ZHAW and FHNW investigate the impact of AI on online retailers

Researchers from the School of Management and Law at the Zurich University of Applied Sciences(ZHAW) and the University of Applied Sciences Northwestern Switzerland(FHNW) have investigated the extent to which AI and Asian platforms such as Temu and Shein are changing domestic online retail. According to a press release, data was collected from 624 online retailers for the 7th edition of a representative survey from March 27 to July 31, 2024. 516 retailers from business-to-consumer, business-to-business and manufacturer stores are based in Switzerland, while others come from Austria (85), Germany (11) and other countries (12).

The evaluation revealed the following picture: more than one in two retailers uses AI to create content, product texts and translations. Other areas include search engine optimization and the creation of images and videos. AI saves time, improves quality and increases sales through better reach in search engines. "AI has arrived in the digital economy in a short space of time and is not just a buzzword," says study director Darius Zumstein from the FHNW. In addition to many opportunities, 44 percent of retailers see AI as a challenge.

Competition with platforms such as Temu and Shein, on the other hand, primarily leads to strong price and cost pressure. It is said that affected retailers are trying to counteract this by offering high-quality, exclusive or sustainable products as well as good customer service and setting themselves apart. However, a total of 61 percent of the retailers surveyed stated that they had not yet experienced any impact from Asian competition. ce/heg