What: Pay equity laws and requirements remain firmly in place despite federal DEI policy changes, requiring retailers to maintain fair compensation practices regardless of broader diversity initiative modifications.

Why it is important: The distinction between unchanging pay equity laws and evolving DEI policies creates a critical compliance challenge for retailers, who must balance legal requirements with shifting political pressures while maintaining effective workplace practices.

As retailers navigate the changing landscape of diversity initiatives, pay equity emerges as a distinct challenge that transcends political shifts in DEI policies. The data reveals persistent disparities, with women earning 83 cents per dollar compared to men in uncontrolled scenarios, dropping to 73 cents for working mothers. While companies like M&S and Costco respond with record investments in retail pay, the industry grapples with broader structural challenges, particularly in accommodating caregiving responsibilities. The Equal Pay Act and Title VII protections remain unchanged, requiring continued vigilance in pay equity regardless of DEI policy modifications. This legal framework, combined with state-level legislation in over 40 states, creates a complex compliance landscape that retailers must navigate while addressing both direct pay discrimination and systemic opportunity gaps. The situation is further complicated by the potential legal risks of dismantling DEI programmes that previously helped identify and address pay disparities, suggesting the need for careful consideration in how retailers approach workplace equity reforms.

IADS Notes: The retail industry's approach to pay equity has evolved significantly since late 2024, as evidenced by contrasting strategies in addressing compensation and workplace equity. In March 2025, M&S's record £95 million investment in retail pay demonstrated one approach to addressing disparities, while Costco's January 2025 move to raise hourly wages above $30 showed another. The emergence of the FAIR framework has offered retailers a new path forward, focusing on systemic changes rather than individual interventions. Recent data from March 2025 showing only half of major retailers meeting the 40% women in leadership target, combined with a 51% industry turnover rate, highlights the ongoing challenges. These developments occur against the backdrop of women controlling 75% of global discretionary spending, emphasising the business imperative of addressing workplace equity beyond mere compliance.

Amid DEI uncertainty, what happens to pay equity?

What: Tokyo's successful transformation of traditional central business districts (CBDs) into knowledge campuses offers a blueprint for revitalising urban centres through integrated social and commercial spaces, challenging the narrative of downtown decline.

Why it is important: As physical retail demonstrates resilience with record-low vacancy rates , Tokyo's knowledge campus model offers crucial insights for retailers and developers seeking to create vibrant, profitable urban spaces that integrate work, shopping, and leisure.

Tokyo's innovative approach to CBD transformation provides a compelling model for urban revitalisation in the post-COVID era. By reimagining central business districts as knowledge campuses, the city has successfully created integrated environments that serve multiple functions beyond traditional office use. The model's success relies on five key factors: multifunctional density, superior transportation connectivity, elevated mixed-use approach, sectoral focus, and unique character development. This comprehensive strategy has enabled Tokyo to maintain economic efficiency while fostering the kind of spontaneous interactions that drive innovation in the knowledge economy. The approach demonstrates how cities can adapt to new working norms while enhancing their appeal to businesses and talent, creating sustainable urban ecosystems that benefit all stakeholders, from property developers to city residents.

IADS Notes: Recent developments validate Tokyo's integrated approach. While some US department stores retreat from downtown locations , successful mixed-use developments like British Land's Broadgate Central achieve 4.6% year-on-year retail sales growth. Madrid's transformation of office spaces into luxury residential units  demonstrates the viability of mixed land use, while Dubai's ICD Brookfield Place commands 41% above-market rental rates through lifestyle integration . These examples show how thoughtful urban planning can create sustainable value in city centres.

Reviving the city centre: from office buildings to knowledge campus

What: The Like button's evolution from a simple user feedback mechanism to a cornerstone of digital retail demonstrates how modest innovations can revolutionise entire industries through distributed, iterative development.

Why it is important: This origin story challenges conventional innovation narratives in retail, demonstrating how transformative changes often emerge through collaborative evolution rather than singular breakthrough moments, as evidenced by current trends in social commerce reaching USD 800 billion by 2028 .

