TRD Issue 1 - Briefing: Welcome to The Retail Direct by 91APP
Hello,
Welcome to The Retail Direct!
This newsletter is arriving straight from 91APP. We aim to provide you with the most up-to-date trends and thorough insights in the retail industry through weekly updates.
Each issue will consist of two sections. Get ready to stay informed and ahead of the game!
In this week’s Briefing, our recent focus is on how brands and retailers leverage AI and AI-driven chatbots. Additionally, we dive into TikTok’s e-commerce aspirations in the West, AEON’s expansion plan in Vietnam, and the international footprint of Japan’s Ponta. We hope you find this informative and enjoyable.
About 91APP
Founded in 2013, 91APP, Inc. is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solution and Marketing Solution that enable retail brands to penetrate the D2C (Direct-to-Consumer) eCommerce market and drive their operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.
For more information about 91APP (TWO: 6741), visit www.91app.com.
AI
OpenAI launches a ChatGPT app for iOS
Source: TechCrunch
On May 18, OpenAI announced the launch of the #ChatGPT mobile app, offering a free and ad-free experience, initially available only to US users. The mobile version ensures seamless connectivity by synchronizing search history across devices, thus allowing access to past searches. Additionally, it is integrated with Whisper, OpenAI’s speech recognition system, further enhancing its voice input capabilities.
Our Take
The official release of the ChatGPT mobile app is an exciting development for AI-powered conversational experiences, despite the lack of major new features being announced. Unofficial apps have already been taking advantage of ChatGPT for several months, and this official release may encourage more users to try AI assistants and inspire future entrepreneurs. The possibilities are endless!
TikTok is testing an in-app AI chatbot called Tako
Source: TechCrunch
TikTok is testing its own # AI #chatbot, “Tako,” designed to answer video-related questions and recommend new content. Currently undergoing limited testing in select markets, including the Philippines, Tako is part of TikTok’s ongoing exploration of innovative technologies to enhance user experience. The chatbot, built with an unknown third-party AI provider customized to TikTok’s needs, is still considered experimental. User interactions will be logged for safety and to refine the bot. If successful, Tako could pose a threat to Google, potentially diverting Gen-Z users from traditional search platforms.
Our Take
The rise of TikTok’s Tako and similar tools reflect a significant shift among teenagers, who increasingly turn to social media for information, bypassing traditional search engines like Google. This trend underscores the evolving nature of information consumption and highlights the growing influence of social platforms as hubs for discovery and learning. It’s a digital paradigm shift that could redefine how future generations search and interact online.
Lazada launches ChatGPT-powered chatbot
Source: Tech in Asia
Lazada , a Singapore-based e-commerce platform, has launched LazzieChat, an AI chatbot powered by OpenAI ChatGPT. LazzieChat responds to shopping queries and offers personalized product recommendations. Currently available in Singapore, the Philippines, and Indonesia, it’s set to revolutionize the shopping experience in the SEA region.
Our Take
Lazada’s LazzieChat is a bold step in enhancing e-commerce via AI, offering personalized shopping experiences. Compared to TikTok’s Tako, LazzieChat directly impacts commerce by guiding purchases. Following the footsteps of Shopify and Instacart, online retailers and marketplaces are trying to make its service AI-integrated with more personalized content. However, we are still waiting for the result of such an approach to turn into profit.
Retail
How Lululemon, Starbucks and Google Boost Brand Engagement Though Community Retail
Source: Forbes
In response to the growth of e-commerce, brands like lululemon , 星巴克 , and 谷歌 are enhancing brick-and-mortar experiences through community engagement. Lululemon fosters loyalty through in-store events and wellness experiences, driving brand awareness beyond its product offering. Starbucks’ Community Store Program supports local economic and social activities, with plans to open 1,000 community stores globally by 2030. Google is redefining its retail spaces to be more community-centric, offering areas for events and workshops. Post-COVID, these people-centric retail strategies are boosting brand equity, loyalty, and growth.
Our Take
Brands focusing on community engagement in retail locations show a refreshing shift from product-centric to people-centric strategies. By providing unique experiences, they build stronger customer connections, driving loyalty and brand equity. After all, it’s all about customer experience.
Social
TikTok reshapes e-commerce unit in bid to crack Western markets
Source: Financial Times
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TikTok is restructuring its e-commerce business, TikTok Shop, focusing on markets like the UK and the US. Staff in Brazil and Spain are being relocated to regions where the service is already launched. The company is pausing its international expansion to concentrate on areas where its e-commerce service is live as it grapples with exporting its livestream shopping model outside of China. Despite the success of the social media e-commerce model in Asia, TikTok Shop has faced challenges in gaining traction with Western consumers. Recent changes in TikTok’s London office reflect a renewed emphasis on the project. ByteDance, TikTok’s parent company, aims to make social commerce a significant revenue source in Western markets, mirroring the success of its sister app Douyin in China.
