Press Conference: Decoding Digital Consumers

TL;DR

Emerging markets are now home to the majority of the world's online population, and the impact of digital consumers on consumer spending is often underestimated by about 2x.

Transcript

well good afternoon everyone we'd like to welcome you to this press conference here at the 2018 annual meeting of the new champions in tangen my name is Amanda Russo I'm on the public engagement team here at the World Economic Forum and for those of us watching on our webcast thank you very much for joining us if you'd like to engage in social medi... Read More

Key Insights

• 🌍 The majority of the world's online population is now in emerging markets.
• 🚨 Digital consumers in emerging markets have a significant impact on consumer spending.
• 🏛️ Companies need to adapt their approach to these markets and build customized playbooks.
• 🤩 Access to mobile internet, middle-class population, favorable economics, and innovation are key conditions for accelerating digital influence and e-commerce growth in emerging markets.
• 🧡 Different stages of digital development exist in emerging markets, ranging from digitally aware to digitally evolved.
• 🥺 China is leading in digitally evolved markets, with e-commerce representing 15% of total retail sales and 90% of urban consumers shopping online.
• 😵 Cross-border e-commerce is growing rapidly in China, driven by the desire for access to a world's worth of products.
• 🥺 Trust in online products and reviews is increasing, leading to greater consumer confidence in online purchases.
• ✋ Digital transformation of traditional industries is necessary to meet the high digital expectations of Chinese consumers.

Questions & Answers

Q: What percentage of the world's online population is in emerging markets?

The majority of the world's online population is now in emerging markets.

Q: How does the impact of digital consumers on consumer spending in emerging markets compare to developed markets?

The impact of digital consumers on consumer spending is often underestimated by about 2x in emerging markets compared to developed markets.

Q: What is the percentage of e-commerce sales compared to total retail sales in digitally evolved markets?

E-commerce represents around 15% of total retail sales in digitally evolved markets.

Q: What are some key conditions for accelerating digital influence and e-commerce growth in emerging markets?

Key conditions include access to mobile internet, a sufficient middle-class population, favorable economics of e-commerce, and innovation in product offering and consumer experience.

Summary & Key Takeaways

• The majority of the world's online population is now in emerging markets, and nearly all the growth in new online consumers will come from these markets until 2022.

• Digital consumers in emerging markets have a significant impact on consumer spending, with digitally influenced purchases being two times larger than actual e-commerce sales.

• Companies need to adapt their approach to these markets and build customized playbooks that take into account the differences and rapid changes in digital consumer behavior.