The invention of the Like button represents a fascinating case study in how transformative innovations often emerge through unexpected collaboration rather than planned development. The discovery of an old sketch from 2005 by Bob Goodson, Yelp's first employee, sparked a three-year investigation into the button's origins, revealing a complex web of concurrent developments across multiple companies. Rather than being the product of a single visionary moment, the Like button evolved through various iterations at different organisations, including Hot or Not, TiVo, and early social platforms. Facebook, despite being commonly credited with its invention, initially resisted implementing the feature until 2009. This distributed development process, involving multiple contributors working independently yet influentially, challenges traditional narratives about innovation being a linear, managed process. The button's impact has been profound, helping fuel the growth of a $250 billion social media industry and fundamentally changing how digital advertising and marketing operate.

IADS Notes: Recent retail developments continue to build upon the Like button's legacy of social validation and customer engagement. As of March 2025, AI-driven personalisation has become crucial, with 71% of consumers expecting tailored interactions . The resurgence of social shopping reported by John Lewis in December 2024  demonstrates the enduring power of social validation in retail. This trend extends to luxury brands, which are now successfully balancing traditional retail with digital engagement , while innovative feedback systems like Capri Holdings' 75,000-person consumer panel  show how sophisticated customer engagement has become.

What the “Like” button can teach us about innovation

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: Retailers can achieve five times faster ERP implementations through GenAI, transforming traditional system deployment approaches while enhancing business outcomes.

Why it is important: As retailers face the urgent need to modernise their systems, with only 37% of SAP customers having licensed its cloud-ready platform by mid-2024, GenAI offers a timely solution to accelerate digital transformation.

Generative AI is emerging as a transformative force in ERP implementations, promising to reduce implementation effort by 20-40% while enabling organisations to build more advanced solutions five times faster than traditional methods. The technology's impact is particularly significant in resource-intensive processes such as testing, training, and documentation, where it can substantially reduce manual effort. This efficiency gain allows organisations to redirect resources to critical early stages of implementation, including discovery and preparation phases, which are crucial for successful business outcomes. The timing is particularly relevant as major vendors like SAP plan to reduce support for legacy systems by 2027, pushing retailers toward cloud-ready platforms. GenAI's ability to automate key tasks, enhance decision-making, and redistribute effort across the transformation lifecycle addresses traditional implementation challenges while delivering better value creation opportunities. The technology's impact extends beyond immediate implementation benefits, serving as a catalyst for broader organizational change in how large-scale technology projects are designed and executed.

IADS Notes: Recent retail industry developments strongly validate the article's findings. In March 2025, research showed that while all retailers plan to implement AI initiatives, only 32% effectively keep pace with customer behaviour. However, early AI adopters are achieving significant results, with 87% experiencing revenue increases of 6% or more. The transformation potential is particularly evident in cases like Etam's strategic partnership in January 2025, which prioritised data foundation development before expanding AI applications, and El Palacio de Hierro's successful digital transformation, which demonstrated how technological innovation could be effectively combined with operational excellence.

How Gen AI can revolutionise ERP transformations

What: Nordstrom partners with SkinSpirit to introduce medical-grade aesthetic services in its retail spaces, marking a strategic evolution in luxury beauty retail.

Why it is important: The integration of medical-grade services into traditional retail spaces represents a strategic response to market pressures, as department stores seek new ways to differentiate themselves and drive customer engagement.

Nordstrom's groundbreaking partnership with SkinSpirit marks a significant transformation in luxury beauty retail, introducing premium medical aesthetic services directly into the department store environment. The collaboration, launching at Nordstrom's New York City flagship on 57th and Broadway, brings sophisticated treatments including BOTOX® Cosmetic, dermal fillers, and DiamondGlow® facials into the traditional retail setting. This strategic move responds to evolving consumer preferences that increasingly blend cosmetics with medical aesthetics and wellness services. SkinSpirit's approach emphasizes education and expertise, with 32 national trainers ensuring service excellence. The measured expansion strategy, beginning with the NYC location and planned extension to Chicago's Oakbrook Center, demonstrates a careful approach to implementation. This partnership represents more than a simple retail collaboration; it signals a fundamental shift in luxury retail strategy, where experience and specialized services become essential differentiators in the competitive beauty market.

