frustration. These findings, based on real-world product development tasks with actual business stakes, provide valuable insights into how AI can enhance both individual and team performance while improving the overall work experience.

IADS Notes: The study's findings align with significant retail industry developments throughout 2024-2025. As reported in February 2025, 87% of retailers implementing AI witnessed revenue increases of 6% or more, while customer service operations showed 15-30% efficiency improvements. The democratisation of expertise was particularly evident in retail applications, with AI-tool-directed traffic increasing 304% year-over-year. However, implementation challenges persist, as only 10% of companies successfully scale their AI applications, though those who do report 50% reduction in administrative tasks and 30% faster development with properly supervised systems.

The Cybernetic Teammate

What: CEOs must balance cost discipline with technological innovation in 2025, as 86% plan AI investments while focusing on building resilient supply chains and streamlined operations.

Why it is important: This dual focus on cost management and technological advancement represents a critical inflection point for retail leadership, as companies that successfully integrate AI while maintaining operational efficiency are seeing significant competitive advantages in market share and profitability.

In today's uncertain retail landscape, CEOs face the complex challenge of executing strategic priorities while navigating multiple challenges, from geopolitical conflicts to market volatility. Research indicates that 40% of leaders feel unprepared for market shocks in 2025, with cost reduction emerging as their top strategic priority. However, this focus on efficiency isn't limiting growth ambitions, as two-thirds of companies plan to reinvest their cost-reduction savings into expansion opportunities. The implementation of AI and advanced analytics plays a crucial role, with 86% of organisations planning investments in these technologies this year. Success requires a delicate balance: building a culture of cost discipline while avoiding counterproductive cuts that could hinder growth. Leaders must focus on surgical cost reduction, supply chain resilience, and strategic AI deployment that reshapes core functions rather than merely automating existing processes. This approach enables companies to execute their highest-order objectives, from spurring innovation to entering new markets and upskilling talent.

IADS Notes: The retail industry's transformation through strategic cost management and AI implementation has shown significant momentum throughout 2024-2025. In March 2024, major retailers like Macy's demonstrated this shift with ambitious cost-saving strategies targeting hundreds of millions in efficiencies. By October 2024, data revealed that early AI adopters achieved remarkable success, with 87% experiencing revenue increases of 6% or more. However, the challenge of scaling these initiatives remains significant, as February 2025 data indicated only 10% of retailers successfully scaling their AI applications. This reality underscores the article's emphasis on balanced implementation, where cost discipline and technological innovation must work in tandem to drive sustainable growth.

The CEO’s guide to delivering despite uncertainty in 2025

What: Major retailers are strategically rebranding their DEI initiatives amid political pressure and legal risks, with approaches ranging from complete terminology changes to steadfast commitment maintenance.

Why it is important: The industry's response to DEI challenges sets new precedents for how corporations can maintain inclusive practices while adapting to changing political and social pressures.

The retail industry's approach to diversity, equity, and inclusion is undergoing a significant transformation as companies navigate complex political and social pressures. Following Trump's executive orders targeting DEI programmes, companies have adopted varying strategies, from Victoria's Secret's rebranding to "inclusion and belonging" to Costco's steadfast defence of existing policies. The backlash against DEI has prompted a broader industry discussion about effective implementation, with experts highlighting the need for measurable outcomes rather than symbolic gestures. The emergence of alternative approaches, such as the FAIR framework, suggests a path forward that focuses on systemic changes and universal belonging. While some companies face significant consequences for their DEI decisions, as evidenced by Target's USD 10 billion valuation loss, others like Walmart have successfully maintained inclusive practices while modifying terminology. This period of change presents an opportunity for companies to reassess and strengthen their commitment to workplace equity through more integrated, thoughtful approaches.

IADS Notes:

The retail industry's response to DEI challenges has evolved significantly since late 2024. In November 2024, Walmart pioneered a strategic shift by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This contrasts with Target's experience in February 2025, which saw a USD 10 billion valuation loss and 9% drop in store traffic following DEI controversies. The emergence of the FAIR framework in January 2025 offers retailers a new way to balance inclusive practices with business performance, as evidenced by Victoria's Secret's recent rebranding to "inclusion and belonging.

