Monthly Archives: November 2024

RetailGPT: Bridging Fashion and Technology in India’s Retail Landscape

Technology
  • Path finder

This GenAI-powered ecosystem is transforming the retail landscape, blending advanced generative AI (GenAI), blockchain, and IoT technologies to create hyper-personalized shopping experiences and bridge the gap between physical and digital commerce.

RetailGPT isn’t just a tool—it’s a revolution for fashion brands looking to thrive in today’s fast-paced market. With its ability to anticipate consumer behavior and deliver hyper personalised solutions, the platform empowers businesses of all sizes to innovate, connect, and grow.

Why RetailGPT Matters for Fashion Brands

RetailGPT delivers game-changing solutions to tackle the industry’s most pressing challenges. Here’s how:

AI-Driven Personalization

RetailGPT acts as a virtual shopping assistant, offering real-time, tailored recommendations and promotions. For fashion retailers, this means delivering a curated, customer-first experience that drives loyalty and satisfaction. Its advanced algorithms consider not only browsing history but also size and fit preferences, ensuring hyper-personalized recommendations.

Crypto Rewards for Loyalty

The platform introduces crypto cashback, offering customers 25%-50% of their purchase value as tradeable tokens. This not only incentivizes repeat purchases but also gamifies shopping, making it more engaging and rewarding.

ESG Compliance through Sustainability

RetailGPT integrates sustainability initiatives, such as planting a tree for every set frequency of customer spend. This helps offset the carbon footprint associated with shopping while enabling retailers to meet Environmental, Social, and Governance (ESG) compliance goals. It aligns shopping behaviors with eco-conscious practices, appealing to the growing number of environmentally-aware consumers.

Phygital Shopping Journeys

RetailGPT seamlessly integrates online and offline channels, enabling consistent and convenient customer experiences. Whether browsing a website or shopping in-store, customers enjoy a unified journey that connects the physical and digital realms of commerce.

Data Transparency and Trust

In an era of growing data privacy concerns, RetailGPT empowers consumers to control their information. By incentivizing data sharing, it fosters trust while enhancing the shopping experience.

RetailGPT in Action

Personalization at Scale

RetailGPT enables hyper-personalized campaigns tailored to individual preferences. For instance, customers receive size and fit-based recommendations for products, reducing returns and improving satisfaction.

Driving Loyalty and Engagement

A luxury fashion house reported a 30% increase in repeat purchases by using AI-driven styling suggestions. Meanwhile, malls running gamified campaigns featuring crypto rewards boosted footfall by 20%.

Leveling the Playing Field

Emerging designers and small retailers now have access to tools that were once exclusive to large brands. RetailGPT’s AI-enhanced personalization ensures that even small businesses can deliver world-class experiences.

Transforming India’s Fashion Ecosystem

RetailGPT isn’t just a technological advancement; it’s a democratizing force. By offering affordable, cutting-edge tools, the platform allows small and medium fashion retailers to compete with e-commerce giants. For consumers, RetailGPT introduces a rewarding, personalized, and transparent shopping experience, while malls benefit from data-driven strategies to enhance tenant performance.

The Future of Fashion Retail

RetailGPT exemplifies how innovation can redefine retail. With its blend of sustainability, personalization, and technology, it’s setting a new benchmark for customer engagement. As India’s fashion industry evolves, platforms like this will drive a new era of connectivity, creativity, and consumer-first strategies.

For brands, RetailGPT isn’t just a tool for survival—it’s the key to thriving in a competitive global marketplace. The future of fashion retail is here, and it starts with RetailGPT.

GenAI-influenced reviews, research, and recommendations craft a new era for shoppers

Technology

Article by Sara Lebow, EMARKETER | Mar 5, 2025

Generative AI (genAI) is fundamentally changing how consumers shop online, potentially eliminating the “treasure hunt” experience that drives impulse purchases and changing how marketers push products.

“AI is just making the customer journey more efficient for consumers so that they get to the product that they think they want or that they were actually looking for faster,” our analyst Suzy Davidkhanian said on a recent episode of the “Behind the Numbers” podcast. “But I think it comes at a price in terms of losing the treasure hunt and losing the impulse purchases.”

From AI-powered review summaries to shopping agents making purchase decisions, here’s how genAI is transforming commerce.

The three Rs: reviews, research, and recommendations

GenAI has most influenced “reviews, research, and recommendations” in shopping, according to Todd Hassenfelt, global director of commerce at Colgate-Palmolive.

  • Reviews: Amazon and other sites offer AI-summarized reviews so consumers don’t have to parse through them.
  • Research: AI summaries on ChatGPT and Google are helping consumers get results faster.
  • Recommendations: Product recommendations are becoming more targeted and accurate via AI.

While these tools make shopping more efficient, they also create new challenges for brands trying to get their products discovered. Brands need to optimize their product content not just for human shoppers but also for AI systems that are increasingly mediating the shopping experience.

AI shopping agents: The next frontier

Shopping agents like Perplexity’s “Shop Like a Pro” represent the next evolution in AI-assisted commerce—tools that can autonomously complete shopping tasks based on user preferences, past behavior, and contextual information.

