Retail News CRM

Tag: Behavior

  • Eighty Percent of Consumers Embrace AI Search for Everyday Information Needs

    Eighty Percent of Consumers Embrace AI Search for Everyday Information Needs

    The landscape of online search is undergoing a seismic shift. According to a recent report from Bain & Company, strikingly, about 60% of searches now conclude without a single click. This statistic reflects a growing reliance on AI-generated results, with approximately 80% of consumers turning to these automated answers for at least 40% of their queries. As a consequence, organic web traffic has plummeted by an estimated 15% to 25%, throwing traditional digital marketing strategies into disarray.

    AI Takes Center Stage

    Generative AI is transforming how users interact with search results. Rather than sifting through numerous pages, many find their questions answered directly on search engines, reducing the incentive to click through to external sites. This trend persists even among those who remain cautious about AI’s capabilities.

    Embracing Change in Consumer Behavior

    The shift is notable: approximately 68% of users now rely on large language models (LLMs), such as AI chatbots, for tasks ranging from research to seeking shopping advice. About 48% consult these tools for news and weather updates, while 42% use them for purchase recommendations. Natasha Sommerfeld, a partner at Bain, emphasizes the necessity for brands to adapt: “Traditional SEO is no longer sufficient. Brands must evolve or risk losing visibility in their customer journey and control over their brand positioning in a world where clicks are disappearing.”

    Strategies for the New Era

    To navigate this new reality, marketers are urged to optimize their content for AI crawlability by focusing on semantic search and high-intent, long-tail keywords. Diversifying content formats by integrating video and interactive elements is also key to capturing attention in AI-dominated search landscapes. Furthermore, brands must redefine success metrics; instead of focusing solely on click-through rates, they should measure search impressions, AI reach, and overall influence, moving beyond the narrow lens of direct conversions.

    It seems in the era of AI, even clicks are taking a backseat—talk about a change in the digital fast lane!

    Questions & Answers

    How is AI impacting online searches?
    AI is reshaping the search landscape, with many queries ending without clicks as users find answers directly on search engines.

    What should brands focus on to adapt to these changes?
    Brands need to optimize their content for AI, embrace diverse content formats, and shift their success metrics beyond traditional click-through rates.

    What percentage of consumers rely on AI for their queries?
    Approximately 80% of consumers now utilize AI-generated results for at least 40% of their search queries.

  • Dollar Declines Against Dong: Impacts on Retail Sales and Consumer Demand

    Dollar Declines Against Dong: Impacts on Retail Sales and Consumer Demand

    The U.S. dollar experienced a modest decline against the Vietnamese dong on Tuesday morning, following a drop observed on Monday. This movement reflects the ongoing volatility in the global market, particularly concerning U.S.-China trade negotiations.

    Current Exchange Rates

    According to Vietcombank, the dollar was sold at VND 26,160, representing a 0.04% decrease. Meanwhile, the State Bank of Vietnam has maintained its reference rate at VND 24,956. In unofficial exchange venues, the dollar was priced at VND 26,520, marking a slight 0.11% increase.

    Despite the dip, the U.S. dollar has exhibited a 2.38% rise against the dong since the start of the year, indicating a complex interplay of economic factors.

    Global Context

    On a broader scale, the dollar struggled to regain losses on Tuesday amid persistent ambiguity over the de-escalation of the Sino-U.S. trade dispute. Treasury Secretary Scott Bessent emphasized that the responsibility for initiating negotiations lies with China. Comments like this contribute to mixed signals regarding the progress of talks between the world’s two largest economies, as reported by Reuters.

    In the global market, the dollar saw slight improvements, gaining 0.11% against the yen to reach 142.19, and rising 0.18% against the Swiss franc at 0.8217, rebounding from a steep 1.2% fall the previous day.

    Looking Ahead

    The dynamics of the currency market are likely to continue to shift as investor confidence wavers amidst global economic uncertainties. The fluctuating exchange rates not only affect businesses but also consumers, shaping their purchasing power and overall economic sentiment.

