What: A geopolitical nerve center approach combining cross-functional teams and data analytics can help retailers navigate expanding global tariffs and trade controls.

Why it is important: As retailers face USD 640 billion in projected additional import costs and plummeting consumer confidence, a coordinated nerve center approach becomes essential for survival and competitive advantage in the new trade landscape.

The retail industry faces unprecedented challenges as global tariffs expand at a pace unseen since the 1930s. A geopolitical nerve center emerges as a crucial tool for navigating this complexity, offering a structured approach through nine targeted initiatives. This central hub coordinates everything from immediate tariff operations to long-term supplier diversification strategies. The impact varies significantly across sectors, with automotive manufacturers dealing with complex international supply chains and beauty retailers facing disruption across 25,000 mass-market products. The nerve center's structure enables companies to address both urgent tactical needs and strategic planning across multiple time horizons. Through cross-functional teams and data-driven analytics, organisations can track tariff impacts, optimise inventory management, and restructure supply chains while maintaining operational efficiency. This comprehensive approach helps companies balance immediate challenges with long-term strategic goals, ensuring resilience in an increasingly uncertain trade environment. The nerve center's emphasis on coordinated decision-making and analytical capabilities provides a framework for adapting to rapid policy changes while maintaining competitive advantage.

IADS Notes: The implementation of a geopolitical nerve center, as outlined in the article, comes at a critical time when retail operations face unprecedented challenges. As reported in March 2025, retailers are rapidly adopting AI-powered analytics for supply chain optimisation, though only 10% have successfully scaled these applications. This technological transformation aligns with the article's emphasis on data-driven decision-making, particularly as companies grapple with BCG's January 2025 projection of USD 640 billion in additional import costs. The industry's response has been multifaceted: March 2025 saw the introduction of "Trump Majeure" clauses, while major retailers like Costco and Walmart began pressuring Chinese suppliers for concessions in April 2025. Consumer confidence recorded its sharpest decline since August 2021, with 62% expressing concern about rising retail prices. This anxiety has accelerated operational changes, from Macy's store optimisation plans to Shein's February 2025 initiative offering 30% higher procurement prices to relocate manufacturing to Vietnam. The elimination of the USD 800 de minimis rule in March 2025, affecting 4 million daily shipments, further emphasises the article's call for comprehensive supply chain restructuring and strategic planning.

Navigating tariffs with a geopolitical nerve center

What: China's companies are fundamentally restructuring their operations in response to US trade tensions, driving a selective decoupling of the world's largest economies.

Why it is important: The strategic responses of Chinese companies are reshaping global retail supply chains and accelerating technological innovation, creating new patterns of international trade that will persist beyond current tensions.

Chinese enterprises are implementing comprehensive reforms in response to US trade pressures, marking a significant shift in global retail dynamics. The transformation encompasses strategic overseas investments, supply chain restructuring, and accelerated technological innovation. Companies are actively diversifying their export markets beyond North America, with only 30% of Chinese exports now destined for G-7 economies, down from 48% in 2000. This shift is particularly evident in labour-intensive sectors like apparel and basic electronics, while capital-intensive industries remain more anchored due to complex supply chain dependencies. The adaptation extends to technological development, with firms like Cambricon and Loongson reporting less than 1% of revenues from overseas markets, indicating successful domestic market cultivation. Chinese companies continue to promote international collaboration, particularly in emerging markets, while simultaneously developing indigenous technologies. This balanced approach of maintaining selective international engagement while reducing dependence on Western markets and technology represents a nuanced form of economic decoupling that is likely to persist beyond current trade tensions.

IADS Notes: Recent developments underscore the scale of this transformation. In March 2025, BCG projected USD 640 billion in additional US import costs, prompting major retailers like Costco and Walmart to pressure Chinese suppliers for concessions. February 2025 saw Shein offering 30% higher procurement prices to relocate manufacturing to Vietnam, while the elimination of the USD 800 de minimis rule affected 4 million daily shipments. Consumer confidence recorded its sharpest decline since August 2021, with 84% of Canadians reconsidering their purchasing strategies. The retail industry's response has been multifaceted, from accelerated AI adoption for supply chain optimisation to the implementation of "Trump Majeure" clauses, signalling a fundamental transformation in global retail operations.

How China’s companies are responding to the US trade war

What: A multipolar world order is taking shape as Global South nations leverage their economic strength and strategic positioning to craft independent paths in global trade and retail development.

Why it is important: This shift represents a fundamental restructuring of global retail dynamics, with the Global South driving future growth through expanding middle classes, infrastructure development, and strategic trade relationships.

The rise of the Global South marks a pivotal shift in global economic dynamics, with these nations' GDP growth rate of 4.2% annually significantly outpacing advanced economies' 1.9%. This transformation is reshaping retail landscapes, as exemplified by India's projected ascent to become the world's third-largest economy by 2029, with a retail market reaching USD 2 trillion by 2033. The Global South's approach combines aggressive infrastructure development, demonstrated by a 55% surge in retail leasing across India's major cities, with pragmatic trade policies that maintain relationships across geopolitical divides. Their multi-aligned stance enables partnerships aligned with strategic priorities while avoiding major power conflicts. This balanced strategy, supported by growing consumer markets and workforce potential, establishes the Global South as an influential force in shaping future retail dynamics.

IADS Notes: Recent market data validates the Global South's rising influence in global retail. India's transformation is evidenced by projections showing affluent households increasing to 30% by 2035 , while Southeast Asian economies demonstrate remarkable resilience, with Vietnam achieving 7.55% growth . This momentum is supported by significant infrastructure investments, as seen in Central Retail's USD 665 million commitment to digital integration . The region's strategic importance is further highlighted by Korean retail giants' expansion plans and China's efforts to streamline cross-border e-commerce .

In a multipolar world, the global south finds its moment

What: Global trade enters unprecedented territory as new US tariffs target 60 countries, forcing retailers to adapt their entire operational model.

Why it is important: The comprehensive nature of these tariffs, affecting 44% of US imports, represents the most significant change to international trade since 1947, requiring immediate strategic adaptation from retailers.

The implementation of Trump's new tariff structure marks a pivotal moment in global trade, introducing a 10% baseline tariff alongside country-specific duties reaching up to 50%. This comprehensive policy affects the vast majority of the global economy, with strategic exemptions for pharmaceuticals, semiconductors, and certain resources. The impact extends beyond simple cost increases, fundamentally altering how companies must approach their operations and strategic planning. While Canada and Mexico maintain certain exemptions, they remain subject to earlier levies, creating a complex web of trade relationships. The stacking effect of these tariffs on existing duties, potentially reaching 74% for some countries, forces companies to completely reimagine their supply chains and manufacturing networks. This transformation requires businesses to develop new expertise in navigating multiple sets of bilateral agreements while building greater resilience into their operational models.

IADS Notes: Recent developments in the retail sector underscore the transformative impact of these tariffs. As reported in March 2025, 62% of consumers express serious concern about rising retail prices, while major retailers like Costco and Walmart actively pressure suppliers for concessions. The elimination of the $800 de minimis rule in February 2025 has disrupted e-commerce operations, affecting 4 million daily shipments. This aligns with BCG's January 2025 projection of $640 billion in additional import costs, forcing retailers to fundamentally restructure their supply chains, as evidenced by Shein's offering 30% higher procurement prices to relocate manufacturing to Vietnam. The impact extends to consumer behaviour, with March 2025 data showing 84% of Canadians reconsidering their purchasing strategies, indicating a broader shift in global retail dynamics.

There’s nowhere to hide as tariffs reshape global trade

What: Department stores are reinventing themselves through community-driven experiences and cultural programming to regain relevance in modern retail.

Why it is important: The success of community-driven initiatives provides a blueprint for struggling department stores to remain relevant in an increasingly competitive retail landscape.

Department stores are undergoing a significant transformation as they face mounting challenges from changing consumer behaviour and digital competition. The traditional model of focusing solely on product curation and sales is giving way to a more nuanced approach that emphasises community engagement and experiential retail. Le Bon Marché exemplifies this evolution through its innovative programming, including art installations, workshops, and cultural events that transform the space into a dynamic destination beyond shopping. The store's success in attracting both locals and tourists demonstrates how carefully curated experiences, combined with thoughtful brand selection, can create a compelling retail environment. This approach represents a broader shift in the industry, where department stores are leveraging their unique architectural advantages and brand relationships to create immersive, community-focused spaces that blend shopping, culture, and social interaction.