These agents could eventually handle routine purchases automatically, presenting a challenge to traditional retail websites that have been the primary digital interface for consumer engagement. The result, a new era of “machine-to-machine” or M2M marketing, may include things like “sponsored bots” or “sponsored choice,” where brands pay for preferential treatment by AI shopping agents.

For retailers, this shift could potentially reduce opportunities for upselling, cross-selling, and data collection. That’s not an entirely new issue for retailers. “It’s kind of like subscribe-and-save or auto-ship, just accelerated now,” said Hassenfelt.

Trust and privacy concerns remain significant barriers

Despite the potential convenience, consumers are hesitant about AI shopping assistants. Seven in 10 consumers feel emotionally manipulated by AI shopping assistants, according to Chadix.

“Part of the issue is that there’s a lot of risk. There’s heightened risk with these agents in terms of digital privacy and cybersecurity,” said our analyst Jacob Bourne.

For AI shopping agents to gain widespread adoption, providers will need to address these trust issues while ensuring the technology delivers accurate, helpful results. “If consumers are not 100% comfortable with the recommendation being organic, they will have a bad experience and not come back,” Davidkhanian said.

Product Information Management Software

Technology

Product Information Management Software: What It Is and How to Choose the Best Solution for Your E-commerce Business

Credits to, anchanto.

With omnichannel customers shopping 1.7 times more than single channel shoppers,  operating across multiple marketplaces has become essential for e-commerce businesses looking to maximize their reach and sales potential. However, this expansion comes with a significant challenge: managing product information consistently and accurately across diverse platforms.

The consequences of poor product information management are real and immediate. Inconsistent pricing, outdated descriptions, and mismatched inventory levels can quickly erode customer trust. It’s like trying to run a physical store where each shelf displays slightly different information about the same product—confusing and unprofessional.

In this blog, we will explore the importance of accurate product data across channels, multichannel product management challenges, key solutions and how Product Information Management (PIM) can play a role in not only overcoming potential hurdles but also boosting business outcomes.

The Real-World Impact of Accurate Product Data

Consider the customer journey: A potential buyer finds your product on Amazon, checks the details on your website, and then compares prices on eBay. Any inconsistency can instantly kill their confidence in your brand.

Successful businesses recognize that managing product data is no longer a back-office task—it’s a critical component of customer experience, ensuring that every detail remains accurate and consistent across all sales channels.

Key Challenges in Multichannel Product Management

That said, maintaining consistent and unified product data across multiple channels is easier said than done. From fragmented platform systems to manual update processes, multichannel product management can present distinct challenges.

Data Fragmentation

Without a centralized system, businesses often find themselves trapped in a cycle of manual updates and inconsistent information. Managing product details separately for each platform leads to:

  • Pricing discrepancies
  • Incomplete or outdated product descriptions
  • Increased risk of overselling
  • Higher operational costs

The Manual Update Nightmare

Manually updating product information is not just time-consuming—it’s a recipe for errors. Imagine having to update product details individually on Amazon, your website, eBay, and other marketplaces. Each update becomes a potential point of failure, increasing the risk of:

  • Pricing mistakes
  • Incorrect product specifications
  • Inventory synchronization issues
  • Decreased customer satisfaction

Scalability Challenges

As your product catalog grows, the complexity of managing product information multiplies. During peak seasons or product launches, manual management becomes increasingly unsustainable and error-prone.

What is Product Information Management?

A Product Information Management (PIM) system is a specialized software solution designed to be the central nervous system of your product data. It does more than just store information—it actively manages, organizes, and synchronizes product details across all your sales channels.

From product descriptions and high-quality images to pricing and inventory levels, a PIM system ensures that every piece of information is accurate, consistent, and up-to-date.

The Transformative Power of a PIM System

Scalability and Flexibility

A sophisticated PIM system grows with your business. It effortlessly manages large product catalogs, supports the addition of new sales channels, and adapts quickly to market changes and promotional strategies.

Real-Time Updates Across Channels

The ability to update product information once and see that change reflected instantly across all platforms is nothing short of revolutionary. This real-time synchronization ensures that:

  • Customers always see the most current information
  • Pricing and availability are consistently accurate
  • Manual intervention is minimized

Automation and Error Reduction

By automating product data updates, a PIM system significantly reduces human error. This automation accelerates platform updates, improves product listing accuracy, and frees up your team to focus on strategic activities.

Integration: The Key Strength of Modern PIM Systems

Today’s PIM solutions don’t work in isolation. They seamlessly integrate or are integrated within other critical business systems like Enterprise Resource Planning (ERP), Order Management Systems (OMS), and Customer Relationship Management (CRM) platforms. This integration ensures that:

  • Product information is always synchronized
  • Inventory levels are accurate in real-time
  • Marketing and sales teams have a unified view of product data

Choosing the Right PIM Solution

Selecting a PIM system is a strategic decision. Consider factors such as:

  • Scalability
  • Ease of use
  • Integration capabilities
  • Automation features
  • Reporting and analytics tools

Remember, the right PIM solution should feel like a natural extension of your business, not an additional complexity.

