Category: Research

Retail News Asia is committed to providing both local and global retailers with the latest Research throughout the Asian market. This on a daily base.

  • Solid Advice For A Successful Distribution Business

    Solid Advice For A Successful Distribution Business

    Retail stores depend heavily on wholesale distributors, seeing as they make sure all products get transported and delivered. And just like retail stores depend on distributors, distributors depend on retail stores for business. However, this is just a basic explanation that typically comes with several challenges, difficult choices, and complexities. Here is a deeper look at what builds the foundation of a strong and successful wholesale distribution company.

    1. Retail Clients

    There are several ways to approach retail clients, but keep in mind, the size of the network plays a huge part in terms of the profit margin. Locking in as many retailers as possible (while still being able to handle the workload), will directly influence how much profit the company stands to make. In addition to gaining more clients, there has to be a focus on how regularly orders come in.

    Ultimately, it works in the distributors best interest to get closer to manufacturers as well, because they represent another source of business on its own.

    1. Manufacturing Clients

    A very effective tactic used by successful distributors is to offer products directly to the retail store, which they purchase or carry from manufacturers. This makes it more convenient for the retail store, and possibly more practical depending on the circumstances.

    However, manufacturers typically have a vetting system in place, especially if they produce popular brand products. In other words, they are going to assess the distributor before allowing them to re-sell or transport their products. When this is the case, pay close attention to the requirements they have according to the application form. Read on if you want more about distribution.

    1. Marketing Team

    Yes, if the service is good and the retailers along with the manufacturers are impressed, there will be referrals. This will lead to expansion and better opportunities. But it doesn’t mean a marketing team shouldn’t be on the outside, focused on selling the distributor. In fact, it only makes sense to build a client base via the help of a professional marketing team.

    1. Minimizing Expenses

    Like any other business, wholesale distributors also aim to cut expenses as much as possible. One way of doing so is by investing in a warehouse facility that is closer to your clients. This reduces the shipping costs, enabling the distributor to offer more competitive prices. Although, this is only a good plan if the network of the distributor reaches a significant extent. If all the retailers are in a concentrated area, a warehouse will be redundant.

    The advice above is solid and no nonsense and could help you either improve your current business or to start a new one up successfully.

  • The five pitfalls that threaten FMCG brand growth in the SEA

    The five pitfalls that threaten FMCG brand growth in the SEA

    Asia’s developing markets are some of the most promising places on Earth to sell fast-moving consumer goods (FMCG).

    They can also be a place to fail fast: The rules of the game are changing at an ever-increasing pace, and many multinational and local brands are struggling to keep up.

    According to new analysis from Bain & Company, Turbocharging Consumer Products in Developing Asia, despite developing Asia’s massive opportunities, fewer than 20 percent of brands outgrow their categories in this region—roughly the same proportion as in low-growth developed markets. To successfully compete in these markets, brands need to push themselves more than ever to swiftly and continuously adapt to the new realities.

    Accelerating market changes, combined with a few basic challenges, serve as obstacles for brands aiming to achieve sustainable growth in developing Asia. Consumers in the region are increasingly willing to pay for convenience, and they are more digitally connected than ever.

    Each of these shifts has caused an accompanying change in retailing. For example, throughout developing Asia, consumers now make fewer trips to larger stores, instead flocking to convenience stores. Further, the steady rise in digital connectivity is fueling a boom in online sales and transforming the way brands talk to consumers to influence purchase decisions.

    Several fundamental factors have also made it tough for brands in developing Asia.

    Because the region’s distribution channels are highly fragmented, it is harder to gain household penetration, the most important contributor to brand growth. Another new complication for companies trying to plot a winning strategy is bifurcated demand. In the last 20 years, most value growth came from the “belly” of the market. Now the middle is shrinking, while a category’s premium and discount ends grow faster.

    “Fundamental consumer shifts in developing Asia have accelerated in the past few years, making it tougher for brands to survive and win in a region that remains critical for multinationals,” said Paolo Misurale, Partner and head of Bain & Company’s SEA consumer products practice. “All of this is altering the rules of the game for consumer products companies, requiring them to rethink their strategies from ‘where to play’ to ‘how to win’. Then they need to deliver the change, building new capabilities and forging alignment across stakeholders and functions. Those that fail to adapt – even large and establish brands – will be left gasping for air.”

    Amid these challenges, nimble local players manage to gain traction by revising their playbooks to new market realities. Developing Asia also offers huge opportunities for incumbents (whether local or multinational) that are able to adapt quickly and use their scale advantages to both capitalize on these emerging trends and further consolidate their competitive positions. Yet, even with the best plans, too many brands in the region get tripped up by predictable hazards.

    Through its extensive work with multinational, national and local brands across Asia’s developing markets, Bain has identified five common pitfalls and ways to overcome them.

    Pitfall 1: Sailing with outdated maps

    Bain finds that too many brands in developing Asia underinvest when it comes to learning the basics to support that big decision. They also fail to understand other essential elements of their category rules, such as whether the category is more repertoire or less repertoire. Successful companies know where they fit in, and then determine where and how to compete. They set growth initiatives that are consistent with category fundamentals and then translate those initiatives to operational metrics to track progress and capture value.

    Pitfall 2: Saying it wrong

    In developing Asia, it is easy to get brand messaging wrong. The goal is to anchor a brand (or a brand story) in consumers’ long-term memories. However, many brands have a relatively short history in these markets, and haven’t yet established and reinforced the kinds of memory structures that have worked so well for them in the developed world. Winning companies overcome this pitfall by understanding the guiding principles for building high-quality brand memorability.

    Pitfall 3: Succumbing to the lure of the new and different

    Traditional trade still abounds in developing Asia, and convenience stores are gaining in popularity. Both small formats offer limited shelf space. Yet, Bain finds that many brands are unwilling to reduce their product assortments (or tailor their ranges to unique channel needs) in order to focus on the proven and profitable hero SKUs with the highest velocity on the shelf, year after year. Winners invest to understand their heroes by brand and SKU, determining the value propositions they present over non-heroes. Then they look for the gaps in their current assortments, ultimately creating portfolio and investment strategies focused on the top sellers for target consumers and occasions.

