The Emerging Consumer Survey 2018 shows that today’s emerging consumers are just as connected as their peers in Europe or the USA, and are as likely, if not more so, to opt for online retail services. Smartphones are a key driver for online access.
The rapid adoption of smartphones and subsequent access to the internet has allowed emerging market consumers to be a major global force across a range of online activities including online retail, gaming, and eSports. Internet access among Emerging Consumer Survey respondents is now around 80 percent or more in all countries except Indonesia and South Africa. Quite clearly, lower average spending power has not deterred consumers across our emerging economies to gain access to the internet and start benefiting from its range of services. In conjunction with total population sizes, it clearly makes them stand out among the economies surveyed as the biggest online retail markets.
There is huge growth potential for online retail. The current online spending of around USD 1.29 trillion across the economies surveyed would increase to around USD 2.7 trillion if the share of online retail spending were to increase to just 25 percent in China and 15 percent elsewhere, and assuming that total retail spending increases at 5 percent per year.
Many factors are indicating that online retail spending across emerging markets is far from played out.
Urbanization Coincides with Greater Propensity to Shop Online
As urbanization is set to continue to rise across emerging markets, it should coincide with a growing share of online consumer spending in our view. This is because greater urbanization and population density help to ease the logistical challenges that online companies face when developing their services.
More and more web traffic is generated by smartphones and tablets, driving ecommerce sales. Many major brands make sure that their websites are mobile-adaptive — improving the customer experience — and more often than not they have native mobile apps to make shopping even easier for customers. If your website is not a tablet and mobile adaptive, you will definitely be losing the youth of Generation Z and millennial customers.
Moreover, technological improvements such as better connectivity and voice-activated shopping have caused a surge in mobile shopping income from $3 billion to $31 billion in America only. Customers get real-time updates of new product launches, exclusive deals, and promotional schemes, and the one-touch purchase option has caused an exponential growth in ecommerce.
Smartphones additionally permit for location-explicit offerings, building a more intimate customer-business relationship that drives more customers.
Think about hiring a technical support expert or an ecommerce support virtual assistant to easily transition into this new phase of online commerce.