Juphy’s Weekly E-Commerce News Express – 27-31 January 2025
Ceyda Duz
In this week’s e-commerce and AI news episode, we explore how e-commerce is set to dominate this year’s Valentine’s Day, the surge in mobile app spending hitting $150 billion in 2024, and the latest product developments from TikTok Shop U.K., Wix, YouTube, and Test Squared. Stay ahead with key insights into online shopping, retail trends, and innovations shaping the year ahead!
Valentine’s Day 2025: E-Commerce Dominates Holiday Shopping Trends
As Valentine’s Day 2025 approaches, online shopping continues to reign supreme as the top destination for consumers. According to the National Retail Federation (NRF) and Prosper Insights & Analytics, 38% of shoppers plan to purchase their gifts online, outpacing traditional retail options like department stores (34%), discount stores (29%), and specialty shops (18%). This trend highlights the growing reliance on e-commerce for holiday shopping, driven by convenience and the rise of fast delivery options.
Consumer Spending on the Rise
The NRF survey, which polled over 8,000 adults in early January, reveals that consumers plan to spend an average of $188.81 on Valentine’s Day this year—a slight increase from $185.81 in 2024. Collectively, this spending is projected to reach a record-breaking $27.5 billion, surpassing the previous high of $27.4 billion set in 2020. This growth underscores the enduring appeal of the holiday and the increasing willingness of consumers to splurge on gifts and experiences.
Top Gift Categories for 2025
Candy remains the most popular Valentine’s Day gift, with 56% of shoppers planning to buy sweets for their loved ones. Flowers and greeting cards follow closely, each capturing 40% of consumer interest, while 35% of respondents are planning a special evening out. Jewelry, though less common, still commands a significant share of spending, with consumers projected to spend $6.5 billion on these timeless tokens of affection.
A Broader Celebration of Relationships
Valentine’s Day is no longer just about romantic partners. The survey highlights a growing trend of consumers celebrating all meaningful relationships in their lives:
Gifts for Friends: 32% of respondents plan to buy gifts for friends, up from 28% in 2024.
Gifts for Coworkers: 19% intend to gift coworkers, up from 16% last year.
This shift reflects a broader cultural movement toward inclusivity and appreciation for all types of connections.
Generational Shopping Preferences
Understanding generational differences is key for retailers looking to maximize their reach:
- Gen Z: Surprisingly, this group shows a preference for in-store shopping, valuing the experience over convenience.
- Gen X: Over 90% of their orders are placed online, as they prioritize practicality and affordability.
These insights highlight the importance of tailoring strategies to meet the unique needs of different age groups.
Looking Ahead
As Valentine’s Day 2025 approaches, the blend of tradition and innovation in consumer behavior offers a compelling narrative for the future of retail. With online platforms at the forefront, retailers are well-positioned to meet the demands of a holiday that continues to evolve in both scope and significance. Whether it’s through speedy deliveries, personalized gifts, or inclusive marketing campaigns, the opportunities for e-commerce growth are vast and promising.
Mobile App Spending Hit $150 Billion in 2024
Global consumer spending on in-app purchases and subscriptions reached $150 billion in 2024, marking a 13% year-over-year increase, according to Sensor Tower’s latest State of Mobile report. This growth underscores the expanding role of mobile apps in everyday life, with non-gaming apps continuing to outpace gaming apps in revenue growth for the fourth consecutive year.
Non-Gaming Apps Drive Revenue Growth
Non-Gaming Apps: Spending increased by $14 billion, up 25% year-over-year.
Gaming Apps: Growth slowed to just 4% year-over-year, highlighting a shift in consumer preferences.
This trend reflects the growing diversity of app categories, from productivity tools to entertainment platforms, that are capturing users’ attention and wallets.
Generative AI Apps: The Rising Star
Generative AI apps emerged as one of the fastest-growing categories in 2024, with consumer spending rocketing by 200% year-over-year to $1.1 billion. Apps like ChatGPT, Google Gemini, and Doubao led the charge, demonstrating the increasing demand for AI-powered tools. At this rate, generative AI apps could break into the top 10 revenue-generating categories within the next year.