    As the retail sector navigates these changes, staying informed on currency movements could prove vital for businesses and consumers alike, especially in light of ongoing consumer trends and brand expansions that may be influenced by international economic policies.

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  • Indonesia’s E-commerce Market Larger Than Estimated; Consumer Habits Changing

    Indonesia’s E-commerce Market Larger Than Estimated; Consumer Habits Changing

    E-commerce accounted for 8 percent of total retail sales in Indonesia last year, on course to reach 18 percent by 2023, fueled by changing behavior among tech-savvy customers who are willing to spend more for convenience, according to a recent study by American multinational investment bank Morgan Stanley.

    The study estimates the size of Indonesia’s e-commerce market at $13 billion in 2018, having grown by 50 percent annually over the past two years. It suggests that the e-commerce market in Southeast Asia’s biggest economy may follow a similar growth trajectory to that of China and expand by at least 32 percent annually over the next five years to $52 billion in 2023.

    “This is notably above our previous estimate of $7.3 billion, or 4.4 percent of sales, partially due to better data availability but also due to the rapid growth in the user base… Indonesia is now only five years behind China in terms of penetration,” Morgan Stanley wrote.

    A separate study by global tech giant Google and Singapore’s Temasek, published last December, put the size of Indonesia’s e-commerce market at $12.2 billion in 2018 and $53 billion in 2025.

    The Morgan Stanley study, based on interviews with 1,582 respondents in eight Indonesian cities, suggests that the growth trend is still in an early stage, with many indicating that they only started shopping online in the past year.

    “Interestingly, 65 percent of the respondents in our survey had only started shopping online within the past year, and the majority believed e-commerce would become their main method of shopping over time,” the investment bank wrote in the report published on Tuesday.

    “There are 195 million smartphone users in Indonesia and only about 30 million online shoppers. The growth potential of the user base is still clearly huge,” it wrote.

    Apart from smartphone penetration, low data costs and the growing number of people with bank accounts serve as crucial enablers for continuing e-commerce growth, Morgan Stanley said. Data costs about 50 US cents per gigabyte in Indonesia, compared with $2.1 per gigabyte in China. About 49 percent of the adult population in Indonesia now has a bank account, compared with 20 percent in 2011.

    Apparel 

    Clothing and footwear fuel the sales growth, with 93 percent of respondents indicating that they bought items in this category online in the past 12 months. Half of them buy apparel at least once a month, Morgan Stanley said. In comparison, only 16 percent and 25 percent, reported that they purchased consumer electronics and mobile devices, respectively, which is the most common category in early state e-commerce.

    The study also noted changing customer behavior, which would likely affect their interaction with traditional brick-and-mortar stores. Three in every four customers said they would check for promotions or prices online before buying anything offline, Morgan Stanley reported.

    Seven in every 10 said they would continue shopping online, even if it meant they would have to pay for delivery. Morgan Stanley said this reflects consumers’ “willingness to pay for convenience.”

    “Fast shipping was the primary reason for preferring one website over another,” the bank said.

    Retailers 

    The trend presents challenges to traditional retailers to remain profitable and provides a powerful platform for small brands to challenge established manufacturers.

    “Our analysis reaffirms our medium-term concern for apparel-focused retailers like [Matahari Department Store]. The average transaction size for apparel online, per our survey, is similar to Matahari’s basket size,” Morgan Stanley said.

    “For beauty and personal care companies like Unilever, the combination of e-commerce and digital media is making it easier or cheaper for smaller companies to build brands and offer nationwide distribution,” it wrote.

    Everybody’s Game

    Investment in Indonesian internet companies has steadily risen over the past two years, which saw them attract at least $7.4 billion in capital in 730 deals.

    With all this potential growth, Morgan Stanley has yet to see clear winners in the country’s e-commerce market.

    Four players control most of the formal e-commerce sales: Lazada, Shopee, Tokopedia and Bukalapak, with the top three each controlling between 20 percent and 30 percent of the market. Bukalapak was in the low teens, according to the Morgan Stanley’s estimation.