IADS Notes: Recent developments across the department store sector validate this community-driven approach. In March 2025, Printemps NYC emphasized customer dwell time over immediate sales, while February 2025 saw Galeries Lafayette launch innovative community initiatives like "Le Book Club des Champs." Le Bon Marché's success has inspired others, with January 2025 witnessing La Samaritaine's introduction of family-oriented spaces and Printemps Haussmann showcasing cultural exhibitions. This trend extends beyond Paris, as evidenced by the EUR 400 million investment plan announced by Galeries Lafayette in February 2025, focusing on creating engaging retail environments that prioritise experience over traditional sales metrics.

Why community might be the missing piece to revive department stores

What: Retailers are being urged to reimagine loyalty programmes beyond traditional point-collection systems, taking cues from airlines' successful frequent flyer programs that have evolved into billion-dollar revenue streams through strategic partnerships and psychological engagement.

Why it is important: With over 35% of loyalty program members planning to cancel memberships, retailers must urgently evolve their approach to match the sophisticated engagement strategies of airline programs, which have proven successful in generating both revenue and customer retention.

The retail industry is witnessing a fundamental shift in customer loyalty strategies, with traditional loyalty cards no longer sufficient to drive engagement. Airlines' frequent flyer programs have demonstrated remarkable success, as evidenced by Qantas' loyalty programs generating USD 1 billion in half-yearly results. This success stems from their ability to cultivate both effective commitment through exclusivity and calculative commitment through fear of losing benefits. While airlines benefit from offering empty seats at minimal cost, retailers must focus on providing cost-effective value to encourage deeper engagement. Industry expert Philip Shelper emphasises that successful programs must be simple to understand, offer valuable rewards, build emotional connections, and differentiate from competitors. Myer's success story, with over 7 million accessible members driving the majority of its USD 1.8 billion revenue, demonstrates the potential of well-executed loyalty strategies. The future of retail loyalty lies in sophisticated data analytics, personalised communications, and strategic partnerships that create incremental value for both customers and retailers.

IADS Notes: The evolution of retail loyalty programs is undergoing a significant transformation, as evidenced by recent industry developments. In December 2024, research revealed that traditional points-based systems were losing effectiveness, with over 35% of members planning to cancel memberships, validating the article's emphasis on reimagining customer loyalty. This trend has driven innovative responses, as seen in February 2025 when Selfridges launched its 'Unlocked' program with digital "keys" that reward both purchases and experiences, demonstrating the shift from transactional to experiential engagement. The success potential is clear: May 2024 data showed Ulta Beauty driving 96% of sales through its loyalty programme, while October 2024 saw retailers like Sephora leveraging sophisticated data analytics for personalised marketing. These developments align with September 2024's Harvard Business Review analysis, which emphasised the need for accurate customer profiling and strategic partnerships - elements that echo the article's insights about airlines' successful combination of effective and calculative commitment strategies.

Frequent flyer initiatives saved airlines – can loyalty programmes save retail?

What: Effective GenAI implementation requires structured oversight design rather than simple human review, as automation bias and implementation challenges threaten retail success.

Why it is important: With only 10% of retailers successfully scaling AI applications despite high adoption rates, structured oversight becomes crucial for bridging the growing divide between AI leaders and laggards in the retail sector.

The implementation of generative AI in retail requires a fundamental shift from simple human review to carefully designed oversight systems. The article identifies critical challenges, including automation bias, where initial success breeds dangerous complacency, and the lack of context in AI outputs that forces reviewers to make decisions based on incomplete information. These issues are compounded by missing counterevidence, disincentive structures that prioritize efficiency over thorough evaluation, and escalation roadblocks that discourage error reporting. The solution lies in treating oversight as an integral part of system design rather than an afterthought, incorporating structured rubrics for evaluation, evidence-based decision-making processes, and risk-differentiated approaches. This comprehensive framework enables retailers to maintain vigilance while realizing AI's efficiency gains, ensuring that human oversight becomes a meaningful safeguard rather than a superficial checkbox.

IADS Notes: The article's emphasis on designed oversight rather than casual delegation resonates strongly with retail industry experiences. While January data shows 87% of AI-implementing companies achieving revenue increases, only 10% successfully scale their applications, highlighting the gap between adoption and effective implementation. This challenge is particularly critical as three-quarters of consumers expect transparency in AI interactions. Success stories demonstrate the potential: structured oversight helped achieve 30% faster development and 60% higher user satisfaction rates, while proper implementation enabled Klarna to reduce customer resolution times from 11 to 2 minutes. However, with 76% of executives acknowledging cybersecurity concerns and nearly half of retailers struggling with data integration, the article's framework for risk-differentiated oversight becomes essential for bridging the growing divide between AI leaders and laggards.

You won’t get GenAI right If you get human oversight wrong

What: AI adoption in retail requires a balanced approach between technology implementation and employee engagement, with CEO leadership as the critical success factor.

Why it is important: As AI reshapes retail operations, companies that successfully combine technological innovation with employee engagement are seeing significant competitive advantages, including 15-30% improvements in operational efficiency.

The retail industry stands at a critical juncture in AI adoption, where success depends more on cultural transformation than technological implementation. While one in three companies are investing at least $25 million in AI, deep pockets alone don't guarantee success. The key to effective AI adoption lies in CEO leadership and employee engagement, with successful companies focusing on cocreation and practical applications rather than technology for its own sake. Research shows that companies combining organizational learning with AI implementation are 1.6 to 2.2 times more likely to manage uncertainties effectively. However, significant challenges remain, with only 10% of retailers successfully scaling their AI applications despite widespread investment. The transformation requires a delicate balance between automation and human expertise, with successful companies achieving productivity gains while maintaining employee engagement and job satisfaction.

IADS Notes: Recent retail developments strongly validate the importance of strategic AI implementation. In March 2025, data revealed that retailers achieving successful AI adoption saw annual productivity growth of 4.5%, significantly outperforming the industry average. This was exemplified by Intime Department Store's 15% boost in counter sales through AI implementation in July 2024. However, challenges persist, as highlighted by January 2025 findings showing that while 70% of retailers plan to implement AI, only 10% successfully scale their applications. IKEA's comprehensive AI literacy program, launched in April 2024, demonstrates the importance of employee training and engagement, having successfully trained 3,000 workers and 500 leaders across the company.

Why aren’t more professional services firms using new GenAI tools?

What: AI co-pilots are transforming retail management by automating administrative tasks and enhancing decision-making capabilities, while preserving essential human leadership elements.

Why it is important: With retailers achieving 4.5% annual productivity growth through AI adoption, understanding how to effectively implement AI as a management tool is crucial for maintaining competitive advantage.

The integration of AI co-pilots in retail management represents a significant evolution in leadership effectiveness. By automating routine tasks such as meeting summaries, report generation, and performance analysis, AI tools free up 10-15 hours weekly for strategic activities. The technology's role extends beyond simple automation, with tools like Fireflies AI handling meeting documentation, ClickUp AI managing project summaries, and specialised applications like Risely AI helping managers prepare for difficult conversations. This technological partnership enables managers to focus on growing their business and leading their teams more effectively. However, success requires developing new skills, including prompt engineering, data interpretation, and ethical decision-making. The approach emphasises maintaining human judgment in critical areas while leveraging AI's analytical capabilities, creating a balanced partnership that enhances rather than replaces leadership capabilities. This transformation represents a fundamental shift in how retail managers operate, combining technological efficiency with human insight.

IADS Notes: Recent retail developments powerfully validate the article's approach to AI integration in management. The article's projection of 10-15 hours weekly time savings aligns with March data showing retailers achieving 4.5% annual productivity growth through AI adoption. The concept of AI as a co-pilot rather than replacement is supported by P&G's March study, which demonstrates how AI-enabled teams achieve superior results while maintaining human oversight. The article's emphasis on strategic implementation gains credibility from January findings showing that while 87% of retailers benefit from AI, only 10% successfully scale their applications. IKEA's comprehensive AI literacy programme exemplifies the article's call for developing new skills like prompt engineering and ethical decision-making. Meanwhile, Gartner's prediction about significant reductions in middle management by 2029 underscores the urgency of the article's guidance on managing organisational change and measuring AI's true ROI.

How managers can use AI as a Co-pilot to become more effective?

What: Fashion resale sector demonstrates unprecedented growth at 14% annually, with potential tariffs on imported clothing expected to drive 59% of American consumers toward secondhand shopping.

Why it is important: This shift represents a fundamental transformation in retail dynamics, as economic pressures and sustainability concerns converge to make resale a mainstream alternative to traditional retail, supported by data showing 84% of consumers embracing secondhand shopping.

