Our very own Pauline Reuter recently attended the K5 Future Retail Conference. The event was illuminating and provided valuable insights into the current landscape of e-commerce.
Here are some of our key takeaways from the event!
Galaxus Takeover
More than ever, marketplaces are essential for promoting growth. In the marketplace and retail sectors, the market has grown by leaps and bounds, with the European retail market forecast to grow by almost 4% in 2025. This growth has been mainly driven by major players like Amazon and About You, as well as rising stars such as Galaxus. The latter, the biggest online retailer in Switzerland, has seen sales across the company’s platforms grow by 18 per cent compared to 2023, totalling 3.4 billion euros. Furthermore, more than 4.5 million people shopped on Galaxus at least once in 2024, with 1.2 million of these customers based in Germany, Austria and other EU markets. Their strong business model has cemented its status as a rising star, as have its creative retail media offerings for partners.
The Power of ‘SHEMU’
The continued growth of companies like SHEMU (Shein & Temu) will increase competition for brands and marketplaces alike. As of May this year, Temu’s year-over-year customer spending growth reached 68% in the EU and 38% in the UK. Shein has also continued to see impressive growth of 19% in the EU and 42% in the UK. This all, in turn, will continue to put more pressure on media buying costs for all involved parties. Aggressive media buying by these merchants is making it harder for traditional EU market leaders to maintain visibility.
AI Evolves Business Functionality
AI is changing how people look for products and decide what to buy. To remain competitive, e-commerce businesses will therefore need to modify their approaches and implement new features, metrics, and optimisations. This shift is moving the industry from a passive, product-centric model to a dynamic, customer-centric one, where the focus is on delivering highly personalised and proactive experiences.
Ultimately, companies that don’t incorporate AI into their core processes will find it difficult to satisfy changing consumer demands for relevance and ease, lagging behind those that use the technology to create platforms that are more intelligent and responsive. A staggering 97% of retailers are planning to increase their spending on AI in the coming fiscal year, a clear indication of its perceived value. As well as this, 78% of businesses are already utilising AI in at least one business function. The sheer volume of people using artificial intelligence shows just how ingrained the technology is in the modern business landscape.
K5 Future Retail Conference 2025 made it clear that to succeed in such a rapidly evolving market, there are many things that need to be included in strategy planning. Want to check out some more industry insight? Check out our blog on Maximising Your CSS Partnerships.