Conclusion

A Product Information Management system is ultimately a strategic tool that can transform how you manage and present your products online. By centralizing data, automating updates, and ensuring consistency, a PIM solution helps businesses:

  • Reduce manual errors
  • Improve customer trust
  • Accelerate time-to-market
  • Scale more efficiently

Your Next Step

In an era where online competition is fierce, having accurate, consistent, and up-to-date product information is no longer a luxury—it’s a necessity. A comprehensive PIM solution can be the difference between blending in and standing out in the crowded e-commerce marketplace.

Ready to take control of your product information? Discover how a robust PIM system can streamline your operations, improve customer experience, and drive business growth.

Growing trust in eCommerce continues to influence shopping habits

Ecommerce

Feb 20, 2025 | E-Commerce, Parcel, Post

New research from Australia Post has revealed that a staggering 72% of Australians took advantage of Black Friday and Cyber Monday sales in 2024 to secure Christmas bargains, fuelling a record-breaking surge in online shopping and parcel deliveries.

With the majority of Aussies turning to eCommerce, Australia Post delivered nearly 103 million parcels1 in November and December – a 3.1% increase from the previous year, setting a new all-time high.

The surge in online shopping was driven by convenience with 67% of consumers citing it as the top reason for shopping online followed by saving money with Black Friday sales & discounts (53%) and avoiding crowds or in-store shopping (53%).

Increased demand for online shopping saw 7.6 million2 households across Australia making an online purchase in November and December, up by 2.4% on the previous year. With cost-of-living pressures top of mind for many Aussie households, almost 70% (69%) of Australians bought over half their Christmas presents during the Black Friday and Cyber Monday weekend sales.

Speaking on the rising number of Australians capitalising on Black Friday and Cyber Monday sales, Australia Post Executive General Manager Parcel, Post and eCommerce services Gary Starr said: “It’s been a record peak period for Australia Post, with more online purchases being made and more parcels being delivered throughout November and December than ever before.

“What fuelled this record period wasn’t just our regular online shoppers buying more. Our research indicates the number of first-time online shoppers also increased, with over one third (37%) of Aussies shopping online with over the cyber weekend sales for the first time in 2024.

“Growing trust in eCommerce continues to influence shopping habits, with half (49%) of Australians reporting greater trust in online shopping compared to previous years.

“As more people shop online, so do consumer expectations, especially in tracking and managing deliveries. In December alone, the AusPost app saw a record 57 million visits, with customers tracking parcels and, when necessary, redirecting their deliveries for greater convenience.

“With technology playing an increasingly significant role in our everyday lives, eCommerce is set to continue to grow. As a result, we’ll reflect on this peak to ensure our service continues to deliver during the next one,” Mr Starr said.

How AI is Transforming the Retail Sector: The Role of Video Analytics

Retail

January 10, 2025,

By, Neerja Kumar, Co-Founder and COO of Enalytix

 AI has become an indispensable tool in reshaping industries worldwide, and retail is no exception. From enhancing customer experiences to optimizing operations, AI-driven technologies are having a profound impact across the retail ecosystem. Among the most notable innovations is video analytics, which, through the use of computer vision, is providing retailers with powerful insights into consumer behavior, store dynamics, and operational efficiency.

The global artificial intelligence (AI) in the retail market was valued at USD 7.14 billion in 2023 and is projected to grow from USD 9.36 billion in 2024 to USD 85.07 billion by 2032, reflecting a compound annual growth rate (CAGR) of 31.8% during the forecast period. This significant growth demonstrates that AI, particularly in video analytics powered by computer vision, is no longer just an experimental technology. Instead, it is delivering tangible, real-world benefits. As AI adoption accelerates across the retail sector, video analytics has become a key strategic tool, enabling businesses to innovate and drive growth in ways that were previously unimaginable.

The Evolution of Video Analytics in Retail

The use of video analytics in retail initially focused on basic security functions, such as loss prevention, utilizing surveillance footage to monitor suspicious activities and prevent theft. However, as technologies advanced, the scope of video analytics expanded far beyond security. Retailers now use these tools to gain deep, data-driven insights that impact all areas of their operations, from store layout to customer experience.

At its core, computer vision enables machines to interpret and understand visual data. In the context of video analytics, this means that surveillance footage is no longer just viewed by human eyes for security purposes; instead, AI systems equipped with computer vision algorithms analyze the footage in real-time, identifying patterns, behaviors, and trends that would otherwise be difficult to track manually.

AI-powered video analytics, driven by computer vision, provides retailers with detailed insights into customer behavior, store layouts, and operational bottlenecks. For instance, retailers can analyze foot traffic patterns, monitor dwell times (the amount of time customers spend in specific areas), and assess customer engagement with various products. By integrating these insights into their decision-making processes, retailers can fine-tune their strategies to enhance the shopping experience, optimize store layouts, and maximize sales performance.

Improving Operational Efficiency

One of the most impactful uses of computer vision and video analytics in retail is in improving operational efficiency. By leveraging real-time data, retailers can respond proactively to issues such as understaffing, long checkout lines, overcrowding, and even suspicious activity. Real-time alerts powered by computer vision algorithms allow store managers to make immediate adjustments, ensuring smoother operations and a better customer experience.