IADS Notes: This transformation aligns with broader industry developments observed over the past year. In January 2025, Nordstrom's move toward privatisation provided the flexibility to pursue such innovative partnerships. The strategy builds upon the company's successful beauty initiatives, including the revamp of beauty counters with interactive elements in November 2024 and the launch of specialized beauty kiosks targeting younger demographics. The appointment of Catherine Bloom as Director of Luxury Styling in February 2025 further demonstrates Nordstrom's commitment to elevating customer experience through expert services and partnerships.

Why Nordstrom is pivoting to beauty and skincare?

What: BCG's Global Asset Management Report 2025 outlines four key transformation areas: strategic reinvention, product evolution, market consolidation, and cost optimisation.

Why it is important: These strategic pillars offer a comprehensive framework for retailers navigating similar challenges in digital transformation, operational efficiency, and market consolidation.

BCG's Global Asset Management Report 2025 presents four crucial chapters that mirror retail industry challenges and opportunities. "From Recovery to Reinvention" establishes the foundation for transformative change, moving beyond simple recovery to fundamental business model reinvention. "Rethinking Products and Distribution" examines the evolution of offerings and delivery channels, particularly relevant as retailers navigate omnichannel transformation. "Staying Relevant in a Consolidating Market" provides a strategic framework for evaluating partnerships and acquisitions, while "Becoming Radically Leaner" outlines three distinct operational models and efficiency levers. Together, these chapters demonstrate how industries can successfully transform their operations while maintaining customer relationships, optimising costs, and building technological capabilities - all critical challenges facing today's retail sector.

IADS Notes: The four chapters of BCG's report align with major retail industry developments since late 2024. The industry's move from recovery to reinvention parallels retail's digital transformation journey, while the focus on product and distribution evolution reflects the ongoing shift toward omnichannel experiences. The emphasis on market consolidation and cost optimisation resonates with retail's current focus on operational efficiency and strategic partnerships, particularly as both industries navigate technological disruption and changing consumer preferences.

Global Asset Management 2025 - From recovery to reinvention, Press Release

BCG report: Global Asset Management 2025 

From Recovery to Reinvention

Rethinking Products and Distribution

Staying Relevant in a Consolidating Market

Becoming Radically Leaner

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: Research validates AR's effectiveness in retail strategy by examining Egyptian Gen Z consumers' responses to digital-physical shopping integration.

Why it is important: The findings offer a blueprint for AR implementation in emerging markets, demonstrating how retailers can balance technology innovation with varying levels of consumer readiness to drive engagement and sales.

This comprehensive study examines the integration of augmented reality (AR) into retail mix strategy from Generation Z's perspective in Egypt. The research investigates how AR influences customer behavioural intentions through enhanced interaction and engagement, considering both perceived informativeness and playfulness. Through structural equation modelling analysis of 400 respondents, the study reveals that AR significantly impacts consumer responses by providing detailed product information and creating enjoyable shopping experiences. The findings demonstrate that individuals' comfort with technology plays a crucial role in shaping their behavioural intentions when interacting with AR applications. The research validates that AR enhances customer experience through improved product visualization and interaction, leading to more informed purchase decisions. Notably, the study shows that retailers must consider varying levels of technology readiness among consumers when implementing AR solutions, as this significantly affects adoption and engagement rates. These insights provide valuable guidance for retailers seeking to implement AR technology in markets where digital transformation meets traditional shopping cultures.

IADS Notes: The research findings on AR implementation in Egyptian retail reflect significant global developments in 2024-2025. The Mall Group's AR navigation system, which boosted customer engagement by 31% , validates the study's conclusions about AR's positive impact on consumer behavior. The focus on Generation Z proves timely, with this demographic wielding USD 360 billion in spending power and actively seeking tech-enabled experiences . The study's emphasis on informativeness and playfulness aligns with successful implementations like Dubai Mall's House of Hype , where immersive technology effectively combines information delivery with entertainment. These market developments, alongside Future Stores' adaptable AR implementations , confirm the research's insights into technology readiness and its influence on purchase intentions.

Adopting augmented reality into retailing mix strategy: Generation Z’s perspective in Egypt

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: 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: Shareholders at Goldman Sachs and Levi's decisively reject anti-DEI proposals, with less than 2% support, signaling strong corporate resistance to diversity rollbacks.

Why it is important: The overwhelming shareholder rejection demonstrates growing corporate resilience against anti-DEI pressure, contrasting with recent industry retreats and highlighting the evolving dynamics of social responsibility in retail.