The future of work: what went wrong with DEI and how to move forward?

What: February 2025 sees retail sector post second-highest private-sector job losses amid widespread corporate restructuring, with announced layoffs seven times higher than previous year and projected store closures to exceed 15,000.

Why it is important: The scale of workforce reduction and store closures reflects the retail sector's urgent need to restructure operations, with only 38% of retailers reporting profit gains despite topline growth in 2024. The retail industry is experiencing a significant transformation marked by widespread layoffs and store closures. February's employment data reveals retail as the second-highest sector for job losses, with over 45,000 layoffs announced year-to-date compared to just 6,751 in the previous year. Major retailers are implementing substantial restructuring plans, with Joann cutting 19,000 positions, Party City eliminating 16,000, and Estée Lauder reducing up to 7,000 jobs. Corporate restructuring has particularly impacted management and support positions across companies like Starbucks, 7-Eleven, CVS, and Walmart. Store closures are accelerating, with Coresight Research projecting up to 15,000 closures in 2025, more than double the previous year's figure. This trend is driven by multiple factors, including weakening consumer confidence, tariff uncertainties, and the challenge of maintaining profitability despite topline growth. Retailers are seeking alternative ways to offset higher costs, with 28% planning to streamline their brick-and-mortar footprint and 18% reducing headcount.

IADS Notes: The current retail restructuring wave reflects deeper industry challenges. As noted in December 2024, major retailers like Macy's have accelerated their store closure plans, while department stores have seen their market share plummet to less than 3%. The industry's response varies from operational restructuring, as seen with Kohl's closure of 27 stores, to strategic consolidation through mergers like Saks and Neiman Marcus. The severity of these challenges is further emphasised by Hudson's Bay's recent bankruptcy filing, demonstrating the widespread nature of retail sector pressures.

Retail layoffs surge as retailers adjust to mounting economic and profitability pressures

What: India's luxury market undergoes fundamental transformation as 43% of luxury consumers emerge from non-metro cities, driving brands to adopt integrated physical-digital approaches while emphasizing pre-owned goods and cultural authenticity.

Why it is important: This shift represents a pivotal moment in global luxury retail, as India's projected $2 trillion retail market by 2033 and growing affluent consumer base of 100 million by 2027 create unprecedented opportunities for brands willing to adapt their strategies.

India's luxury retail landscape is experiencing a significant transformation, with 43% of luxury consumers now residing outside traditional metro cities. This shift is driving major brands like Bvlgari to adopt innovative "phygital" approaches, combining online presence through platforms like Tata Cliq Luxe with strategic physical retail in emerging markets. The pre-owned luxury segment presents another significant opportunity, particularly in watches and handbags, where cities like Ajmer and Bhubaneswar show strong demand. Cultural storytelling emerges as a crucial factor, with successful examples including Bvlgari's mangalsutra and Dior's partnership with the Chanakya School of Craft. The report emphasizes the importance of authentic cultural integration, as demonstrated by collaborations featuring Indian celebrities like Priyanka Chopra and Ayushmann Khurrana, and the success of initiatives that blend Indian traditions with global luxury.

IADS Notes: The transformation of India's luxury market is supported by significant developments throughout 2024-25. February 2025 saw 27 new international brands enter India, while Bulgari's expansion to nine key cities demonstrated the viability of integrated retail approaches. Barclays projects 15-25% annual growth through 2030, supported by an affluent consumer base expected to reach 100 million by 2027. The importance of cultural integration is highlighted by India's ranking as the most attractive emerging market, while the projected $89 billion in global retail spending by Indian tourists suggests the growing influence of Indian consumers in global luxury retail.

3 opportunities for brands eyeing India’s luxury market

What: Luxury brands must recalibrate their cultural strategy as excessive accessibility threatens their exclusivity and long-term desirability.

Why it is important: The success of brands like Hermès and Brunello Cucinelli  demonstrates how controlled distribution and authentic philosophy can outperform trend-chasing strategies.