For example, video analytics can alert managers when a particular area of the store is overcrowded, enabling them to redistribute staff or adjust product placements to ease congestion. Similarly, if the system detects understaffing at checkout counters, it can prompt managers to deploy additional staff to prevent long wait times. These real-time operational insights help retailers make smarter, data-driven decisions, improving both efficiency and profitability.

Large retail chains are also leveraging video analytics for predictive analysis. By analyzing trends in customer behavior over time, powered by the precision of computer vision, they can make more informed decisions regarding store layouts, product placements, and staffing schedules. This predictive capability allows retailers to plan ahead, optimize resource allocation, and reduce costs, all while improving customer satisfaction.

Enhancing Customer Experience

In today’s highly competitive retail environment, customer experience is a critical differentiator. AI video analytics offers retailers a unique advantage by providing granular insights into how customers interact with their store environment, products, and even staff. This data helps retailers optimize the store layout, improve customer flow, and reduce friction points in the shopping experience.

For example, it helps in identifying which products are most frequently interacted with and how long customers engage with them. If certain products draw significant foot traffic but result in low sales, retailers can investigate whether issues like poor product placement, inadequate promotions, or lack of staff engagement are the cause. These insights enable more informed decisions that improve customer satisfaction and increase conversion rates

Evidence-Based Decision Making

A key advantage of AI-powered video analytics and computer vision is its ability to provide objective, evidence-based data that retailers can trust. Unlike traditional methods of tracking foot traffic and customer behavior, which often rely on manual counting or assumptions, AI video analytics provides precise, real-time data that accurately reflects customer interactions.

The reliability and transparency of this data enable retailers to make informed, data-driven decisions that can improve store performance and profitability. For example, it can be used to track and validate key performance indicators (KPIs) like foot traffic, conversion rates, and dwell times. By combining these insights with other data sources—such as sales data, customer surveys, and inventory management systems—retailers can gain a comprehensive understanding of what drives success in their stores.

 The Rise of Offline Retail and the Importance of AI Video Analytics

Despite the rapid growth of e-commerce, offline retail is showing strong signs of resilience and growth. According to CBRE’s India Market Monitor Q4 2023, the retail sector in India reached an all-time high leasing volume of 7.1 million square feet across the top eight cities, a 47% increase compared to 2022. This signifies that physical retail space is still in high demand, and retailers are finding ways to adapt and thrive alongside the rise of online shopping.

In an era where consumers expect seamless, personalized experiences, offline retailers are increasingly turning to AI technologies to enhance their competitive edge. With rising operational costs—such as higher leasing, manpower, and logistics expenses—AI-driven video analytics powered by computer vision provides a way to optimize store operations and improve customer engagement, all while keeping costs under control.

Video analytics helps retailers monitor how today’s consumers engage with brands in-store, providing critical insights into foot traffic, product interest, and overall store performance. These insights are particularly important as the cost of running a physical store continues to rise. Retailers are no longer focused solely on maximizing sales but also on delivering exceptional in-store experiences that build customer loyalty and strengthen brand equity.

 The Path to Widespread Adoption

As AI video analytics technology becomes more refined and affordable, its adoption in the retail sector is expected to accelerate. Many retailers are already investing in these solutions, recognizing their ability to improve operational efficiency, optimize store performance, and enhance the customer experience. One of the key factors driving adoption is the ability to integrate video analytics with existing security camera infrastructure. Most retailers already have a security camera network in place, and leveraging this infrastructure to implement video analytics solutions significantly lowers the cost and complexity of adoption.

The ability to quickly deploy AI video analytics using existing resources makes it an attractive option for retailers of all sizes, from large chains to smaller independent stores. By adopting AI video analytics, retailers can unlock powerful insights that drive more informed decision-making, reduce operational costs, and ultimately enhance their bottom line.

 Conclusion

AI-powered video analytics is transforming the retail sector by providing retailers with actionable insights into customer behavior, store operations, and overall performance. The ability to monitor foot traffic, track customer engagement, optimize store layouts, and respond proactively to operational inefficiencies is helping retailers enhance the in-store experience and boost profitability.

As the retail landscape continues to evolve, AI-driven video analytics and computer vision will remain key tools for retailers seeking to gain a competitive advantage in a rapidly changing market. In the coming years, AI video analytics will become even more integrated into retail operations, offering advanced capabilities such as predictive analytics, real-time customer insights, and seamless integration with other AI-powered technologies. Retailers who embrace these innovations will be better positioned to meet the demands of today’s tech-savvy, experience-driven consumers, ensuring their success in the future retail landscape.

Metro Manila retail market thrives with sustained activity

Retail

The consumer-led economy continued to lift Manila’s retail market.

BY Rojonell Culvera

Retail properties remains one of the most stable real estate asset classes in the Philippines, as the sector banks on consumption, which accounts for around 70.0% of the total Philippine GDP. The Philippine economy expanded by 5.7% in Q1 2024, slightly faster than 5.5% in Q4 2023, but slower than 6.4% a year ago in 2022. Meanwhile, household consumption stayed positive in Q1 2024, settling at 4.6%, albeit slower than 5.6% in the previous quarter. The steady consumption benefitted the retail market and drove continued store openings and expansion in shopping malls.

