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Holiday Shopping Season to Look Different for Retailers this Year as Shoppers Take on more Debt

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By Zuko Mdwaba, Salesforce Area Vice President & Africa Leader

New Salesforce research shows that 37% of indebted consumers are using their credit cards more today than they were a year ago, while 32% report using alternative credit services like “buy now, pay later” more frequently. What’s more, 43% of consumers are carrying more debt compared to 2023. And this isn’t unique to one income bracket — consumers across all levels are tapping into their credit lines more today than they were last year.

Zuko Mdwaba

Zuko Mdwaba

But this increased reliance on credit isn’t due to consumers buying more. According to the Salesforce Shopping Index, online order volumes have been falling since 2022 and decreased by 2% year over year in the first quarter of this year. When they do buy, they’re trading down, buying discounted merchandise, and seeking private labels.

Holiday shopping prediction #1: Chinese shopping apps will take market share

As consumers face uncertainty around rising prices, they’re changing shopping habits. Long gone are the pandemic times when the fastest shipping time could win over new business. Now it comes down to price.

Shoppers are looking for the best deal. Two-thirds of global shoppers report that prices dictate where they chose to shop, with less than one-third prioritising quality of the goods. Temu is the clear winner, with 43% of Western shoppers purchasing on this platform within the last six months. But for Gen Zers, Shein is the top destination, with half of this group placing an order recently.

This holiday season, we predict that Chinese shopping applications will capture $160 billion in global ecommerce market share outside of China.

Holiday shopping prediction #2: Middle-mile shipping puts strain on margins

The Houthi attacks in the Red Sea and rising crude oil prices are driving up container costs worldwide, putting strain on the middle-mile infrastructure for the first half of the year. Additionally, last-mile challenges are also stacking up thanks to events like the collapse of the Francis Scott Key Bridge and rising delivery costs – stalling delivery times and adding expenses for retailers.

But retailers shouldn’t push the shipping expenses back on shoppers. Free shipping offers are a top-three reason why consumers choose to make a purchase from a particular brand or retailer. Over half of shoppers say they are more likely to purchase online than in store if delivery is free.

This holiday season we predict brands and retailers will spend an extra $197B in middle-mile expenses, increasing 97% over last year.

Holiday shopping prediction #3: Shoppers embrace AI to search for the perfect gift

Last holiday season, 17% of online purchases were influenced by AI – both predictive and generative. That totalled a whopping $199M of onlines sales worldwide in November and December. This year, consumers will increasingly leverage AI – knowingly or not – to search for the right gift at the right price. In fact, 53% of shoppers surveyed said they are interested in using generative AI for inspiring the perfect present. As retailers increasingly embed AI into search experiences, we predict search will drive a nearly 3x better conversion rate compared to traffic not engaging with site search.

Holiday shopping prediction #4: Black Friday becomes Cyber Friday

Over the years, as online shopping grew in popularity and consumers could shop from anywhere, holiday shopping started earlier and earlier in the month of November. Last year, Black Friday gained back 4% of online holiday sales, establishing itself as the biggest online shopping day of the year.

We’re expecting the same of the upcoming holiday shopping season. Two-thirds of shoppers say they’re holding out on making big purchases until Cyber Week, anticipating better deals. The big news is that Black Friday is going to be the biggest day for digital. Salesforce research predicts online sales will take 7% of in store sales on Black Friday.

Holiday shopping prediction #5: Retailers tap loyal shoppers to avoid skyrocketing digital marketing costs

Customer acquisition continues to be costly for retailers. In the face of a busy election cycles, and as Chinese companies buy up advertising inventory, digital marketing costs continue to get more expensive, and opportunities to get in front of the right audience grow scarce. This means that brands and retailers have to better engage their existing customer base amid this tug of war over digital advertising space.

