Good afternoon,

Here’s the headlines for this week: 24 January 2025

ECOMMERCE

German eCommerce Sales Rise for First Time Since 2021

• Germany’s e-commerce sector saw a 1.1% sales increase in 2024, reaching €80.6 billion, after two years of declines.
• The Federation of German E-Commerce and Mail Order (BEVH) projects further growth of 2.5% in 2025, despite potential economic headwinds.
• Digital services like travel and ticket sales are recovering post-pandemic but at a slower pace compared to goods.

FMCG Giants Expand E-Commerce Platforms

• Brands like ITC, Nestlé, Dabur and Amul are expanding their direct-to-consumer platforms across India.
• Companies are offering discounts of up to 30% to attract customers and drive online sales.
• This strategic move aims to strengthen their digital presence in the highly competitive fast-moving consumer goods (FMCG) sector.

CONSUMERS

Trust in Advertising Increases, Driven by Young People

• A report from the Advertising Association shows rising trust in advertising, particularly among younger generations.
• Traditional channels like television and cinema are contributing to this renewed confidence.
• The findings suggest advertisers can build brand credibility by focusing on authentic, well-executed campaigns.

The Future of Shopping Is Tech for Shoppers Who Are ‘Really Into Themselves’

• Retailers are incorporating advanced technologies like body scanners and AI-powered tools to provide highly personalised in-store shopping experiences.
• These efforts aim to mirror the curated product recommendations consumers have come to expect in e-commerce, blending the physical and digital shopping worlds.
• By focusing on individual preferences and tailoring promotions, retailers hope to drive greater customer loyalty and in-store engagement.

BRANDS

The business of tradwives—and why brands keep working with them

• Influencers like Nara Smith and Hannah Neeleman cultivate massive followings by showcasing traditional domestic roles, leveraging their platforms to secure lucrative brand deals and promote their own products.
• Partnering with tradwife influencers risks aligning brands with conservative values or unrealistic depictions of domestic life, potentially sparking controversy and misinterpretation of brand messaging.
• The idyllic tradwife aesthetic often hides financial privilege and commercial intent, creating a disconnect between the aspirational image and the reality for many viewers.

RETAILERS

UK: Amazon, John Lewis, Asda and Tesco Recognised for Superior CX

• A recent survey identified these retailers as leaders in customer experience, excelling in value, convenience and personalisation.
• Their ability to consistently deliver high-quality service sets them apart in an increasingly competitive market.
• These brands demonstrate how a focus on customer satisfaction can drive loyalty and long-term success.

The Shopping Method That Isn’t Going Anywhere

• J.Crew and other brands are reintroducing print catalogues as part of their marketing strategies, providing a tactile and nostalgic experience that complements digital efforts.
• These catalogues are designed to engage customers on a deeper emotional level while showcasing curated product collections.
• By blending physical and digital marketing, brands aim to create a seamless and memorable shopping journey.

MARKETING

Influencer Marketing Platform ShopMy Raises $77.5 Million

• ShopMy has raised $77.5 million to expand its influencer-driven advertising platform, which simplifies the process of managing influencer campaigns.
• The funds will support the company’s entry into new categories such as wellness and food while also growing its international advertiser base.
• This funding highlights the increasing role of influencers in shaping advertising strategies and driving consumer engagement.

ADVERTISING

Amazon's Retail Media Ad Tech Expansion

• Amazon is now offering its advanced advertising technology to other retailers’ media networks, allowing them to leverage Amazon's robust tools for customer engagement.
• This move positions Amazon as a key player in the growing retail media space where ad revenue is increasingly generated through e-commerce platforms.
• By providing brands with access to these technologies, Amazon is expanding its influence beyond its marketplace and redefining the competitive landscape for retail advertising.

Substack Advertising Is Turning Writers Into Part-Time Sales Reps

• Journalists using Substack for independent newsletters are increasingly managing advertising deals themselves, with some predicting ads will constitute a significant portion of their 2025 revenue.
• While this approach offers additional income streams, it also requires writers to handle contract negotiations and invoicing, tasks they may find tedious.
• Platforms and agencies are emerging to assist in automating these processes, reflecting a shift in the media landscape as marketers seek alternative advertising spaces.

Advertising Industry Undergoes AI-Driven Transformation

• The advertising sector is experiencing a significant shift towards data-driven and AI-powered strategies, moving away from traditional creative-led approaches.
• Major firms like Omnicom Group and Interpublic Group are investing heavily in AI to improve the precision and efficiency of their campaigns.
• By using AI to analyse consumer behaviour and optimise media placements, advertisers can deliver more targeted and cost-effective campaigns, reshaping the future of the industry.

See you next week,

The ChannelSight Team

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