The U.S. fashion resale market has emerged as a powerful force in the retail landscape, contributing $50 billion to the circular economy and growing five times faster than the broader retail clothing sector. This momentum is expected to accelerate as potential Trump tariffs threaten to increase prices across the primary market, with industry analysts projecting significant price hikes on everyday items. The American Apparel and Footwear Association estimates that 97% of U.S. clothing and shoes will be affected by tariff duties, potentially driving more consumers toward secondhand options. The impact is already visible in the market, with companies like ThredUp and The RealReal reporting strong fourth-quarter growth. The trend is particularly significant in the luxury sector, where 27% of online luxury spending now goes to secondhand fashion, challenging traditional luxury brands' revenues and forcing industry-wide adaptation to new consumer preferences.

IADS Notes: The fashion resale market's trajectory has gained additional significance amid recent trade tensions and economic pressures. As of March 2025, the global secondhand fashion market reached $100 billion, aligning with the article's reported 14% growth in the US sector. This growth becomes particularly relevant as BCG projects $640 billion in additional US import costs from tariffs, potentially accelerating the shift toward secondhand shopping. Consumer behavior already reflects this trend, with December 2024 data showing 84% of shoppers planning secondhand purchases, surpassing the article's projection of 59% considering resale options. The industry's response has been decisive, as evidenced by The RealReal's 444% stock surge and major retailers like Harvey Nichols and Bloomingdale's expanding their resale partnerships. However, the sector faces complex challenges, with April 2025 data indicating up to 75% of fashion businesses risk non-compliance with sustainability requirements while navigating tariff pressures, underscoring the article's emphasis on the need for strategic adaptation.

Fashion resale market to get a lift from Trump’s tariffs

What: Bangladesh's textile industry, producing 577,000 metric tons of factory waste annually, faces urgent pressure to expand recycling capabilities as global fashion shifts toward mandatory sustainability standards.

Why it is important: This challenge represents a critical turning point for the world's second-largest apparel producer, as failure to develop adequate recycling infrastructure could jeopardise its competitive position in an increasingly sustainability-focused global market.

Bangladesh's textile industry faces a significant sustainability challenge as it grapples with managing vast amounts of factory waste amid increasing global pressure for environmental responsibility. The country's current recycling infrastructure, largely informal and inefficient, processes only a small percentage of its 577,000 metric tons of annual textile waste, with most being exported or left to pollute the environment. The informal sector, employing predominantly women workers in challenging conditions, handles waste sorting and bundling with limited oversight and poor working conditions. While some companies like Recycle Raw and Broadway Regenerated Fiber are attempting to modernise operations and improve labor standards, the industry requires substantial investment in advanced technologies and infrastructure. The potential economic benefit is significant, with estimates suggesting local recycling could save Bangladesh approximately $700 million annually in imports, highlighting the urgent need for transformation in this crucial sector.

IADS Notes: Bangladesh's textile waste challenges reflect broader industry-wide transformations in sustainability and infrastructure development. As of February 2025, the EU's comprehensive regulations requiring retailers to fund textile waste management have created new urgency for manufacturing hubs to upgrade their recycling capabilities. This pressure intensified after January 2025's Kantamanto Market fire, which disrupted the processing of 15 million clothing items weekly, exposing vulnerabilities in global waste management systems. The industry is responding with significant investments, as evidenced by Technip Energies' $2 billion commitment to textile recycling and Circ's strategic partnership with Birla Group securing substantial recycled material commitments. However, the economic stakes are high, with BCG projecting $640 billion in additional US import costs, while up to 75% of fashion businesses risk non-compliance with sustainability requirements. These developments underscore the article's emphasis on Bangladesh's need to expand its recycling capacity to remain competitive in an increasingly sustainability-focused global market.

Bangladesh’s textile waste problem threatens fashion industry’s green future

What: The retail media industry faces a significant growth slowdown, prompting a shift towards AI-driven solutions despite technical and privacy challenges.

Why it is important: This transformation represents a critical moment for the retail industry as it balances the need for innovation with practical implementation challenges, potentially reshaping how retail media networks operate and compete.

The retail media landscape is experiencing a notable deceleration, with growth rates dropping from 25.1% in 2024 to a projected 15.6% in 2025. This slowdown comes as the industry grapples with fragmentation across more than 70 networks in North America alone, creating significant operational challenges for brands and retailers. Artificial intelligence has emerged as a promising solution to these growing pains, offering enhanced capabilities in campaign optimization, measurement, and customer targeting. However, the implementation of AI solutions faces substantial hurdles, including technical infrastructure limitations, data privacy concerns, and the need to transform traditional operational processes. Despite these challenges, the industry is showing resilience through innovation, with retailers moving away from conventional Excel-based planning towards sophisticated AI-powered systems that promise to revolutionize how retail media campaigns are managed and measured.

IADS Notes: Recent developments validate this transformation trajectory. In February 2025, retail media spending was projected to increase by USD 10 billion, despite measurement challenges across multiple networks. March 2025 data revealed that 71% of consumers now expect personalized interactions, driving retailers towards AI-driven solutions. The industry's response has been significant, with major players like Majid Al Futtaim launching AI-powered Precision Media across 450 stores in November 2024. The operational impact is evident, as demonstrated by Intime Department Store's 15% boost in counter sales through AI integration in July 2024. This evolution is further supported by April 2025's introduction of Real-Time Bidding as a potential solution to fragmentation challenges, suggesting a path forward for the industry.

How AI can solve retail media’s growing pains

What: China's micro-drama market, valued at US$6.85 billion, is transforming retail marketing through narrative-driven content that seamlessly integrates commerce with entertainment on popular platforms like Douyin and WeChat.

Why it is important: This transformation of retail marketing through micro-dramas demonstrates how digital content is reshaping consumer engagement in China, offering brands a powerful tool to connect with audiences in a market where 16% of retail space is now dedicated to entertainment and experiential commerce.

The micro-drama phenomenon has emerged as a powerful force in China's digital content economy, with the market reaching US$6.85 billion and projected to exceed US$14.12 billion within five years. These ultra-short episodic series, distributed through platforms like Douyin, WeChat Channels, and Bilibili, combine high-stakes narratives with strategic product integration, creating a new paradigm for retail marketing. Major brands like KFC and McDonald's have evolved beyond traditional product placement to produce their own series, with KFC's 'Reincarnation: Don't mess with the foodie empress' garnering over 100 million views across multiple platforms. The format's success lies in its ability to match modern consumption habits, offering bite-sized entertainment that can be consumed during brief breaks while enabling real-time promotional integration. This trend is spreading across Asia, as demonstrated by Singapore's successful adaptation through Yuu Rewards Club's partnership with Mediacorp, which drove significant increases in both sign-ups and feature engagement. The phenomenon represents a sophisticated evolution in branded content, where entertainment and commerce converge to create compelling, culturally relevant experiences.

IADS Notes: The rise of micro-dramas in China's retail marketing landscape aligns with broader digital transformation trends observed throughout 2024-2025. As noted in January 2024, China's projected retail sales of ¥44.2 trillion included a significant shift towards digital engagement, providing fertile ground for innovative content formats. This evolution gained momentum in April 2024, when research showed Chinese consumers increasingly prioritising entertainment in retail spaces, creating natural synergies for micro-drama integration. The format's success parallels the broader transformation of retail engagement, evidenced by the December 2024 milestone of 230 million users adopting retail AI applications. Major brands' shift towards integrated digital-physical experiences, observed in February 2025, demonstrates how micro-dramas represent part of a larger trend in experiential retail. This is further validated by the January 2025 data showing a 180% growth in "slow life" related content, suggesting that Chinese consumers are increasingly receptive to narrative-driven retail experiences that blend entertainment with commerce.

How China’s micro-drama boom is rewriting the rules of retail marketing

What: The end of the de minimis trade exemption forces a complete restructuring of retail supply chains, with new duties of up to 90% on packages under USD 800 from China.

Why it is important: The policy change exposes the fragility of ultra-fast fashion's business model built on tariff-free logistics, compelling a wholesale transformation of retail supply chains and potentially levelling the playing field for traditional retailers.

The Trump administration's decision to eliminate the de minimis exemption marks a pivotal shift in global retail dynamics. Starting May 2, packages valued under USD 800 from China and Hong Kong will face a 90% duty or a USD 75 minimum charge, with the minimum set to increase to USD 150 by June 1. This change directly impacts the business model that helped Chinese companies like Shein and Temu dominate the market, where they previously avoided costly import duties by shipping individual parcels directly to consumers. The impact extends beyond immediate operational concerns, forcing companies to adapt their entire supply chain strategies. Temu's response includes expanding US infrastructure and onboarding local sellers, while industry experts anticipate longer shipping times and higher prices for American consumers. The change has broader implications for environmental accountability, with resale platforms viewing it as a crucial step toward addressing the textile waste crisis. This regulatory shift exposes how much of the modern retail economy relied on legal grey zones and regulatory blind spots.

