TRD Issue 51 - Briefing: OpenAI Saga Ends, Amazon Q, New Spending Record on Cyber Monday

Hello Subscribers, welcome to TRD Issue 51. 

Significant changes are underway in AI and e-commerce. OpenAI reinstates Sam Altman as CEO after the chaotic saga in the past few weeks, and it’s a crucial decision for the company's future.

Meanwhile, Amazon introduced its AI chatbot, Amazon Q, during the annual re:Invent 2023 in Las Vegas to boost business efficiency and innovation.

The holiday sales results are in, and US consumers have set a new record for Cyber Monday spending with $12.4 billion in online purchases, a 9.6% increase from last year. However, according to government data, retail behavior in October slightly declined as consumers waited for Thanksgiving deals amidst economic and inflation concerns.

Stay informed with these insights, and see you next week. Happy reading!

The Retail Direct

About 91APP

Founded in 2013, 91APP is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solutions and Marketing Solutions that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.

For more information about 91APP (TWO: 6741), visit www.91app.com.

AI

Sam Altman’s Officially Back at OpenAI, and the Board Gains a Microsoft Observer

Why it is important

• While the non-profit company and its leadership have been provided with a resolution to their immediate uncertainties, other unanswered questions remain.

What happened

• Sam Altman is reinstated as OpenAI's CEO after a board dispute.
• Ilya Sutskever, the co-founder, has left the board. He initially voted to oust Altman but later changed his stance and supported his return.
• The new board includes notable figures and a Microsoft observer (non-voting seat), reflecting OpenAI's governance and strategy changes.

Source: TechCrunch

Amazon Q Generative AI Chatbot For Businesses Launches In Preview

Why it is important

• Despite lagging behind Microsoft's recent AI move, AWS is still a robust cloud infrastructure leader. With the launch of Q and investment in Anthropic, we can expect more AI applications with easier integration from AWS soon.

What happened

• Amazon Q allows developers and non-technical business users to ask questions and connect to various business software tools, including Adobe, Google, Microsoft, Salesforce, and Slack, improving efficiency and creativity.
• Q also offers enterprise-level AI assistance for business intelligence, contact centers, and supply chain management.
• The tool will start at $20 per person per month, but many of its capabilities are available now through a preview.

Source: Search Engine Journal

Mastercard Launches Shopping Muse, an AI-Powered Shopping Assistant

Why it is important

• Mastercard's Shopping Muse, an AI-powered tool, offers personalized shopping experiences, showcasing the growing influence of AI in enhancing online retail and consumer engagement.

What happened

• Mastercard launched Shopping Muse, a generative AI tool for personalized product recommendations using colloquial language understanding and image recognition.
• The tool is powered by Dynamic Yield, a personalization company that Mastercard acquired from McDonald’s in 2022, and the transaction was valued at more than $300 million.

Source: TechCrunch

e-Commerce

Cyber Monday Spending Hits All-Time Record

Why it is important

• According to government data, retail behavior in October pulled back slightly as consumers waited for Thanksgiving deals amidst economic and inflation concerns.

What happened

• US consumers set a new Cyber Monday spending record with $12.4 billion in online purchases, up 9.6% from last year, indicating strong consumer engagement and the growing trend of online shopping.
• According to the National Retail Federation, sales and promotions drove 55% of Thanksgiving weekend shopping on average, up from 52% last year.

Source: Axios

How Buy With Prime Assist Will Extend Amazon’s Commercial Power

Why it is important

• The new service enhances brands and sellers by offering 24/7 customer service to Prime members, signifying a strategic shift towards integrating Amazon's services into broader commerce infrastructure.
• Buy with Prime and Buy with Prime Assist are sticky for both consumers and retailers, providing confidence and benefits that are hard to give up.

What happened

• In September, Amazon launched Buy with Prime Assist, expanding its e-commerce capabilities by providing real-time customer service for Prime members on third-party websites.

Source: Forbes

Payments

BNPL Platforms are Booming This Holiday Season

Why it is important

• BNPL's growth is amidst concerns over consumers' financial health, which means the sector must handle rising demand and stricter regulations.

What happened

• BNPL platforms experienced a 17% year-over-year increase in holiday spending, with record usage on Cyber Monday, indicating a growing consumer preference for alternative financing options in retail purchases.

Source: Modern Retail

Hong Kong and Thailand Unveil Cross-Border QR Code Payment System

Why it is important

• The cross-border QR code payment system between Hong Kong’s FPS (轉數快) and Thailand’s PromptPay signifies a significant step in digitalizing and simplifying international retail transactions.

What happened

• Hong Kong and Thailand introduced the FPS x PromptPay Link, a collaborative cross-border QR code payment system, enhancing retail payment efficiency and security for travelers in both regions.

Source: PYMNTS

Marketing

As Affiliate Marketing Gets Competitive, A New Brand Playbook Emerges

Why it is important

• The evolution of affiliate marketing, now a key component in brands' strategies, reflects the changing dynamics of e-commerce and digital marketing, emphasizing the need for innovative and relationship-focused approaches.

What happened

• Affiliate marketing has become crucial for e-commerce brands, increasing competition for placements in high-profile guides and publications and necessitating more sophisticated, relationship-driven strategies for success.

Source: Modern Retail

D2C

DTC Briefing: 3 Takeaways From This Year’s Black Friday Results

Why it is important

• This year's Black Friday showed a strategic shift in DTC brands' approach, focusing on efficiency, customer retention, and controlled discounting, reflecting an adaptation to changing consumer behaviors and market dynamics.

What happened

• DTC brands on Shopify achieved record Black Friday sales, but the focus shifted from aggressive discounting to efficiency and customer retention, with brands starting sales earlier and optimizing advertising spend.

Source: Modern Retail

Asia

Nitori's Expansion into Vietnam: Plans for 70 Stores in 10 Years

Why it is important

• Nitori Holdings' expansion into Vietnam, with plans for 70 stores in 10 years.
• The expansion plan signifies a significant strategic move in Asia, reflecting the growing importance of the Vietnamese market for global retailers.

What happened

• Nitori Holdings plans to open a store in Ho Chi Minh City and expand to 70 stores across Vietnam in the next decade, emphasizing Asia's growing retail market.

Source: NIKKEI