Social Media and Streaming Dominate Revenue
Social media and film/television streaming apps remained the top revenue-generating categories in 2024:
Social Media: Generated $11.7 billion, driven by in-app purchases and creator tipping. TikTok and YouTube alone accounted for over 70% of this spending.
Streaming: Brought in $11.9 billion, primarily through subscription models. Unlike social media, streaming revenue is more evenly distributed, with nine different apps each contributing at least 3% of total revenue.
Increased Mobile Usage and Monetization Strategies
Consumers spent an impressive 4.2 trillion hours on their mobile devices in 2024, a 5.8% increase from the previous year. This surge in screen time has prompted app developers to refine their monetization strategies, focusing on streamlining user experiences and offering innovative purchasing options.
Looking Ahead
The mobile app industry shows no signs of slowing down, with generative AI, social media, and streaming apps leading the way. As consumer behavior continues to evolve, app developers will need to adapt by creating seamless, multi-device experiences and exploring new revenue models to stay competitive in this rapidly growing market.
TikTok Shop U.K.’s AI-Powered Ad Automation
TikTok Shop U.K. has introduced GMV Max, an AI-driven tool designed to help sellers increase their gross merchandise value. This new feature automates key aspects of ad campaign management, including audience selection, bidding strategies, and creative elements. Available for both product listings and live shopping events, GMV Max allows sellers to set performance goals while the system optimizes campaigns for better results.
Wix Integrates with YouTube for Social Shopping
Wix has joined forces with YouTube Shopping, allowing merchants to sell products directly on the platform. Sellers can showcase their items in a dedicated storefront on their YouTube profiles and tag products in videos, live streams, and shorts. The integration ensures automatic syncing of product details, including descriptions and images, while YouTube’s analytics tools provide insights into sales performance.
Test Squared’s Platform for Authentic Product Reviews
Test Squared has introduced a new platform that connects businesses with verified product testers, enabling sellers to collect genuine reviews efficiently. This service helps brands build credibility, enhance product visibility, and stay compliant with review guidelines, providing an ethical approach to generating customer feedback.
Juphy AI: Personalizing the Valentine’s Day Shopping Experience
As online shopping dominates Valentine’s Day spending in 2025, personalization plays a crucial role in helping brands stand out. Juphy’s AI Agent, powered by ChatGPT, enables Shopify merchants to deliver tailored product recommendations, answer customer inquiries instantly, and drive more conversions—all within a seamless chat experience.
Why It Matters:
With consumers seeking unique and meaningful gifts, Juphy AI enhances product discovery by understanding customer preferences in real time. Whether shoppers need last-minute gift suggestions or personalized bundle offers, Juphy’s AI Agent ensures they find the perfect match—boosting both customer satisfaction and sales. As e-commerce gets ready for a record-breaking Valentine’s season, Shopify merchants using Juphy AI are already ahead of the game—turning holiday traffic into loyal customers. Join them now and try Juphy AI for free: apps.shopify.com/juphy
Key Takeaways
Valentine’s Day 2025: Online shopping remains the top choice for Valentine’s Day gifts, with 38% of consumers preferring e-commerce over traditional retail stores. Spending is projected to hit $27.5 billion, setting a new record. Consumers are expanding their celebrations beyond romantic partners, with growing interest in gifting friends and coworkers.
Mobile App Spending Hits $150 Billion in 2024: Global in-app spending grew by 13% year-over-year, driven by non-gaming apps, which saw a 25% increase in revenue. Generative AI apps surged 200%, reaching $1.1 billion in consumer spending. Social media and streaming services dominated, collectively generating over $23 billion.
TikTok Shop U.K.’s AI Ad Automation: TikTok Shop U.K. launched GMV Max, an AI-driven tool that automates ad campaign management. This feature optimizes audience targeting, bidding, and creative elements to help sellers maximize sales during product listings and live shopping events.
Wix Integrates with YouTube: Wix now allows merchants to sell products directly on YouTube Shopping. Sellers can tag products in videos, live streams, and shorts while benefiting from automatic product syncing and sales analytics.
Test Squared’s Authentic Product Reviews: Test Squared introduced a new platform connecting businesses with verified product testers. This tool helps brands collect ethical, compliant reviews to enhance credibility and visibility while maintaining trust with consumers.