Our Take
TikTok’s strategic pivot to focus on established markets for its e-commerce platform highlights the challenges of global expansion. While successful in Asia, it’s clear that replicating this model in the West requires adaptation. A nuanced approach to cultural differences is crucial.
Marketing
Google Marketing Live 2023: Everything you need to know
Source: Search Engine Land
Google Marketing Live 2023 focused heavily on the integration of AI in various Google Ads features:
Our Take
Google Marketing Live showcased AI doing the heavy lifting, not replacing work. It’s about saving time and enhancing control over automated campaigns. My take? Mar-tech firms adding AI is low-hanging fruit. Google and major ad platforms will eventually have such tech built-in.
Google opens access to Search Generative Experience
Source: Search Engine Land
Google has started inviting users to trial its new Search Generative Experience, part of Search Labs, Google’s platform for early experiment access. Users who signed up for the waitlist are notified of their participation eligibility. Once in, they can engage with the generative AI-powered search experience to enhance understanding, reveal new insights, and simplify tasks. This initiative is an experimental version of Google’s future search vision, offering an intriguing blend of fun, education, and technological advancement.
Our Take
The ongoing AI rivalry between Google and Microsoft’s #Bing with OpenAI fuels innovation in search experiences. Google’s Search Generative Experience shows its commitment to AI-enhanced discovery. However, Bing and OpenAI’s advances shouldn’t be underestimated, setting up a fascinating competitive landscape.
Asia
Amazon falls behind Walmart in battle for India’s online shoppers
Source: Financial Times
Walmart’s 2018 investment in #Indian retailer Flipkart has paid off, with Flipkart’s market share at 48% compared to Amazon’s 26%. While Amazon’s Prime service appeals to urban customers, it lags behind in categories like mobile phones and fashion. As the Indian e-commerce market expands, the competition between the two continues to intensify.
Our Take
In the Indian e-commerce market, understanding local preferences and needs is critical. Walmart’s Flipkart has excelled by catering to smaller towns with affordable goods and fashion. Amazon should potentially revisit its strategy, considering more localized offerings and prioritizing categories where it currently lags.
Aeon plans to develop 20 more shopping centres in Vietnam
Source: Insider Retail
Japanese retail giant AEON_イオン株式会社 plans to expand its presence in #Vietnam by opening 20 new shopping centres, following an investment of over $1.18 billion in the country. The announcement was made by Aeon Group’s executive chairman, Akio Yoshida, during a meeting with Vietnam’s Prime Minister. The expansion will focus on supermarkets and entertainment centres. Aeon also intends to import Vietnamese products for distribution across 20,000 trade centres in Japan, further strengthening bilateral trade relations.
Our Take
Aeon’s significant investments in Vietnam’s retail sector reflect the country’s robust economic growth and immense potential. Vietnam’s GDP growth rate has consistently outperformed regional peers, reaching 5.8% in 2023, the second highest in #ASEAN. Its retail market is projected to expand at a CAGR of 10.4% between 2021 and 2026.?
Aeon’s success in Vietnam’s retail sector can be attributed to its strategy of building and leasing its own properties to other businesses. This approach allows them to control their operations and maximize their revenue. In contrast, the recent bankruptcy filing of Malaysian retailer Parkson in Vietnam highlights some foreign retailers’ challenges in navigating the local market. Aeon’s prudent business model and understanding of the Vietnamese market dynamics have positioned them for long-term success in this thriving economy.
Ponta initiates partnership with Taiwan’s OPEN POINT and Vietnam’s Utop
Source: PR Times
Loyalty Marketing, Inc. , the operator of the universal point service “Ponta,” has announced a partnership with Taiwan’s “OPEN POINT” and Vietnam’s “Utop,” enabling mutual use of their services. Starting May 31, 2023, visitors from Taiwan and Vietnam can accumulate and use Ponta points in Japan, enhancing the convenience for inbound tourists, particularly from the growing Asian market. This summer, the service will extend to outbound tourists from Japan visiting Taiwan and Vietnam. The initiative aims to provide a borderless standard point service to both inbound and outbound travelers, further expanding Ponta’s “convenient, economical, and fun” world.
Our Take
Ponta’s strategic partnership with OPEN POINT and Utop is a visionary move, solidifying its position among Japan’s top 3 loyalty programs. This cross-border collaboration enhances customer experience, fostering global loyalty.
We have an exciting innovation journey ahead for 2023! We look forward to keeping you updated on the latest retail news. Stay tuned!
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The Retail Direct Team