TRD Issue 57 - Briefing: AI Everywhere, Lazada Job Cuts, Uniqlo Sues SHEIN

Hello Subscribers,

Last week was a pivotal one for AI in retail, as evidenced by the CES in Las Vegas and the NRF 2024, where AI was the buzzword. Amazon unveiled GenAI features like size recommendations and fit reviews, even standardizing clothing sizes with AI. Google Cloud announced AI chatbots and search functions for retailers, with Victoria's Secret adopting its infrastructure.

Walmart, not to be outdone, showcased GenAI search functions in its iOS app and automated replenishment systems, directly challenging Amazon's dominance beyond just retail.

In other news, Microsoft and OpenAI are democratizing AI with Copilot Pro and an App Store for GPT-based apps, respectively.

Meanwhile, Southeast Asia's e-commerce leader, Lazada, is undergoing significant restructuring with substantial layoffs, indicating Alibaba's accelerated plans for its IPO amidst internal and external challenges.

Finally, Uniqlo's first international lawsuit against SHEIN over the alleged copying of its Round Mini Shoulder Bag highlights the need for expansionary caution, especially concerning IP compliance.

Read more in this issue and stay tuned for more updates. Happy reading!

About 91APP

Founded in 2013, 91APP 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 Solutions and Marketing Solutions that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive 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

Microsoft Launches a Pro Plan for Copilot

Why it is important

• Microsoft has opened up access to tools previously only available to bigger organizations.

What happened

• Microsoft introduced Copilot Pro, a $20/month consumer AI plan, and broadened enterprise Copilot access.
• Users who have subscribed to the service can now enjoy the benefits of using Office applications such as Word, Excel, and PowerPoint. It also gives users access to GPT-4 and GPT-4 Turbo and AI image generator DALL-E.
• Previously, these features were only accessible to big businesses with a Microsoft 365 subscription.

Source: TechCrunch

OpenAI Launches a Store for Custom AI-Powered Chatbots

Why it is important

• OpenAI's store could allow a range of useful tools that likely would never have made it onto the ChatGPT creator's own roadmap.

What happened

• OpenAI introduced a GPT Store within the ChatGPT client, offering a range of AI models for custom chatbot applications.
• This store, accessible to premium plan subscribers, features tools for non-coders and options from partners and developers.

Source: TechCrunch

Amazon Rolls Out an AI Fit Tool to Reduce Returns

Why it is important

• Amazon's AI fit tool aims to standardize online clothing sizes using customer feedback and AI, addressing the high return rates in e-commerce due to sizing issues, potentially saving costs and improving customer experience.

What happened

• Amazon introduced an AI tool, Fit Insights, for online clothing size standardization.
• It analyzes customer feedback, return rates, and size charts to help brands improve sizing accuracy and reduce return rates due to size issues.

Source: Vogue

Walmart Debuts Generative AI Search and AI Replenishment Features at CES

Why it is important

• At CES, Walmart is presenting strong competition against rivals like Amazon.
• Additionally, the company is showcasing its readiness to benefit from GenAI to potential employees and Wall Street investors.

What happened

• Walmart unveiled AI-driven tools for product search and item replenishment at CES last week, drawing on AI models from Microsoft Azure and OpenAI as well as Walmart’s own custom models.
• These features aim to personalize shopping, improve product discovery, and automate frequent purchases, enhancing the overall retail experience.

Source: TechCrunch, Axios

Google Cloud Rolls Out New GenAI Products for Retailers

Why it is important

• Google Cloud's new GenAI products for retailers signal a major shift in retail technology, offering AI-driven solutions for personalized online shopping and efficient back-office operations.

What happened

• At the National Retail Federation's annual conference, Google Cloud unveiled GenAI products for retailers.
• These include AI-powered chatbots for personalized customer interactions and tools for automated product descriptions and image generation, aiming to enhance online retail experiences.
• It also introduced a new LLM capability in Vertex AI Search for retail, offering retailers Google-quality search, browsing, and recommendations on their digital storefronts.

Source: TechCrunch

D2C

Casper Tests a New Store Design as it Rethinks Its Retail Strategy

Why it is important

• Casper's new store design signifies a strategic shift in its retail approach, focusing on enhancing in-store experience and product innovation.
• This shift reflects a broader trend in retail towards creating more engaging and personalized shopping experiences.

What happened

• Casper, a direct-to-consumer mattress brand, unveiled a redesigned store in Costa Mesa, California, featuring a "Snooze Bar" and specialized areas for product testing.
• This new concept, aimed at enriching customer interaction and showcasing product innovation, marks a significant evolution in Casper's retail strategy.

Source: Modern Retail

Logistics

FedEx Announces Its Own Commerce Platform for Merchants

Why it is important

• FedEx is expanding into e-commerce solutions, challenging established players like Amazon in the e-commerce logistics and services sector.

What happened

• FedEx announced FDX, its new commerce platform, currently in private preview with a broader launch planned for fall 2024.
• It integrates services like demand generation, fulfillment, tracking, and returns, aiming to provide an end-to-end e-commerce solution for businesses.

Source: TechCrunch

Asia

What’s Lazada’s Future After Hefty Job Cuts? Insiders Tell Us

Why it is important

• Lazada's recent extensive job cuts, strategic changes, and leadership reshuffle reflect significant shifts in its business model.
• These changes are crucial for its survival and competitiveness in the increasingly challenging Southeast Asian e-commerce landscape.

What happened

• Lazada executed a major downsizing, cutting about 30% of its staff. Key moves include merging LazMall with Marketplace, leadership changes, and centralizing operations.
• This restructuring is in response to intense competition and challenges in maintaining market leadership in Southeast Asia.

Source: Tech in Asia

Coupang Eyes Breakthrough Despite Korea E-commerce’s Intense Rivalry

Why it is important

• Coupang is on the brink of its first profit since listing on the US stock market. However, market saturation, labor issues, and international competition are growing challenges.

What happened

• Coupang faces intense competition and market saturation challenges in South Korea's e-commerce sector.?
• Despite expecting its first-ever profit and maintaining customer loyalty through fast delivery services, it confronts issues like labor disputes and high commission rates.
• The company also competes with international players like AliExpress and expands into new areas like food delivery and online video services.

Source: Insider Retail

Uniqlo Sues SHEIN for Allegedly Copying Round Mini Shoulder Bag

Why it is important

• Uniqlo's lawsuit against SHEIN represents significant legal action in protecting IP and brand integrity in the competitive global fashion industry.

What happened

• Uniqlo sued the online retailer SHEIN for allegedly copying its popular "Round Mini Shoulder Bag," claiming infringement under unfair competition laws.
• This is Uniqlo's first domestic lawsuit against a company for selling imitations, highlighting the importance of brand and product integrity.

Source: NIKKEI