    Lazada, a pioneer of e-commerce in Southeast Asia, is still the most preferred platform, according to the bank’s survey

    “Lazada had high usage rates across categories and genders. The cash-on-delivery option was one of the key drivers of the preference,” it said.

    Shopee was second overall in terms of usage and preference, being more popular in smaller cities and among people buying baby products, toys, and beauty and personal care products.

    “Tokopedia’s preference and usage were lower beyond Jakarta in our survey. Its usage rate was only 38 percent in second-tier cities like Surabaya, Medan and Bandung, compared to 62 percent in Jakarta,” Morgan Stanley said.

    A surprising find in the survey is that Tokopedia and Bukalapak both enjoy more than 80 percent customer recognition, but less than 50 percent had made purchases on their platforms within the past 12 months.

    “For Southeast Asia, we remain convinced that its e-commerce platform is being undervalued. Our survey not only confirms the popularity of Shopee but also that its users are willing to pay for delivery, which solidifies its path to profitability,” Morgan Stanley said.

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  • Is Asia changing its way of thinking about food?

    Is Asia changing its way of thinking about food?

    More people are eating today than yesterday. The majority of these people live in Asia, a continent which has an intense cultural connection to food. Securing a better way to feed Asia’s growing population is what motivates JUST CEO Josh Tetrick to challenge the status quo of the food industry.

    Tetrick, 37, sees Asia as the tip of the spear to fix the world’s broken food system.

    “We need to answer the question of how can we produce enough food for a planet which will see 70 percent growth in food demand between now and 2050,” says Tetrick, whose company has attracted high-profile investors such as Hong Kong business magnate Li Ka-shing.

    One of the fastest growing segments of the $8 trillion global food and agricultural market is the multi-billion dollar egg industry. China produced over 30 percent of the 1 trillion eggs that were laid last year which has raised numerous environmental concerns on the continent. To disrupt this, Tetrick introduced Just Scramble at the flagship location of Green Common, a plant-based dining and shopping store that has chains across Hong Kong. Just Scramble is made from mung bean which is one of Asia’s most familiar beans. It looks and tastes just like an egg, it is high in protein, has zero cholesterol and sold over 800 orders of “Just Scramble Teriyaki” and “All Day Just Scramble” in the first six days.

    Just Scramble requires less water and emits fewer carbon emissions than conventional eggs, but Tetrick knows that this does not drive consumers. “I think far less than 1 percent of the 7.4 billion people on earth are driven by the environmental benefit of plant-based food. People just want to feed their family with something they have confidence in. They want food that tastes amazing and makes them feel amazing,” says Tetrick.

    Green Common founder David Yeung is redefining the whole experience of selling plant-based products. “The product has to be good, innovative and fit the brand. If so, we can make foreign brands become an overnight success,” says Yeung “We know what people crave in Hong Kong, that makes us so valuable to translate these products for the Asian palette.” Green Common is already seeing great sales from the American made Beyond Burger, the world’s first plant-based burger that looks, cooks, and tastes like a fresh beef burger. Providing an option for consumers to tweak their habits is what both CEOs believe will lead to wholesale change.

    Yeung is confident Hong Kong can serve as a gateway into mainland China and the rest of Asia. Yeung believes China is desperate for a healthy brand people can trust, and is using the Starbucks strategy to expand. “For 5,000 years China never drank coffee. Now, after Starbucks sold it as a lifestyle, there are over 2,500 Starbucks in mainland China. That is not supposed to happen, but Starbucks became people’s second living room,” Yeung said.

    Yeung’s goal is not to open a thousand Green Commons in Hong Kong but rather grow business to business in order to make impactful change throughout Asia. By introducing plant-based options through restaurants and catering companies, an entire office building, school, or hospital can drastically reduce meat consumption. By doing this, a fair market is being created where people from all demographics have access to sustainable foods.

    Josh Tetrick also envisions a world where everyone is enjoying “just” food, but he knows they cannot do it alone either. “I want to inspire other companies to do this,” Tetrick continued “For the institutions and the companies, who are thinking about what’s next? Take a look at food, because we need help and Asia needs help. But we can’t wait, we have to do it now.”