IADS Notes: The elimination of de minimis rules represents a seismic shift in retail economics. As noted in February 2025, the change affects approximately 4 million daily shipments, fundamentally disrupting e-commerce operations. March 2025 data revealed staggering consumer anxiety, with confidence showing its sharpest decline since August 2021. The retail industry's response has been swift, with major players like Amazon launching direct-from-China shipping services in July 2024 to maintain competitiveness. This transformation has prompted companies like Shein to offer 30% higher procurement prices in February 2025 to relocate manufacturing to Vietnam, demonstrating the far-reaching implications for global supply chains.

How the end of de minimis is forcing a global reset in retail supply chains

What: Former EEOC Commissioner advocates for strategic DEI program refinement rather than elimination, emphasising legal compliance while maintaining effective inclusion practices.

Why it is important: As retailers navigate new federal guidelines and political pressures, the distinction between legal compliance and branding strategy becomes crucial for maintaining inclusive workplaces while mitigating risks.

Former EEOC Commissioner Chai Feldblum's guidance on DEI implementation arrives at a critical juncture for retailers, highlighting the difference between problematic practices and legally sound approaches to workplace inclusion. Her advocacy for a "refresh" rather than a "reboot" aligns with successful industry adaptations, particularly in distinguishing between quotas that create legal risks and aspirational goals based on qualified labor force analysis. The guidance specifically addresses key retail industry concerns, from affinity group management to pronoun policies, while emphasising the importance of maintaining anti-discrimination training. This practical approach to DEI implementation provides retailers with a framework for preserving inclusive practices while adapting to new political and legal pressures, suggesting that the focus should be on effective implementation rather than terminology. The emphasis on legal compliance while maintaining core inclusion objectives offers retailers a path forward in an increasingly complex regulatory environment.

IADS Notes: The retail industry's approach to DEI has undergone significant transformation since late 2024, as evidenced by contrasting strategies in maintaining inclusive practices while adapting terminology. In November 2024, Walmart pioneered this approach by removing explicit DEI language while preserving core practices, achieving strong market performance. By January 2025, the emergence of the FAIR framework (Fairness, Access, Inclusion, Representation) offered retailers a structured approach to balancing legal compliance with inclusion goals. This evolution continued through February 2025, when Victoria's Secret rebranded to "inclusion and belonging," while Amazon adopted "Inclusive eXperiences and Technology." These developments, culminating in April 2025's overwhelming shareholder rejection of anti-DEI proposals at Goldman Sachs and Levi's, demonstrate how retailers are successfully navigating the complex balance between legal compliance and effective inclusion practices.

Companies should seek a DEI ‘refresh,’ not a reboot, says former top EEOC official

What: Employee disengagement evolves into 'The Great Detachment' as traditional engagement strategies fail to address workforce's need for meaningful action and trust.

Why it is important: With 51% of retail employees planning to leave their positions and only 30% believing in survey effectiveness, the industry risks losing both talent and the 23% profitability advantage of engaged workforces.

The emergence of "The Great Detachment" signals a critical evolution in workplace dynamics, where employee stress from disruption has transformed into a silent productivity drain. Traditional engagement strategies, particularly surveys, are proving inadequate as employees avoid providing honest feedback due to retaliation concerns or skepticism about meaningful change. Organizations face a crucial challenge in rebuilding trust through action rather than passive listening. The article emphasizes that successful engagement requires a holistic approach combining transparency, clear action plans, and continuous progress monitoring. This shift from surface-level assessment to proactive listening becomes essential as companies aim to prevent further workforce detachment and maintain competitive advantage.

IADS Notes: December findings show 51% of luxury retail employees planning to leave their positions, while 40% cite lack of empowerment as a key issue. This disengagement crisis is particularly significant as 68% of VIP clients follow their advisors to new employers. Successful interventions like Neiman Marcus's "Magic Makers" program achieved a 34-point increase in engagement while generating $1 billion in remote selling. The challenge is particularly acute with Gen Z, as February data shows 50% reject traditional management roles, viewing them as high-stress and low-reward. The article's emphasis on meaningful action resonates with current statistics showing only 30% of employees believe companies act on survey results.

Federal shake-ups, corporate wake-ups: how to rebuild employee trust in 2025

What: Despite initial market turmoil from Trump's tariff policies, Hong Kong emerges as a potential beneficiary of the US-China trade war, leveraging its position as the only viable platform for Chinese companies seeking international expansion.

Why it is important: While Trump's tariffs have disrupted traditional trade patterns, Hong Kong's resilience and adaptation highlight the emergence of new business models and opportunities in the shifting landscape of global commerce.

As Trump's tariff policies trigger market turbulence, Hong Kong's business elite maintains an unexpected calm amid the chaos. The Hang Seng index's 13% drop following "Liberation Day" masks a potential silver lining for the territory. After years of losing ground to rival commercial centres, the realignment of global business presents opportunities for Hong Kong to reclaim its position. The city's unique advantage lies in providing Chinese companies access to international markets and expertise while offering foreign investors a gateway to Chinese growth opportunities. This comes at a crucial time when mainland firms seek overseas expansion but face increasing hostility in traditional markets like New York. Recent developments, including major share offerings by companies like BYD and Xiaomi, suggest Hong Kong's capital markets are already benefiting from this shift, though challenges remain in an increasingly complex global trade environment.

IADS Notes: The Economist's analysis of Hong Kong's potential resurgence amid trade tensions gains credibility when viewed alongside recent market developments. As reported in April 2025, while retail sales dropped 13% despite increased visitor numbers, this apparent contradiction masks a fundamental transformation in the city's role. The implementation of multiple-entry visas for Shenzhen residents in March 2025 has made over 10 million people eligible for frequent visits, though spending patterns have shifted dramatically from traditional shopping to experience-based tourism. This evolution is evidenced by major luxury brands' strategic responses, with Louis Vuitton and Chanel expanding their presence in August 2024 through experiential retail formats. Despite competition from Hainan island's duty-free hub, Hong Kong's prime retail rents are projected to grow by 3% annually over the next five years, suggesting confidence in its long-term prospects. The city's transformation extends beyond retail, as February 2025 data shows it emerging as the preferred platform for Chinese companies seeking international expansion, particularly as Trump's "Liberation Day" tariffs of up to 50% reshape global trade dynamics.

The trade war may reverse Hong Kong’s commercial decline

What: EU crafts targeted response to US steel and aluminum tariffs through a calculated €22 billion retaliation plan focused on specific American exports.

Why it is important: The carefully structured retaliation plan reflects a sophisticated understanding of global trade dynamics, targeting specific sectors while maintaining pathways for diplomatic resolution.

The European Union has unveiled a strategic response to US tariff increases, demonstrating a sophisticated approach to trade diplomacy. The plan involves implementing a 25% tariff on selected US exports worth €22 billion, structured in three distinct phases. The initial phase, targeting approximately €3.9 billion in goods including fruit juice, rice, textiles, and motorcycles, reflects careful product selection. Following the announcement, both parties agreed to a 90-day negotiation period, with the EU suspending its retaliatory measures. The selection criteria emphasise four key factors: import value, alternative sourcing availability, US production locations, and potential impact of US counter-measures. This measured approach extends beyond traditional trade tools, incorporating the possibility of using the anticoercion instrument to address services and intellectual property rights, particularly significant given the US services trade surplus with the EU.

IADS Notes: The EU's tactical response emerges against a backdrop of significant global trade transformations. In early March 2025, BCG's analysis projected $640 billion in additional US import costs from expanded tariffs, contextualising the EU's measured €22 billion response. This strategic approach aligns with broader market shifts seen in mid-February 2025, when the elimination of the $800 de minimis rule demonstrated how targeted regulatory changes could effectively reshape trade dynamics. The EU's careful product selection strategy gains particular relevance considering BCG's mid-January 2025 forecasts of dramatic shifts in global trade patterns through 2033, suggesting the need for adaptable, long-term policies. Consumer sentiment data from late March 2025, showing 62% of consumers concerned about rising retail prices, validates the EU's focus on products with alternative sourcing options to minimise consumer impact.

Behind the EU’s tactical response to US tariffs

What: AI streamlines recruitment tasks from job descriptions to interview notes, but cannot replace human judgment in assessing cultural fit and soft skills.

Why it is important: The retail sector's high turnover rates and need for rapid hiring make AI integration in recruitment particularly relevant, especially as studies show AI-enabled teams reduce work time by 16% while maintaining performance quality.