    Pitfall 4: Losing at the first moment of truth

    Many brands, especially domestic brands selling in developing Asian markets, lack the abundance of data that allows for sophisticated account planning in developed markets. Without such data, FMCG players need to be as focused as they can on making their hero SKUs available and visible to fundamentally repertoire shoppers, while ensuring the retailer has incentives to push those SKUs. The most successful companies play by the real category rules: Solid consumer insights inform their priority in-store execution and activation moves. Winners are also clear about what matters most to increase sales on a channel-by-channel basis.

    Pitfall 5: Failing to build the right route to market

    In developing Asia’s fragmented retail environment, many brands fall short on their efforts to ensure that products get through the last mile and retain their ability to influence consumers’ decisions at the point of sale. The winners in this area are mostly “local champions” that use direct distribution (or a high-touch managed distribution model) in high-density areas, where modern trade is typically more established.

    At the same time, they build a multi-tiered distribution network and collaborate with hundreds of wholesalers in low-density rural areas, making the big trade-off between having influence over outlets and having penetration across outlets to maintain a sustainable cost to serve.

    “Brands can turbocharge their growth through a relentless focus on increasing penetration and consideration,” said Nader Stefano Elkhweet, Partner and head of Bain & Company’s Indonesian consumer products and retail practices. “This requires focusing on what shoppers actually do – as opposed to what they say they do in surveys – planning from the ‘shelf back’ to win the battle in stores, and relying heavily on advanced analytics tools to generate the insights that help brands make the smartest trade-off decisions.”

  • Online retail grocery in South East Asia : Alibaba or Amazon?

    Online retail grocery in South East Asia : Alibaba or Amazon?

    In South East Asia, online retail grocery is growing as an increasing number of  Singaporeans  prefer to do their shopping online.

    “It is getting better and better,” said Mr Vikram Rupani, president of RedMart, an online grocery company based in Singapore that is part of Alibaba‘s push into the region, “but it’s a continuous process that never ends.”

    Alibaba and American giant Amazon already dominate online retail in their home markets. Increasingly, they are competing against each other on neutral ground.

    Alibaba’s bigger bet is in South East Asia. It has spent more than US$2 billion (S$2.7 billion) to take control of Lazada, a five-year-old online shopping company based in Singapore and doing business in six countries. In 2016, Lazada bought RedMart, the online retail grocery.

    The promise is there, as the region’s young middle class grows and goes online. South East Asia’s e-commerce sales could total US$88 billion by 2025, projections from Google and Temasek Holdings, the Singaporean sovereign wealth fund, show. Volume was less than one-tenth that in 2015.

    Alibaba and Amazon are seeking consumers like Singaporean Janice Lee Fang, who decided she needed to buy a robot to amuse her six-year-old daughter home sick from school. Through Amazon’s Prime Now service, introduced in Singapore in July 2017, she bought a Sphero SPRK Plus – a clear plastic ball that can skitter across the floor with a tap of a smartphone – that arrived in less than a day.

    But South East Asia is no China. A diffuse area of 600 million people, the region is divided by politics, language and culture. Some places are modern, like Singapore. Others lack the roads and other infrastructure to get people what they need.

    The challenges have forced Lazada, Alibaba’s biggest South East Asian operation, to be creative.

    In Vietnam, local post offices take customer returns and give cash refunds. In Malaysia, customers can collect merchandise from lockers at 7-Eleven stores. And in the Philippines, Lazada uses petrol stations as places where merchants can drop off their goods for delivery personnel to pick up.

    Alibaba’s international arm has seen its latest quarterly sales more than double in a year, in part from Lazada’s contribution. Still, Lazada and its RedMart subsidiary remain a tiny, and unprofitable, part of Alibaba’s empire. Lazada’s chief executive Max Bittner said its Chinese parent has been willing to spend money to build its delivery capabilities and draw more customers.

    “E-commerce is an economy-of-scale game,” Mr Bittner said. “I can go after this opportunity with the amount of firepower I need.”

    Amazon so far counts Singapore as its only South-east Asian market, though industry experts expect it will expand into other countries.

    Until recently, direct Alibaba-Amazon rivalry has been rare. Amazon has a modest presence in China. Alibaba sells goods in the United States through its AliExpress platform but has backed away from further expansion efforts.

    South East Asia could offer a test of their vastly different business models on neutral turf.

    Amazon owns more of the inventory it sells. By contrast, most of Lazada’s sales are from outside vendors who use its platform as a digital middleman to reach customers. That approach, which keeps costs low, is similar to what Alibaba does in China. But in China, the company’s Taobao platform has been accused of offering counterfeit goods. Alibaba says it is working to fight fakes.

  • World’s largest online retailers ranked on site usability

    World’s largest online retailers ranked on site usability

    The world’s largest online retailers, including Walmart, Sephora and Starbucks, have been ranked according to the health and usability of their websites.

    Released by e-commerce monitoring company, Shoppimon, the inaugural OSHU (Online Site Health & Usability) Index compares the performance of leading e-commerce sites across a variety of KPIs, including site speed, server downtime, business downtime (% of time a purchase cannot be completed on the site), and technical issues.

    The inaugural Index compares online stores within nine vertical industry categories: apparel, automotive supplies, beauty, consumer electronics, department store, food & beverage, health & wellness, home & garden, and jewelry.

    Seven of the nine categories were represented in the top 10 top-ranking sites overall, with auto parts company Summit Racing, mattress company Saatva Mattress, subscription beauty business Birchbox, auto manufacturer Toyota and grocery company Whole Foods Market rounding out the top five.

    Notably, no jewelry or consumer electronics sites made it into the top 10.

    Roy Rosinnes, CEO and co-founder of Shoppimon pointed out that no site in the top 10 had business downtime of more than 0.1 per cent and all had 0.0 per cent server downtime during the period evaluated.

    “Top performing online stores on the Shoppimon OSHU Index like Summit Racing, which earned the top spot on our inaugural ranking, are able to maintain lightning fast speed with minimal downtime and disruption for shoppers,” Rosinnes said.

    “With a full load time of 0.36 seconds and zero business downtime, Summit Racing deserves kudos for providing a great brand experience for consumers as well as maximizing bottom line sales.

    Shoppimon said it will update the OSHU Index monthly to help educate site owners and operators on best practices in running a stable, profitable online store.