Store openings in scanned malls in Metro Manila surged by 70.2% in 2023 y-o-y, owing to continuous retail activity in 2023 coupled with constant high-mall foot traffic in retail malls. Despite the end of the holiday season, strong momentum carried over into Q1 2024. Subsequently, store openings increasing by 1.0% thanks to the spike in shop openings in newly opened malls in 2023. These new malls included One Ayala Mall in Makati City, Gateway Mall 2 in Quezon City and Parqal Mall in Paranaque City. Store closures also fell by 8.7% q-o-q in Q1 2024, reflecting a better and healthier retail market. Meanwhile, expansion is seen to continue, with significant upcoming stores from both foreign and domestic brands expected in the following quarters, despite the high number of store openings in Q1 2024. The food and beverage segment also continues to dominate the shopping mall landscape, followed by clothing and apparel.

As developers continue to expand, vacancy rates rose to 6.8% in 2023, up 171.9 bps y-o-y, due to the substantial supply that came online last year. The vacancy levels may increase further in 2024, owing to around 150,00 sqm of expected supply in the coming quarters. However, a consistent influx of lease volume may contribute to keep vacancy rates stable despite the anticipated high supply this year.

Major mall developers thriving in the upbeat retail market

The strong performance of the retail market is also apparent in the revenue of major mall developers in 2023, which was driven by the improvement of retail operations as well as increases in both tenant sales and rental income. The SM Supermalls generated PHP 71.9 billion in revenue in 2023, up by 30.0% a year ago. The Ayala Land’s revenue from its shopping centres increased by 31.0% to PHP 21.1 billion in 2023. Meanwhile, the Robinsons Malls’ revenue climbed by 24.0% to PHP 16.2 billion in 2023. The Megaworld’s mall revenue picked up by 54.0% to P5.3 billion in 2023. It is also worth noting that mall developers aim to continue to improve the shopping experience for consumers through ongoing renovations and expansion. Some of the malls that are undergoing notable developments are Glorietta, Greenbelt, Robinsons Manila and Mall of Asia.

The retail sector is seen to continue to drive the real estate market moving forward as developers expand and capitalise on the Philippines’ consumption-driven economy, more mature retail market, and strong mall culture among Filipinos.

Saudi Arabia’s grocery retail sector: A market in transition

Retail

19 July 2024 Consultancy-me.com

Saudi Arabia’s grocery retail sector has come a long way over the past years, but still has several steps to take in its evolution. Four major strategic developments will shape the industry’s landscape in the coming years, according to a new report from Oliver Wyman.

The latest Customer Perception Map study by Oliver Wyman, which tracks customer perceptions in the grocery sector in different countries around the world, has found that local KSA retailers can take several steps to advance their products, shopping experiences, channels, operations and services.

In doing so, they can “gain valuable insights and lessons from more mature grocery markets”, said the report’s authors.

Consolidation

One of the insights relates to market competition and concentration. The grocery retail sector in the Kingdom is still highly fragmented, meaning that there exist opportunities for beefing up scale and efficiency. Larger players can in addition channel more funds to innovation and digital investments, which benefits customers.

“Footprint expansion still is important given the size of the market and the current market share captured by the top 10 retailers, which remains relatively small in comparison to more developed markets,” said Joe Abi Akl, partner and the head of Oliver Wyman’s Retail and Consumer Practice for India, the Middle East, and Africa (IMEA)

Differentiation

The authors also see opportunities for more differentiation in the market, benefitting customers that seek different services and/or niches. This transition will see the emergence of more ‘offer specialists’ (focused on a premium customer experience, with unique assortments, high quality and service) and ‘value specialists’ (good value for money, but limited assortment and service) operating alongside incumbent players.

“There is a clear opportunity for retailers to differentiate their offerings, and – based on the trajectory of more developed markets – this will be an important strategy for Saudi Arabia’s retailers to observe and act upon,” said Abi Akl.

Developing a differentiated proposition will require retailers to undertake numerous changes to their strategy and operations. “In developing a differentiated proposition, many approaches are possible, although a deep understanding of customer preferences is key,” said Alexander Poehl, partner in Oliver Wyman’s Retail and Consumer practice.

For example, in Saudi Arabia, satisfaction is driven to 51% by value (price and promotions), 20% by assortment, 18% by quality and to 11% by service. “Given the relative importance of value, retailers might want to make sure to offer an attractive price entry range and own-label products, increase their pricing capabilities, or provide attractive promotions that drive customers to the store without destroying margin for the retailer.”

Offer specialists meanwhile might opt to take larger control of their supply chains and offer unique high-quality fresh products, satisfying the hunger of Saudi customers for local products, with 90% of customers deliberately looking for fruit and vegetables produced in the Kingdom.

“Getting the basics right by putting the customer at the center for all commercial decisions is key,” said Poehl. “Winners put the customer at the center of all decisions on assortment, space, price and promotions,” he said.