The integration of AI in recruitment represents a significant shift in how companies approach hiring, particularly in retail. AI tools are currently being deployed across various recruitment stages, from writing job descriptions to taking interview notes, with estimated time savings of 10-15 minutes per task. Tools like ChatGPT assist in creating job description templates and developing sourcing strategies, while platforms like Juicebox AI help find qualified candidates across multiple data sources. However, the technology has clear limitations, especially in understanding nuanced requirements and evaluating candidates' attitudes and cultural fit. AI often relies heavily on keyword matching, potentially missing exceptional candidates who don't fit standard patterns. The human element remains irreplaceable in assessing soft skills and identifying candidates whose mindset aligns with company needs. Success in AI recruitment requires a strategic approach that identifies specific tasks suitable for automation while preserving human interaction where it adds the most value.

IADS Notes: Recent retail developments strongly support the article's balanced view of AI in recruitment. IKEA's AI literacy programme last spring trained 3,000 workers, showing how retailers are adapting to this technology. Studies in March revealed AI-enabled teams reduced work time by 16% while matching traditional team performance. However, only 10% of retailers successfully scaled their AI applications this winter, validating the article's caution about AI limitations. February data showing 75% reduction in task processing time aligns with the text's emphasis on AI's efficiency for routine work, while maintaining human judgment for critical decisions.

Where can AI help (or not) in recruitment?

What: Trump's new 10% minimum tariff on imports triggers widespread price increases across retail categories, with economists projecting up to 1.5% inflation and disproportionate impact on lower-income households.

Why it is important: This policy shift represents the largest coordinated tariff action in recent history, with BCG projecting $640 billion in additional import costs, forcing retailers to fundamentally restructure their operations while consumers face unprecedented price pressures.

President Trump's introduction of a 10% minimum tariff on imported goods marks a significant shift in US trade policy, with far-reaching implications for retailers and consumers alike. Economic experts, including JP Morgan's Michael Feroli, project price increases of 1 to 1.5% this year, while analysis from The Budget Lab reveals a disproportionate impact on lower-income households, who could see a 2.3% drop in disposable income compared to 0.9% for higher-earning families. The comprehensive nature of these tariffs affects multiple retail categories, from fresh produce to apparel and alcoholic beverages. Major retailers face critical decisions about absorbing costs or passing them to consumers, while international brands, particularly in sectors like spirits and wine, anticipate significant sales impacts and potential market restructuring. The situation is compelling retailers to enhance their value propositions and private label offerings as consumers increasingly prioritise affordability in their purchasing decisions.

IADS Notes: Recent market data validates and expands upon the article's projections about tariff impacts. In March 2025, BCG's analysis revealed staggering additional import costs of $640 billion, while consumer confidence recorded its sharpest decline since August 2021. The retail industry's response has been swift and multifaceted, with major retailers like Costco and Walmart actively pressuring Chinese suppliers for price concessions. The elimination of the $800 de minimis rule has affected 4 million daily shipments, fundamentally disrupting e-commerce operations. Consumer behavior is already shifting dramatically, with 84% of Canadians actively reconsidering their purchasing strategies and increased trading down to private labels. The impact varies significantly across categories, from a 2.9% increase in fresh produce costs to widespread disruption in the beauty industry affecting 25,000 mass-market products. Retailers are responding through sophisticated strategies, including AI-powered analytics for supply chain optimisation and the implementation of "Trump Majeure" clauses, signaling a fundamental transformation in global retail operations.

Retail experts discuss how tariffs will impact US consumer behaviour

What: Trump's sweeping tariffs, including a 54% rate on Chinese imports, are forcing a dramatic reallocation of retail media spending, threatening to reshape the USD 62 billion industry as brands cut advertising budgets to offset margin pressures.

Why it is important: The reallocation of retail media spending due to tariffs could accelerate the industry's evolution toward more efficient advertising models, as retailers and brands seek to maintain visibility while adapting to new economic pressures.

The implementation of Trump's extensive tariffs is catalysing significant changes in retail media spending patterns, particularly affecting Amazon's advertising ecosystem. Brands face difficult choices between absorbing tariff costs to maintain pricing and customer loyalty or raising prices and potentially losing sales momentum. The impact varies significantly by product category, with toys and games facing the highest tariff rates and import percentages. This has prompted many brands to cut advertising spend as a first response to margin compression, potentially dampening Amazon's consistent growth in ad investment. Beyond simple budget reductions, companies are fundamentally rethinking their retail media strategies, prioritising efficiency over growth and conducting detailed contribution margin analyses to determine which products can sustain advertising support. Interestingly, some industry experts advocate maintaining advertising investment while competitors retreat, suggesting opportunities for market share gains through improved conversion optimization rather than reduced spending. The situation is particularly complex for Chinese sellers, who maintain significant advantages despite the tariff environment and are pursuing more aggressive brand-building strategies.

IADS Notes: The impact of Trump's tariffs on retail media spending emerges at a critical juncture in the industry's evolution. As reported in March 2025, BCG's projection of USD 640 billion in additional import costs coincides with retailers' need to optimise their advertising efficiency. This pressure intensified in February 2025 when the elimination of the USD 800 de minimis rule disrupted e-commerce operations, forcing brands to reconsider their digital marketing strategies. However, the retail media sector shows resilience, with January 2025 seeing Amazon's strategic move to offer its advertising technology to other retailers, suggesting a path toward standardisation. This development builds on July 2024 research showing retail media networks could double retailers' margins from 1.7% to 4.3%. With March 2024 projections targeting USD 100 billion in US retail media spending by 2027, the industry faces a pivotal moment where tariff pressures could either accelerate digital transformation or force significant reallocation of marketing resources.

Tariff shock may drive major shift in retail media spending

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Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of two presentations made by Nurçin Koçoğlu, CMO, and Efsun Janset Yilmaz, E-commerce Deputy General Manager, to explain the extent to which Boyner's transformation process has challenged the company's structures and successfully reimagined every touchpoint with its customers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.

When times change, retailers need to do the same… but how? Boyner has a method.

Boyner has always been proud of its customer-centricity, and the group has often been the most innovative in Türkiye. In addition to being the first department store in the country, it introduced the first instalment credit card in 1998 and was also the first retailer to offer customer assistance in 2003. Given that the COVID-19 pandemic significantly changed consumer behaviour, especially among younger generations, the company recognised the need to recalibrate its foundation.

For this reason, Boyner embarked on a comprehensive study four years ago to decode their customers' emotional expectations. The findings revealed a desire for an immersive, boundaryless shopping experience that transcends traditional channel barriers. Customers were not merely looking for products, which was Boyner’s value proposition then, but seeking inspiration and an emotional connection akin to a seductive shopping experience.

The teams found that they had to develop new, transformational ideas to adapt. Boyner as a group had to transform itself if it wanted to go from retailer (selling products) to a “multi-brand lifestyle company” as it aimed to become, offering experiences and emotional engagement1.

To achieve this vision, Boyner launched a multi-level project in 2020 involving 120 team members across marketing, logistics, and cultural sectors to redefine the brand’s identity and experiential offerings. In addition to redefining the brand platform, values, and vision, they were tasked with imagining the company's future and presenting new ideas on every aspect of the business (including logistics, IT, marketing…, etc.) to the leadership monthly.

This reinvention was facilitated by Boyner's proprietary customer data, either directly or through its dedicated subsidiary, Hopi. It encouraged a transformation based on crafting individual interactions with customers at every step of their journey, from the store to the products offered, the digital ecosystem and how everything should interact.

A multi-layered approach for a new generation of stores 

The most visible result of this internal effort was the new store concept, with the first iteration implemented in Cadde. It took a bold approach, mixing art (including collaboration with 10 artists to decorate the store), sustainability (how the store was designed, built, and decorated), and a focus on sport and lifestyle to target younger customers.

However, the results of the study went deeper and involved more structural changes in the mindsets than simply a new store concept:

• Make the stores more experiential, planning to renovate 40% by 2024. To enhance the experience, Boyner struck a deal with Costa Coffee, a chain not present in Türkiye, to have their first store at the entrance of the new Boyner store, enticing customers with the smell of coffee. At Istinye Park, the second iteration of the new concept, Costa Coffee is integrated into the middle of the store to allow customers to relax during their purchases. Today, eight Costa Coffees have been deployed, always linked with Boyner stores.
• The introduction of Boyner Dynamic, addressing a new type of clientele by focusing on the active category,
• Collaborations with artists at the product level (launch of capsule collections) and when designing the new concept, with an art collection on display in the store, digital artworks, and a giant 3D screen. Customers can also customise their purchases and gifts. Consequently, stores feel as much like a gallery as a retail environment, designed to enrich the customer journey by stimulating all senses.
• New approach to community management with new types of events, such as the Boyner Dynamic Fest, designed to encourage interaction and inclusivity.

