Top Five Digital Consumer

Trends in 2019

Michelle Evans, Global Head of Digital Consumer

Amanda Bourlier, Consultant
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INTRODUCTION 3

Euromonitor International

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INTRODUCTION 4

About the speakers

Michelle Evans Amanda Bourlier

Global Head of Digital Consumer Consultant
Euromonitor International Euromonitor International

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51%
Global population using the
4 billion
Internet users globally as of 2019
internet as of 2019

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INTRODUCTION 6

The five digital trends that will redefine

commerce the most in 2019

1. 2. 3. 4. 5.
Consumers seek Outlets get Brands search Consumers take Super apps go
digital balance autonomous for their voice the CX wheel global

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1.
Consumers seek digital
balance

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69%
Connected consumers browse the
internet daily on a phone – the most
popular activity
53%
Connected consumers report
they would be lost without said
internet access

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CONSUMERS SEEK DIGITAL BALANCE 9

Having the world at one’s fingertips has not

been without challenges

Internet Adds Great Deal of

Internet Adds Great Deal of Stress by Market, 2017
Stress by Age, 2017
India
Russia 15-29

Middle East
Thailand 30-44
Brazil
Indonesia
45-59
USA
France
South Africa 60+
South Korea

0 10 20 30 40 50 0 20 40

% of respondents who strongly agree or agree

Source: Euromonitor International’s 2017 Lifestyles Survey

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Targeted Ads Based on Online Searches or

Purchase History Are An Invasion of Privacy,
2017
France
UK
India
Russia
Australia
South Africa
Canada
Privacy concerns have South Korea
US
led some consumers to Poland
Germany
reevaluate digital Italy

relationships. Thailand
China
Middle East
Turkey
Japan
Brazil
Mexico
Indonesia
Colombia

0 20 40 60
% of respondents
Source: Euromonitor International’s 2017 Lifestyles Survey
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11

Digital detox has evolved from an

all-or-nothing to a balanced approach.

While consumers have been running towards the internet since first coming
online, there is a palpable countertrend gaining traction, whereby consumers are
resisting this always-on mentality.

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Apple, the world’s second largest

smartphone maker, introduced
tools to limit screen time as part
of its new operating system in
mid-2018.

The Screen Time Dash

summarises a user’s daily and
weekly activities, detailing social
media usage, how often a user
checks their phone, the most-
used apps, etc.

Source: Apple
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Source: Facebook

Social media giant Facebook has taken an It also added features that log time spent on the
active role in helping users maintain digital Instagram platform as well as a “You’re All Caught
balance, introducing features to track their Up” check mark to signal that users have read all
usage on its flagship platform. the posts in their feed.

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Source: Mandarin Oriental
Working with the Mayo Clinic, the Mandarin
Oriental's Spa curated a brand-wide digital
escape where guests are asked to turn over
their smartphone.
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It begins with a 20-minute soak in a Shungite bath,
a natural carbon that binds to free-radicals
absorbed in reaction to our devices’ radiation. The
massage focuses on areas of the body most
impacted by tech usage.
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Even at ecoYoga Scotland, a

tranquil riverside retreat
dedicated to teaching yoga and
sustainable living, guests still
desire that connection to the
outside world.

The centre is powered by 550Kw

hydro turbine and a large bank
of solar panels, but it offers Wi-Fi
to keep its wellness guests
connected in a part of the world
where mobile connectivity is
patchy.

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What digital wellness means for companies

that serve consumers directly

More intentional
Companies and
with their time and
brands must be
more selective in
deliberate
their activities

No longer pure Consumers gain

followers more of a voice

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2.
Outlets get autonomous

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Sources: Amazon, Farmer’s Fridge

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Source: JD.com
In early 2017, JD.com announced its intention to
open hundreds of unattended convenience stores.
JD.com also announced a second unattended
commerce solution, the D-Mart Smart Store Solution.
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By developing two approaches, JD.com
acknowledges that different formats will have
different needs and positions itself strongly
against newer entrants like Amazon and
Alibaba.
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Café X features a fully

automated coffee ordering and
preparation process. Customers
order via an on-site tablet, and a
robot prepares and serves the
coffee.

Café X reduces the time

consumers spend waiting in line
to order and reduces the risk of
order errors. This technology is a
taste of what might soon be in
the kitchen at a wider range of
restaurants.