The recent shareholder votes at Goldman Sachs and Levi Strauss Corp. mark a significant moment in corporate diversity initiatives, with both companies' investors overwhelmingly rejecting proposals to dismantle DEI practices. At Goldman Sachs, less than 2% of shares supported eliminating DEI goals from executive pay initiatives, whilst Levi's shareholders showed even stronger opposition, with less than 1% backing the proposal to end DEI programmes. These results emerge amid an increase in anti-ESG proposals this proxy season, though support for such measures remains notably low. The National Legal and Policy Center's proposal to Goldman Sachs and the National Center for Public Policy Research's submission to Levi's both argued that DEI policies could expose companies to litigation risks following recent Supreme Court decisions on race-conscious admissions. However, management at both companies strongly opposed these proposals, with Levi's emphasising the business case for diversity and its relevance to their global consumer base. Similar proposals have also failed at other major corporations, including Apple, Costco, John Deere, and Disney, suggesting a broader trend of corporate resistance to anti-DEI pressure.

IADS Notes: The overwhelming rejection of anti-DEI proposals at Goldman Sachs and Levi's in April 2025 represents a significant milestone in retail's evolving approach to diversity initiatives. This development follows a transformative period that began in November 2024, when Walmart pioneered a strategic pivot by maintaining inclusive practices while modifying terminology, leading to its strongest market performance since 1998. The industry subsequently witnessed divergent approaches: while Target faced a $10 billion valuation loss and 9% traffic decline in February 2025, luxury brands and specialty retailers like Ulta Beauty maintained firm DEI commitments. The emergence of the FAIR framework (Fairness, Access, Inclusion, Representation) in January 2025 offered retailers a new path forward, as evidenced by Victoria's Secret's rebranding to "inclusion and belonging." These varied responses highlight the complex balance retailers must strike between shareholder interests, consumer expectations, and social responsibility, particularly as BIPOC-owned brands and suppliers navigate changing market access dynamics.

More anti-DEI shareholder proposals fail

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: WONE's research reveals workplace stress costs organizations $5.4m annually, with 45% of employees experiencing frequent high stress levels.

Why it is important: The research demonstrates how stress management directly correlates with business performance, as companies prioritizing workplace wellbeing outperform market indices by 11%.

WONE's comprehensive research reveals the substantial impact of workplace stress on business operations, with 45% of employees experiencing frequent or constant stress. The financial implications are significant, costing organizations with over 1,000 employees an additional $5.4m annually through increased sick days and health claims. High-stress employees take eight times more sick days and are 11 times more likely to make mistakes, directly affecting operational efficiency. The study, which surveyed 1,005 participants across the UK and US, found that only 14% report low stress levels. WONE's response includes an AI-driven platform offering personalised stress management solutions, resulting in 74% of users reporting reduced stress levels and 90% noting increased productivity. The research challenges the traditional association between high performance and high stress, suggesting that preventive health measures can significantly improve both employee wellbeing and business outcomes.

IADS Notes: Recent retail industry developments strongly validate WONE's findings. In December 2024, luxury retail faced a critical workforce challenge with 51% of employees planning to leave their positions, citing stress and poor work-life balance as key factors. March 2025 data revealed retail as the second-highest sector for job losses, highlighting the urgent need for employee wellness initiatives.

Nearly half of today’s workforce are highly stressed. What can businesses do about it?

What: A strategic guide for CEOs facing unprecedented tariff challenges reveals how understanding historical patterns, implementation mechanisms, and response strategies can position companies to seize opportunities in an increasingly complex trade environment.

Why it is important: With Trump's "Liberation Day" tariffs ranging from 20% to 49% across key markets and consumer confidence at historic lows, businesses require comprehensive strategies that balance immediate tactical responses with long-term strategic planning.

The potential for increased tariffs dominates executive concerns heading into 2025, yet few leaders have developed robust plans to address second- and third-order effects. The article examines tariffs' evolution from ancient Rome to modern trade policies, providing context for current challenges. It details various US legislative tools for implementing tariffs, including Section 232 and Section 301, while exploring how major economies respond to trade measures. The guide emphasizes the importance of understanding tariffs' implications across industries, supply chains, and investments. Companies are advised to assess supply chain vulnerability, explore alternate sources, evaluate demand shifts, and validate strategy changes. This comprehensive approach enables leaders to navigate ambiguities while positioning their businesses to seize opportunities in a rapidly evolving trade landscape.

