THE NEW CONNECTED CONSUMER CODE:

UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

July 2016

INTRODUCTION

Scope of Digital Consumer

The scope of Digital Consumer:

Disclaimer

Digital purchases

Much of the information in this

briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies opinions, reader
discretion is advised.

Internet
The PAs will add the report
abstract here (please do not
exceed 500 characters including
spaces)

Digital Consumer
Mobile
telecommunications

Possession of digital
devices

Euromonitor International

CONSUMERS: DIGITAL CONSUMER

PASSPORT 2

INTRODUCTION

Key findings
The world is more
The number of internet users has doubled to reach 3.2 billion globally in 2016.
connected than ever before An estimated 43.9% of the population uses the internet as of 2016. This rapid
uptake of digital services has underpinned generational shifts in how
consumers browse and buy all types of products and services.
Mobile devices are
While the computer remains the dominant device when executing commerce,
increasingly becoming the the mobile phone is quickly grabbing device share. For example, Chinese
commerce device of choice consumers spent more through mobile devices for the first time in 2015.
Consumers in the UK and US are expected to cross that threshold by 2020.
Proximity as the next
commerce frontier

Remote mobile payments are currently the biggest slice of the mobile
purchase pie, but they have a growing complement in the form of proximity
payments. For many in the commerce space, the next frontier for commerce is
the proximity environment given the potential to bridge the digital and physical
environments for a more enhanced commerce experience.

Digital is manifesting itself

differently in traditional
industries

As compared with other industries, foodservice is just gaining its digital footing.
On the other hand, online bookings have been a well-established channel for
many years in the travel industry. Of course, the retailing industry should not
be ignored either due the industrys size and how mobile is fundamentally
shaping the way consumers shop in store and on the go for goods.

Identify markets with the

greatest digital promise

Markets like China, India, the UK and the US are undoubtedly important
markets to watch due to the sheer size of the consumer market and pace of
digital development. However, there are also lessor known markets like
Canada, Indonesia, Mexico, Poland and United Arab Emirates that companies
should not overlook when exploring the next digital commerce opportunity.

Euromonitor International

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Consumers are more connected today than ever before

Consumers of today are more
connected than ever before. The
number of internet users has doubled
to reach 3.2 billion globally in 2016.
An estimated 43.9% of the population
uses the internet as of 2016,
according to the latest data from
Euromonitor International.
Increasingly consumers are
connecting to the internet via
devices, which may include anything
from a computer to a smartphone to
smartwatch.

3.2 BILLION 43.9%

Global internet users
as of 2016
Euromonitor International

Population using
Internet as of 2016
CONSUMERS: DIGITAL CONSUMER

These rapid increases in digital

connections have ushered in speed
and convenience across all aspects
of life. This digital connectivity also
has underpinned generational shifts
in how consumers browse and buy
all types of products and services.
Digital devices are increasingly
becoming the way companies
connect with todays consumers.

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Mobile devices have ushered in the new connected consumer

Enables mobile-driven offers, coupons
and discounts

Allow brands to know consumers better

through advanced analytics
Enable brands to deliver personalised
products to meet those needs
Assist consumers in locating the desired
products in store
Aid consumer in comparison shopping

Manage loyalty offers and reward

Replace physical wallet as receptacle for
all identification and payment cards

Euromonitor International

The mobile device has set into motion generational

shifts in a number of industries, including
payments, retailing, foodservice, entertainment and
travel, that together encapsulate the commerce
experience. This increased availability of
smartphones has ushered in a new type of
consumer a connected one.
In fact, the mobile phone, and specifically the
smartphone, may be the most disruptive force yet
unleashed on the once linear path to purchase. Its
always-on availability is transforming predictable
consumer journeys into dizzying twists and turns.
In recent years, commerce players have begun to
embrace this device found in many consumers
pockets as a tool for understanding these
consumers, delivering more personalized offers
and driving stronger brand engagement.
Undoubtedly in the years to come, mobile will
continue to rewrite the commerce playbook. These
new mobile-first consumer desire immediacy,
transparency and convenience above all else and
now it up to brands to deliver upon those wishes
through mobile-enriched commerce experiences.

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Mobile increasingly becoming the commerce device of choice

Back in 2007, Apple set off the
smartphone revolution when it
introduced the iPhone to market.
Since then other mobile phone
manufacturers have followed suit.
While some industry watchers
back then doubted the potential of
the iPhone to impact the mobile
industry let alone commerce
the product has increasingly
become the commerce device of
choice for global consumers.
While the computer remains the
dominant device when executing
commerce transactions today, the
mobile phone is quickly grabbing
device share. Collectively, mobilebased commerce across these 10
markets shown to the right is
expected to grow at 28.4% CAGR
for the 2015-2020 period while PC
purchases will expand at only a
4.7% CAGR.

Euromonitor International

Digital Purchase by
Device 2015

Forecasted Mobile-Based
Purchases 2015-2020
CAGR %

United Kingdom
USA
USA
United Kingdom
United Arab
Emirates

South Africa

South Africa

United Arab
Emirates

Brazil

Russia

Russia

China

Australia

Australia

Japan

India

India

Brazil

China

Japan
0%

PC

Mobile

50%
Tablet

100%
Wearables

CONSUMERS: DIGITAL CONSUMER

20

40

60

2015-2020 CAGR %

PASSPORT 6

$497
billion

Of mobile-driven commerce in
2015 in the 46 markets
researched by Euromonitor

$1.8
trillion

Of mobile-driven commerce in
2020 in the 46 markets
researched by Euromonitor

7%

Mobile payments as a
percentage of card payment
volume in 2020 across the 46
markets researched by
Euromonitor International.

THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Chinese consumers spent more via mobile than PC for first time
For the first time in 2015, Chinese consumers spent more through mobile
devices than computers, according to the latest research available from
Euromonitor International. This shift to mobile-based shopping in China,
can be attributed to the increased penetration of smartphones and the
arrival of more user-friendly mobile apps that further cement the
convenience of on-the-go consumption.

Mobile-Based Digital
Purchases by Industry
2020

These efforts were given a boost when the Chinese government

launched the Internet Plus action plan in March 2015, which was aimed
at encouraging digital purchases in traditional industries. To fulfill that
goal, the government committed to accelerating the development of 4G
networks and Wi-Fi coverage. As a result, mobile is expected to
consolidate its leading position as the key form factor of the future.

Digital Purchases by Device in China 2013-2020

100%
80%
60%
Retailing
40%

Consumer Foodservice

20%

Other
Transport

0%
2013

2014

2015

Mobile Digital Purchases

Euromonitor International

2016

2017

PC Digital Purchases

2018

2019

2020

Tablet Digital Purchases

CONSUMERS: DIGITAL CONSUMER

Lodging
Tickted Attractions and Entertainment

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

US and UK consumers increasingly shifting towards mobile as well

Both UK and US consumers will join Chinese consumers
in spending more digitally through mobile phones than
personal computers by 2020, according to the latest
research from Euromonitor International.

Digital Purchase by Device 2020

United Kingdom

In the US, for example, 20% of all digital purchases were

executed through a mobile phone in 2015. By 2020 when
US consumers are expected to spend more via mobile
phones, Euromonitor International estimates that 46% of
digital purchases will be made via the mobile phone.
Digital spend via mobile devices in the US will increase at
a CAGR of 38% for the 2015-2020 the fastest of the 46
markets researched by Euromonitor International.

USA
United Arab Emirates
South Africa
Brazil

Russia
Australia
Japan
India
China
0%
PC

20%

Mobile

Euromonitor International

40%

Tablet

60%

80%

Wearables

100%

The willingness of US consumers to make digital

purchases continues to grow as consumers become
more familiar with online buying across categories and
broadly expect those capabilities will exist. The fastestgrowing industry category for future digital purchases
made by US consumers will be foodservice. This industry
only recently found its digital footing thanks to the
dominance of players like Starbucks Corp. in the
proximity environment , Dominos in the remote
environment and the fast rise of online ordering food
platforms like Grubhub.

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

A number of factors underpin digital commerce opportunities

Euromonitor International

Consumers

Access to digital services and

hardware
Demographics
Capacity to spend

Industries

Interest in spending digitally

Digital development of
specific industry verticals
Propensity of particular
categories to be sold digitally

Economies

Markets state of economic

development
Ease of doing business in the
market
Development of markets
telecom industry

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Half of the global population will be digitally connected by 2020

50.4% 51.3% 8.2%

Global population
expected to use the
internet as of 2020

Euromonitor International

Mobile telephone
subscriptions will include
internet access by 2020

CONSUMERS: DIGITAL CONSUMER

Forecasted 2015-2020
CAGR growth of mobile
internet subscriptions

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THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Digital manifesting itself differently across various verticals

17.3% 12.1% 8.6%

2015-2020 CAGR growth of
online foodservice sales as
compared with 2.5% for
offline foodservice sales

2015-2020 CAGR growth of

internet retailing as compared
with 1.9% for store-based retail
sales

2015-2020 CAGR growth of

online lodging sales as
compared with 1.2% for offline
lodging

THE NEW CONNECTED CONSUMER CODE: UNLOCKING DIGITAL COMMERCE OPPORTUNITIES

Five digitally promising markets and their respective opportunities

Canada
Direct Airline Bookings
Direct Lodging Bookings
Media Products

Indonesia
Direct Airline Bookings
Apparel and Footwear
Full-service Restaurants

Mexico
Direct Lodging Bookings
Consumer Electronics
Consumer Appliances

Poland
Direct Airline Bookings
Consumer Electronics
Apparel and Footwear

United Arab Emirates

Direct Airline Bookings
Online Travel Agencies
Tour Operators

Euromonitor International

Markets like China, India, the UK and the US are

undoubtedly important due to the sheer size of the
consumer market, but this analysis goes a step
further to identify lessor known opportunities. Based
on this analytical exercise, these are the five digitally
promising markets and their most promising digital
opportunities are listed below. The specific
opportunities in each of these markets is based on
the absolute value growth of categories within the
retailing, travel and foodservice industry sectors.
The opportunities in these five markets are mixed. In
the United Arab Emirates, for example, the digital
opportunity is driven by the more well-developed
travel industry whereas Mexicos forecasted digital
commerce expansion Is expected to carried by bigticket purchase items. Even though digital commerce
is a relatively new concept, it is taking root differently
across various markets and industries. The
commonality across all markets and industry verticals
is that digital commerce is growing fast. Determining
what that growth means for a specific market or
industry is the challenge and the inherent struggle of
identifying the next digital commerce opportunity.

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FOR FURTHER INSIGHT, PLEASE CONTACT

Michelle Evans
Digital Consumer Manager
Euromonitor International
michelle.evans@euromonitor.com
https://twitter.com/mevans14\
https://www.linkedin.com/in/michelleevansmaclachlan

ABOUT EUROMONITOR INTERNATIONAL

Euromonitor International: Strategic global market research

Euromonitor International

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ABOUT EUROMONITOR INTERNATIONAL

Digital Consumer explores the digital evolution of commerce

Understand digitally connected consumers around
the world with Digital Consumer, examining how
technological advances, including the arrival of
smartphones to the masses and location-based
tools, are forever altering the way that consumers
research, shop and pay for all types of products and
services.

Euromonitor International

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