These changes had rapid effects: NPS in renovated stores increased by 24% on average.

A method to gather communities around the Boyner points of sales

Boyner’s community-driven events, including the Dynamic Fest and partnerships with sports and art communities, position the company as a lifestyle hub to align with modern consumers’ emphasis on experiences. The Dynamic Fest, which attracted 8,000 attendees this year (up from 7,000 last year), exemplifies Boyner’s efforts to build communities around shared interests. These events are co-created with brands and marketplace partners and designed to welcome everyone: customers can come with their friends, pets, and kids… the event had a satisfaction rating of 4.8 over five this year.

Coming to the notion of community, the Dynamic Festival is also a significant success for its disinterested approach: participants value this event for the connection and value-sharing it allows. This year, Boyner mitigates the cost by asking its partners to participate, including the marketplace brands. It is also a great opportunity to coupon special offers.

From intuition to data-driven decision-making 

Boyner's advanced data infrastructure underpins these initiatives, supporting real-time insights on their 4.4m active customers (out of a 12.1m customer base), predictive modelling, and micro-segmentation. The data strategy enhances Boyner's CRM and leverages AI for tasks like sentiment analysis in customer interactions, enabling faster responses to emerging issues. This AI and data science integration has allowed Boyner to optimise customer journeys, with 100 unique paths designed to cater to specific needs based on 154 micro attributes. It also allows “inspiration walls” powered by data.

Along with improving the customer journey, AI is deeply integrated into the company’s operation at every level. For instance, AI has been used to design a capsule collection of 32 products for Fabrica, a private label, reducing the design-to-market time from 3 to 1 month. Customer complaints are analysed and summarised weekly and forwarded to the relevant stores and contacts for action.

As a result, the customer base in the younger age segments has increased by 162% in 3 years, and 24% identify as Boyner-only customers.

Next year, the next step is to implement an approach similar to what is being done in private banking in terms of personalisation and tailor-made interactions, for online and in-store contact points with a 360° approach. It will be implemented in the loyalty scheme during the first quarter and in the omnichannel programme in the second one. By empowering sales staff with enriched customer data, Boyner aims to offer bespoke recommendations and exclusive offers, aligning perfectly with its mission to transform shopping into a memorable and meaningful experience while creating new revenue streams through more profitable omnichannel customers.

But how to reinvent itself online too?

Today, the online and omnichannel current situation at Boyner is as follows:

• 18% of total customers are considered “omnichannel” (+24% increase), who spend +35% in new concept “experience” stores and spend +25% more.
• 30% of total sales are made online and while time spent by users increased by +35%, unpaid traffic has also consistently increased by 30% over the past two years.
• 40% of total traffic is unpaid, with the goal to reach 50% next year (growth has exceeded +30% over the past two years due to using CRM), as this is a key element of Boyner’s strategy to mitigate rising user acquisition costs.

This is not an accident, as this stems from the changes brought to the business in the past years. Collaborations with sustainable and inclusive projects create emotional engagement (this approach is deeply ingrained in the organisation, as teams include a person contributing to sustainable and DEI initiatives). Boyner’s commitment to social responsibility and sustainability further enhances its brand value, especially among younger consumers who are increasingly purpose-driven.

In addition, hyper-personalisation is now integrated throughout an omnichannel journey, offering customised experiences and fostering deep customer loyalty, especially among younger consumers—a demographic that has grown significantly in Boyner’s base in recent years.

Boyner doubles down by deploying new initiatives:

• A new delivery channel, Boyner Now, offering a very energetic and much-appreciated service and experience coming as a complement to Boyner.com, the e-commerce arm,
• The launch of a marketplace,
• The launch of an influencer platform, Inclub,
• The systematic use of AI in various innovative activities related to e-commerce (customisation, gaming, efficiency, mostly).

A glimpse at Boyner Now

Boyner Now, launched in June 2022, is a fashion quick-commerce platform which addresses common online shopping challenges by offering same- (90 minutes) or next-day delivery options, enhancing convenience, and providing real-time tracking for customer satisfaction. The 'try before you buy' feature allows customers to receive products (used by 60% of customers), try them at home, and only pay for what they keep, with flexible payment options available (including paying on the spot via credit card to the delivery person). Despite a minimum delivery promise of 90 minutes, Boyner Now achieves an average delivery time of one hour, covering 40 locations with 25 stores, and grows by 20% per month.

The platform's sales account for 6% of Boyner's total, a significant achievement given its limited geographical reach compared to Boyner.com's nationwide presence. Boyner Now is performing especially well during the gifting season (sales are tripling) thanks to its ease of use (customers pick a product that is almost immediately delivered to their loved ones). This is why Boyner has developed an AI-powered gift assistant that simplifies the gifting process for customers (Now Gifting).

Understanding the marketplace strategy

In July 2024, Boyner expanded its digital footprint by launching a marketplace operation, adding over 500 new brands and 40 new categories to Boyner.com within three months. This marketplace includes popular fashion and lifestyle brands such as Dyson, Seiko, Casio, and Apple, which are unavailable in Boyner's physical stores. The marketplace aims to contribute 15-20% of Boyner's turnover in the coming year, and expansion to international brands is underway, hopefully contributing EUR 30m next year, after a year of existence.

Nurturing influencers with Inclub

Boyner's influencer platform, Inclub, launched as an MVP, which supports 200 influencers (influence marketing contributes 15% of sales, and Inclub is here to amplify this strategy). Onboarding has been designed to be extremely simple, and the app offers detailed reporting in real-time, allowing sales to be tracked. The next iteration of this idea will be to develop a system that will enable micro-influencers to sell products directly from Boyner’s website in 2025.

Going all-in with AI

Boyner is reimagining its website and app to create a more fashion-forward, content-rich, and interactive platform, positioning itself as a social commerce channel thanks to AI technologies. It is all about personalisation, gamification, and efficiency strategies:

The company's AI-driven projects include Türkiye's first AI-designed collection, developed in collaboration with Design Studio. This initiative reduces the design-to-production timeline from two to three months to just one month, resulting in an 80% sell-through rate for the 8,000 products manufactured (basic, clean looks, everyday products).

Additionally, Boyner utilises AI for demand forecasting and planning, allowing real-time capacity planning, monitoring demand and tracking allocations. This cascades to the customer level, with personalised shopping recommendations, enhancing the overall customer experience at checkout: AI helps Boyner make additional recommendations to customers (either based on the most successful items or the items viewed by the customer during the purchase journey) to suggest new styles, similar products, or complete the look.

AI is also infused into the customer experience through gamification, ensuring that every time the customer returns online, the experience differs and brings surprises. A hundred different journeys have been created and based on micro-segmentation of customer profiles, as identified using AI.

The search function being crucial in e-commerce, Boyner partners with Google, Meta, and TikTok, focusing on predictive audience analysis and creative enhancements. The company emphasises the importance of dynamic media and micro-segmentation in its digital marketing efforts, aiming to move away from static displays and deliver tailored messages across platforms. There is also an ongoing collaboration with Microsoft to implement natural language search.

Product reviews and comments are essential for Boyner, as they can increase conversion rates by 15-20% compared to products without comments. An AI-powered comment summariser helps condense customer feedback, making it easier for shoppers to make informed decisions. This is also contributing to significantly reduced return rates.

In an era defined by rapid shifts in consumer behavior and rising expectations, Boyner stands out as a retailer that has successfully transformed itself into a “multi-brand lifestyle company.” By embracing customer-centricity as its guiding principle, leveraging data and AI to personalise experiences, and creating immersive, emotion-rich store environments, Boyner has managed to engage younger audiences and deepen loyalty across its customer base. Its multifaceted strategy—reimagining physical spaces, building vibrant communities, expanding through marketplace offerings, and integrating influencer platforms—demonstrates how a legacy retailer can adapt and thrive in the age of omnichannel commerce. As Boyner continues to experiment, refine, and scale its innovative initiatives, its journey offers valuable insights into how retail can evolve to meet the evolving needs and desires of today’s consumers.

Credits: IADS (Selvane Mohandas du Ménil)

1We started to report this new strategy in 2022: <https://www.iads.org/web/iads/5469-iads-exclusive-boyner-the-multi-brand-lifestyle-company.php>

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The fastest growing major economy in the worldi, India has an unconventional approach to spending. Generally a saving economy, consumer spending around festivals in India is significantly boosted across categories like clothing, jewellery, groceries and confectionery, and luxury goods. The festival season in India refers to an approximately 45-day period starting in September with pre-festival sales and ending with Diwali, occurring usually at the end of October or the start of November. With a population of over a billion people, the consumer expenditure over this festival period is a key economic driver for the country.

