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Good afternoon,

Here’s the headlines for this week: 28 February 2025

ECOMMERCE

• The digital economy hit record highs in Q4 2024, with mobile in-app purchase (IAP) revenue reaching $39.4 billion and digital ad spending surging.
• The U.S. led the growth, with a record $13.5 billion in mobile IAP revenue, while retail media advertising saw unprecedented expansion.
• Social media platforms like Facebook, Instagram, and TikTok accounted for over 77% of U.S. digital ad spending, solidifying their dominance.

• Klaviyo launched a new B2C CRM, integrating marketing, analytics, and customer service into a single platform.
• The CRM features Customer Hub, allowing shoppers to manage orders, returns, and subscriptions seamlessly.
• With 350+ pre-built integrations, the platform eliminates data silos and provides real-time AI-driven marketing insights.

• Trump is reportedly planning to fire all USPS board members via an executive order, dissolving its independent leadership.
• The move would shift USPS under the Commerce Department, giving the White House direct control over postal operations.
• Critics warn this would politicize the postal service, raising concerns about mail delivery oversight and governance.

CONSUMERS

• Nearly 45% of consumers say they’d switch retailers if offered a coupon, ranking discounts as a top loyalty driver.
• The most desired promotions are “buy one, get one free” (72%) and general markdowns (65%).
• Email remains the preferred way to receive deals, with 59% of shoppers opting for digital promotions over mail or texts.

• The rise of ultra-low-cost Chinese e-commerce retailers Shein and Temu has significantly disrupted the fast fashion and retail industry, making it difficult for established brands like Forever 21 and Billabong to compete on price.
• Many major U.S. retailers, including Liberated Brands (Billabong, Quiksilver), Forever 21, and even online platforms like Etsy, are struggling, with thousands of store closures in 2024 and 2025 as consumer preferences shift toward cheaper, fast-moving trends.
• American consumers’ obsession with low prices and rapid consumption fuels Shein and Temu’s success, while traditional retailers fail to adapt. Even tariffs and trade policies have had little impact on these companies' ability to offer rock-bottom prices.

• U.S. consumer sentiment dropped 10% in February, driven by fears that new tariffs will raise prices.
• Inflation expectations spiked, with consumers now predicting 4.3% inflation in the next year.
• Over 40% of consumers spontaneously mentioned tariffs as a major concern, up from just 27% the month prior.

• 23 attorneys general are suing to block the CFPB’s shutdown, warning it would hurt consumers.
• The AGs argue the move would benefit big financial institutions while leaving Americans vulnerable to predatory lending.
• A federal court has temporarily paused mass firings at the CFPB as legal battles continue.

TECH

• 97% of Apple shareholders voted against a proposal to end its DEI initiatives, signaling strong investor support.
• The anti-DEI proposal came amid political pressure, but Apple defended diversity as a core business strategy.
• The overwhelming rejection aligns with similar failures of anti-ESG proposals at other companies this year.

• Critics warn the AI Act’s text-and-data mining exemption could let AI firms train on copyrighted content without permission.
• Creators fear the loophole undermines intellectual property rights and benefits big tech at their expense.
• EU lawmakers are facing pressure to amend the Act before final approval to close the gap.

• The UK’s Competition & Markets Authority (CMA) is investigating Apple and Google’s mobile payment dominance.
• Regulators are scrutinizing Apple’s NFC restrictions and Google’s pre-installed wallet advantages.
• Digital wallets now account for 29% of UK card transactions, raising concerns over market control.

• Apple removed Advanced Data Protection (ADP) in the UK, weakening iCloud encryption due to legal pressures.
• UK authorities pushed for “lawful access,” forcing Apple to either comply or drop the feature entirely.
• Privacy advocates warn this makes UK users more vulnerable to hacking and surveillance.

• Apple announced a $500 billion U.S. investment plan, creating 20,000 jobs to counter potential trade tariffs.
• The move appears to be a strategy to avoid further taxes on China-made Apple products.
• Apple may shift some production to the U.S., including AI servers and custom chip manufacturing.

• Amazon is shutting down its Appstore on Android devices by August 20, 2025, ending app downloads and updates.
• Apps installed via the store may lose functionality, as Amazon’s license verification system will stop working.
• Amazon Fire devices remain unaffected, but Android users must switch to Google Play or alternative sources.

RETAILERS

• Walmart’s AI-driven merchandising tool helps teams optimize product selection and pricing store by store.
• The AI forecasts demand using real-time sales, inventory, and regional trend data.
• Early results show fewer stockouts, better localized assortments, and more efficient inventory management.

• 77% of Amazon’s top-selling products have an equivalent on Temu, often at 40% lower prices.
• Despite its cheap deals, 70% of U.S. shoppers still trust Amazon more for quality and reliability.
• Amazon is expected to emphasize fast shipping and guaranteed authenticity to counter Temu’s growing market share.

See you next week,

The 2080���� Team

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