New research from Euromonitor suggests that the percentage of population covered by at least 3g mobile in developed countries already is reaching its maximum. But the evolution on emerging markets will speed its grow from 2020.
Developed market consumers tend to have greater access to digital hardware and services than emerging market consumers. Of the top 10 markets with the highest current scores on Digital Connectivity Index (internet coverage in countries), all are developed. Conversely on developing markets, the upward coverage is still on a growth phase. This means the existence of big profitability, having in account the population on these countries, in mostly of the cases, is higher than developed ones.
Euromonitor score of digital connectivity forecast reveal in developed markets an increase of 4 points over the period from 2015 to 2030. When this is compared to the one of the markets in development, Digital connectivity in these countries confirm expanding from a collective rising from 19.5 to a forecasted 24.3, reflecting 5 points of growth. Besides the difference is not too big, what this reveals is a rising household broadband penetration, and also that increased share of mobile internet subscriptions to total mobile subscriptions will grow faster in developing markets.
Moreover in 2016, 79% of developed market consumers used the internet compared with 36% of emerging market consumers. According to Euromonitor, the gap will narrow by 2021, as it is projected that the number of internet users in emerging markets will expand four times faster than in developed ones.
These implications also drawn a forecast pointing the next economic trends both in travel and retail sectors:
“58% Share of total travel-related purchases expected to occur digitally in 2020. US$360 billion in absolute value is predicted to be added over 2015-2020.”
“11% Share of total retailing sales expected to occur digitally in 2020. US$760 billion in absolute value is predicted to be added over 2015-2020.”
Some of these fundamental shifts in the economy, demographics, household formation and environmental attitudes combined with those great technological leaps, are driving change in consumption habits and laying the foundations for a new type of consumerism. Increasing access to technology and internet integrated advancements are happening alongside these fundamental shifts, enabling new shopping behaviours while allowing consumers to deal directly with other consumers, to compare prices, and to obtain the best deal at the touch of a button.
“These fundamental shifts combined with great technological leaps, are driving change in consumption habits and laying the foundations for a new type of consumerism”
So how companies and start-ups can deal with this new consumerism without getting left behind and remain competitive?:
– Companies will need to expand to developing markets to seek for new business opportunities related to technological changes and expand their target.
– Companies will need to have a considerable web presence for staying competitive and up-to-date.
– Networking with the right customers, other small business owners, suppliers, distributors and others will help businesses ease with the transition of the digital age and adapt faster.
– Companies will need to study consumption habits more deeply for delivering a better customer service during the research, selection, purchase, and delivery phases of their customers.
– Companies will need to outperform trough systemizing online activities as social media presence, online marketing campaigns or e-commerce related activities, in order to reach their greatest market potential
– Companies that want to stay up a bit more differentiated and at the top tier will need to invest in new technological features (augmented reality, artificial intelligence…), to provide a better service and a unique shopping experience that will enable customers to pick them.
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Sources: “The new consumerism. The data behind the trends”. Euromonitor 2016
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