The luxury industry faces an existential crisis as brands struggle to balance cultural relevance with traditional exclusivity. Major houses like Louis Vuitton and Gucci have become predictable through endless collaborations and digital initiatives, diluting their mystique in pursuit of younger audiences. The democratising effect of social media has fundamentally altered how luxury generates desirability, challenging traditional brand-building tools. However, some houses have successfully navigated this paradox: Hermès maintains its allure through controlled distribution, Bottega Veneta has withdrawn from social media to preserve exclusivity, and Brunello Cucinelli has built a distinctive philosophy around humanist capitalism. This emerging "post-democratic luxury" operating system emphasises cultural discernment over mere participation, suggesting a return to intentional rarity and authentic brand storytelling. The future of luxury may lie not in chasing every cultural moment but in creating sustainable desirability through controlled scarcity and genuine brand values.

IADS Notes: Recent market data reveals a significant transformation in luxury retail strategy. While global luxury spending faces a projected 2% decline in 2024 , successful brands like Brunello Cucinelli have thrived through exclusive experiences and limited-production offerings . This contrasts with the challenges faced by brands pursuing broad cultural relevance, as evidenced by Louis Vuitton's struggle to maintain exclusivity while chasing growth . The emergence of "post-democratic luxury" is further supported by the success of ultra-exclusive experiences targeting high-net-worth individuals , suggesting a fundamental shift away from digital omnipresence toward controlled scarcity.

The paradox of cultural currency in luxury strategy

What: Southeast Asia's economic performance in Q4 2024 shows regional stability amid external challenges, with Vietnam leading at 7.55% growth while maintaining robust retail and tourism sectors.

Why it is important: The varied performance across markets highlights opportunities for retail expansion, with Vietnam's retail market projected to reach USD 350 billion by 2025 and Thailand emerging as a luxury retail powerhouse.

Southeast Asian economies demonstrated remarkable resilience in the fourth quarter of 2024, with most countries achieving growth rates of 5% or higher. Vietnam led the region with an impressive 7.55% expansion, while Thailand's growth accelerated to 3.2%. The region's core growth drivers remained steady, with particularly strong investment flows and stable consumption patterns. Private consumption showed resilience across most markets, supported by improving labour markets and moderating inflation. The retail sector's transformation was evident through significant developments, including major infrastructure projects and digital integration initiatives. Tourism recovery played a crucial role in driving growth, especially in Thailand and Singapore, where retail sales showed strong correlation with visitor arrivals. Despite these positive indicators, regional currencies faced pressure against the US dollar, prompting several central banks to implement strategic rate adjustments to maintain economic stability.

IADS Notes: Recent developments underscore Southeast Asia's retail transformation. In February 2024, Central Retail announced a USD 665 million investment in AI integration and ecosystem development, while November 2024 saw MM Mega Market commit USD 20 million to Vietnam's expanding market. Thailand's emergence as a luxury retail hub was evidenced by the USD 3.2 billion One Bangkok project in October 2024, while Singapore's January 2025 retail performance showed strong digital integration with online sales reaching 13.3% of total revenue. These investments reflect growing confidence in the region's retail potential, despite varying market conditions.

Southeast Asia quarterly economic review: Steady amid uncertainty

What: Trump's tariff policies trigger unprecedented restructuring of global fashion retail supply chains and consumer behaviour.

Why it is important: This restructuring represents the largest coordinated impact on fashion retail in recent history, affecting everything from sourcing strategies to consumer behavior, with BCG projecting USD 640 billion in additional import costs reshaping the industry's future.

Summary: President Trump's recent trade policies have catalysed a fundamental transformation in the fashion industry's operational landscape. The implementation of a 25% tariff on Mexican and Canadian imports, coupled with additional duties on Chinese goods, has forced fashion companies to radically rethink their supply chain strategies. This shift is particularly evident in the industry's response, with companies implementing "Trump Majeure" clauses and exploring alternative manufacturing locations. The impact extends beyond operational considerations, triggering significant consumer behavior changes, with 84% of Canadians actively reconsidering their purchasing strategies and U.S. consumer confidence showing its sharpest decline since 2021. The elimination of the USD 800 de minimis rule has affected 4 million daily shipments, particularly impacting e-commerce giants and forcing traditional retailers to adapt their business models. Major players like Shein are responding by offering substantial incentives to relocate manufacturing, while established retailers like Macy's accelerate their store optimisation plans. This complex interplay of trade policies, consumer responses, and industry adaptation signals a historic reshaping of global fashion retail dynamics.