    Here are the Top 10 Shoppimon OSHU Index Overall Winners for September 2017:

      1. Summit Racing, OSHU Score: 99.10 (Category: automotive supplies)
      2. Saatva Mattress, OSHU Score: 98.67 (Category: home & garden)
      3. Birchbox, OSHU Score: 98.66 (Category: beauty)
      4. Toyota, OSHU Score: 98.25 (Category: automotive supplies)
      5. Whole Foods Market, OSHU Score: 98.24 (Category: food & beverage)
      6. Dollar Shave Club, OSHU Score: 98.08 (Category: health & wellness)
      7. J.Crew, OSHU Score: 97.47 (Category: apparel)
      8. JCPenney, OSHU Score: 97.45 (Category: department store)
      9. Nuts.com, OSHU Score: 97.14 (Category: food & beverage)
      10. lookfantastic, OSHU Score: 97.13 (Category: beauty)

    Top OSHU Index Vertical Category Winners for September 2017

    Below are the Top 3 winners per category, based on OSHU Index, with their relative OSHU Scores.

    Apparel

    1. J.Crew, OSHU Score: 97.47
    2. ASOS, OSHU Score: 96.94
    3. Talbots, OSHU Score: 96.78

    Automotive Supplies

    1. Summit Racing, OSHU Score: 99.10,
    2. Toyota, OSHU Score: 98.25,
    3. Tire Rack, OSHU Score: 95.47

    Beauty

    1. Birchbox, OSHU Score: 98.66
    2. lookfantastic, OSHU Score: 97.13
    3. Beauty Bay, OSHU Score: 97.02

    Consumer Electronics

    1. Fitbit, OSHU Score: 95.77
    2. Samsung, OSHU Score: 95.56
    3. Apple, OSHU Score: 93.70

    Department Store

    1. JCPenney OSHU Score: 97.45
    2. Marks & SpencerOSHU Score: 96.86
    3. SearsOSHU Score: 96.62

    Food & Beverage

    1. Whole Foods Market, OSHU Score: 98.24
    2. Nuts.com, OSHU Score: 97.14
    3. SodaStream, OSHU Score: 94.97

    Health & Wellness

    1. Dollar Shave Club, OSHU Score: 98.08
    2. iHerb, OSHU Score: 97.09
    3. Weight Watchers, OSHU Score: 95.06

    Home & Garden

    1. Saatva Mattress, OSHU Score: 98.67
    2. Wayfair, OSHU Score: 95.09
    3. RH, OSHU Score: 94.34

    Jewelry

    1. Ritani, OSHU Score: 96.83
    2. Tiffany & Co., OSHU Score: 94.16
    3. Zales, OSHU Score: 92.81

    OSHU Index Insights on Amazon

    Amazon is noticeably missing from the overall Shoppimon OSHU Index, because unlike companies such as ASOS or Bloomingdale’s that run e-commerce sites like the online equivalent of a brick and mortar retail store, Amazon behaves as a huge online mall – with many independent, and separately managed stores, open for shoppers to visit 24/7.

    Shoppimon did monitor a small sample of Amazon stores to determine if Amazon’s “gold standard” in customer experience extends to its onsite shopping performance. The Amazon stores Shoppimon evaluated received an average OSHU Score of 92.08, nearly 4 points ahead of the average score of the full index, but 6 points behind OSHU’s Top 3. Shoppimon plans to expand its sample size of Amazon stores in the future to better understand how Amazon is performing.

    Here are the Top 3 Amazon stores:

    1. Summit Racing, OSHU Score: 99.10,
    2. Saatva Mattress, OSHU Score: 98.67
    3. Birchbox, OSHU Score: 98.66
  • Five tips for using messaging in retail

    Five tips for using messaging in retail

    Messaging in retail is increasingly becoming a tool of choice both online and offline. Instead of just phone or email, companies can now reach people through social messaging channels, such as Facebook’s Messenger, Twitter Direct Messages, Line or WhatsApp.

    Business Insider Intelligence recently reported the use of messaging apps has surpassed the use of social networks, while a report by The Economist states over 2.5 billion people have installed at least one messaging app on their smartphones. And while messaging may have started out as a way for friends to chat socially, its high engagement levels means customers are on these channels and that messaging is an ideal way to reach out to them.

    For example, by using Facebook Messenger – which has more than 1.2 billion active monthly users – customers can shop, purchase and communicate with businesses. Two years ago, global customer support software company Zendesk partnered with Facebook to allow businesses to easily manage conversations on Messenger.

    Many businesses chose to use messaging as a way of improving their customer service. For instance, when BarkBox, a service provider for dog owners, began managing customer conversations on Messenger, it saw a dramatic decrease in average response time from 60 minutes to four minutes. This helped earn the company a ‘responsive badge’ on their Facebook page.

    Effective engagement

    In today’s connected world, no one leaves home without their mobile phone. Therefore, when used correctly, messaging can be very effective for retailers to engage with customers. Here are some practical tips on how businesses should get started when it comes to messaging their customers:

    Know your entry points:  Not everyone may be comfortable with messaging a company, so it’s best to introduce them to the concept. Businesses with existing Facebook pages or Twitter handles should use the “Message us” button to bring relevant conversations from a social media platform into a one-to-one setting. Similarly, various messaging apps have embeddable buttons that allow customers to message businesses from the website. For retailers without a website, you can encourage customers online through QR codes, which they can scan at retail outlets and start following your messaging profiles. Usually pairing this with a discount or promotional item, helps incentivise the customers.

    Identify your audience and the needs: Don’t try and put all customer conversations onto a messaging platform.

    Instead identify who will be best served by messaging, and which are the best situations. Generally, messaging works well when relatively short answers need to be provided quickly, but not necessarily immediately. For example, if you run a travel business, and offer online travel bookings, things can get complicated due to the many different permutations. In situations where you need to explain numerous details on a particular travel destination, it may be better for the customer to talk over the phone to one of your staff, who can convert the sale more effectively. However, if you want to send out an alert on a price reduction or communicate how to make payment via the website, then messaging is ideal.

    Contextual information: Customers hate having to repeat themselves, so if you need to transfer a conversation from one support agent to another, make sure you pass the necessary context, like customer details, previous purchases, outstanding queries, or shipping updates. When using Facebook Messenger, it is also helpful to link their Facebook identity with your records.

    Response time matters: Response time has a strong correlation with customer satisfaction scores. This is particularly important with messaging, as it’s meant to be a way to get answers fast. Messaging is often used for time-sensitive communications, such as someone asking about their food delivery, or a customer having problems in the middle of his/her e-commerce purchase. The golden rule is to answer at least 90 per cent of your messages within 15 minutes. If you can hit this goal, you will earn a “Very responsive” badge on Facebook. In situations where you are not able to respond quickly, for instance after office hours, set an auto-responder so that customers are aware and not left waiting.