The rise of discounters

One grocery segment that is expected to see strong growth in KSA is the ‘discounter’ segment – supermarkets such as Lidl and Aldi that offer high value for money and scale nationwide. According to the Oliver Wyman study, 55% of Saudi customers said that they would be interested in shopping at a discount grocery retailer and 13% already shop at one.

Of the respondents familiar with European discounters Lidl and Aldi, 93% indicated that they would shop at these stores if they came to Saudi Arabia. Abi Akl: “We believe that it is only a question of time for the discounter concept to gain substantial traction in the region, eventually putting the margins of the entire value chain under increased pressure.”

Personalization

The fourth trend uncovered is personalization, which is driven by the diverse customer preferences of people in Saudi Arabia (in part due to the Kingdom’s relatively diverse population).

“Through personalizing their offer based on the purchasing behavior of their customers, retailers can significantly enhance the shopping experience and thus increase traffic and sales with their customers. Approaches include fully individualized promotion programs and communications, unique omnichannel experiences and localized in-store experiences,” said Abi Akl and Poehl.

Over 6 in 10 local shoppers told Oliver Wyman that they would be interested in personalized promotional offers, and almost 60% would be interested in AI assisted services such as customer service chatbots and recipe recommendations.

Conclusion

“Saudi Arabia’s retail landscape is one of the most exciting market opportunities of the moment. Our study shows that grocery retailers must innovate, differentiate, and embrace technology to enable them to better understand and serve their customers,” Joe Abi Akl said.

“By developing and deploying the right strategy, based on sound research, retailers can improve their performance, find niche areas of the market for expansion, and tap into growth opportunities.”

In planning for their next strategic moves, the report emphasized that industry players should have a clear picture of what they want to stand for in the future to avoid costly mistakes.

South African e-commerce boom challenges retail leaders

Ecommerce

By Brendon Petersen

As South Africa’s e-commerce sector hurtles towards a projected value of R400 billion by 2025, traditional retailers are scrambling to keep pace. A recent Accenture report reveals that 95% of South African retail leaders—compared to 83% globally—feel their businesses are struggling to adapt to the rapid changes in the market.

However, amidst this tumult, a cadre of ‘champion’ companies has emerged. These firms, comprising roughly 20% of the industry, are not merely surviving but thriving, outperforming their peers in revenue growth, profitability, and customer satisfaction.

One such champion is Luxity, a pre-owned luxury goods retailer. Recently crowned by the Financial Times as South Africa’s fastest-growing e-commerce company for the second year running, Luxity has carved out a niche in the competitive landscape.

Michael Zahariev, co-founder of Luxity, attributes the company’s success to its progressive approach to innovation and continuous investment in emerging technology. “As our shoppers have changed, we have adjusted to meet that change,” Zahariev explains. “We know that, as a luxury brand, our customers expect deeper and more personal experiences which necessitates an openness to innovation.”

Luxity’s strategy revolves around an omnichannel approach, leveraging artificial intelligence (AI) to create personalised experiences for its clientele. By centralising data, the company has streamlined its operations, reducing turnaround times by 82% and automating thousands of offers monthly.

This AI-driven approach is a hallmark of ‘champion’ companies. The Accenture report suggests that top performers are 51% more likely to invest in AI to optimise business processes and enhance customer experiences.

Luxity has also tapped into the power of WhatsApp, South Africa’s most popular social media platform. The company has developed an AI-powered assistant called LEXA (Luxity’s EXperience Assistant) to provide personalised service through the messaging app.

“WhatsApp is an incredibly powerful platform,” Zahariev notes. “When integrated with AI, it becomes a game-changer.” LEXA uses customer data to tailor interactions, considering not just purchase history but also personal preferences such as preferred purchase locations and payment methods.

With e-commerce users in South Africa expected to reach nearly 40 million by 2027—almost two-thirds of the country’s population—the opportunities for growth are substantial. Zahariev remains optimistic about the future: “We have seen first-hand that businesses can thrive by leveraging e-commerce. We will continue to drive a technology-first approach to give our customers shopping experiences that will keep them coming back for more.”

As South Africa’s retail landscape continues to evolve, companies like Luxity serve as a blueprint for success in the digital age. By embracing technological innovation and prioritising customer experience, these firms are not just adapting to change—they’re driving it.

 

The rise of South Africa’s resilient Ecommerce landscape

Ecommerce

By Gabriel Swanepoel

In our fast-evolving digital world, South Africa’s ecommerce landscape stands as a shining example of resilience and innovation. Faced with unique challenges, the country’s businesses and consumers have not only coped under pressure but have adapted in remarkable ways. This has helped ensure the seamless flow of goods and services in a rapidly growing digital economy.

South Africans’ response to disruptions such as load shedding has been nothing short of creative. Businesses across the country are turning to alternative energy sources and flexible operating hours to maintain productivity. This agility is more than a survival strategy; it’s a driving force that keeps the digital marketplace buzzing.