IADS Notes: The global fashion retail landscape has undergone significant transformation since early 2025, driven by Trump's sweeping tariff policies. As reported in January 2025, BCG's projection of USD 640 billion in additional US import costs catalysed widespread supply chain restructuring. This shift gained momentum in February 2025 when Shein offered 30% higher procurement prices to relocate Chinese manufacturing to Vietnam, while the elimination of the USD 800 de minimis rule affected 4 million daily shipments. The impact extended beyond operations to consumer behavior, with March 2025 data showing 84% of Canadians pivoting towards domestic brands. The industry's response has been multifaceted, from Macy's accelerated store optimisation to the widespread adoption of "Trump Majeure" clauses. The beauty sector particularly exemplifies these challenges, with January 2025 reports showing disruption across 25,000 mass-market products.

How a global trade war could rewire the way fashion operates

What: US consumer confidence hits a three-year low in February 2025, with significant concerns about inflation, tariffs, and recession prospects, despite slight improvements in current business conditions and stable income expectations.

Why it is important: The contrast between current business conditions and future expectations highlights a critical juncture in consumer sentiment that could reshape retail spending patterns and force strategic adaptations across the industry.

Consumer confidence has plunged to its lowest level in over three years, reflecting growing unease about various economic conditions affecting household finances. The Conference Board Consumer Confidence Index's February decline of 7 points to 98.3 marks the third consecutive monthly decrease and the largest single-month drop since August 2021. While current business conditions showed slight improvement, consumers' outlook for the next 6-12 months has weakened considerably. Inflation expectations have surged from 5.2% to 6.0%, and the share of consumers expecting a recession has reached a nine-month high. The impact of tariffs is particularly concerning, with two-thirds of consumers anticipating price increases on typical purchases, though younger consumers show more willingness to wait and see. Despite these concerns, income expectations remain positive, suggesting potential continued spending in the near term, though with more selective and value-conscious purchasing behavior.

IADS Notes: The February 2025 consumer confidence decline reflects broader market challenges identified throughout recent months. As reported in February 2025, Trump's tariff announcements triggered significant consumer anxiety, with confidence indices showing their sharpest decline since 2021 . This concern is well-founded, as March 2025 analysis projects annual household costs increasing by USD 1,200 due to tariffs, with specific sectors facing price increases ranging from 0.81% to 1.63% . While January 2025 data showed potential for global economic growth at 2.8% , recent evelopments have dampened this outlook, with March 2025 data showing 62% of consumers expressing serious concerns about rising retail prices .

Major retailers are actively responding to these challenges, as evidenced by Macy's March 2025 announcement of aggressive store optimization and supply chain restructuring . This convergence of tariff pressures, consumer anxiety, and retail adaptation suggests a fundamental shift in market dynamics, requiring retailers to carefully balance pricing strategies with consumer sensitivity to cost increases. The situation is particularly complex given the varying responses across age groups and income levels, indicating the need for nuanced approaches to different consumer segments.

Few silver linings in the consumer mood as Americans grow more gloomy

What: BCG's annual survey reveals growing disconnect between UK business leaders' company-specific optimism and broader economic concerns for 2025.

Why it is important: This divergence in sentiment could impact pricing strategies and consumer spending patterns, particularly as 75% of businesses plan price increases.

The BCG survey reveals 83% of business leaders expressing confidence in their own prospects despite growing concerns about the broader economy. Companies demonstrate resilience through maintained employment plans and increased technology investment, while facing challenges from rising costs and tax pressures. The survey indicates 75% of businesses plan price increases, though at a lower rate than previous years, with 41% focusing on cutting non-essential costs. Only 13% plan to halt investment, and there's increased interest in technology adoption. This measured approach reflects a pragmatic response to market challenges while maintaining growth initiatives. The findings suggest businesses are adapting their strategies to navigate economic uncertainties while preserving operational momentum.