Parallelly, the Indian retail industry is a major component of its economy (see our report following the Retailers Association of India presentation during the FIRA meeting in 2023 here). It contributes over 10% of the GDP and accounts for around 8% of employmentii. Combining a substantial middle class with increasing purchasing power and a largely unexplored retail market, India is a new favourite for global retail giants. This is evident with behemoths like IKEA, Decathlon and Sephora to name a few. Luxury brands have also garnered traction in the Indian market with the propensity of consumption for luxury goods in India rising with the expansion of the middle class. The advent of the Unified Payments Interface (UPI) transformed the Indian retail industry. UPI is a real-time digital payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). According to a PwC India report, UPI accounted for over 78% of total retail digital payments in India and expects that it will contribute 90% of total retail digital payments by 2026iii.

Experiences driving economic value

In this analysis, a festival refers to a day or period of celebration, typically for religious reasons. While Indian festivals are primarily religious, they are culturally significant and may have linkages across religious and regional communities. While Indian festivals occur throughout the year, festival season refers to a broadly two-month period (September and October, with the possibility of including the start of November) that covers a nine-day festival called Navratri (literally ‘nine nights’, it is known as Dussehra or Pujo in some parts of the country) followed by the five days of Diwali. In some states, this season can start as early as mid-August. The periods before and in between these festivals are also interpreted as festival season due to continuity and commercial activities.

The economic value of festivals in India is underscored by providing an experience that brings together over a billion people. These festivals combine:

• Co-creation: individual or community participation in various events like dances, music and other cultural activities,
• Storytelling: a religious or cultural narrative that surrounds the emergence and importance of the festival,
• Connection: broader community engagement through aesthetics, gifting, and so on,
• Escapism: a break from everyday life and connection with something larger than self,
• Loyalty: faithfulness to the concept ensuring ideological continuity.

![HBR Pine and Gilmore (1999)

Pine and Gilmore’s theory on the experience economy explains this further. Based on the four posited realms of an experience, each Indian festival is a vast enough concept to offer options for all possible combinations envisioned. For example, escapism is achieved at the intersection of active participation and immersion during Navratri by participating in traditional dances in large communal spaces. Each festival also requires its specific kind of decoration developing the aesthetic sense of the experience. During Diwali, the festival of lights and prosperity, places are decorated with various kinds of lights including traditional oil lamps, ‘diya’.

The theory goes on to expand on how experiences can command premium pricing as the most differentiated category of economic goods. While this theory revolves around companies selling experiences, it is applicable to the case of these large Indian festivals. From street hawkers to multinational companies, every seller commoditises festivals to increase sales.

Impact and adaptations

Indian festivals generate enormous primary and secondary economic activity. A significant amount of consumer goods categories such as garments, FMCG, jewellery, liquor, automobile, traditional industries and more make a notable portion of their sales (between 30 and 40% of sales for automobiles and appliances to as high as 50% on groceries and confectionary) during festival season. The country also has a significant informal market which is highly engaged during this time. Despite inflation, consumer spending during the 2024 festive season has remained steady with industries escalating their sales expectations and targets.

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) traditionally observe ‘muhurat trading’ which refers to a 60-minute window to trade on Diwali as the festival signifies prosperity and good luck. Various studies have been conducted to research the economic impact of festivals on stock indices with differing results. The broad consensus is that the pre-festival effect is significant due to the large quantities of products bought and sold. One study on the BSE indices over a three-month period shows that they absorb the effects around Diwaliiv.

It is around Diwali that most households purchase high-value items such as appliances, jewellery, smartphones and automobiles given the combination of auspicious timing for consumers and robust promotional offers. Around 30-40% of sales of automobiles occur during the festive seasonv. The appliance industry has also seen around 30% growth driven by e-commerce sales and heightened demand for premiumisation. Jewellery, another paramount sector, saw domestic prices surge by over 15%. However, the All India Gem and Jewellery Domestic Council (GJC) still anticipated a 30% increase in gold jewellery retail sales during the 2024 festive season. Local and international brands found new ways to combine luxury and affordability to engage customers.

International e-commerce platforms and brands in general have adapted their strategies to take advantage of the Indian festive season. For example, Amazon India in 2024 strengthened its workforce with around 110,000 new hires in tier two and three regions to meet festive demandvii. All global brands present in India have promotions and events during this period. This is also a time for new launches and campaigns, collector’s editions of luxury products, and specialised gifting.

The Indian diaspora also provides a notable market for Diwali-related products and events. For example, in the UK, the 2021 census showed that 3.1% (or approximately 1.86 million people) identified as having Indian ethnicity. In recent years, brands have also held Diwali events outside India with high-level diaspora and Indian invitees; Condé Nast Traveller and Cartier hosted a Diwali Ball in London studded with VIPs and artistsviii.

Business case: Amazon India

Amazon India is one of the best examples of an e-commerce brand adapting to the Indian market and its specificities. Amazon India launched the Amazon Great Indian Festival(AGIF) in 2015 which is now its biggest sale event of the year in India. What started off as a five-day sale in October, has surpassed itself year-on-year with a duration of over a month (between September 27 and October 29) in 2024, its best performing year so far.

Amazon India saw a 70% increase in sellers crossing INR 10 million (EUR 112,923) compared to 2023. Over 42,000 sellers experienced their highest-ever single-day sales during this period. The usage of Amazon Pay ICICI Bank credit card surged 50% over last year. One-third of all customers embraced Amazon Pay UPI during AGIF 2024 - a staggering 20% yearly jump, with 80% users from tier two and three cities.

One of the first e-commerce movers to create a special event for festival sales, Amazon India set the standard for both international and Indian brands to adapt to consumers’ growing expectation of intense promotional offers during festivals. Following the Covid-19 pandemic, the company shifted its focus to targeting consumers outside of metropolitan cities, in tier two and three regions. In 2024, over 85% of customers of the AGIF were from non-metro cities. This is a key development as the expansion of India’s middle-class hinges on growth outside major cities. Though Amazon India has significant competitors in the Indian market, international companies can draw inspiration to reach the non-urban Indian consumer that constitutes the bulk of the middle class.

The potential for Galeries Lafayette’s India ventures

Galeries Lafayette announced in 2022 that it would open two locations in India: in New Delhi and Mumbai. It is clear that to establish their salience in the Indian market, the veteran French department store will have to cater to regional differences between the political and commercial capitals while matching up to the advanced e-commerce ecosystem of India.

Festival season will, without a doubt, be a key timeframe. Luxury brands are already taking note of the Indian festival season. From Jimmy Choo’s Diwali capsule collection to Christian Louboutin’s collection entitled ‘The Diwali Edit’, there are an increasing number of brands catering to Indian luxury shoppers. Giving its shoppers a unique experience during festival season could set Galeries Lafayette apart. With differing clientele in Mumbai and New Delhi, this may mean tailored events for each city while ensuring it doesn’t lose customers to FOMO (‘fear of missing out’).

Domestic travel

There is also a rise in domestic travel during festival season. The three main categories are individuals returning to their native places to celebrate with extended family and domestic travel for spiritual reasons as well as for leisure. Post the COVID-19 pandemic, there has been a rise in spiritual tourism. In 2024, Agoda, a travel booking platform, reported a notable 10% increase in searches for spiritual destinations during festival season. Across religions, Indians seem to have a higher propensity for pilgrimage and holy destinations.

About three-quarters of urban Indians planned travel during the festive September to December period with similar preferences regarding domestic and international across generations with more than 20% of respondents to the survey citing the festive atmosphere as a reason to travel during this periodix. Shorter vacations and long weekends along with festive promotional deals drive this tendency.

Conclusion

While the concept of festivals is not unique to India, they manifest in a distinctive manner at a colossal scale in the country. Moreover, having not just singular but multiple festivals to create a season subsequently enables economic actors to capitalise on the seasonal peak as a whole. It is tempting to compare the duration from Black Friday to Christmas in the West and Lunar New Year in China and though similar in certain economic aspects such as commercialisation, there is no discernible festival economy in those countries.

India’s expanding middle class, growing preference for premium products, and rising disposable income, combined with the traditional festival economy results in a notable and planned consumer spending spike annually. Innovative brands and platforms are tapping into this by fabricating similar experiences to boost sales. For example, India saw a record number of Black Friday deals which were used by many sellers to get rid of excess stock left over from the festival season.