    Pair humans with bots: This works well as long as you have boundaries about how you use your bots. As the accuracy of conversational bots isn’t there yet, masquerading your bots as a human or having open-ended conversations is not recommended. Instead, use bots for repetitious answers, such as checking account balances, tracking delivery, or handling FAQs. Whenever a bot is driving the conversations, make sure the customer has the option to switch over the conversation to a human agent, with the full context available. The bot space is very exciting and has great potential. For example, one of our customers allows people to order online from restaurants, grocery stores and other businesses. They are leveraging Facebook’s AI-powered concierge that inserts recommendations on Messenger. So, if two friends are messaging each other, discussing dinner, the bot can suggest placing an order online. Ordering and payment can all be seamlessly completed within the same messaging app.

    The messaging space has evolved significantly over the past few years, and is still evolving. As this technology and the way people are using it is still so new, the best way for retailers to use messaging is to start slowly and test each approach. Then evaluate the response and if it works well, expand your messaging channels.

  • China’s internet users spent $967b online last year

    China’s internet users spent $967b online last year

    China’s online market has joined that of the US as one of the two engines driving the global internet economy, research shows.

    The number of Chinese internet users has grown at 25% per year over the past 15 years, to reach 710 million in 2016—20% of the world total.

    Online spending in the country has increased by 32% per year in the last five years, reaching $967 billion in 2016. Still, only 52% of China’s population uses the internet, leaving significant room for growth.

    A new report by The Boston Consulting Group (BCG), AliResearch and the Baidu Development Research Center takes a detailed look at what is driving this rapid growth. The report, Decoding the Chinese Internet, offers a window into China’s online landscape, its unique characteristics and competitive dynamics, and what the future holds.

    Rapid growth, power players, fast-cycle innovation, and mobile connectivity are shaping this growth market. Over the last three years, Alibaba has become the world’s largest retailer, and mobile payments in China have reached $8.5 trillion – 70 times more than in the US.

    In April 2017, Ant Financial’s Yu’ebao became the world’s biggest money market fund, with $165.6 billion in assets under management. And three technologies developed by Baidu, including autonomous driving, were selected by MIT Tech Review among “the 10 Breakthrough Technologies in 2017.”

    Although China lags the US in terms of total connectivity, more Chinese go online using mobile phones (90% versus 78%). Mobile internet users in China love to try new apps, but lose interest quickly: the typical user has 38 apps, 43% of which are used only once.

    Overnight success is more likely in China than in the US. On average, it takes only four years for a Chinese startup to become a unicorn (valued at over $1 billion), compared with seven years for a new company in the US.

    Shu Li, a BCG partner and coauthor of the report, said that “both the economic environment and a high degree of transparency within the internet industry have propelled China’s internet boom, but the most important force is the leapfrog growth of undeveloped sectors that the internet enabled.”

    In certain industries such as retail and financial services, internet-based solutions that address efficiency gaps and other pain points have quickly gained traction and become mainstream.

    François Candelon, a BCG senior partner and coauthor of the report, notes that “China’s internet landscape is fast changing and volatile. Ongoing innovation in business models, applications, and content leads to intense competition.”

    The hottest areas see many microchanges that can better meet evolving market demand, as well as higher innovation frequency, more quick wins, and greater volatility.

    Online competition is fierce, with many companies vying for a piece of the pie. This is especially the case when a fad is peaking, after which many companies are unlikely to survive. For instance, the number of group-buying websites soared to 5,000 at the height of their popularity in 2011, then plummeted to only 200 sites three years later.

    Can China maintain its online growth and momentum? All signs point to yes. The country has a massive supply of available capital, 850 million people under the age of 40 – internet users skew young in the nation – a low-cost talent pool of science and engineering grads, and ongoing investments by the Chinese government in infrastructure—in areas such as broadband, mobile internet, and cloud computing—with the goal of providing ubiquitous internet access.

    In addition, China’s major players are pioneering new internet development models, which should also drive growth. Hongbing Gao, vice president of Alibaba Group and dean of AliResearch, said, “The new development models will create new opportunities for the Chinese internet market.”

    Cheng Zhao, Baidu’s editor-in-chief and general manager of public affairs, commented that “we expect that China’s internet landscape will shift from application-driven to technology-driven innovations, which will likely stabilize the market.”

  • Global e-commerce expected to double in next five years

    Global e-commerce expected to double in next five years

    Global e-commerce continues to revolutionise the air cargo industry, and is forecast to increase 19 per cent a year over the next five years, from US$1.9 trillion in 2016 to US$4.5 trillion in 2021, according to the annual E-Commerce Revolution Report released recently by Air Cargo Management Group (ACMG). The 2017 E-Commerce Revolution Report provides an in-depth look at the explosive growth of global e-commerce air logistics.

    The report features fresh and insightful analysis of the major marketplaces, sellers, and logistics providers that are fuelling this revolution. It is not just the best-known participants, such as Amazon and Alibaba, driving this revolution, but also global express airlines, along with players lesser known outside their home countries, such as JD.com in China and Otto in Germany. The report tracks the companies using and providing e-commerce air logistics, and offers insights on global trends in the industry.

    “E-commerce has disrupted retail and is now revolutionising logistics,” said Alan Hedge, senior director of Air Cargo Management Group. “This, our second annual report, builds on the strengths of the first and covers new territory by offering descriptions of additional e-commerce companies and additional discussion of fulfilment networks in China, the largest e-commerce market on the planet.”

    New for the E-Commerce Revolution Report this year is a web-based companion database tool for exploring relationships between major e-commerce players and logistics providers. The tool allows users to search particular logistics providers and users to isolate logistics transactions worldwide. Additionally, the tool can be used to quantify e-commerce air logistics transactions on a global basis.

  • The Australian shopper has never had so much power

    The Australian shopper has never had so much power

    As the retail sector evolves, the average customer’s expectations are changing. To stay ahead of the curve, businesses need to adapt.

    The average Australian has been quick to adopt online shopping. In 2016, online sales exceeded $20 billion for the first time. Key emerging trends signify beyond doubt that the retail landscape is changing rapidly. To avoid being left behind, Australian retailers need to act now.

    The recent Salesforce Empowered Shopper report highlights the challenge: “We’re in the age of the customer. They expect personalised experiences everywhere, not just in marketing communications, and physical stores are just one touch-point in their increasingly dynamic retail interactions.”

