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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

Konga’s Back-to-School Campaign Empowers Learners and Educators with Unbeatable Deals

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Konga’s Back-to-School campaign has been a game-changer for parents, students, teachers, and other stakeholders in Nigerian education.

Konga

Since its launch three weeks ago, the campaign—which offers necessary school supplies and educational tools at discounts of up to 80%—has given educators and families alike a lifeline.

In a time when many are feeling the pinch of the current economic climate, Konga’s Back-to-School campaign has stepped up to support Nigerian families in preparing for the new academic year.

Because of the back-to-school campaign, parents can now afford to buy everything their kids need for school, including tech devices, backpacks and stationery, without straining their finances.

At the core of Konga’s Back-to-School initiative is its commitment to empowering learners as they resume a new session. The deals provide a wide range of educational resources to make sure pupils are prepared for academic success.

Konga has addressed the diverse demands of all students, from nursery school pupils in need of new stationery to university students requiring laptops for their schoolwork.

Moreover, with the discounts offered during the campaign, more families can now afford high-quality products. This ensures that every learner, regardless of their financial situation, has the tools they need to thrive academically.

Konga’s Back-to-School campaign has also been a tremendous support for parents and educators. By offering substantial discounts on a wide range of products, Konga has made it easier for parents and educators to shop for what they need, while saving money.

Furthermore, Konga’s Back-to-School campaign is not just about school supplies; it aims to meet the broader needs of the educational community. The campaign has also featured deals on items like beauty, health and personal care products, electronics and fashion.

This ensures that students are not only academically prepared but also physically and mentally ready for the challenges of a new school year.

In addition, Konga has made it easy for shoppers to access these incredible deals through its user-friendly online platform. With just a few clicks, customers can browse, select, and purchase what they need, with the added convenience of nationwide delivery.

As the Konga Back-to-School campaign continues, it is evident that it has made a significant difference in the lives of many Nigerians.

For those who are yet to take advantage of these deals, there is still time to shop and save before the end of September. Visit Konga.com today and equip your kids with everything they need for a successful school year.


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Allison, BHM Partner to Host ‘Africa Breakfast Convos’ @UNGA79

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Africa stands at vital crossroads, balancing intricate geopolitical challenges while taking advantage of promising economic opportunities. With the Gulf Cooperation Council (GCC) announcing 73 Foreign Direct Investment (FDI) projects in Africa worth more than $53 billion in the last year alone, according to the World Economic Forum, and significant growth in technology, renewable energy, and healthcare sectors, across the continent, Africa is poised for remarkable progress.

In light of these developments, Allison, a globally renowned communications consultancy, and BHM, Africa’s leading public relations firm, are joining forces to co-host an exclusive breakfast event on the sidelines of the 79th United Nations General Assembly (UNGA79) in New York City.

The “Africa Breakfast Convos,” set for Friday 27 September 2024, at the World Trade Center, will convene business and public sector leaders from various African nations, representing key sectors such as telecommunications, finance, entertainment, government, technology, and trade.

With 70% of sub-Saharan Africa’s population under 30 and projections indicating that one-fifth of the global population will be African by 2030, the continent’s youthful demographics are drawing significant international attention.

This exclusive gathering aims to showcase Africa’s immense potential for economic growth and development while emphasising the continent’s role in achieving sustainable development goals.

The event will feature panel discussions, keynote speeches, and networking sessions exploring various aspects of the African narrative: big business, technology, pop culture, creative economy, soft power, and geopolitics. It will serve as a platform to highlight expertise and innovation on the continent.

Claudine Moore, Managing Director, Africa, at Allison, stated, “The ‘Africa Breakfast Convos’ represents a unique opportunity to bring together influential voices and decision-makers from across Africa and beyond.

“We’re excited to again facilitate meaningful dialogue during the United Nations General Assembly when Africa is a focus and we are collectively working towards collaboration driving sustainable growth and social impact across the continent.”

Femi Falodun, Executive Director, BHM, added, “This event underscores Africa’s position as a land of opportunity for investment and collaboration.

“By showcasing the continent’s dynamism and potential, we aim to foster partnerships that will contribute to shared prosperity and sustainable development.”

The “Africa Breakfast Convos” aligns with UNGA79’s theme while focusing on Africa’s potential as a driver of global progress.

“It emphasises the role of business in driving sustainable development, the importance of public-private partnerships, and the opportunities for collaboration with Africans in the diaspora.


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Privacy Protection is Now Right of Citizens —Olatunji, NDPC Boss

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Dr. Vincent Olatunji, national commissioner and chief executive officer, Nigeria Data Protection Commission (NDPC), has stated that it is now the right of citizens for their privacy to be protected.

Privacy Protection is Now Right of Citizens —Olatunji, NDPC Boss

Dr. Vincent Olatunji, national commissioner. NDPC

Olatunji said this when he received a group of international data protection experts from Somalia who were on a study tour to explore Nigeria’s data protection ecosystem and its unique models.

Nigeria and Somalia are meant to exchange ideas on the protection of data, with the East African nation eager to learn what their West African counterparts are doing to keep the privacy of their citizens safe.

“It is a digital age and the protection of the privacy of all citizens of the world is paramount,” he said during the meeting held in Abuja.

“It’s now the right of all citizens for their privacy to be protected. That’s why all countries across the globe are putting in place those measures to ensure that they have their enforceable data protection rights and also put in place data protection authority to ensure that they enforce the law of data security.

‘In Nigeria, we recognise the need to protect the privacy of our citizens as it is enshrined in the 1999 constitution.”

Speaking earlier, Jamal Mohammed, Somalia’s ambassador to Nigeria, advised the delegate from his country to go home with the message that Nigeria has everything the war-torn country needs to develop. He pleaded with the NDPC DG to help his country in the area of data privacy and security.

“I’ve been here for three years now. Everything Somalia needs is in Nigeria in terms of knowledge and in terms of experience. I’d like you to take this message to Somalia,” he said.

“Don’t go to any other places. So, you’ll get anything you need in Somalia. However, in my stay here, I faced two challenges.

“The number one challenge was to convince Nigerians about Somalia. They have a phobia about Somalia. The same thing with Somalians.

“I’ve tried to convince Somalians to come to Nigeria but now they’ve got an opportunity.”


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