Insyte Weekly: Regenerative fashion, Apple's Future AI plans, Alipay Accelerates Global Expansion and more

This was an interesting week in the business world. We breakdown the latest news shaping the media & entertainment, fashion, retail and tourism industries this week. Everything from Amazon’s long-awaited launch in South Africa and the potential impact on the SME landscape to Apple’s future plans pertaining to AI, we’ve got you covered.

Media & Entertainment

The Verge highlighted how Apple envisages how it will leverage AI to imrpove certain features especially Siri. Davide Pierce reported how Apple's recent focus on AI reveals a strategic approach that involves both collaborations and in-house developments. Reports suggest discussions with OpenAI and Google for AI features, alongside Apple's own model named Ajax, indicating a comprehensive AI strategy in the making. One significant aspect is the drive for smaller, more efficient AI models, particularly to enhance Siri's capabilities. Apple's research delves into methods like efficient large language model inference with limited memory, emphasizing on-device, fully offline AI functionalities for speed and accessibility. Additionally, Apple aims for an advanced Siri experience without relying heavily on wake words, employing AI for improved understanding, communication, and responsiveness. Beyond virtual assistants, Apple envisions AI applications in health monitoring, creative tools, and even music remixing. The culmination of these efforts could redefine how users interact with AI on Apple devices, potentially leading to transformative experiences and increased AI integration within Apple's ecosystem.

Reuters reported A Delaware federal jury recently ruled that Activision Blizzard owes $23.4 million in damages for violating patents related to multiplayer features in games like "World of Warcraft," "Call of Duty: Black Ops III," and "Call of Duty: Advanced Warfare." The jury sided with patent holder Acceleration Bay, which claimed that aspects of the games' online multiplayer networking technology infringed its patents. Activision plans to appeal, stating they have never used the patented technologies in question.

Nintendo fans are in for a treat. Kristopher Brooks noted that Nintendo President Shuntaro Furukawa hinted on X (formerly Twitter) that Nintendo will announce its new Switch console, dubbed the Switch 2, within the current fiscal year ending in March 2025. While no specific launch date was provided, this news comes after reports in February indicated a delay until early 2025. The anticipation for a successor to the popular Switch is high, as it would strengthen Nintendo's position in a competitive gaming market that includes Sony's Playstation and Microsoft's Xbox. The global video gaming market is projected to reach $583.6 billion by 2030, highlighting the significant growth and opportunities in the industry.

Fashion

The Guardian state how ‘Regenerative Fashion’, focused on reducing fashion's environmental impact, has gained traction globally. Brands are investing in regenerative materials, leading to potential profit uplifts according to a 2023 report. Luxury brands like Loro Piana, Brunello Cucinelli, and Zegna are active in this space, emphasizing the importance of sustainable sourcing. However, sustainability challenges persist, such as Loro Piana's supply chain treatment concerns. Beyond luxury, brands like Eileen Fisher, Mara Hoffman, and others offer regenerative options, albeit at varying price points. Brands like Icebreaker, Smartwool, Allbirds, and Sheep Inc. also contribute to regenerative efforts, though regenerative fibers remain more expensive than mainstream garments.

Fintech

Shiela Chiang reported that Ant Group, a major Chinese fintech company, is aiming to enhance its global presence through its digital platform Alipay+. Douglas Feagin, senior vice president of Ant Group, highlighted the trend of people preferring to use their home e-wallets while traveling abroad, rather than dealing with unfamiliar apps. Ant International, the group's global division, launched Alipay+ in 2020, enabling foreigners to utilize their home country's apps to make payments in China using Alipay's QR codes. This initiative also extends to other countries through local partnerships. Feagin emphasized the company's interest in expanding Alipay+ to regions like the Middle East, Latin America, and Europe, leveraging the significant opportunities presented by travelers from these regions exploring other parts of the world.

Tourism

As reported by APA News, The Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Okeke, highlighted the significant investments made by big brands from Europe and Africa in Nigeria's tourism and hospitality sector. He mentioned that some foreign companies have acquired leading international brands in the hospitality sector within Nigeria, aiming to position their businesses as preferred destinations and strong competitors. In light of these declarations, Dr. Okeke stressed the importance of standardization in enhancing quality in Nigeria's tourism businesses. SON is collaborating with the Federation of Tourism Associations of Nigeria (FTAN) and the Lagos State Government to implement standardization in hotel services across the state. This includes certification schemes based on international and national standards, such as NIS ISO 22483:2021 for hotel service requirements and NIS 489:2020 for hotels and serviced accommodation management systems. The certification aims to ensure international best practices, improve service delivery consistency, and enhance the competitiveness of Nigerian hospitality establishments globally.

