📈#052: 25% tariff tensions averted in between $80 billion in AI investments

In this latest edition of Market Mosaic, we unpack data-backed consumer trends, from the 167% surge in supply chain automation to the projection that women will control 75% of the $100 billion health and beauty market.

You will also get an exclusive look into the sparked concerns about the broader impact on the global economy of the US postponing 25% tariffs on imports from Mexico and Canada while tech giants remain undeterred in their $80 billion in planned AI investments, betting big on consumer demand for hyper-personalized experiences.

— Insights Team, Rwazi

SECTOR PERFORMANCE TRACKER

TECHNOLOGY & INNOVATION
AI spending remains unfazed by efficiency gains

Despite the recent breakthroughs in AI efficiency, such as the impressive performance of DeepSeek's new ultra-efficient model, tech giants like Meta and Microsoft remain undeterred in their plans to invest heavily in AI capabilities.

During their latest earnings calls, both companies emphasized that the impact of these advancements is still too early to assess.

However, they view the continued investment in AI infrastructure and capacity as key to maintaining their competitive edge and meeting the growing consumer demand for personalized, predictive experiences.

Key Insight: Consumers' heightened expectations for hyper-personalization and ambient intelligence will drive an ongoing surge in AI spending and implementation across industries. While incremental improvements in AI efficiency may emerge, the tech sector's appetite for AI-driven innovation remains insatiable.

FINANCIAL SERVICES & ECONOMY
The U.S. tariff tensions averted, but uncertainty lingers

In a last-minute move, the US has postponed the imposition of sweeping 25% tariffs on imports from Mexico and Canada, avoiding a potential trade war with its closest neighbours.

However, the 10% tariff on Chinese imports did go into effect as planned, sparking concerns about the broader impact on the global economy.

While the temporary reprieve on tariffs with Mexico and Canada offers some relief, the reverberating effects of the previous trade tensions and the lingering uncertainty around future policy decisions continue to weigh on consumer confidence and business investment.

Key Insight: The volatile nature of trade policies and geopolitical dynamics underscores the need for financial services providers and businesses to remain agile and proactively manage risk in an increasingly unpredictable global landscape.

CONSUMER GOODS & RETAIL
Women's purchasing power redefines the marketplace

Our data analysis shows that women will account for 75% of global discretionary spending in the next 5 years, further solidifying their status as the primary drivers of consumer trends and market dynamics.

Brands and retailers must adapt to cater to women's evolving needs and values, which are increasingly centred around equality, sustainability, and authenticity.

Categories like health, beauty, and personal care that have historically been women-centric are now setting the standard for inclusive, purpose-driven marketing and product development.

Key Insight: Businesses that fail to recognize and respond to the growing influence of women's purchasing decisions risk losing significant market share to competitors who are more adept at aligning their offerings with this powerful consumer segment.

SUPPLY CHAIN & LOGISTICS
Optimization beats layoffs as retailers adapt

As retailers exhaust traditional cost-cutting measures like layoffs, they are now shifting their focus towards optimization and efficiency-enhancing investments.

This strategic shift reflects the recognition that simply reducing headcount is no longer a sustainable path to profitability.

Retailers are increasingly exploring the potential of technologies like AI, dynamic pricing, and outsourcing to streamline their operations and unlock new revenue streams. However, this transition comes with its own set of challenges, as retailers must balance the need for investment with the pressure to maintain healthy profit margins.

Key Insight: The future of retail supply chains and logistics will be defined by a delicate balance between cost optimization and strategic investments in capabilities that enhance productivity, agility, and responsiveness to rising consumer demands.

As we move further into 2025, the consumer-driven transformation of industries across the board continues to accelerate.

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

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WHAT IS HAPPENING AT RWAZI?
ICYMI: Lumora, Rwazi's latest AI product, attracts global coverage

Last week, our parent brand, Rwazi, had its latest innovation, Lumora, featured in the renowned global publication, USA Today. This feature spotlighted how our new consumer insights engine is revolutionizing the way businesses access and utilize market intelligence across the globe also with a preview of our upcoming AI engine, Sena.

As highlighted in the feature, these AI-powered tools we are building process unstructured data to deliver actionable insights that help businesses understand consumer perceptions, identify growth opportunities, and make data-driven decisions.

Catch up on the full story here on USA Today.