    Much of the energy surrounding the plant-based movement in Hong Kong started in 2011 when Sonalie Figueiras began the personal blog Green Queen which quickly turned into a trusted media source for healthy eating.

    From this loyal following, Figueiras co-founded Ekowarehouse, the world’s first online global trade platform for sourcing certified organic products and is now available in over 140 countries. “We want to become the Alibaba of organic food, and connect the organic world,” said Figuerias. “Here in the East, the sustainable conversation does not work. Personal health and safe eating for children is the conversation we need to have moving forward.”

  • 50% tariff reduce to spice up consumption

    50% tariff reduce to spice up consumption

    China will minimize import tariffs by about 50 % for some shopper items in June to spice up home consumption.

    Tariffs for imported skin-care merchandise will probably be slashed from 5 % to 2 %, diapers from 7.5 % to 2 %, leather-based boots from 24 % to 12 %, and woolen fits from 17.5 % to 10 %, the Ministry of Finance stated in a press release yesterday.

    Tariffs for fur clothes, cashmere jumpers and sneakers have additionally been halved to between 7 and 12 %.

    “Chinese language shoppers are very taken with shopping for clothes, footwear, cosmetics and diapers from abroad,” the ministry stated. “Decrease tariffs for such merchandise will assist increase imports, improve home consumption, and meet numerous wants of shoppers.”

    The State Council, China’s Cupboard, determined in late April to chop import tariffs because the nation seeks to spice up home consumption as extra rich Chinese language vacationers store overseas.

    However Zhang Junwei, a researcher with the Improvement Analysis Middle of the State Council, famous that slicing import tariffs alone might solely have restricted impact in bringing consumption house because the tariffs comprise a small half within the remaining costs of merchandise.

    Worth-added tax, consumption tax, distribution prices and the model’s pricing technique play a larger position in costs of imported items, specialists stated.

    China has up to now minimize import tariffs for some toddler meals, drugs and digital camera lens.

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  • Shopper confidence in Vietnam up in 1Q

    Shopper confidence in Vietnam up in 1Q

    The buyer confidence index in Viet Nam elevated by six factors to 112 factors over the past quarter, in response to Nielsen’s reort for the primary quarter of 2015 launched on Might 20.

    This was the third third consecutive improve and the nation’s highest rating since 2010, making Viet Nam the sixth optimistic nation on the planet.

    The report confirmed a continued development in the direction of saving cash by 86 per cent of interviewees over the previous yr. Greater than half (56 per cent) stated that they had reduce spending as a result of they believed the nation was in financial recession.

    Greater than 60 per cent stated they minimize spending on new garments and tried to economise on electrical energy and fuel use, and 57 per cent skimped on leisure.

    Vietnamese at the moment are among the many world’s greatest savers. Seventy eight per cent put their spare cash into financial savings, the report stated. Nevertheless, 44 per cent have been nonetheless able to pay for holidays and 40 per cent needed to spend on hi-tech devices.

    Well being was the most important concern for Vietnamese, not the state of the financial system or job safety, in response to the report. One in each 5 have been nervous about their well being, whereas 15 per cent have been involved concerning the financial system and solely 16 per cent anxious about job safety.

    The quarterly report confirmed shoppers in Southeast Asian have been probably the most optimistic. Three out of 5 nations with the very best shopper confidence scores have been Indonesia with 123 factors, the Philippines with 115 factors and Thailand with 114 factors

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  • Coles fined USD8m for misconduct

    Coles fined USD8m for misconduct

    Australian supermarket giant Coles has been ordered to pay AUD10 million (USD8.1m) in penalties for “serious, deliberate and repeated” misconduct towards suppliers that were in some cases in financial trouble.

    The Federal Court ruled in favour of a settlement between the retailer and the consumer watchdog, agreed by the parties last week.

    Justice Michelle Gordon said the behaviour by Coles was orchestrated and relentless and involved threatening harm to suppliers by unlawfully withholding funds or demanding payments.

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