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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

QNET Unveils Amezcua Bio Light 3 & Bio Disc 3 for Peak Athletic Performance

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As the world gathers for the 2024 Paris Olympics, QNET, a global leader in wellness and lifestyle-focused direct selling, reaffirms its commitment to health and wellness with the Amezcua Bio Light 3 and Bio Disc 3.

The Olympics inspire millions of athletes worldwide to pursue fitness and wellness goals. Whether training for competitive sport or maintaining a healthy lifestyle, these innovative products enhance recovery, boost energy, and support overall well-being, bringing advanced sports technology to everyday fitness enthusiasts.

Enhanced Pain Relief with Amezcua Bio Light 3 and the Synergy with Bio Disc 3
The Amezcua Bio Light 3 is a non-invasive device that utilizes light therapy to target pain points directly. By combining the therapeutic effects of specific wavelengths of light, the Bio Light 3 helps to reduce inflammation, improve circulation, and accelerate the healing process.

The Olympic spirit is about inspiring individuals to achieve their highest potential and empowering them to overcome challenges. The Bio Light 3 and Bio Disc 3 provide tools for athletes and individuals to manage pain and maintain their health, enabling them to pursue their goals with greater resilience and determination.

According to the Journal of BioPhotonics, light therapy improves muscle performance and recovery, emphasizing its effectiveness in sports. The user-friendly design of the Bio Light 3 makes it an accessible option for those seeking a natural solution to pain relief.

This is particularly relevant as athletes and fitness enthusiasts, both professional and non-professional who have been inspired by Olympians to get fit, as they too can benefit from the advanced sports technology used by top athletes.

Complementing the Bio Light 3 is the Bio Disc 3, renowned for restructuring water molecules and enhancing energy levels. Together, these products offer a holistic approach to pain management, with the Bio Disc 3’s energy-balancing properties working in tandem with the Bio Light 3 to maximize pain relief and support overall health.

Trevor Kuna, Chief Marketing Officer of QNET, highlights their innovative approach: “Our goal at QNET is to provide products that significantly enhance the quality of life. The Amezcua Bio Light 3, paired with the Bio Disc 3, exemplifies our dedication to pioneering advanced wellness solutions.

“Inspired by the athletes of the 2024 Paris Olympics, this combination is transforming pain management, offering a safe, non-invasive, and effective alternative for professional athletes and fitness enthusiasts who are increasingly aware of the benefits of effective recovery and healing.”

Since its launch in 2010 over 100,000 units of the Bio Light have been sold and have positively impacted the lives of an estimated 250,000 customers worldwide. Saina Nehwal, an Olympic Badminton player highlighted that the Bio Light 3 had been supporting her rest and body’s recovery, especially after her knee surgery. She also said that the Bio the Bio Disc 3 helped her body feel cleansed.

Maria Gonzalez, an Independent Representative of QNET and an active long-distance runner, who has been using the products for several months, shares her experience: “The Bio Light 3 and Bio Disc 3 have been game-changers for me. My chronic pain from running and strength training has decreased noticeably, and I feel more energetic and balanced.”

As the 2024 Paris Olympics progresses, the Amezcua Bio Light and Bio Disc 3 by QNET are reshaping the landscape of pain management. By providing an innovative, non-invasive, and effective solution, QNET is helping individuals around the world lead healthier and more comfortable lives, ready to embrace the spirit of the Olympics with enhanced recovery and healing.


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Chowdeck Announces Exclusive Partnership with Chicken Republic in Lagos, Ibadan

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Chowdeck, on-demand delivery service in Nigeria, has announced an exclusive partnership with Chicken Republic, an established quick-service restaurant chain and franchise, that will enable enhanced quality, more affordable, delivery meals for its users in Lagos and Ibadan.

Chowdeck already provides logistics services for Chicken Republic in eight Nigerian cities, and this new agreement cements its position as the preferred delivery partner.

Leveraging Chowdeck’s advanced logistics and technology, customers in Lagos and Ibadan will benefit from lower delivery fees and enjoy some of the fairest prices online.

Additionally, the partnership will include periodic in-app special discount offerings and the opportunity to earn Chowscore points through Chowdeck’s loyalty program, further enhancing value and satisfaction for loyal customers. To kick off the partnership, Chowdeck users are being offered an exclusive N1000 meal deal.

Chicken Republic will now be able to serve a larger customer base, ensuring that more people can enjoy their delicious offerings.

This collaboration will drive increased daily sales and customer engagement while addressing the growing demand for online food delivery, projected to reach 52.0 million users by 2029. Customers can look forward to more efficient and reliable delivery, ensuring their meals arrive hot and fresh.

Commenting on the partnership, Femi Aluko, CEO and co-founder of Chowdeck said “This collaboration underscores our commitment to delivering high-quality, efficient, and convenient services.

“Combining our fast-growing delivery network with Chicken Republic’s exceptional offerings, we aim to enhance the customer experience and bring happiness to more individuals across Lagos and Ibadan.

Kofi Abunu, CEO of Food Concepts Plc, also said, “We are thrilled to deepen our partnership with Chowdeck. Their remarkable growth over the past year, combined with the forward-thinking approach of their team and their unwavering commitment to investing in partner development, leave us with no doubt that they are here for the long term and will successfully address the last-mile delivery challenge.

“Our loyal customers around the country, especially in Lagos and Ibadan, can look forward to an enhanced delivery experience with Chicken Republic on Chowdeck.”


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Report says Telecoms are Prime Targets for Cyberattacks in 2024

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Telecom, mass media, and construction development companies are the top cyberattack targets in the first half of 2024, reports Kaspersky. Telecoms faced the greatest number of incidents, likely due to attackers’ interest in sensitive data and trusted relationships exploitation.

In turn, mass media are traditionally targeted during international conflicts, while construction development firms may be also attractive for threat actors due to their extensive subcontractor use.

In the global telecommunications sector, there were 284 cybersecurity incidents per 10,000 systems, according to Kaspersky Managed Detection and Response (MDR) statistics for January-June 2024. Mass media companies experienced 180 attacks per 10,000 systems, while the construction development, food and industrial sectors followed with 179, 122 and 121 incidents, respectively.

“A successful attack, especially an advanced one, on a telecoms company can expose millions of customers’ records, including contact details, social security numbers, and credit card information.

“It can also serve as a possible springboard for further attacks on clients through trusted relationship exploitation. That’s why this sector is so attractive for cybercriminals. The mass media organisations become an increasingly frequent target during international conflicts, which are often characterised by information warfare in which they play a crucial role.

“The construction development firms, in turn, have significant cash flows and rely on subcontractors, making them vulnerable to attacks via trusted partners’ infrastructures and spear phishing,” explained Sergey Soldatov, head of Kaspersky Managed Detection and Response.

Telecommunication companies also faced the highest average number of critical incidents, with 32 attacks per 10,000 systems. “Critical incidents are human-driven attacks or malware threats that have a potential or actual significant impact on the company’s infrastructure,” explained Soldatov.

The IT industry follows with nearly 12 average critical incidents, while government sector experienced 8 average critical incidents in the first half of 2024.

Globally, the number of cyber incidents has remained relatively stable, with a slight decrease. Organisations tend to strengthen their cybersecurity measures after the spike in attacks in 2021-2022. Enhanced approaches such as vulnerability assessments and penetration tests have improved overall security.

 


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