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BUSINESSTODAY 20 January 2022

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11 COMMERCIAL 20.1.2022 Sony stock plummets 13% after Microsoft's Activision deal JAPANESE technology multinational Sony plunged almost 13 percent on the stock market Wednesday after inves- tors reacted negatively to Microsoft's purchase of video game firm Activision Blizzard. Sony shares opened sharply lower and were down almost 10 percent after the first hour of trading in Tokyo, a decline that extended throughout the day and ended at 12.78 percent. e technology company was the day's most traded and registered the greatest collapse among the companies listed in the main selective of the Japanese stock market, the Nikkei, which groups the 225 most representative values. Sony investors reacted to the operation between the two American companies, which represents the largest acquisition of Microsoft to date and a strong com- mitment to the video game sector, in which it is a direct competitor of Sony. e purchase, valued at $68.7 billion, will become one of the 20 largest such deals in history when completed. It has yet to pass the scrutiny of antitrust regu- lators, but it has already made investors in the Japanese firm nervous. "ey think Microsoft will make all Activision Blizzard games exclusive (to Xbox), hurting PlayStation sales and helping Microsoft close Sony's hardware sales gap," industry consultant Serkan Toto said concerning the stock market crash in their social networks. Activision is the owner of important intellectual properties such as "Call of Duty," "Crash Bandicoot," "World of Warcraft," "Diablo," "Guitar Hero," "Spyro," "Tony Hawk," "Overwatch" and "Candy Crush," which will pass into the hands of Microsoft. e company already has a significant presence in the world of video games with its Xbox console and titles such as "Minecraft." It will become the third largest company in the sector in terms of turnover, only surpassed by China's Ten- cent and its own Sony, current leader in this sector of digital entertainment. While Microsoft's historic operation was a stock market boost for other ma- jor video game companies such as the American Electronic Arts or the French Ubisoft, Sony received the news as a blow because of the threat it represents to its current hegemony. TO say that 2021 was an eventful year is an understatement. We saw the tight- ening and relaxing of Covid restrictions, shopper behaviour continue to evolve, supply chain disruptions and issues such as sustainability rocket up priority lists and, really, there was no telling what would happen from one day to the next. With our feet now firmly planted in 2022, the businesses that come out on top will be those that stay abreast of fluc- tuating industry changes and customer needs and evolve their brand strategies as necessary. So, with that in mind, let's take a closer look at three of the key retail marketing trends that brands will need to consider over the coming year… 1. The Ecommerce experience transcends the transaction Gone are the days when ecommerce was simply about selling products on- line. Shoppers' expectations of ecom- merce are rising faster than ever, and they're now looking for experiences that go beyond the transaction. What do they want? In today's fast- paced and always-on world, consumers want a simple, relevant, and engaging shopping experience at every touch- point — regardless of the channel they're using to shop. And with consumers to- day having an eye-watering number of choices for how and where they spend their money (and more people than ever shopping online), brands can't afford to rest on their laurels. is year, the brands that come out ahead will be those that optimise their omnichannel strategies and, as part of this, explore innovative ways to bring the benefits of the in-store shopping expe- rience to their online customers. From creating personalised, premium, and intuitive shopping experiences, to em- phasising human connections and com- munity, this will help them to streamline physical and online shopping and add value to their customers' lives. 2. Authenticity and brand values become critical Over the last few years there has been a steadily growing movement towards val- ues-driven consumerism. Today's customers care about what brands stand for every bit as much as what they're selling. From championing diversity and inclusion to prioritising en- vironmental practices (think retailers that only use sustainable fabrics or cosmetics companies that use chemical-free ingre- dients), today's values-driven consumers are actively buying from brands that align to their social and ethical principles. It's an area that can no longer be ignored and in 2022, brands will need to engrain authenticity and purpose into the heart of their organisation. From products and packaging to marketing campaigns and wider business operations, they will have to showcase what they stand for and are doing to benefit the communities we live in. For example, with shoppers paying increasing attention to the carbon foot- print of their online purchases, retailers need to consider how they can shine a spotlight on their sustainability creden- tials. From their products and shipping to their brand as a whole, doing this properly and effectively is going to be crucial to building brand trust and loyal- ty in the year ahead. 3. First-party data becomes first choice We've known for quite some time that the death of the cookie will forev- er change the face of digital marketing. But even though Google's decision to cull third-party cookies has been put on ice until 2023, that doesn't mean brands and retailers should sit back and relax. In- stead, marketers need to make the most of the extra time they've been given to act now and ensure they're as prepared as possible for the day the cookie crumbles. In the months ahead, retailers will have to innovate and find new ways to lever- age first-party customer data to create a seamless and intuitive shopping expe- rience for their customers at scale. To truly succeed here, they will need to be transparent about how they will use their customers' data to improve their shop- ping experience. is not only shows re- spect for them, can also build trust and, in turn, lead to a higher conversion rate and improved customer retention. With that said, however, marketers will also need to tread carefully when it comes to cultivating that trust. After all, there's a fine line between personalised and creepy when it comes to using cus- tomer data, and those brands that get it wrong risk damaging valuable relation- ships. With Covid continuing to impact con- sumer preferences, and with shopper habits shifting directions faster than ever, it's clear that 2022 is set to be an- other year where brands will have to be ready to react to changing circumstanc- es, and pivot strategies when needed to stay relevant. But if there's one thing that remains constant, it's that the customer is king. As such, retailers need to ensure they are providing a top-notch shopping experience to their customers if they're to compete and succeed in what is now an incredibly competitive marketplace. Three retail marketing trends to consider in 2022

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