Festivals in India are vast experiences that generate economic value within its social and cultural fabric. Brands must constantly innovate to fully capture the potential of this unusual period while understanding its cultural underpinnings. These events are also celebrated in different manners across different states, regions and communities. The diversity of India reflects the need to make sure that brand offerings and communication is in line and relevant to its target group. A one-size-fits-all approach has hardly ever provided fruitful results in the massive nation and during a time as important as the festival season, the margin for error can be very low. A final example to illustrate this - during Diwali, it is common in North India and among certain communities to gamble as this is considered an auspicious time. However, in the south and among other communities, gambling is considered an unholy activity during a spiritual time. A wide betting campaign in this case is likely to do more harm than good given its dispersed audience. Understanding micro contexts in India is key and even more so to maximise the opportunity presented by the Indian festival economy.

Credits: IADS (Anchita Ranka)

i] [IMF World Economic Outlook – July 2024

ii] [https://www.ibef.org/industry/retail-india

iii] [https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/publications/the-indian-payments-handbook-–-2023–2028.pdf

[iv] Chougule, A.R., & Khamborkar, A. (2014). A Study of Seasonality in Stock Market: With Special Reference to Diwali Effect.

[v]<https://www.grantthornton.in/en/insights/thought-leadership/festive-auto-survey-2024-report/>

[vi] <https://retail.economictimes.indiatimes.com/news/consumer-durables-and-information-technology/consumer-electronics/festive-sales-buoyed-by-online-sales-premiumisation-appliance-makers-expect-up-to-30-growth/114672455?action=profilecompletion&utmsource=Mailer&utmmedium=newsletter&utmcampaign=etretailnews2024-10-28&dt=2024-10-28&em=YXJhbmthQGlhZHMub3Jn>

[vii] <https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/amazon-india-strengthens-workforce-to-meet-festive-demand-in-tier-2-3-regions/114455833>

[viii]<https://www.cntraveller.com/article/conde-nast-traveller-diwali-party-2024>

[ix] <https://travel.economictimes.indiatimes.com/news/research-and-statistics/research/three-quarter-of-urban-indians-plan-festive-season-travel-domestic-destinations-leads/112884913>

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*Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of a presentation by Yalin Ozcan (who was CEO at the time) of Hopi, the loyalty business unit within the Boyner Grup. In ten years, Hopi evolved from a points-based loyalty programme to a retail media offering and a fintech, offering a wide array of services to customers and other retailers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.*

Introduction: from loyalty to FinTech

Hopi’s origins are deeply tied to Türkiye’s unique credit card and instalment culture. In 1998, Boyner (then known as Çarşı, the first name of the department store unit) took the notable step of issuing its own credit card without bank backing. Instalments became a loyalty incentive in response to local economic constraints, preceding the introduction of points-based rewards. This venture was eventually sold to HSBC, but it laid the groundwork for future programmes.

By the time Hopi launched in 2015, Boyner was, therefore, no stranger to credit-based loyalty and already had gift cards and other payment options, which were widely accepted and used by customers. Yet Hopi was conceptualised as a multi-merchant coalition from its inception, as the plan was to create a totally new type of business.

Hopi has evolved in less than ten years from a straightforward loyalty initiative into an expansive B2B2C platform delivering not only traditional loyalty services but also advanced marketing, advertising, and financial solutions.

A multi-merchant loyalty programme

In its initial incarnation as a loyalty programme, Hopi took root within Boyner department stores but was conceived from the outset to transcend that origin. The reason behind its expansion beyond Boyner’s walls lay in the realisation that instalment offerings alone had ceased to provide competitive differentiation on the Turkish market. Consequently, Hopi quickly broadened its scope to include over 300 merchant partners spanning various retail categories, from gas stations to supermarkets. Some of these partners are Boyner’s competitors, reflecting Hopi’s strategy of building a genuine coalition of retailers that enhances the programme’s national appeal.

Operating independently from Boyner, Hopi recorded 25 billion TRL (707 million USD) in GMV 2023, with the plan to double that figure in 2024. It handles some 80,000 transactions daily, supported by strict adherence to privacy regulations that mirror Europe’s GDPR standards. Such compliance ensures that while Hopi can extract insights from customer data, this information remains securely protected.

The technical integration with merchant cashier systems facilitates instant reward transactions at the point of sale, fostering a frictionless customer experience. With a membership base of 18.2 million in a nation of approximately 85 million people, Hopi’s loyalty programme coexists with individual retailers’ own initiatives, demonstrating its flexibility and inclusiveness.

Transition into MarTech capabilities towards an AdTech provider

As Hopi accumulated detailed customer knowledge, it seized the opportunity to enhance its value proposition from a simple loyalty platform to a marketing technology provider. Central to this shift was the introduction of Paracik, an in-app currency functioning as a versatile tool to incentivise spending and refine consumer engagement strategies creatively. Campaigns like the so-called “lollipop campaign” allowed brands to reward customers with Paracik upfront while retaining the option to reclaim unused balances. This approach has proven effective, driving turnover increases up to 2.3 times in certain segments, such as electronics retail.

Hopi also encouraged sharing Paracik balances among friends and relatives, recognising that socially connected rewards could motivate additional customers to join and spend more. In practice, for every Hopi user who shared Paracik, an average of 1.6 friends became active shoppers, boosting cart sizes, GMV, and overall engagement. By leveraging its data-driven insights, Hopi expanded its client base beyond traditional retailers to include brands eager for targeted and innovative marketing approaches.

Building on this MarTech progress, Hopi logically extended its capabilities into advertising technology. Its ability to segment consumer data and precisely target audiences made it an appealing partner for over 100 brands across diverse sectors like finance, cosmetics, and technology—some of whom are not even participants in the original loyalty programme. Hopi’s AdTech services deliver a competitive advantage over conventional loyalty-based promotions by offering advanced audience segmentation and selecting optimal advertising channels. This evolution from a consumer rewards platform to a fully-fledged marketing and advertising partner positioned Hopi to help businesses navigate a complex digital landscape and optimise their marketing investments.

Adding FinTech services to the range of activities

Hopi’s foray into FinTech represented a significant strategic pivot. While credit cards and loyalty points had long dominated the Turkish retail environment, roughly 20 million individuals remained without access to banking services, with a substantial proportion being women who manage their finances indirectly through family accounts. Recognising an opportunity to broaden its customer base and foster financial inclusion, Hopi introduced prepaid cards and mobile payment solutions. Rather than developing the economic infrastructure from scratch, Hopi partnered with Türkiye’s largest FinTech company, selling a stake in Hopi to this strategic ally to ensure a seamless integration of embedded finance services.

These new financial offerings include digital loans and credit services that can be approved quickly and easily within the Hopi app, removing traditional barriers to accessing credit. Within just ten months of launching these FinTech capabilities, Hopi received nearly one million finance applications, approving over half—significantly above the typical 30-35% approval rate seen among local banks. This surge translated into substantial extra transaction volumes surpassing 450 million TRL (13 million USD) in GMV and adding a lucrative, commission-based revenue stream to Hopi’s portfolio.

A journey leading to the creation of a comprehensive B2B2C ecosystem

Hopi's current incarnation epitomises a versatile B2B2C platform serving multiple stakeholders. Approximately 18.3 million users interact with the platform, generating around 83,000 daily transactions, with 300,000 daily users benefiting from a comprehensive shopping, loyalty, marketing, and financial ecosystem. On the business side, 550 partners rely on Hopi’s robust framework for building or enhancing their loyalty and customer relationship management programmes. Crucially, Hopi can provide a retailer with an entire loyalty or CRM solution from the ground up—something that would typically be resource-intensive and complex to develop independently.

Hopi’s underlying approach is enabled by its broad and varied data sources, surpassing what any retailer could accumulate individually. Complementing their existing loyalty programmes, partners gain additional insights and capabilities through Hopi, which has established itself as a leader in B2C loyalty services. The company’s ambition now is to secure its position as an indispensable partner for consumer-facing businesses, both domestically and, in time, internationally.

Hopi’s evolution encapsulates more than just the story of a loyalty programme growing into a multifaceted ecosystem—it highlights a strategic vision shaped by data, innovation, and market responsiveness. By continually adapting to consumer behaviors, regulatory frameworks, and the technological demands of modern commerce, Hopi has created an environment where retailers, brands, and customers all find tangible benefits. Its journey from credit-based instalment incentives to a fully integrated B2B2C platform—offering loyalty solutions, advanced marketing campaigns, targeted advertising, and accessible financial services—demonstrates its foresight and resilience in a rapidly shifting landscape. As Hopi now looks beyond national borders, its pioneering blend of capabilities stands as a model for how businesses can transcend traditional boundaries, ultimately becoming indispensable partners for consumer-facing enterprises worldwide.

Credits: IADS (Selvane Mohandas du Ménil)