Business Day broke the story that Apollo, a European tour company, is offering tourists the opportunity to experience The Gambia, Africa's gentlest coast, with direct flights from Copenhagen this winter. The flights will be operated using the SAS Airbus A321neo LR, known for its long-range capabilities and comfort. Glenn Bisgaard, sales manager at Apollo, noted the growing demand among Danes for new travel destinations, especially during the winter months. The Gambia, with its captivating experiences ranging from sandy beaches to kayaking in moonlight, exploring national parks, learning local cuisine, and enjoying boat trips on the Gambia River, offers a diverse and enriching travel experience.

Michael Olugbode revealed The Africans Rising movement, a campaign championing a Borderless Africa, has organised massive marches across the continent to advocate for free movement for Africans within Africa. The Borderless Africa Convening, scheduled from May 23rd to 25th, 2024 in Lusaka, Zambia, aims to bring together campaigners and stakeholders working towards this vision. The event will focus on discussions and strategies related to ratifying and enforcing the AU Protocol on Free Movement of People and the benefits of abolishing visas in Africa. It will conclude with a continental march on May 25th, African Liberation Day, calling for free movement, one currency, and one passport for Africans. The campaign aims to eliminate current border restrictions to enhance trade, job creation, solidarity, and economic development within Africa.

The tourism sector in South Africa is experiencing robust growth, as indicated by the recent international arrival data for January to March 2024 as cited in a recent Bizcommunity article. The total international tourist arrivals reached 2.4 million during this period, marking a notable 15.4% increase compared to the same timeframe in 2023. As expected African countries made the most significant contribution to South Africa's tourism growth. From January to March 2024, 1.8 million tourist arrivals came from the rest of the African continent, accounting for 74.5% of all arrivals. Notably, Zimbabwe and Ghana showed remarkable growth, with Zimbabwe experiencing a 21.8% increase in arrivals and Ghana recording an impressive 249.4% increase. Minister of Tourism, Patricia de Lille, attributes Ghana's remarkable performance to the visa-waiver scheme announced between South Africa and Ghana in November 2023.

Retail

There’s no doubt that the retail industry plays a significant role in South Africans’ livelihoods especially grocery retail. However, Ntando Makhubu shed light on the precarious state of South Africa’s food security. She discussed how the situation of food insecurity in South Africa has worsened, with a significant increase in the number of households experiencing hunger. This rise in food insecurity is attributed to several factors, including high unemployment, poverty, and the escalating costs of living, especially food prices. Economist Elizabeth Baker highlighted that even households previously able to afford nutritious food are now struggling due to the increased costs and inaccessibility of food. This crisis contradicts South Africa's past status as food secure, capable of producing enough staple foods and importing as needed to meet nutritional requirements.

Rising food costs is by no means a South African problem, as first world countries also encounter similar supply-side shocks. Laura Beck reported how the United States has experienced a significant rise in food prices over the past few years, primarily driven by high inflation rates. Since the last federal election in November 2020, food prices have surged by 25.8%, leading to substantial increases across various grocery categories. Eggs have seen one of the most significant price hikes, with prices soaring by 54% from November 2020 to March 2024. Dairy products like milk, cheese, and butter also experienced substantial increases, with milk prices rising by 36% and cheese and butter prices jumping around 30%.

In positive news, Hikmatu Bilali highlighted how the launch of Amazon in South Africa signals a significant development in the African e-commerce landscape, with major players like Amazon poised to drive competition, innovation, and investment in digital infrastructure. This entry not only provides consumers with a wide range of products but also creates opportunities for local businesses to reach a broader customer base, including international markets. The emphasis on independent sellers, particularly small and medium-sized enterprises, underscores the potential for job creation, economic growth, and entrepreneurship development across the continent. Overall, Amazon's expansion represents a pivotal moment in fostering digital growth and economic opportunities in Africa.

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