    So what does this mean for Australian retailers as they develop their approach to e-commerce over the next few years? Uber has created an expectation that when a traveller finishes a journey they simply need to get out of the car. The same shift in expectations is happening in the online retail world. Local e-commerce stores such as The Iconic and Showpo are continuously making the ways their customers engage with them easier, faster and more relevant. Step by step, they are raising the bar for all digital retailers.

    Australia’s e-commerce revenue is sitting at $9.54 billion USD, but it is expected to hit $14.151 billion USD by 2020. For retailers this means focusing on a connected customer experience where competitive advantage can be created, with 66 per cent of customers expecting consistent experiences across every brand interaction.

    Another key insight from the report is the evolving view of privacy as part of the overall customer experience. Consumers expect businesses they deal with to maintain their personal privacy. This means brands that focus on transparency around what data they have and how it is being used are rapidly gaining consumer trust.

    While the Amazon and Apple global giants will always exist, Australian businesses can compete through adopting established customer-centric technologies and processes to ensure you maintain the right focus for your business:

    1. Don’t think about catching up, focus on leading in one area

    You can’t do everything. Maintaining focus on a core brand experience is where you can build momentum and differentiation. It’s the harder path initially as the work may not impact sales results in the short term, but it can pay off in a big way.

    A great example of this is The Iconic, they’re all about providing consistent, amazing customer experience. They do this by delivering on what they say they will; next day delivery and free returns. They back this up by being available via multiple channels to resolve issues efficiently and with autonomy, should they arise.

    Action: Use design research techniques to map the customer experience, identify one customer problem that will have a major impact and differentiate. Focus on addressing that issue to build capability and velocity within your organisation.

    2. The customer is central

    The customer, as always, is king. Each interaction with your customer is an opportunity to understand them better. Transactional data allows you to build profiles so you get to know what makes them tick.

    But now you can build profiles that allow you to understand them in greater detail. This knowledge also gives you great power. But, at the risk of sounding like a superhero comic, with that power comes great responsibility. Misuse turns customers off fast. Used correctly, this information can help you focus on driving value for your customer firstand foremost.

    Action: Use the data you have, and may be able to access, to build rich views of Customer Lifetime Value. This will ensure your organisation can see the impact of action in a more holistic and long term way.

    3. Create experiences that allow the customer to live your brand

    Consumers no longer want to passively watch brands tell stories. They want to be part of the action. Design experiences, in the real and digital world, that allows the customer to experience your brand promise.

    Take a look at Nike, and you’ll see they’ve become much more than a brand that sells shoes and sportswear. Their invention of Nike+, first as a sensor in a shoe, then as a wristband and now as a suite of apps, allowed them to focus on what their brand is really about: athletic performance. In doing so they gathered vast amounts of information about how their customers were using their products and created a very ‘sticky’ digital ecosystem.

    Action: Create user experience projects, with design researchers, data analysts and interaction designers, with the intent of defining how your brand would be experienced as an interaction or digital product.

    4. Focus on a long term competitive advantage

    Marketing through technology is not like delivering passive media. You now have the opportunity to introduce technology to your strategy that can help you communicate with your customer, empower your customer and allow you to build relationships over time. Spend more time on creating long term connections, and less time on flashes in the pan.

    Don’t rely on gimmicks and promotions to create loyal customers, utilise customer data and insights to build relevant, meaningful conversations, and stay focused on what your customer needs. Everything else will follow.

    Action: Use hypothesis based testing to build knowledge of what customers actually want. Then use this knowledge to design and build online experiences that create a long term brand differentiator, and a unique relationship between the brand and each customer.

    While many commentators will say that traditional forms of advertising still have their place, what recent events have shown us is that place is increasingly at the bottom of the pile. What’s clear is that businesses need to ‘become digital’ – simply doing digital marketing won’t cut it. Now is the time to invest seriously in your customer, digital technologies and data-driven communications.

    To win in today’s environment it’s critical that businesses start to create a balance between digital advertising and customer focused digital innovation. They need to make the shift from just making people want things, to creating things and experiences that people want.

  • Three reasons why we are addicted to smartphones

    Three reasons why we are addicted to smartphones

    Apple recently announced the launch of its iPhone 8 and iPhone X, which come with sleek, new features. Apple also hopes to start a new community around the iPhones. Ahead of the launch, Angela Ahrendts, head of retail at Apple, said their stores will be called “Town Squares,”and would double as public spaces, complete with outdoor plazas, indoor forums and boardrooms.

    The much-anticipated product launch was followed by millions who watched the event via livestream and on internet forums, blogs and in the news media.

    I, too, was among them.

    So, what draws people to these phones? Surely, it is not just the groundbreaking design or the connection with a community. As a minister, psychotherapist and scholar studying our relationship with hand-held devices, I believe there is much more going on.

    In fact, I’d argue, as I do in my book “Growing Down: Theology and Human Nature in the Virtual Age,” the phones tap into our basic yearnings as humans.

    Here are my three reasons why we love our phones.

    1. Part of an extended self

    Our sense of self is shaped while we are still in the womb. The development of the self, however, accelerates after birth. A newborn, first and foremost, attaches herself to the primary caregiver and later to things – acquiring what has been called an “extended self.”

    The leading 20th-century American psychologist William James was among the first to argue for an extended self. In his “Principles of Psychology,” James defined the self as “the sum total of all that a man can call his, not only his body and his psychic powers, but his clothes and his house, his wife and children.” Losing any of this extended self, which could include money or another prized object, as he explained, could lead to a sense of great loss. In early childhood, for example, babies and toddlers cry if they suddenly lose their pacifier or favorite soft toy, objects that become part of their extended selves.

    Phones, I argue, play a similar role. It is not uncommon for me to feel a sudden onset of anxiety should I drop my phone or am unable to find it. In my experience, many individuals feel the same way. It is also reflected in how often many of us check our devices.

    Psychologist Larry Rosen and his colleagues at California State University found that 51 percent of individuals born in the 1980s and 1990s experienced moderate to high levels of anxiety when they were kept from checking in with their devices for more than 15 minutes. Interestingly, the percentage drops slightly – to 42 percent – for those born between 1965 and 1979.

    This is primarily because they came into being during a time where hand-held technologies were only beginning to make their entry. For this group, phones became part of their extended self only as late teens or as young adults.

