📈#045: The $412 billion AI transformation fulfilling 84% of consumers' demands

We are back with another fresh edition of Market Mosaic, your premier source for data-driven intelligence on the emerging global marketplace. In this issue, we dive deep into the consumer insights and emerging trends that are poised to reshape industries in the year ahead.

In this week's edition, we dive deep into the consumer insights and emerging trends that are poised to reshape industries in the year ahead.

From the $412 billion AI transformation disrupting 67% of enterprises to fulfilling 84% of consumers' real-time tracking demands, this issue is packed with the data-driven insights you need to drive strategic decisions in 2025 and beyond.

— Insights Team, Rwazi

SECTOR PERFORMANCE TRACKER

TECHNOLOGY & INNOVATION
Riding the AI wave in emerging markets

Latin America, often viewed as an AI laggard, is rapidly becoming a hotbed of innovation in this space. SoftBank's $5 billion investment in the region's tech startups has fueled the development of platforms like Blip, an AI-driven conversational marketing tool leveraging data from the ubiquitous WhatsApp.

These massive investments transformed the startup landscape, but when the global economy began to slow and interest rates rose, many young firms in the region struggled to justify their lofty valuations.

Key Stat: 78% of global consumers say they would switch to a competitor if a brand's AI practices were unethical, underscoring the importance of responsible AI development.

Key Insight: While Latin America has a reputation as an AI laggard, emerging use cases are showing the region is moving faster with the technology than widely believed. SoftBank's continued appetite for computing data centres and AI-powered startups suggests they see significant untapped potential in these high-growth markets.

FINANCIAL SERVICES & ECONOMY
Recalibrating economic expectations in China

Amidst the shifting global economy, businesses operating in China are tempering their outlook, with German and UK firms reporting a deteriorating sentiment towards the world's second-largest economy.

Trend Spotlight: Over 90% of German firms plan to maintain their operations in China, despite more than half citing a worsening business environment and weak demand. UK firms, on the other hand, are less optimistic about their prospects in the country, with many deprioritizing China in their global investment strategies.

Prediction for 2025: As China navigates its economic challenges, foreign businesses will seek greater transparency and more reliable data to guide their strategic decisions, potentially shifting investment patterns in the region.

Key Insight: Navigating the complexities of the Chinese market will require a nuanced understanding of both macro trends and on-the-ground realities.

CONSUMER GOODS & RETAIL
Navigating the cost-conscious consumer

Consumers across income levels are tightening their belts, leading to a pullback in spending on indulgences like candy, snacks, and beer - a trend that is impacting major CPG players.

Trend Spotlight: Hershey reported a 1.4% net sales drop in the third quarter, citing high cocoa prices and a challenging consumer environment. PepsiCo and other beverage giants have also seen volumes decline as consumers prioritize value.

Regional Focus: The United States is particularly affected, with beer sales taking a hit as consumers rein in discretionary spending during the peak summer season.

Prediction for 2025: As economic uncertainty persists, brands will need to refine their portfolio strategies, emphasizing affordability and value while still catering to evolving consumer preferences for health, sustainability, and premiumization.

Key Insight: Navigating the great affordability squeeze will require CPG companies to strike a delicate balance between cost optimization and consumer-centric innovation.

SUPPLY CHAIN & LOGISTICS
Unlocking growth through premiumization

84% of consumers now consider real-time tracking a critical factor in their online shopping decisions, up from 62% just two years ago. Meanwhile, 59% of consumers are willing to wait longer for deliveries if it means a reduced environmental impact.

Innovation Spotlight: Blockchain-enabled supply chain tracking has seen a 186% increase in adoption among major retailers, allowing consumers to verify the authenticity and journey of their products.

Prediction for 2025: The future of supply chain and logistics will be defined by the ability to meet consumer demands for speed and transparency while also addressing growing environmental consciousness.

Key Insight: Balancing the need for instant gratification with sustainability considerations will be a defining challenge for logistics providers and e-commerce platforms in the years ahead.

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?
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