But there are other opportunities. Shoppers are doubling down on loyalty. According to our Salesforce Shopping Index, the rate of repeat buyers in the first quarter increased by 8% over the last two years. And shoppers are prioritising brands and retailers that offer loyalty programmes. Our research shows 63% of shoppers are making more purchases from stores where they can earn and redeem loyalty points. This holiday season, we predict that 2 out of 5 holiday purchases will be made by a loyal repeat buyer.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

NDPC to Begin Prosecution of Data Privacy Offenders from 2025

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Nigeria Data Protection Commission (NDPC) will start prosecuting data privacy offenders from the beginning of 2025, according to Babatunde Bamigboye, head of the Legal Enforcement and Regulation Department of the commission.

NDPC to Begin Prosecution of Data Privacy Offenders from 2025

This move is part of its efforts to enforce regulations and promote responsible data handling in Nigeria.

Bamigboye, disclosed this during a one-day cybersecurity awareness campaign with the theme “Utilising AI-Powered Services for Proactive Cybersecurity” in Abuja.

The event was organised by SOPHOS UK in collaboration with SPOKES Network and Net-Trix Solutions to foster networking with industry experts on how AI is shaping the future of cybersecurity.

Bamigboye explained that, due to the significant implications of data privacy breaches in Nigeria, the commission has embarked on awareness programmes to educate individuals on their data protection rights and inform data processors and controllers of their obligations.

To this end, he announced that beginning next year, the commission would prosecute any data controllers or processors found in breach of the law.

“At this moment, we have investigated quite a number of cases, and in terms of prosecution—as you know, as a lawyer, this means going to court—but we haven’t taken any matters to court yet.

“This is the formative stage; we understand the implications for the country as a whole. And usually, when you talk about prosecution, it also involves some criminal activities. So, at this moment, our focus has been on creating awareness.

“But from next year, we will step up enforcement in this area. What we have done so far is to take remedial actions against certain data controllers and processors who defaulted under the Act,” he noted.

He assured investors that Nigeria’s cyberspace is secure for digital transactions.

“Nigerian cyberspace is safe; otherwise, we wouldn’t be experiencing the smooth flow of digital transactions in Nigeria. It is safe but not without threats, and we are doing our best as a country to combat these threats.”

Christopher Odutola, a sales engineer at SOPHOS UK, noted in his presentation that 100% cybersecurity cannot be guaranteed, hence the need for proactive measures.

“A lot of people will come to you and say, ‘We can give you 99.9% or 100% cybersecurity.’ It’s not true.

“Nobody can provide 100% security anywhere in the world. What they can do, as I mentioned earlier, is reduce the risk for you. However, determining the extent of risk reduction is difficult.

“It’s impossible to eliminate 100% of risks anywhere in the world. What we provide is what we call a cybersecurity breach protection warranty. This warranty covers incidents such as data breaches or ransomware attacks. For instance, if you lose your files while we manage your SOC as a service, we will reimburse up to one million dollars in response costs.”

Odutola further stressed the importance of organisations reducing cyber threat risks to secure cyberspace.

“There are risks to businesses, risks from downtime, attackers, scammers, and the rest, trying to infiltrate networks.

“The risk is always high. As cybersecurity professionals, we are doing as much as possible to reduce these risks.

“The various security controls we implement—antivirus software, firewalls, email security, cloud security, network security, and others—are aimed at reducing risks. We must focus on minimising risks. For instance, we currently see risks originating from third-party suppliers and vendors.”

According to him, “We have a process called risk assessment, which helps to evaluate vendors to ensure they do not introduce risks into our environment. This is why these security controls are crucial.

“We have them in place. It’s equally important to involve senior management in the discussion, as this is often where the gap lies. Unfortunately, cybersecurity is often perceived as a cost centre.”

Harrison Oloye, chief executive officer (CEO) of Net-Trix Solutions, said the event aimed to raise awareness about cyber threats and equip users to manage potential attacks.

“What we did, as Net-Trix Solutions Limited in conjunction with Spokes Network, is to create awareness and educate the public and private sectors on how to use Artificial Intelligence (AI) to combat cyber threats.”

Speaking further on achievements in creating awareness, he said: “As part of our Corporate Social Responsibility (CSR), we educate and train as many people as possible on the dangers of cyber threats and cyber-related crimes.”

