Top Five Digital Consumer Trends in 2020 Webinar PDF

Top Five Digital Consumer
Trends in 2020
Michelle Evans, Senior Head of Digital Consumer

Amanda Bourlier, Consultant
INTRODUCTION 3
Euromonitor International
© Euromonitor International
INTRODUCTION 4
About the speakers
Michelle Evans Amanda Bourlier

Senior Head of Digital Consumer Consultant
Euromonitor International Euromonitor International
55
Widespread internet access

underpinning generational shifts.
The advent of the mobile internet, in particular, has been one of the greatest
innovations as it put the world at consumer’s fingertips with them using these
devices across life, including commerce activities.
©
© Euromonitor
International
INTRODUCTION 6
The five technology trends that will redefine

commerce the most in 2020
1. 2. 3. 4. 5.
Passive commerce Privacy pushback Staying true to Last mile arms 5G steps into the
gets boost spreads oneself race intensifies spotlight
7
1.
Passive commerce gets boost
8 8
Always-on is the new normal for

connected consumers globally.
The coming phase of connectivity will, however, be a giant leap in terms of

breadth. Connectivity is expanding so rapidly that the notion of everything
being connected is not just a plot in a science fiction film anymore.
PASSIVE COMMERCE GETS BOOST 9
The Internet of Things is viewed by industry

professionals as one of the top technologies
Technologies Expected to Impact Reasons Against Investing in the

Business the Most In Next Five Years Internet of Things, 2019
Artificial intelligence No clear use case for

business
Internet of Things High cost of

implementation
Cloud Lack of internal

knowledge
Robotics/automation Inadequate infrastructure

internally
Augmented
Slow adoption of needed
reality/virtual reality
infrastructure
0% 20% 40% 60% 80%
0% 20% 40%
% of industry professionals
Source: Euromonitor International’s Digital Consumer Industry Insights Survey, November 2019
10
38%
Connected consumers globally
41%
Connected consumers globally say
say they own a smart laundry they would pay a premium for smart
appliance appliances
The consumer benefits of the Internet of

Things thus far are more subtle in nature
How the Internet of Things Is Expected to Impact Commerce 2019
Improved customer engagements
Autonomise consumer purchase decisions
Service-oriented business models
Fulfilment and logistics
Consumer-facing applications
0% 10% 20% 30% 40%

Will have an impact in the next five years Has already impacted
12
In the future, more commerce

choices will be aided by machines.
Consumption is transitioning from being active to more passive. IoT will forever
change the way consumers purchase certain types of products and services.
13 13
GE Appliance’s Wi-Fi connected dryers and GE Appliances, a unit of Chinese appliance

dishwashers are integrated with the Amazon maker Haier, added Amazon’s voice assistant
Dash Replenishment Service, which allows users Alexa and Alphabet’s Google Assistant across
to automatically reorder fabric softener or different models, enabling consumers to control
detergent from Amazon. their appliances by voice.
14 14
HP launched Instant Ink, a subscription service Instant Ink transformed part of HP’s business
that monitors ink usage and sends cartridges to model into a subscription service, which
consumers before they run out. Besides a connects HP directly with consumers. This is
consistent revenue stream, the service also part of a larger shift as manufacturers look to
gives HP more accurate forecasts. adopt more service-oriented business models.
What to expect in 2020 and beyond
Appliance makers will

Passive commerce
give smart homes a
will clear first hurdle
boost
Consumers will still Eventual shift to

need to be educated machine-aided
regarding the commerce will
benefits redefine commerce
16
2.
Privacy pushback spreads
PRIVACY PUSHBACK SPREADS 17
Consumer desire for personalised

experiences requires data
Seek Personalised Shopping Experiences, 2019
Developed market
Generation Z
Millennials
Generation X
Baby Boomers
Emerging or developing market
Generation Z
Millennials
Generation X
Baby Boomers
0 5 10 15 20 25 30 35
% of online respondents who agree

Source: Euromonitor International’s Lifestyles Survey, 2019
18
38%
58%
Consumers globally say they
say they share their data in order actively manage privacy settings
to receive targeted offers
Number of factors are fueling the privacy

debate unfolding worldwide
Consumers themselves are evolving
Enhanced tech is making so much more possible
Regulators taking note of growing influence of tech titans
New privacy-protecting laws put privacy in the spotlight
Commercial exchange of data is more top of mind
20 20
The hallmark characteristic of the privacy- In order to strike a balance between privacy and
focused browser Brave is its suite of security ad-based revenues that websites rely on, Brave
and privacy features. While ad-blocking and offers users rewards for opting into ads, which
antitracking plugins are available for other Brave still alters so they do not track users.
browsers, this is Brave’s default setting. Users earn 70% of what is spent on the ads.
21 21
Digi.me, a UK data sharing platform, and the Digi.me, which allows individuals to securely
Universal Basic Data Income community is import and store encrypted data from different
hoping to take advantage of converging drivers, sources, partnered with UBDI, a community that
including tools that make it easier to collect enables users to get paid for sharing
data and a rise in pro-privacy regulation. anonymous, aggregated insights.
Companies must Companies must be