    2. Recalling caring relationships

    Not just extended selves, smartphones in particular, with their games, apps and notifications, have become an essential aspect of our sense of self.

    And here’s how:

    Drawing on psychodynamic theory, which holds that childhood experiences shape personality, I argue that our relationship with technology mirrors the environment our parents created in caring for us. This environment, as British psychiatrist Donald W. Winnicott writes, functions around touch, a keen awareness of what the infant needs, and establishing and maintaining eye contact.

    In the same way, we, as adults, reexperience touching and belonging through our phones. Technology affords a space where the self can be satisfied, play and feel alive – a space previously provided by caregivers.

    When we hold our phones, it reminds us of moments of intimacy – whether from our childhood or from our adult life. The brain chemical dopamine and love hormone oxytocin, which play a role in the addiction “high,” kick in. These chemicals also create a sense of belonging and attachment.

    Holding our phone has the same effect as when a parent looks lovingly at her child or when two lovers gaze into each other’s eyes. In the words of Apple executive Philip Schiller: The iPhone X “learns who you are.”

    Theological reflection also supports what we have learned about dopamine and oxytocin. The Judeo-Christian tradition, for example, identifies God as an intimate God who seeks face time and creates caring environments. In Bible, Numbers 6:24-26, we read:

    “The Lord bless you and protect you. The Lord make his face shine on you and be gracious to you. The Lord lift up his face to you and grant you peace.”

    3. Fulfills need to produce and reproduce

    Anthropologist Michael Taussig reminds us that it is in our “second nature to copy, imitate, make models, [and] explore difference” as we try to become a better or different self.

    Phones help us do that. We take pictures, manipulate images, join discussions, curate a selfie and reach out to others. By texting back and forth, we weave together a conversation. Through searching, we become knowledgeable (even if we lack wisdom). Thus, we join ancestors who painted on cave walls and told stories around fires.

    It should not come as a surprise then that smartphones currently account for 46 percent of all internet use. This is expected to grow to 75 percent by 2021. We are destined, it seems, to live with our phones in hand.

    Living with technology

    Having said this, sometimes, however, I would argue, we need to show up in person and make a difference.

    We can be disappointed if we limit our spaces and relationships to small screens or to “town squares.” We need intimate relationships where we give and receive touch, where we gaze into someone’s eyes. We also need spaces – some will be online – where deep connections can be made, where we can rest, play and discover.

    So, as some of us head over to the Town Square to purchase the latest iPhone or venture online, it would be best to remember the dictum of historian of technology Melvin Kranzberg:

    “Technology is neither good nor bad; nor is it neutral.”

  • APAC battered by cyber attacks in 1H17

    APAC battered by cyber attacks in 1H17

    Asia Pacific was heavily hit by cyber attacks during the first six months of the year, taking more attacks than other regions in most threat categories, according to Trend Micro.

    Globally, Trend Micro detected 82 million ransomware threats and found that on average, 28 new ransomware families were created every month. The company also blocked more than 3,000 BEC attempts; and discovered and disclosed 382 new vulnerabilities.

    In the meantime, a new trend of cyberpropaganda reared its head in 2017 – cybercriminals started selling tools and services that helped create fake content, boost social media reach, and buy votes that can directly influence elections.

    Connected devices continue to be a problem too. In April, Trend Micro discovered the Persirai botnet targeting more than 1,000 Internet Protocol (IP) camera models. The company also found more than 83,000 exposed industrial routers and 28 exposed industrial robots.

    Out of the 82 million ransomware threats blocked, those targeting APAC entities accounted for 35.7% of all, the highest of all regions. This is followed by EMEA (25.24%), Latin America (22.66%), and North America (15.71%).

    The successive successes of WannaCry and Petya attacks reinforced the need for consistent patching for enterprises across all industries. Despite Microsoft releasing a patch in March for the vulnerability CVE-2017-0144 or EternalBlue, which WannaCry and Petya exploited, the attacks still infected thousands of computers in April and in June.

    Other noteworthy ransomware families that surfaced in the first half of the year included new variants of Cerber, an infamous ransomware now armed with anti-machine-learning capabilities; Patcher, which affected the MacOS; and the mobile ransomware SLocker.

    In the first six months of the year, more than 436 million malware detections were observed in the APAC region, surpassing the numbers in all other regions by a huge margin. APAC is followed by North America (324 million) and EMEA (169 million). The top three malware found in the region are DocDrop, DOWNAD, and WannaCry. The most hit countries in the region are Japan, Australia, and Taiwan.

    As industrial IoT devices continue to mushroom in APAC, the number of supervisory control and data acquisition (SCADA) system vulnerabilities is also increasing, providing fodder for malware attacks. Based on the findings from the Trend Micro’s Zero Day Initiative program, there exist malware specially made to target these connected systems.

    APAC also leads in the number of detections for online banking malware in the first half of the year, culminating in more than 118,193 malware discovered and blocked, four times more than EMEA (24,798) and five times more than North America (20,888). Japan, China, and Vietnam encountered most of the attacks.

    Trend Micro also found that more than 47 million malicious mobile apps were downloaded by users in APAC, much more than those from other regions. For instance, EMEA users downloaded 30 million such apps; the numbers are even lower in North America (eight million) and Latin America (six million).

    Exploit kits are another prominent threat in the APAC region, with a total of 556,542 detected within the six months, more than quadrupling the second place – North America (120,470).

    The most distributed exploit kits for the first six months in APAC are Rig, Magnitude, Sundown, and Nebula. Exploit kits normally target popular software such as AdobeFlash, Java, and Microsoft Silverlight. In 2017, connected industrial systems became a popular target for exploit kits too. Some of them can be used to deliver ransomware, such as Rig, Magnitude, and Sundown.

  • Mobile phone insurance market to hit $27b by 2020

    Mobile phone insurance market to hit $27b by 2020

    The global mobile phone insurance market is on track to grow to over $27 billion in revenue by the end of 2020, research from SNS Telecom indicates.

    The telecoms market research company estimates that the global market will account for $20.5 billion by the end of this year, and is in line to grow at a CAGR of around 10% over the next three.

    An SNS Research report notes that most major mobile operators, insurance specialists, device OEMs, retailers and even banks now offer insurance plans that specifically cover theft, loss, malfunctions and damage of mobile phones, with a particular focus on smartphones.

    Many policies also combine with enhanced technical support and additional protection features such as secure cloud-based data backup facilities to give consumers additional peace of mind.