IADS Notes: Recent market analyses from January 2025 show global economic growth projections of 2.8% , providing context for UK business sentiment. This aligns with trends seen in the retail property sector, where Hammerson reported a 4.2% increase in UK mall values  in March 2025, suggesting underlying market strength despite challenges. However, February 2025 data indicates declining consumer confidence , creating a complex operating environment for retailers balancing growth ambitions with market realities.

State of UK business 2025: confidence at a crossroads

What: Consumer adoption of AI shopping tools has reached a critical mass, with 38% of global shoppers actively using AI for purchase decisions.

Why it is important: With 73% of consumers feeling overwhelmed by traditional online shopping choices, AI adoption represents a crucial solution to information overload while driving significant business value, as evidenced by retailers achieving 15-30% improvement in customer service efficiency.

The retail industry is witnessing a significant shift in consumer behavior as AI shopping tools become mainstream. Recent data shows that 38% of global consumers are actively using AI for their shopping decisions, with an impressive 80% reporting positive experiences. This adoption is driven by practical applications, with 55% using AI for research, 47% for product recommendations, and 43% for deal information. The technology's impact is particularly evident in engagement metrics, showing 8% higher engagement rates and 12% more pages browsed per visit. Major retailers are responding to this trend, with companies like Amazon, Google, and Walmart implementing sophisticated AI solutions that combine personalised assistance with enhanced visual search capabilities. The success of these implementations is reflected in concrete business outcomes, with 87% of companies adopting AI reporting revenue increases of 6% or more.

IADS Notes: Consumer acceptance of AI in retail has grown steadily throughout 2024. In March, Adobe's research revealed that 58% of consumers recognised AI's positive impact on shopping experiences. By November, BCG's survey showed 38% of shoppers actively using GenAI during major sales events. This trend culminated in December 2024, when AI influenced $229 billion in holiday spending through targeted offers and personalised recommendations, demonstrating the technology's growing role in shaping consumer purchase decisions.

AI-powered shopping growing dramatically, Adobe reports

What: Temu's ultra-low pricing strategy relies on a sophisticated Consumer-to-Manufacturer model and customs loopholes, enabling unprecedented market penetration but facing mounting regulatory challenges.

Why it is important: The success and challenges of Temu's pricing model represent a pivotal shift in global retail, demonstrating how digital platforms can bypass traditional supply chain costs while prompting regulatory responses that could reshape cross-border e-commerce.

Temu, the international arm of Chinese e-commerce giant Pinduoduo, has emerged as a formidable player in global retail through its innovative pricing strategy. Within just two years, the platform has achieved remarkable success, ranking fifth in France's online commerce and second globally. At the core of Temu's competitive advantage is its Consumer-to-Manufacturer model, which employs reverse auctions to secure the lowest possible prices from manufacturers. This approach, combined with a consigned inventory system, eliminates traditional storage costs and financial burdens for the platform. The company's success stems from its parent company Pinduoduo's established practices in China, where it has amassed 694 million users through group-buying features and strategic targeting of underserved market segments. Unlike traditional marketplaces, Temu generates revenue through logistics and marketing services rather than sales commissions, enabling its ultra-competitive pricing. However, this model faces increasing scrutiny, particularly regarding customs regulations and market practices, as evidenced by recent regulatory changes in major markets.

IADS Notes: Recent developments have significantly impacted Temu's business model and market position. In November 2024, Amazon launched its "Haul" platform in direct response to Temu's pricing strategy, while regulatory pressures intensified with the EU's implementation of stricter platform liability rules in February 2025. The elimination of the USD 800 de minimis rule in the US particularly threatens Temu's cost advantage, which has been central to its rapid growth. These challenges coincide with Forrester's October 2024 prediction of declining growth rates, suggesting that Temu's ultra-low pricing model faces mounting obstacles. The company's struggles in Southeast Asia, exemplified by its December 2024 suspension in Vietnam, further highlight the increasing scrutiny of its business practices. This evolving landscape indicates that while Temu's innovative approach to pricing and supply chain management has disrupted traditional retail, its long-term sustainability depends on adapting to stricter regulatory environments and intensifying competition.

The secret behind Temu’s rock-bottom prices