South Africa’s ecommerce sector is poised for significant growth, fueled by innovation, improved infrastructure and a focus on customer experience. In 2022, the sector saw a remarkable 30% increase in online sales, reaching over R50 billion and outperforming the overall retail growth of just 1.7%. These numbers indicate that we are on the brink of a new era of digital commerce that offers vast opportunities for both merchants and consumers.

The payment landscape in South Africa is undergoing a significant transformation. With a new, tech-savvy generation of digital natives entering the marketplace, the country’s consumers are rapidly shifting towards online and mobile payments for their convenience and affordability, with Buy-Now-Pay-Later (BNPL) options gaining significant traction. Meanwhile, biometric payments and digital wallets, such as Apple Pay and Samsung Pay, are becoming the norm. This reflects a wider trend towards flexible, user-friendly financial services.

GenZ, is the biggest adopter of new payment methods, with 98% of them being tech-savvy smartphone owners. They are highly depended on their smartphones for online shopping and everyday transactions, which is no surprise, as there are over 22 million smartphone users in South Africa. According to a recent report by Meltwater, a consumer insights firm, that looks at the state of digital, indicates that South Africa is now ranked as the 3rd highest, globally for users, using their mobile devices to access the internet. This demonstrates South Africans are more likely to use their mobile devices for e-commerce usage as opposed to the web.

South African merchants are increasingly harnessing the power of technology to enhance customer interactions. They are leveraging omnichannel strategies and AI-driven personalized marketing to align with evolving preferences, thereby enhancing service delivery and meeting customer demand for flexibility in online transactions.

A key development bolstering the country’s ecommerce landscape is the introduction of infrastructures like the Equiano subsea internet cable. This improvement in internet access is set to revolutionize online shopping experiences, broadening the reach of digital payment solutions and bringing a larger consumer base into the digital marketplace.

Looking to the future, ongoing digitalization of supply chains will increasingly enable merchants to disintermediate resellers, allowing them to sell their products directly to their customers and paving the way for further growth of ecommerce.

E- Commerce market opportunities

Ecommerce

E- commerce has come a long way since its inception in the 20th century, driven by technological advancements and customer demands, and shows no signs of slowing down. E-commerce saw a significant surge during the COVID-19 pandemic, as lockdown and social distancing measures forced people to turn to online platforms for all their needs.

E – commerce has made life simpler for consumers, where they are no longer confined to store hours and are not required to travel. They can shop from their home, at their own convenience. Consumers can also access a vast range of products from around the world. They can check prices, read product reviews and compare features across platforms, at their fingertips to make an informed decision.

According to a Forbes article from March 15, 2022, Americans spent $1.7 trillion online during the COVID-19 pandemic, which was $ 609 billion more than in the two years before COVID-19 according to data from Adobe.

On a global scale, with the advent of the internet and digitization of modern life, consumers all over the world are opting to shop online. The rise of 5G further enhances the digital experience. According to reports, over 55% of internet traffic comes from mobile devices.

In the last five years, technological advancements like, Artificial Intelligence (AI), Machine Learning (ML), Augmented Reality (AR), Interactive Virtual Reality (VR) and 360-degree views, are significantly transforming the e- commerce industry.

Artificial Intelligence and Machine Learning are revolutionizing the e- commerce sector by analyzing vast amounts of data and providing insights to improve the customer’s experience. It also creates a personalized shopping experience for the customer by analyzing the customers behavior preferences and buying patterns. These technologies can anticipate a customer’s purchasing preference, allowing retailers to curate highly personalized product recommendations. It can also track and analyze the customers browsing and buying habits, identifying patterns over time. If a customer adds an item to their cart and leaves the website, the system sends an automated email reminding them of what was left behind.  This is known as abandoned cart emails, which are a crucial part of ecommerce strategies, as they help recover lost sales and boost conversion rates. AI and ML technologies are also used to notify customers about inventory changes and enhance customer service through chatbots.

On the other hand, Augmented Reality allows shoppers to virtually try on clothes, Apparels and Footwear, Furniture and even home decor, while 360- degree gives a detailed look of the product from different angles. Virtual Reality videos take it up a notch, by offering a fully immersive experience, allowing customers to explore virtual stores or product demonstrations in a more life like manner. Amazon, the leading large-cap e- commerce website worldwide, has integrated these immersive technologies, enhancing the customer experience.

According to Omniconvert, the top 7 industries expected to see significant growth, shaping the future of online purchases are; Food – annual growth rate of 6.58% by 2028, Fashion– annual growth rate of 8.94% by 2029, DIY & Hardware– annual growth rate of 7.87% by 2029, Electronics– annual growth rate of 8.92% by 2029, Media – annual growth rate of 7.78% by 2029, E-Learning– annual growth rate of 8.56% by 2029 and Furniture– annual growth rate of 3.79% by 2029.

In the Middle East, UAE and Saudi Arabia dominate the e-commerce market. According to Mordor Intelligence, the UAE e- commerce market size is expected to reach USD 21.18 billion by 2030 at a CAGR of 11. 52% during the forecast period. According to Statista, revenue in the Saudi Arabia e- commerce market is projected to reach U.$ 16.53bn and the revenue is expected to reach an annual growth rate of 9.92%, resulting in a projected market volume of U. S$ 24.13bn by 2029.

