TRD Issue 70 - Briefing: OpenAI's Tokyo Hub, Andrew Ng Joins Amazon, US Retail Growth, YouTube Shopping Updates

Hello Subscribers,

Welcome to the latest issue of TRD.

This week, we are covering news from a few weeks ago about the significant developments shaping the retail and e-commerce landscape. 

In AI, OpenAI is expanding its influence in Asia with a new office in Tokyo, while Amazon is emphasizing its AI ambitions by adding Andrew Ng to its board.

In the e-commerce sector, TikTok Shop's rapid growth in Vietnam and YouTube's latest shopping features are driving significant market shifts. Rakuten's app consolidation strategy also aims to dominate Japan's cashless payment market.

Dive in to explore these stories and more. 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

OpenAI Opens Tokyo Hub, Adds GPT-4 Model Optimized for Japanese

Why it is important

• OpenAI's expansion into Japan with a Tokyo office and a GPT-4 model optimized for the Japanese underscores the strategic importance of localizing AI technology for diverse markets.

What happened

• OpenAI opened its first Asian office in Tokyo and launched a GPT-4 model tailored for the Japanese language, aiming to enhance its business presence and cater to local enterprises and government services.

Source: TechCrunch

Amazon, Eyeing Up AI, Adds Andrew Ng to Its Board — Ex-MTV Exec McGrath to Step Down

Why it is important

• Amazon's strategic shift toward AI leadership and Andrew Ng's appointment signifies its focus on advancing AI technology to maintain a competitive edge.

What happened

• Andrew Ng joined Amazon's board, while Judy McGrath stepped down. This change highlights Amazon's pivot from entertainment to enhancing its AI capabilities amidst growing competition.

Source: TechCrunch

eBay Adds an AI-Powered ‘Shop the Look’ Feature to Its iOS App

Why it is important

• eBay's AI-driven "Shop the Look" feature enhances user experience by offering personalized fashion recommendations, potentially increasing sales and customer engagement.

What happened

• eBay launched a "Shop the Look" feature in its iOS app, using generative AI to suggest complementary fashion items based on users' shopping history. 
• This feature targets fashion enthusiasts and is initially available in the US and UK.

Source: TechCrunch

Best Buy to Use Generative AI for Virtual Assistant, Customer Support Experiences

Why it is important

• Best Buy's integration of generative AI aims to enhance customer service, streamline operations, and improve employee efficiency, highlighting a trend in retail towards AI-driven solutions.

What happened

• Best Buy partnered with Google Cloud and Accenture to introduce a generative AI-powered virtual assistant for customer support and in-store employee assistance, which is set to launch in late summer.

Source: Retail Dive

Retail

US Retail Sales Top Forecasts as Consumers Keep Fueling Growth

Why it is important

• The unexpected growth in US retail sales indicates resilient consumer demand, which can influence economic forecasts and monetary policy.

What happened

• US retail sales rose by 0.7% in March, with control-group sales for GDP calculations jumping 1.1%, suggesting strong consumer spending and potential implications for future Federal Reserve interest rate decisions.

Source: Bloomberg

Uniqlo Operator Upbeat on Europe, N.America After Q2 Profit Miss

Why it is important

• Fast Retailing’s expansion highlights strategic growth in Europe and North America amid shifting global consumer trends post-COVID.

What happened

• Uniqlo's parent company, Fast Retailing, missed Q2 profit forecasts but remains optimistic about record profits driven by strong performance in North America and Europe despite weaker sales in China and Japan.

Source: Reuters

Why More Tech in Stores Shouldn’t Mean Fewer Workers

Why it is important

• Increasing technology in stores, like AI and self-checkout, must balance efficiency gains with adequate staffing to ensure customer satisfaction and prevent theft.

What happened

• Retailers are using AI and technology to reduce staff, but experts warn this can lead to lower customer satisfaction and increased theft, suggesting a need for balanced staffing levels.

Source: Retail Dive

e-Commerce

4 YouTube Shopping Updates, Including Collections and Affiliate Hub

Why it is important

• YouTube's updates enhance shopping features, boost conversion rates, and offer creators better tools to showcase and sell products.

What happened

• YouTube introduced four updates for shopping creators: Shopping Collections, Affiliate Hub, enhanced tagging, and Fourthwall integration, aiming to streamline product promotion and increase earnings for content creators.

Source: Search Engine Land

Asia

Rakuten Payment CEO Kobayashi: "Driving Traffic to Our Ecosystem from Rakuten Pay"

Why it is important

• Rakuten's app integration aims to enhance user experience and competitiveness in Japan's growing cashless payment market.

What happened

• Rakuten is consolidating its payment apps—Rakuten Pay, Rakuten Points, and Rakuten Edy—into a single platform by 2025.
• This move is designed to rival PayPay and streamline user engagement within Rakuten's ecosystem.

Source: NIKKEI

TikTok Shop Triples Sales, Merchant Count in Vietnam

Why it is important

• TikTok Shop's growth in Vietnam highlights the platform's significant impact on the local e-commerce landscape, driving competition and market expansion.

What happened

• TikTok Shop tripled its sales and merchant base in Vietnam in 2023, leveraging increased online shopping trends and strategic physical presence.
• This growth positions it as the second-largest e-commerce platform in the country.

Source: Tech in Asia