📈#042: 3.1% volume vs $743B returns in 3 quarters of growth

Welcome to yet another fresh edition of Market Mosaic, where we curate and deliver all the consumer insights from the heavy wave of news, trends and happenings we have closely followed over the past week.

In this week's edition, we pull back the corporate curtain to reveal the $172 billion fee wars, $4.88 million cybersecurity risks, and strategic innovations that are rewriting the rules of modern business, showing how companies survive and thrive in an era of unprecedented complexity.

Let’s explore these insights together.

— Insights Team, Rwazi

SECTOR PERFORMANCE TRACKER

TECHNOLOGY & INNOVATION
The cybersecurity confidence paradox

In a startling revelation, our data unveils a critical disconnect in corporate cybersecurity perception:

Key Statistics:

• 1 in 3 small and medium-sized businesses hit by cyberattacks

• Average data breach cost: $4.88 million

• 86% of executives confident in their data protection strategies

• Only 8% extremely concerned about future data security

The Confidence Paradox: While C-suite executives project unwavering confidence, the ground reality tells a different story. Over one-third of employees are sharing sensitive work data with AI tools without employer knowledge, creating a massive potential security vulnerability.

Emerging Trend: The growing gap between perceived and actual cybersecurity readiness is creating a potential time bomb for corporate data integrity.

Key Insight: Confidence is not a cybersecurity strategy. Organizations must bridge the perception-reality gap with robust, proactive security measures that go beyond executive comfort zones.

FINANCIAL SERVICES & ECONOMY
The swipe fee saga continues

Two decades in the making for the credit card fee battle

Unprecedented Developments:

• 2005: Merchant associations file antitrust lawsuit against Visa and Mastercard

• 2024: Settlement partially addresses long-standing concerns

• Banks generated $172 billion in swipe fees last year

Merchant Frustration Points:

• Proposed rate reduction: Merely 0.04-0.07 percentage points

• Estimated savings: $30 billion over five years

• Ongoing dispute over "honour all cards" rule

The Merchant Challenge: The current settlement fails to address core concerns about credit card payment ecosystem fairness.

Key Insight: The financial services landscape continues to be a battleground between merchants, credit card companies, and banks, with consumer interests hanging in the balance.

CONSUMER GOODS & RETAIL
The return policy revolution

The return economy has undergone a dramatic transformation. In 2023, the value of returned merchandise in the US totalled $743 billion, prompting a significant shift in retail strategies. A striking 81% of retailers have introduced fees for at least one return method, with major brands like Amazon, Zara, and H&M leading this change.

Innovative approaches are emerging, such as optional upfront fees at checkout that allow consumers to choose their return strategy. This represents a fundamental rethinking of return policies, balancing customer experience with economic sustainability.

Key Insight: The era of consequence-free returns is ending, with retailers developing more nuanced strategies that protect their bottom line while maintaining customer satisfaction.

SUPPLY CHAIN & LOGISTICS
Unilever's growth strategy

Unilever demonstrates a masterful approach to volume growth in the competitive consumer packaged goods (CPG) market. The company has achieved four consecutive quarters of volume growth by carefully balancing innovation with core product strength.

In the third quarter, Unilever's sales rose 4.5%, with volume increasing by 3.6%. The personal care segment, including brands like Dove, Degree, and Axe, saw 4.4% sales growth and 3.1% volume increase. Strategic innovations like Dove whole body deodorants and serum-infused body wash represent a premiumization strategy that elevates product offerings while maintaining brand integrity.

Key Insight: Successful growth in consumer goods requires a delicate balance between preserving core offerings and introducing innovative, premium products that resonate with evolving consumer preferences.

Thank you for reading and joining us on Market Mosaic this week. We hope this edition provides valuable, actionable insights for deciding with data. 📊 

You can also read the full and extended version here.

We will continue monitoring global market developments and their implications for your business decisions.

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WHAT IS HAPPENING AT RWAZI?
Watch Now: Full recording of our webinar on navigating global expansion.

Two weeks ago, we hosted the first edition of our highly-anticipated webinar series, "Local Insights, New Horizons: Keys to Expanding into Untapped Markets" and we couldn’t be more grateful to everyone who showed up. For those who couldn't join us live, we are excited to share the complete recording to catch up on the valuable insights shared that could reshape your global expansion strategy.

What you will learn in this power-packed session:

• Deep dive into decoding local consumer behaviours with surgical precision

• Strategic frameworks for identifying untapped market opportunities

• Expert insights on successful product localization

• Resource-efficient strategies for maximizing market presence

• Real-world applications of AI in market entry decisions

• Live demonstration of Rwazi's consumer insights platform in action

🎥 Watch the full recording here with this passcode: BF45.qQ8