Ms. Sifon Ufot, head of Business at SPOKES Network, emphasised the need to take proactive measures against cyber threats.

“We need to stay cyber-safe because hackers working behind the scenes are not joking—they work 24/7. For us, staying proactive is essential. With the help of AI, we can stay proactive; it provides information beforehand and even prevents some attacks from reaching us.”

 

 

 

 

 


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Nigeria, Others Confront Flood of Cyber-Attacks

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Check Point, a cyber security company has reported that Nigeria, South Africa, Kenya, and Morocco are seeing targeted cyber-attacks on government, education, and financial institutions.

Nigeria, Others Confront Flood of Cyber-Attacks

In its just released 2024 African Perspectives on Cyber security report, Check Point, said that the cyber security sector is growing by 20-25% annually, fuelled by investments in infrastructure and Artificial Intelligence-driven solutions.

The report said that  South Africa has seen 3,312 attacks on government institutions every week and a 90% increase in ransomware, with cybercrime costing the country nearly 1% of GDP.

Kenya, in East Africa, sees 4,719 attacks on the government sector each week, indicating an urgent need for enhanced defenses.

According to the report, Nigeria sees 4,718 attacks every week, which is one of the highest in Africa.

In a recent incident, the report states that a banking trojan assault affected 100,000 customer accounts, resulting in a $3 million loss.

Morocco is one of Africa’s most targeted countries, with 8,733 attacks on government entities reported each week, the report said.

According to Check Point, the Moroccan government recently faced a state-sponsored cyberattack that compromised classified communications, raising significant national security concerns.

“Organisations in Africa are attacked roughly 3300 times per week, if we look at the global average it is about 1 800, it is almost double the attacks,” said Hendrik de Bruin, head of security consulting at Check Point SADC during the presentation.

Check Point noted that the continent’s GDP is predicted to exceed $4 trillion by 2027, and digital infrastructure has emerged as a key driver of economic growth. However, rapid digitisation has resulted in increased vulnerability.

De Bruin explained: “We are slowly, but surely digitalising our industries, we are digitising our governments, private sectors are digitising themselves, so we have got an expanding digital attack footprint.

“We also have cloud adoption, which is not new, but picking up pace in Africa. That is another way that these attackers are using to gain access to organisations, and we also see a large uptake on cloud specific attacks as well.”

 

 

 

 


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NITDA Alerts Businesses to Rising Ymir Ransomware Threat

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National Information Technology Development Agency (NITDA) has warned organisations about Ymir ransomware, describing it as a highly sophisticated cyber threat targeting corporate networks.

NITDA Alerts Businesses to Rising Ymir Ransomware Threat

In an advisory released yesterday, NITDA outlined the ransomware’s advanced tactics, including memory-based execution designed to evade detection by traditional security tools.

The malware not only encrypts critical data but also exfiltrates sensitive information before encryption, demanding substantial ransoms in cryptocurrency.

“This ransomware is highly advanced and poses a significant threat to organisations, especially those in industries like healthcare, finance, and IT services that handle sensitive data,” NITDA said.

The agency warned that victims face severe operational disruptions, financial losses, and reputational damage. “Ymir’s ability to evade antivirus programs allows attackers to dwell longer in networks, expanding their reach and deepening the damage,” the advisory added.

To counter the threat, the agency urged organisations to take proactive measures, including deploying advanced endpoint detection and response solutions, updating all systems and applications with the latest security patches, and segmenting critical systems into separate network zones.

“Implementing multi-factor authentication across critical systems is crucial to preventing unauthorized access, especially for administrative accounts,” NITDA noted.

The agency also stressed the importance of a robust backup strategy. “Organisations should regularly test their backups for integrity and ensure offline copies are securely stored to avoid total data loss in the event of an attack,” it said.

NITDA emphasised the need for organisations to prioritise cybersecurity in light of evolving threats like Ymir ransomware. It encouraged businesses to seek expert guidance to strengthen their defenses against such attacks.


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