Source: Café X
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Flyzoo is Alibaba’s first hotel, made available for
booking in late 2018. The hotel makes extensive
use of the internet of things, robots and facial
recognition to increase the hospitality functions
that can be automated.
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Guests check in with a robot using facial
recognition, which is then used to let travellers
gain access to their rooms without the need for a
traditional key.
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Grabango
• Method: Sensors and algorithms
• Best fit: Large retailers with many
locations

Caper
Retrofitting options • Method: Smart shopping carts, which
emerge, lowering shoppers use to scan each item as they
add it to their basket
unattended commerce • Best fit: Very large format stores,
independent retailers
implementation costs.
MishiPay
• Method: Customers scan each item
with their phones as they add it to
their basket
• Best fit: Stores with tech-savvy
customers, stores with low average
number of items per purchase

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Risks Opportunities

Privacy and security concerns Reduces operating costs

Implementation costs Serves self-sufficient consumers

Maintaining customer experience Potential to save shoppers time

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Predictions for how unattended commerce

will develop in 2019

Start of a
Opens up new
profitability arms
business models
race

New technologies Growth will

will accelerate continue in the US,
roll-out China and beyond
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3.
Brands search for their voice

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BRANDS SEARCH FOR THEIR VOICE 26

Voice devices move from fad to functional

Volume Sales of Wireless Speakers by Region, 2013-2023

250

200
Volume sales (million)

150

100

50

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
North America Western Europe Asia Pacific Latin America
Middle East and Africa Eastern Europe Australasia
Source: Euromonitor International’s Passport Consumer Electronics
Euromonitor quantifies smart speakers as part of its Consumer Electronics coverage under “wireless speakers”. While this category includes different types of speakers
which can be connected wirelessly to other devices, the majority of growth in this category is coming from smart speakers.

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Engaging in voice poses new

branding opportunities.

Voice opportunities in 2019 are likely to centre around pre- and post-purchase
tasks. Companies will have to answer a number of questions about their voice
profile and the “sound” of their brand.

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PetCoach, owned by US pet

superstore chain Petco, provides
pet services and care advice. In
2018, Petco launched a new skill
for Amazon and Google voice
assistants through which
consumers can ask questions to
PetCoach about pet care.

Through PetCoach, Petco can

build a relationship with pet
owners via a “voice point” and
funnel them towards Petco for
product sales.

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Source: Ford

Ford and Starbucks launched a partnership in Orders placed in this way are handled the same as
2017 that allows consumers to place orders from Starbucks Mobile Order and Pay. The order will be
Ford vehicles with SYNC3 technology via voice waiting for the consumer upon arrival at the Starbucks
through Amazon Alexa. store.

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BRANDS SEARCH FOR THEIR VOICE 30

Implications of the growing role of voice

Technology for
A new tool for New challenges
distracted
all consumers for marketers
moments

Reduced
Potential for
reliance on
voice sales
visual marketing

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4.
Consumers take the CX wheel

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Improving the consumer journey is the top

concern for business leaders

Top Five Most Important Commerce-specific Developments in Coming 12

Months

Improving the customer journey and user experience

Creating a consistent brand experience across

channels

Becoming consumer centric

Integrating new technologies

Building mobile presence

0% 20% 40% 60% 80%

Sep-18 Feb-18
Source: Euromonitor International Digital Consumer Industry Insights Survey

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CONSUMERS TAKE THE CX WHEEL 33

Evolution of shopper journey put more

emphasis on the experience

Status and Consumption Values, 2017

I prefer to spend my money on experiences, rather

than things

You can tell a lot about a person from the car they
drive

0% 20% 40% 60% 80% 100%

Strongly agree or agree Neither Strongly disagree or disagree

Source: Euromonitor International’s 2017 Lifestyles Survey

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CONSUMERS TAKE THE CX WHEEL 34

Technology such as artificial intelligence

plays a pivotal role in crafting experiences

Top Five Technologies Impacting Business in the Next Five Years

Artificial intelligence

Internet of Things

Robotics/automation

Cloud

Augmented reality/virtual reality

0% 10% 20% 30% 40% 50% 60% 70%

Source: Euromonitor International Digital Consumer Industry Insights Survey, September 2018

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Impact on Commerce of Artificial Intelligence

2018

Improved customer
engagements

Enhanced website search

Artificial intelligence is
Handle customer service
expected to lead to requests

more personalised
customer engagements. Fulfilment and logistics

Voice-powered applications

0% 20% 40% 60% 80%

Will have an impact in the next 12 months

Will have an impact in the next five years
Will not impact
Source: Euromonitor International Digital Consumer Industry Insights Survey
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Source: Netflix

In 2018, US-television provider Dish Network Guests staying in hotels with entertainment powered
integrated Netflix into its Evolve television offer by Evolve will be able to access their personal Netflix
for hotels, advancing in-room entertainment account directly from the TV in their room. Evolve also
options for guests. has a partnership with the Google Play Store.

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Amazon partnered with Marriott

in mid-2018 to enable guests to
make requests for hotel
amenities using Amazon Alexa
on its voice-controlled device
Echo.

Guests will be able to log into

their personal accounts through
the in-room unit to play music
from services like Spotify and to
listen to books through Audible.

Source: Amazon
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Facenote aims to help

companies increase customer
engagement by equipping store
associates with information on
personal purchasing behaviours
and style preferences.