    In light of the findings, smartphone insurance could be an additional avenue for mobile operators struggling with the continued erosion of their once-core voice and data revenue streams in the face of OTT substitution.

  • How fast fashion is emerging at pace in Vietnam

    How fast fashion is emerging at pace in Vietnam

    Vietnam is one of the fastest developing countries in the world with a huge population, and the number of middle and high income shoppers and consumers is steadily increasing.

    As a result, international brands such as Zara, H&M and Uniqlo have spotted a great opportunity for them to roll out new concepts and increase sales. Today, this is happening in a lot of industries, and fashion is one of them.

    Vietnamese people (especially women) take a lot of pride in their appearance, and with a growing middle class, more consumers have the cash to pay more for quality international brands and up-to-date products.

    Of course, price remains the most important factor when it comes to making a purchasing decision for most people in Vietnam, but fashion products also convey image and status which are very important in Vietnamese culture.

    The millennials (aged 15-35 years old), accounting for a third of the population, are now the country’s driving force, and have higher standards of fashion and higher exposure to global trends via internet/social media and travel experiences.

    This young population is key to the development of international fashion brands since they have the desire to buy, the money to do so, and are already sold on these brands as most of them know them and sometimes buy their products from overseas.

    These factors offer a good perspective for the entrance and development of international fashion brands in Vietnam and a platform to acquire new customers.

    Can foreign fashion brands really change the way Vietnamese consumers shop?

    Vietnam is following the global trend of standardization. These brands want to offer the same customer experience everywhere in the world, so they have strict guidelines to meet customer demands and roll-out concepts that are proven to work in multiple countries.

    This potential roll-out in Vietnam is a real opportunity for Vietnamese people to gain access to these products, some of which they are already aware of.

    Vietnam is a country where local brands and local makers can offer more unique and individualized products, but what Vietnamese want today, especially the younger generation, is to have international brands that offer modernity and a feeling of being part of the wider world.

    These brands may be offering mass market products, but that’s what young shoppers are aspiring to, and new store openings will likely drive increased traffic to the numerous shopping malls that have popped up in key cities.

    At a basic level, they will raise the shopping experience in Vietnam by offering a comfortable, spacious and premium shopping area with a clean store lay-out and iconic shopping bags to make the shopping experience easier and more interesting. Expect trendy music and cool staff to greet shoppers when they enter the store.

    Beyond this, another advancement we can expect from international brands is the adoption of technology to enhance the shopping experience.

    Fashion, as an industry, is continually evolving and fashion retailers must constantly innnovate to stay relevant. These brands have the financial backing and experience to roll out new technologies quickly, which will reshape the way Vietnamese shop for fashion. Expect to see iPads in the hands of staff helping customers to track down what they want, and even customers doing it for themselves at pop-up kiosks.

    Social media interaction, fashion competitions and mobile app membership could all be used by international retailers to drive interest in their stores. We can also expect their e-commerce websites to start offering a link between bricks and mortar and online. This will help reach a wider customer base (nationwide) when it’s hard to find spacious and affordable locations in Vietnam.

    Consumer expectations of foreign brands

    The fashion market is very scattered in Vietnam. Branded products account for a very small part of the total fashion/clothes market and are mainly targeted at the upper class.

    Currently most of the population buy either unbranded products made by local tailors, products from local fashion brands, or imported products from Thailand or even China. When international brands enter Vietnam, it is unlikely that they will be adopted by the major part of the population.

    Even if disposable incomes ares increasing, the low and middle classes are not ready to change their purchasing behavior to buy much more expensive products all the time.

    While these international fashion brands can be considered mainstream by global standards, they will probably be more considered “affordable premium” or even “premium” by most Vietnamese shoppers.

    If these brands want to make a real mark on the market, they must make themselves affordable to most of the population. However, if they do this they risk losing their main target consumers. As such it will be difficult for them to find the right positioning.

    There are some major mistakes these brands will have to avoid in Vietnam.

    The first mistake would be charging more for the same products than in other countries. Vietnamese consumers are connected/informed and will buy from overseas if the price in Vietnam is higher. We have already seen affordable brands become luxury brands when they entered Vietnam.

    The second mistake they have to avoid is to believe that Vietnam is a country where they can sell their collections from previous years: Vietnamese are looking for the latest trends and do not want old stock from other countries. These international brands will provide a new alternative to young consumers and will probably have great success in the short term if the price is not too disconnected from what they currently pay for local brands. The only question is whether these brands will fully replace what people currently buy or if they will just be bought as a treat, as an add-on to the current purchases of a specific demograph only.

    To sum-up, they should be affordable enough not just to attract a very small part of the population, not too cheap to stay aspirational, showcase the latest collections, offer an “international” look and feel, and take into consideration local tastes and sizes.

  • Mobility is the top priority in corporate travel

    Mobility is the top priority in corporate travel

    Four in five travel managers now believe mobility to be the biggest priority in managing corporate travel, according to Sabre Corporation‘s 2017 Asia Pacific Corporate Traveller study.

    According to the study conducted on corporate travel professionals from across 19 countries in the region, more than 43% of corporate travelers are also deviating from company policy ahead of the trip and 42% are making changes while traveling.

    When asked what it is they considered to be the biggest priority in managing corporate travel in their organization, 80% of travel managers said they believe mobility – from making a booking through a mobile device, to itinerary management, to staying in touch with their traveller via instant messaging – is their top priority.

    Two in three (66%) also quoted looking at alternative forms of payment technology as a high priority area for them.

    Today, new technologies are emerging at a rapid pace, ultimately opening up countless new revenue channels for travel companies to tap into. Travel managers have an opportunity to engage their corporate travelers on multiple devices at all points of the journey for a truly seamless trip.

    Product solutions that can seamlessly integrate booking, itinerary management, messaging, virtual payments, expenses reporting and travel risk management will help corporate travelers improve their traveller experience, whilst helping their organizations maximize efficiency, streamline expenses and improve compliance.

  • Why retailers want you to ‘click and collect’

    Why retailers want you to ‘click and collect’

    Retailers are starting to realise the benefit of combining online and in-store shopping. And by encouraging you to buy online first and collect later, these businesses are saving in a number of areas.

    Despite historically lagging behind the rest of the developed world, Australian retailers are beginning to embrace this approach. From groceries, alcohol, fashion and accessories, sports clothing and even automotive parts, more and more retailers are adopting this strategy. KPMG research found that by 2014, 64 per cent of customers in Australia had ordered online and picked up in-store.