consider privacy as forthright about data
part of value prop collection
Tech titans can Consumers will gain

expect to face more more power over
regulation data usage
23
3
Staying true to oneself
24
51%
say they only buy from
companies and brands they trust
completely
67%
say friends and family
recommendations are very or
extremely influential
STAYING TRUE TO ONESELF 25
Despite exposure to digital, consumers trust

personal connections much more
Global Marketing Influences by Channel, Extremely Influential, 2019
Friends/family recommendations
Friends' social media posts
TV commercials
Social media posts from a brand
Online influencers
Celebrity endorsements
Print
0% 5% 10% 15% 20% 25% 30% 35% 40%

% of online respondents
26
Industry Consumers
Risks of influencers More influencer options
Formalizing influencer economy Fatigue for mega influencers
Hard to measure ROI Preference for short content
27
Lu is the virtual avatar of

Brazilian retailer, Magalu. She
humanizes the online shopping
experience, giving product
recommendations and providing
customer service.
Lu is everywhere online: she has

multiple social media accounts
with over 16 million followers,
has a podcast and a Tinder
account, and occasionally
appears live at events.
28
Outdoor apparel and equipment

brand Patagonia’s flagship
influencers are its cohort of
Patagonia Ambassadors.
Ambassadors are involved

behind the scenes as well:
Patagonia reportedly involves its
Ambassadors in new product
development and incorporates
their feedback into new
launches.
STAYING TRUE TO ONESELF 29
Digital marketing
New types of
gains ground, but
influencers are
trust is in short
emerging
supply
Innovative tools Trust will only

emerge to support become more key as
trust-based the internet becomes
marketing more sponsored
30
4
Last mile arms race intensifies
31
27%
cite avoiding delivery hassles as
a motive to shop in stores
46%
say they are willing to spend
money to save time
32
Cumulative Funding for Select Online

Delivery Platforms
2,000
1,800
Existing hyperlocal last
Cumulative funding (USD million)

1,600
1,400
mile platforms have 1,200
been largely fueled by 1,000
venture capitalists. 800

600
400
200
0
Instacart Rappi GoGoVan Peapod Honestbee Airtasker
Source: Crunchbase, as of December 2019
33
In 2017, department store chain Nordstrom began The stores also feature additional services, such
piloting small format locations called Local. The as tailoring and clothing rental Rent the Runway
stores feature no merchandise, and instead serve returns management. Look stores offer
as pick-up points for online orders. convenient collection of purchases, as well as
boost loyalty and revenues.
34
Fabric is a micro-fulfilment
centre operator that also
provides automatic order
fulfilment powered by robots.
One example of Fabric’s

operations is a fulfilment and
order processing centre it is
building in an underground
parking lot under a skyscraper in
Tel Aviv.
35
Eco-Conscious Consumers by
Type, 2019
North America
Consumers are Middle East and

Africa
becoming wary of the Latin America
environmental impact of Europe

home delivery.
Asia Pacific
0% 10% 20% 30% 40%

Online respondents
Non-Digital Consumer Digital Consumer
LAST MILE ARMS RACE INTENSIFIES 36
Status quo last mile New last mile options

delivery will not be present trade-offs for
sufficient for long consumers
Last mile emerges as Delivery and pick-up

a new moment for innovation may offer
brand engagement new revenue streams
37
5.
5G steps into the spotlight
38
38
5G will open the floodgates in terms of

computing power with download
speeds of one gigabit per second.
This greater mobile broadband is needed to support the advancement of other

technological initiatives, including more advanced video streaming, real-time
smart transportation systems and a more comprehensive IoT ecosystem.
©
© Euromonitor
International
5G STEPS INTO THE SPOTLIGHT 39
Use cases for 5G networks likely to evolve

over the next five years
How 5G Has Already And Will Impact Commerce, 2019
More personalized mobility experiences
Enhancement of AR/VR-based applications
More sophisticated in-outlet experiences
Stronger smart home or IoT use cases
More efficient and personalised m-

commerce
Greater bandwidth in densely populated
areas
0% 10% 20% 30% 40% 50% 60%

% of industry respondents
Will Impact in Next Five Years Will Impact in Next 12 Months Has Already Impacted
40 40
The 2020 Olympics tech sponsors, including Intel is planning for more video streaming and
Intel, NTT Docomo and Toyota, plan to turn more pervasive facial recognition for security.
Tokyo into a 5G smart city. While 5G was Intel is working with Japanese electronics giant
present at the Winter Olympics in 2018, it is NEC on a system that can identify 300,000
expected to be more prominent in Tokyo. people at venues and accommodations.
41
When Apple launched its latest

line-up of phones, the biggest
news may have been what they
didn’t include. Its newest models
are not 5G compatible.
Apple has been known to take a

wait-and-see approach before
with other tech launches. Those
decisions did not impact their
long-term positioning.
Source: Apple
5G will not be universal anytime soon
Percentage of Population Covered by At Least an LTE/WiMAX Mobile Network,