This growth is fueled by a digitally proficient consumer population and advanced infrastructure, with the countries having one of the highest internet penetration rates globally. Logistics plays a key role in driving the e-commerce industry, in Saudi Arabia and UAE. The government’s support for small business and the development of a digital culture, where digital commerce and cashless payments are driving the e – commerce sector. Cross border e-commerce has also been a key driver with international platforms receiving interest from the local consumers. Cross border e-commerce giants have successfully secured a strong foothold into the market, offering competitive pricing strategies and extensive product selections.

In South East Asia, Indonesia dominates the e-commerce market, while Vietnam and Thailand are catching up with the leading countries in the region. According to Statista, revenue in the e- commerce market is projected to reach US $133.60bn and the revenue is expected to reach an annual growth rate of 8.80% resulting in a projected volume of US $ 187.20bn by 2029.

The growth in South East Asia, is driven by the rise in a young and digital proficient population, along with a growing middle-class.

  • Indonesia- the country’s top marketplaces include; Tokopedia, Shopee, Grab, JD and Lazada. According to reports from PCMI [ Payments and Commerce Market Intelligence] the leading product categories are Fashion & Accessories [16.3%], Health & Beauty [ 14.3%] Home &Household appliances [10%].
  • Malaysia- the country’s online shopping is fueled by consumers confidence in online shopping and strong domestic sales. The leading product categories are electronics and fashion.
  • Singapore- is known for its top- tier logistics infrastructure, streamlined shipping and delivery systems, supports online shopping. The leading product categories are; Electronics &gadgets, and fashion & accessories.

Australia, plays a crucial role in the Asia – Pacific e-commerce market and is on the rise, driven by its’s advanced digital infrastructure and high consumer adoption rates. According to reports, the e-commerce sector in Australia is expected to reach a market value of $90 billion by 2029. The e-commerce market in Australia is driven by advancements in Artificial intelligence and changing consumer preferences. With the growth of the Australian e-commerce sector, there has been an increase in the number of global firms seeking to expand their presence in the market. This increase in competition is driving brands to focus more on product differentiation and personalization to stay ahead. As competition intensifies in the online retail sector, customer satisfaction has become a critical factor for businesses in Australia. In response, many Australian companies are integrating artificial intelligence into their operations, recognizing its potential to streamline operations and improve customer-brand interactions. This shift towards AI is helping businesses meet consumer expectations in an increasingly competitive landscape.

According to a report from Salesforce, which was developed in collaboration with the Australian Retailers Association, 80% of e-commerce business have already leveraged artificial intelligence in Australia. The report further revealed that 33% of e-commerce business have fully implemented AI, where as additional 47% are experimenting with the technology.

According to spending share data from Australia post, these are the top-selling online products; Home & garden [US $10.7B], Variety Stores [ US $10.5B], Food & liquor [ US $8.8B], Fashion [ US $6.4B], Hobbies [ US $ 2.6B] and Health & Beauty [US $ 1.9 B].

The top online stores in Australia, based on traffic from Similar Web are; Amazon, Ebay, Kmart, Temu and Big W.

South Africa’s, e-commerce market is booming and shows no signs of slowing down, with more businesses embracing the digital market. According to Statista, User Rate of Internet, is the driving force behind this rapid growth. Additionally, the e commerce market is expanding in South Africa, due to increase internet penetration, rise in use of smartphones, and a growing middle class with a disposable income.

According to Statista’s global consumer survey by Takealot. Com and Shein were the most popular online shops visited by consumers. According to reports from Aftership, the 2025, online store monthly sales are; Electronics leads the market with impressive sales of $53.08 billion, making up 57.97% of the total sales in the region. Apparel comes in second, with sales reaching $21.33 billion, representing 23.30% of the overall total. Autos & Vehicles also play a significant role, contributing $4.79 billion in sales, which accounts for 5.23% of the region’s total sales. This distribution emphasizes the diverse economic contributions from various sectors in South Africa, highlighting the strengths and unique impacts of each category.

Brazil is one of the countries with the largest percentage of e-commerce growth in Latin America. According to Mordor Intelligence, the Brazil e-commerce market size is estimated at USD 62.87 billion and is expected to reach USD 149.46 billion by 2030 at a CAGR of 18.91%, during the forecast period [2025-2030]. The country’s e-commerce sector is driven by a young, technology -driven population and a growing middle class with disposable income.

As of 2024, Reports from PCMI indicate that the best -selling products online are; Food &Beverages [ 32%], Healthcare [ 28%], Perfumery & Cosmectics [24.5%], Baby products [10%] and Appliances [ 5%].

Based on web traffic the ranking of the leading online stores are; Mercado Livre, Amazon, Shoppe, OLX and Magazine Luiza.

In conclusion, the global e-commerce sector is thriving, driven by technological advancements, increased internet penetration and changing consumer behaviours. Regions like the Middle East, South East Asia, Australia, South Africa and Brazil are seeing significant growth. With technological developments, businesses have to adapt, to remain competitive in an ever-changing market.