    In Australia 42 per cent of retailers are now offering click and collect, and perhaps in response to the impending threat from Amazon’s entry, this number is up from 24 per cent in 2015. To supplement their pick up in store service, 38 per cent of retailers also allow customers to return their online purchases in-store.

    By comparison, 36 per cent of Western European and 31 per cent of North American retailers offer a click and collect service. The UK’s click and collect market is expected to grow 78 per cent by 2020, to £8.2 billion. This is not surprising given the intense competition among retailers within the British market and the strategic shift away from price to convenience.

    Why you click and collect

    Customers are embracing buying online and picking up in store because it offers them immediate gratification but with cost savings on delivery. Click and collect provides an immediacy that traditional home delivery usually can’t match, particularly in Australia where delivery times have traditionally been slow relative to international standards.

    Depending on the type of merchandise customers are buying, the costs of delivery can be high. In the US, 73 per cent of supermarket shoppers reported they would pick up items in store to avoid shipping costs and 30 per cent said they were not prepared to wait around for delivery of their online order.

    The sort of in-store pickup service also helps customers avoid problems with unprofessional delivery services and dodge the dreaded “card in the mailbox”, where parcels are returned to the depot.

    In-store pickup is especially handy for customers purchasing online just prior to the weekend or at peak shopping periods such as Christmas and Easter when timing is paramount. It can also help solve delivery problems for many customers living in apartment blocks, or living or working in properties that are difficult to access. More and more customers are finding it convenient to order online and then pick up their purchases during their lunch hour or on the commute home.

    Online shopping doesn’t allow for tactile purchasing – actually touching the products – in-store collection enables customers to check the quality, as well as assess the colour, style and size prior to leaving the store. Any problems can be resolved immediately in-store and returns can even be processed at the same time if products don’t meet customer requirements.

    With many retailers increasingly moving away from the traditional online “price wars” and recognising the importance of connecting with customers through multiple channels and touch points, click and collect is the natural progression to encourage customers back into physical stores.

    Why retailers are adopting click and collect

    Retailers can save a lot on click and collect. It reduces operational costs and leverages impulse purchases. Retailers are finding that in-store collection also provides them with additional opportunities to connect with customers and enhance the customer experience.

    One of the main benefits for retailers from shoppers who come into the store to collect their online purchases is that almost 50 per cent make an unplanned purchase. A study by company Bell and Howell of 530 shoppers found 49 per cent of customers were likely to purchase an additional item when picking up their online order.

    The International Council of Shopping Centres found 61 per cent of shoppers who bought items online and picked up in-store, made an additional purchase. This was higher for younger shoppers, with three-in-four millennials making impulsive purchases when popping in to collect.

    Offering click and collect also means customers feel more comfortable about returns as well. A report from packaging company UPS found 82 per cent of shoppers are more inclined to purchase online if they can return the product in store.

    Average parcel delivery costs in Australia are around $25 for a 5kg parcel (for next business day delivery) with courier services even more expensive, particularly for large and bulky items.

    The majority of retailers provide in-store collection free of charge, however some retailers are charging a fee for pickup in order to recoup staffing and storage costs. At the cheaper end of the scale Kmart charges a A$3 fee while Ikea Australia recently announced its fees which range between A$59 and A$149.

    “Bricks and mortar” retailers see click and collect as a way to differentiate and defend themselves from online players. In the US, Walmart announced last month it would offer discounts on products shoppers ordered online, but picked up in stores as a tactic to combat Amazon.

    Now Amazon has started its roll out in Australia, any edge over this competition will be an advantage. Deploying click and collect into a store allows retailers to compress sale time.

    Australian retailer, Super Cheap Auto recently announced shoppers could click and collect their online purchases within 90 minutes – and is now exploring how it can reduce that time down to 60 minutes.

    While shoppers continue to seek convenience, the frequency of online shopping (forecast to hit 12.5 per cent of total retail sales by 2025), will also increase. But getting the product to the customer will continue to be a challenge for retailers.

    So you can expect more retailers to adopt a click and collect strategy. If you can’t get the products to the customers, get the customer to the products.

  • Indonesia’s e-commerce market set to hit $130b by 2020

    Indonesia’s e-commerce market set to hit $130b by 2020

    Indonesia has the biggest and fastest growing online retail sector in Southeast Asia, according to Research and Markets.

    In this environment, RTB House, a provider of retargeting technology for advertisers, anticipates that Indonesia’s e-commerce players will increase adoption and reliance on retargeting to improve customer engagement and conversion rates, strengthen branding, and enhance ROI on their marketing spends.

    Personalized retargeting is a mechanism by which ads are tailored to the behavior and preferences of particular internet users.

    This form of online advertising helps keep brands on top of customers’ minds at every step of the customer journey, after they visit and left certain websites before they could make a purchase.

    The online consumption market has seen an alarming increase in e-commerce cart abandonment from 60% in 2006 to 78% in 2016, according to a Baymard Institute report. Retargeting technology will allow brands to prompt higher conversion rates among these users.

    The 2017 Digital Yearbook report by Hootsuite and Wearesocial estimates that 51% of Indonesians have access to the Internet. With mobile subscription standing at 142%, there is recognition that the country represents one of the largest online marketplaces in the world flanking China and India.

    Next to investment and manufacturing, the consumption market which includes e-commerce is among the largest economic segments in Indonesia. E-commerce is expected to grow to up to $130 billion in 2020, according to Indonesia’s Information and Communications Technology Ministry.

    Indonesia’s burgeoning digital environment presents companies like RTB House a lucrative opportunity to deliver advanced retargeting solutions to a wide array of customers including e-commerce, online travel sites and classifieds.

    A report by eMarketer and Interactive Advertising Bureau Singapore (IAB Singapore) forecasted digital advertising spending in Indonesia will double up to 20.5% of the total media ad spending by 2020 due to rapid internet adoption, particularly through smartphones.

    “We expect a substantial growth in Indonesian e-commerce players’ adoption of retargeting and what will really drive this is improved ROI on their marketing spend as our technology based on deep learning, helps to profitably and effectively drive new customer acquisition and entice existing users to their online marketplace,” RTB House country director for Southeast Asia  Chandra Kuncara said.

    “Deep learning is currently the most promising subfield of artificial intelligence. We believe these new digital ways will help our customers (marketers) succeed.”