IADS Notes: McKinsey's guide to tariff navigation gains particular relevance amid unprecedented changes in global trade dynamics. As reported in April 2025, Trump's "Liberation Day" announcement introduced duties ranging from 20% to 49% across key markets, representing the most significant change to international trade since 1947. The impact is substantial, with BCG's March 2025 projections indicating USD 640 billion in additional US import costs, while consumer confidence records its sharpest decline since 2021. In response, retailers are developing sophisticated approaches aligned with McKinsey's recommendations: implementing AI-powered analytics for supply chain optimization, establishing geopolitical nerve centers, and introducing "Trump Majeure" clauses. However, the challenge remains significant, as February 2025 data shows only 10% of retailers have successfully scaled their AI applications for trade management. The elimination of the USD 800 de minimis rule in early 2025 has further complicated matters, affecting 4 million daily shipments and forcing companies to fundamentally rethink their supply chain strategies.

Tariffs on the move? A guide for CEOs for 2025 and beyond

What: North American packaging industry faces unprecedented transformation as five megatrends reshape material choices and supply chains.

Why it is important: The convergence of geopolitical pressures and sustainability demands is forcing packaging companies to fundamentally rethink their strategies, impacting the entire retail supply chain.

The North American packaging industry's transformation is fundamentally reshaping retail operations and consumer experiences. As retailers grapple with evolving consumer preferences and e-commerce growth, packaging choices have become critical to brand differentiation and customer satisfaction. Five key megatrends are driving this change: geopolitical developments affecting trade, increasing demand for convenience, e-commerce expansion, growing health consciousness, and sustainability requirements. Through extensive analysis of retail categories and packaging types, paper and flexible plastic emerge as leading substrates, offering retailers the optimal balance of cost, functionality, and environmental credentials. For retailers, this shift demands new approaches to inventory management, store operations, and customer experience design. The transformation extends beyond mere packaging choices to impact pricing strategies, supply chain resilience, and sustainability initiatives, requiring retailers to balance immediate cost pressures with long-term strategic positioning in an increasingly competitive market.

IADS Notes: Recent market data reveals the profound impact on retail operations. In March 2025, 62% of consumers expressed concern about rising retail prices due to trade policies , while BCG's January 2025 analysis projects USD 640 billion in additional import costs . Despite these challenges, retailers are maintaining their commitment to sustainability, with February 2025 data showing 47% of companies incorporating environmental features in new product launches . This aligns with shifting consumer expectations, as 80% of Americans now consider sustainability achievable within two decades , forcing retailers to balance cost management with environmental responsibility.

Flexible by design: the new playbook for packaging in North America

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: 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: Consumer sentiment analysis reveals growing anxiety about tariffs and economic uncertainty, particularly affecting lower-income household spending patterns.

Selected Why: The findings signal potential shifts in retail spending patterns that could reshape market strategies, as evidenced by recent NRF forecasts projecting slower 2025 retail growth of 2.7-3.7%.

The latest consumer sentiment analysis reveals a complex landscape where spending intentions remain positive despite emerging cracks in consumer confidence. The survey, conducted in February 2025, highlights significant regional variations, with Chinese and Indian consumers displaying marked optimism about their economic futures, while US consumers show sharp declines in confidence about their personal finances. European and Japanese consumers express pessimism about their five-year economic outlook, though their short-term financial sentiment varies by country. Despite mixed feelings about personal finances, consumers generally indicate continued spending intentions, partly driven by anticipated inflation and discretionary motivations. However, concerning trends emerge among lower-income households, who plan to reduce spending, marking a shift from previous patterns. The impact of tariffs adds another layer of complexity, with most consumers believing these will worsen inflation and harm their economies, though Chinese and Indian consumers see potential long-term benefits for their countries.