What makes this offer unique is

that consumers must opt in for
the experience. To opt in,
consumers provide Facenote
with a selfie taken either
through a tablet kiosk or camera
at the retail store.

Source: Facenote
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Tomorrow’s experiences must start

with a single view of the consumer.

Consumers of tomorrow will no longer accept the Frankenstein approach

whereby different teams leverage different technologies with different
objectives to create what is ultimately a broken consumer journey.

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5.
Super apps go global

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Super apps offer a seamless,

integrated, contextualised and
efficient consumer experience.

These all-in-one apps first sprouted up in Asia off the back of popular
social messaging apps like WeChat, which integrated other services on
its platform to drive greater usage and engagement.

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Source: WeChat
WeChat is a tight ecosystem of 1 billion users
that leverages social as the fabric for a
connected web of services, from
communication and finance to retail and social.
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WeChat emerged as the poster child for the
super app revolution, demonstrating how they
could leverage a platform like its social
messaging functionality as a jumping off point for
other services.
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Messaging Transportation

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Source: Line
Line is an app that allows for instant
communications. Operated by Line Corp, a
Japanese subsidiary of South Korean internet
search giant Naver Corp, the service began as a
disaster response tool.
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Line, which operates in countries like Japan,
Thailand, Taiwan and Indonesia, offers games,
digital streaming and a payment platform. It also
launched an on-demand professional services app
in 2016 called Line Man.

Source: GoJek
While many super apps are rooted in messaging,
others like Go-Jek started in transportation.
Established in 2011 as a motorbike-hailing
mobile app, Go-Jek capitalised on its network of
200,000 drivers across 25 cities.
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Go-Jek, which is Indonesia’s first unicorn, now
offers 18 different services, including online
foodservice (Go-Food), cargo deliveries (Go-Send),
home cleaning (Go-Clean), massages (Go-
Massage) and beauty treatments (Go-Glam).
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Grab, which started in 2012 as a

taxi-hailing platform, offers
several daily services. The
company has a payments
platform called GrabPay and
launched a financial services
platform for its 2.5 million
drivers.

In March 2018, the platform

bought out Uber’s business in
Southeast Asia, which included
Uber Eats. By May, Grab
announced its own foodservice
delivery platform called
GrabFood and launched it in six
markets.

Source: Grab
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Now the super app concept is being

replicated outside of Asia

Alphabet
• Communication: Gmail
• Financial: Google Pay
• Lifestyle: YouTube
• Retail: Google Search, Google Express, Google Shopping
• Utility: Google Maps, Google Assistant, Google Drive, Google Translate

Apple
• Communication: Mail
• Financial: Apple Pay
• Lifestyle: iTunes
• Retail: Apple Pay
• Utility: Apple Maps, AirDrop

Facebook
• Communication: Facebook, Facebook Messenger, WhatsApp
• Financial: Facebook Messenger (P2P payments)
• Lifestyle: Facebook Timeline
• Retail: Marketplace, Order Food, Facebook Messenger Chatbots
• Utility: Facebook Events Calendar and Weather

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Among the Western tech titans,

Facebook might be the closest to
mimicking the WeChat super app
model. The social behemoth has
integrated more functionality
that speaks to financial and retail
needs across its platforms.

In early 2019, Facebook

announced that it would
combine Messenger, WhatsApp
and Instagram messaging
services into a single, unified
platform. Facebook does not
expect it will go live until 2020 or
beyond.

Source: Facebook
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Source: Careem
Careem is a leading ride-hailing app operating
mainly in the Middle East. In recent months, it
has made aspirations to evolve into a lifestyle-
driven super app.
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Careem expanded into new markets in Africa and
added new delivery and payment capabilities.
Uber’s expansion and investment in the region
remains Careem’s key threat with its global
brand appealing more to tourists.
SUPER APPS GO GLOBAL 50

Implications of super apps on players across

the commerce ecosystem

Who owns the

A new breed of
consumer
competitors
relationship

Acceleration
Evolving consumer
of digital
expectations
transformation

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Key takeaways

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Consumers seek Outlets get Brands search for

digital balance
Consumers are balancing their
time spent online versus offline,
meaning consumers may be
more deliberate and selective
when it comes to their
interactions with companies.
autonomous
Companies with brick-and-
mortar outlets need to evaluate
whether components of
autonomous stores make sense
for their business, paying
attention to navigating consumer
attitudes about automation.
their voice
In light of how different voice is
from click- and tap-based
commerce, brands must start
exploring the implications of
voice to determine the best
“voice points” and develop their
voice branding.

Consumers take Super apps

the CX wheel
The holy grail for companies
operating in this new
omnichannel world will be
bringing all the consumer
interactions together in one
place to get a holistic sense of
the consumer’s needs.
go global
Although super apps first gained
traction in Asia, the concept is
being replicated elsewhere with
more brands likely to embrace the
power of a platform to connect
consumers to an array of services.

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Thank you
Michelle Evans @mevans14
Global 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