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Why retailers must think like tech companies to thrive in a data-driven economy

Retailers are entering the year-end shopping season with renewed optimism as consumer sentiment improves after a period of uncertainty around tariffs and trade policies. Optimism alone, however, is not enough. In today’s data-driven economy, the retail companies that succeed are those that think and act like technology companies. 

Modern retail runs on data.  From inventory management to fraud detection, every customer interaction produces information that can either strengthen performance or create risk. During peak shopping events such as Black Friday and Cyber Monday, the volume of data multiplies and the risks grow higher. Retailers that put visibility and control at the centre of their data practices are better prepared to scale, maintain security, and deliver the seamless experiences customers expect. 

Across the region, consumers are adopting new technologies at speed. The Adyen Index Report 2025 revealed that  38 per cent of Asia Pacific (APAC) shoppers now use AI assistants while shopping, with markets like Malaysia (58 per cent) and Singapore (49 per cent) among the highest. At the same time, retailers are racing to keep pace, with AI investment ranging from 47 per cent of retailers in Japan to 72 per cent in Malaysia.

Together, these figures signal that AI is becoming foundational to the retail engine. However, every click, transaction, and digital interaction carries both opportunity and risk. According to IBM’s X-Force 2025 Threat Intelligence Index, APAC accounts for 34 per cent of all global cyberattacks, which is the highest of any region, underscoring the need for retailers to strengthen their data foundations.

In a world of hypercompetition and fast-evolving customer expectations, the retailers that flourish are those that think and operate like technology companies.

Scaling for peak seasons

The biggest challenges of the holiday peak season are scalability, fault tolerance, and low staffing. Online and in-store traffic often surges several times higher than normal levels, and this increased load can trigger outages or slowdowns that are difficult to recover from.

Outages are costly – from  lost revenue and the eroding customer satisfaction when shoppers can’t complete their purchases.  To stay resilient, data management systems must be both scalable and fault tolerant to handle the extra load and prevent downtime that leads to abandoned carts.

Also Read: How an AI cybersecurity company harnesses the power of AI for optimal business performance

Enterprise data lineage helps identify breaks in data pipelines quickly, enabling teams to restore operations with minimal disruption. A unified view of data access and activity across hybrid and multi-cloud environments further eliminates blind spots and ensures that sensitive information is continuously monitored and protected.

Defending against heightened cyber risk

Retailers are prime targets for cyberattacks during the holiday season due to high transaction volumes and the sensitive nature of the data they hold.  Attackers are constantly looking to exploit any weaknesses to access personal information. This concern is mirrored  by consumer sentiment — according to PwC’s Voice of the Consumer Survey 2024, 74 per cent of APAC consumers are concerned about privacy and data-sharing, and 50 per cent are not comfortable purchasing via social media. 

Fraud and theft also surge as criminals exploit the distraction of the holiday rush. The attack surface is vast – retail stores, distribution centres, online platforms, and even delivery trucks are increasingly connected through IoT devices. Vulnerabilities in poorly secured devices can provide attackers with an entry point.

At the same time, many retailers struggle with legacy systems and thin margins, making it challenging to keep pace with evolving threats. In such an environment, every breach erodes consumer confidence and brand equity, turning cybersecurity from an IT issue into a business imperative. 

Also Read: From data to defence: Strengthening AI with cybersecurity foundations

Retail is a fiercely competitive industry where trust is a key differentiator. To retain loyalty, retailers must demonstrate that they use data responsibly. Strong governance and a zero-trust architecture are essential. Secure-by-design systems limit exposure, while unified governance frameworks ensure that data security and compliance are enforced consistently across hybrid environments.

Innovating in modern retail

Artificial intelligence and machine learning have become indispensable for improving demand forecasting, personalisation, and fraud detection during peak shopping events. Cloudera supports both historical and real-time data — each critical to retail success. Historical data trains demand forecasting models and informs customer behaviour analysis. But data isn’t just about hindsight; speed and timing are equally vital.

Real-time ingestion systems enable dynamic decision-making, detecting anomalies in transactions as they occur or triggering personalised offers the moment a customer enters a store. In retail, timing is everything. An offer sent even 15 minutes too late is ineffective, and fraud detection that lags behind live activity can lead to significant financial losses. Real-time visibility allows retailers to act instantly—approving legitimate transactions and blocking fraudulent ones before damage occurs.

The ability to manage data responsibly, scale systems under pressure, and build customer trust will determine who succeeds in today’s competitive environment. As holiday shopping peaks approach, the retailers that put visibility and governance at the heart of their strategy will be in the strongest position to serve customers and drive growth.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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