IADS Notes: Recent market analyses provide crucial context for these findings. As noted in March 2025, consumer confidence hit a three-year low, with inflation expectations surging to 6.0%. This aligns with January 2025 data showing global economic growth projections of 2.8%, reflecting the complex balance between continued spending and growing consumer caution. The divergence between emerging and developed markets is particularly significant, with April 2025 data showing strong growth in Indian retail expansion while European markets maintain a more cautious stance. These trends suggest a fundamental shift in global retail dynamics, requiring retailers to adapt their strategies to increasingly polarized consumer behaviors and regional variations.

Even before the tariffs, cracks were appearing in consumer confidence

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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)

What: Retail industry faces unprecedented complexity in tariff management, requiring strategic approaches from supply chain restructuring to M&A considerations, as outlined by tariff expert Jim Pratt.

Why it is important: With consumer confidence showing its sharpest decline since 2021 due to tariff concerns, retailers must master complex tariff management strategies to protect both their operations and customer relationships.

The retail industry is navigating a complex landscape of tariff regulations that demands sophisticated management strategies. These changes encompass three key areas: country-specific tariffs that can be swiftly implemented, commodity-specific tariffs with long-term implications, and reciprocal tariffs aimed at equalising international trade relationships. The elimination of traditional avoidance methods, such as the de minimis exemption, coupled with stricter enforcement policies, has forced retailers to develop more nuanced approaches to tariff management. Companies are exploring various mitigation strategies, from supply chain restructuring to product classification optimisation, while also considering the impact on mergers and acquisitions. This evolving situation requires retailers to maintain flexibility in their approach while seeking expert guidance to navigate the increasingly complex regulatory environment. The implications extend beyond immediate operational concerns to fundamental questions of business strategy and long-term viability.

IADS Notes: The retail industry's response to tariff pressures reflects a fundamental transformation in operational strategies. As reported in March 2025, major retailers like Costco and Walmart are actively negotiating with Chinese suppliers to mitigate impact, while BCG's January 2025 analysis projects staggering additional import costs of USD 640 billion. This has triggered innovative responses, exemplified by Shein's February 2025 initiative offering 30% higher procurement prices to relocate manufacturing to Vietnam. The impact extends beyond operations to corporate strategy, as evidenced by Hudson's Bay's recent challenges highlighting how tariff considerations are reshaping retail valuations and M&A decisions. Consumer sentiment has responded accordingly, with confidence indices showing their sharpest decline since 2021, forcing retailers to balance cost management with pricing strategies. These developments underscore the article's emphasis on the need for strategic flexibility and expert guidance in navigating the complex interplay between trade policies and retail operations.

Tariffs: What brands and retailers need to know and do

What: Research involving 3,268 consumers demonstrates that responsible AI features, particularly privacy and auditability, can increase product adoption rates by up to 63% while generating significant economic returns for retailers.

Why it is important: As retailers increasingly adopt AI technologies, with 87% of implementations leading to revenue growth, understanding consumer preferences for responsible features becomes crucial for successful market differentiation and adoption.

Recent research reveals a compelling business case for responsible AI (RAI) implementation in retail, challenging the notion that ethical considerations conflict with profitability. The study, involving 3,268 consumers, identified five key product design attributes: auditability, autonomy, personalisation, privacy, and understandability. Among these, privacy emerged as the most critical factor, with an average importance score of 31%, followed by auditability at 26%. Even when considering price and performance factors, privacy remained a crucial driver of consumer choice. The research demonstrates that incorporating responsible AI elements can dramatically increase adoption rates, from 2.4% to 63.19% for certain applications. However, despite 87% of managers acknowledging RAI's importance, only 15% feel well-prepared to implement these practices, highlighting a significant gap between awareness and execution. The findings suggest that companies must reconsider their resource allocation in product design, particularly when facing trade-offs between advanced capabilities and responsible implementation.

IADS Notes: The importance of responsible AI implementation is strongly supported by recent market developments. As noted in November 2024, transparency is crucial, with 75% of consumers expecting disclosure when interacting with AI-driven tools. This aligns with the growing demand for personalization, as 67% of customers seek personalised interactions with proper privacy safeguards. The business impact is significant, with companies reporting revenue increases of 6% or more, while meeting consumer expectations remains critical - 71% expect personalised interactions. The success of responsible implementation is evident in the 80% satisfaction rate among AI tool users, demonstrating the strong connection between responsible practices and business success.

How responsible AI protects the bottom line