2019
100%
90%
80%
Percentage of the population
70%
60%
50%
40%
30%
20%
10%
0%
US UK China Japan Australia India Brazil Philippines Mexico Russia Peru Nigeria
Source: Euromonitor International’s Passport Digital Consumer
Earliest applications
5G pilots will grow in
are likely to be
urban areas
behind the scenes
Later applications will

Global arrival of 5G
power futuristic
will be staggered
experiences
44
Key takeaways
45
45
Passive commerce Privacy pushback Staying true to

gets boost spreads oneself
The forthcoming era of machine- With more pro-privacy As consumer expectations for
aided commerce will change the regulation possible in places like brand engagement continue to
way consumers browse in some the US and companies rise, brands must remain true to
categories, creating increasingly viewing privacy as a brand values and prioritize
opportunities for some while USP, consumers will likely gain transparency above all else in
calling into question the way more control over who collects order to build trust with their
many others conduct business. their data and for what purpose. consumers.
Last mile arms 5G steps into the

race intensifies spotlight
Companies will increasingly Ongoing pilots and commercial
compete against each other not rollouts will make 5G more of a
just on price and product, but reality for urban consumers in
also on delivery and other more developed markets, thus
fulfilment options as each seeks opening the door to continued
to differentiate themselves. technological development.
Thank you
Michelle Evans @mevans14
Senior Head of Digital Consumer Linkedin.com/in/michelleevansmaclachlan
Michelle.Evans@Euromonitor.com Forbes.com/sites/michelleevans1
Amanda Bourlier
Linkedin.com/in/amandabourlier
Consultant
Amanda.Bourlier@Euromonitor.com
@Euromonitor
Linkedin.com/company/euromonitor-international
Blog.euromonitor.com

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Top Five Digital Consumer

Michelle Evans, Senior Head of Digital Consumer

About the speakers

Michelle Evans Amanda Bourlier

Widespread internet access

The five technology trends that will redefine

Always-on is the new normal for

The coming phase of connectivity will, however, be a giant leap in terms of

The Internet of Things is viewed by industry

Technologies Expected to Impact Reasons Against Investing in the

Artificial intelligence No clear use case for

Internet of Things High cost of

Cloud Lack of internal

Robotics/automation Inadequate infrastructure

The consumer benefits of the Internet of

How the Internet of Things Is Expected to Impact Commerce 2019

Improved customer engagements

Autonomise consumer purchase decisions

Service-oriented business models

Fulfilment and logistics

0% 10% 20% 30% 40%

In the future, more commerce

GE Appliance’s Wi-Fi connected dryers and GE Appliances, a unit of Chinese appliance

What to expect in 2020 and beyond

Appliance makers will

Consumers will still Eventual shift to

Consumer desire for personalised

Seek Personalised Shopping Experiences, 2019

% of online respondents who agree

Number of factors are fueling the privacy

Consumers themselves are evolving

Enhanced tech is making so much more possible

Regulators taking note of growing influence of tech titans

New privacy-protecting laws put privacy in the spotlight

Commercial exchange of data is more top of mind

What to expect in 2020 and beyond

Companies must Companies must be

Tech titans can Consumers will gain

Despite exposure to digital, consumers trust

Global Marketing Influences by Channel, Extremely Influential, 2019

Friends' social media posts

Social media posts from a brand

0% 5% 10% 15% 20% 25% 30% 35% 40%

Lu is the virtual avatar of

Lu is everywhere online: she has

Outdoor apparel and equipment

Ambassadors are involved

What to expect in 2020 and beyond

Innovative tools Trust will only

Cumulative Funding for Select Online

Existing hyperlocal last

Cumulative funding (USD million)

venture capitalists. 800

Source: Crunchbase, as of December 2019

One example of Fabric’s

Consumers are Middle East and

environmental impact of Europe

0% 10% 20% 30% 40%

Non-Digital Consumer Digital Consumer

Source: Euromonitor International’s Lifestyles Survey, 2019

What to expect in 2020 and beyond

Status quo last mile New last mile options

Last mile emerges as Delivery and pick-up