Top Five Digital Consumer

Trends in 2022
February 2022

Michelle Evans, Global Lead of Retail and Digital Consumer

Maxim Hofer, Consultant
Bob Hoyler, Consultant
 4.7 bn
Internet users globally in
2022, which equates to 60%
of the global population

89%
Industry professionals who
expect consumers will judge
their company on its digital
prowess post-pandemic
Sources: Passport: Digital Consumer, E-Commerce
database (middle); Voice of the Industry: Digital Survey,
fielded in November 2021 (bottom)
 6

The five tech-driven trends that will redefine

commerce the most in 2022

1 2 3 4 5
Predictive Delivery in Green E- Pickup Perks Into the
Personalisation Minutes Commerce Metaverse Shop

© Euromonitor International
1
Predictive Personalisation
PREDICTIVE PERSONALISATION 8

Loyalty in the digital era will be about less

tangible features

Most Influential Loyalty Features, 2021

Help me solve a problem

Offers just for being a customer

Make shopping process more convenient

Say “thank you” for being a customer

Keep me up to date on the latest news and products

Recommend products based on my needs

0% 10% 20% 30% 40% 50%

% of digital consumers

Source: Euromonitor International Voice of the Consumer: Digital Survey, fielded March 2021

© Euromonitor International
 31%
Global digital consumers who
say loyalty rewards that they
earn are not valuable

40%
Industry professionals who view
deepening customer loyalty
programmes as a key initiative

Sources: Voice of the Consumer: Digital Survey, fielded in

March 2021 (top); Voice of the Industry: Digital Survey, fielded
in November 2021 (bottom)
PREDICTIVE PERSONALISATION 10

More sophisticated consumers and data

creates perfect storm for next-gen loyalty

Attitudes Towards the Internet, 2021

I would be lost without internet access

I actively manage data sharing and privacy settings based on

my preferences
Targeted ads based on online searches and purchase history
are an invasion of privacy
I share my data in order to receive personalised and targeted
offers

I freely share personal information online

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

% of digital consumers

Source: Euromonitor International Voice of the Consumer: Lifestyles Survey, fielded January and February 2021
© Euromonitor International
 11

Amazon is one of the best

examples of a retailer that
has created its own
ecosystem to keep
consumers buying.

This flywheel approach

puts consumers at the
center of interactions,
leading to more siloed
shopping, and giving the
incumbent a leg up.

© Euromonitor International Photo source: Flickr

Photo credit: Amazon
 12

TikTok and its Chinese

counterpart Douyin
embraces interest-based
commerce, enabling
merchants to match
user desires to their
product lines.

As TikTok sees a rise in

users and time spent on
its platforms, this
approach is helping turn
the app into a social-
driven shopping mall.

© Euromonitor International
PREDICTIVE PERSONALISATION 13

What to expect in 2022 and beyond

Savvier digital Next-gen loyalty will

consumers will expect evolve from points to
more from interactions personalised
with brands experiences

Branded digital Companies must shift

ecosystems is one tool from reactive to
in these customer predictive customer
retention efforts strategies
© Euromonitor International
2
Delivery in Minutes
DELIVERY IN MINUTES 15

Consumer desire for convenience across all

categories will continue to shorten delivery times

Typical Online Purchases by Product Category, 2020/2021

Consumer electronics and appliances

Foodservice delivery and takeaway

Apparel and accessories

Beauty, health, and personal care

Homeware and home imrpovement

Household essentials

Food and beverages (groceries)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

% of digital consumers
2020 2021
Sources: Voice of the Consumer: Digital Survey, fielded in March and April 2020 and March 2021
© Euromonitor International
 86%
Growth of global food and drink
e-commerce in absolute dollar
terms from 2019 to 2021

42%
Global digital consumers who
say that longer than expected
waits are a delivery challenge

Sources: Euromonitor International’s Passport

Retailing, 2022 edition (top); Voice of the Consumer:
Digital Survey, fielded in March 2021 (bottom)
DELIVERY IN MINUTES 17

In the new era of on-demand commerce,

consumers expect faster delivery times

Reported Shopping Behaviour by Global Urban Population Growth, 2015-2021

50%
Digital Consumers, 2015-2021
4.5 57%

Urban population (billions)

% of digital consumers

4.4
40% 56%
4.3
30% 4.2 55%
4.1
20%
4.0 54%
10% 3.9
53%
3.8
0%
2015 2017 2019 2021 3.7 52%
I often make impulse purchases 2015 2016 2017 2018 2019 2020 2021
(f)
I buy groceries online (at least monthly) Urban population (in billions)
Share of total global population
Source: Euromonitor International Voice of the Consumer: Lifestyles Survey
Source: Euromonitor International’s Passport: Population, 2021 edition

© Euromonitor International
 18

Quick commerce
business models are Plan to Accelerate Investments in the
Next Year, 2021
evolving to meet rapidly App offers location-based
changing consumer coupons and promotions
Customers can receive push
expectations notifications with targeted
offers while in store
Customers can place orders
via a hyperlocal delivery app
Customers can reserve
online and pick up and pay
in store
Customers can collect orders
in non-store locations

0% 10% 20% 30% 40% 50%

Share of retail professionals
Source: Voice of Industry: Retailing Survey, fielded in June 2021

© Euromonitor International
 19

GoPuff has built its

success on rapid delivery
of convenience store
fare. Today, it operates
nearly 600 of its own
hyperlocal dark stores.

The company delivers in

900 US cities, and in
November 2021
expanded into its first
international market,
the UK, where it services
12 major urban centres.

Photo credit: GoPuff

© Euromonitor International
 20

In late 2021, Colombian

delivery platform Rappi
announced the launch of
its Rappi Turbo Fresh
programme, which
offers grocery delivery in
less than 10 minutes.

Given the popularity

Rappi already enjoys in
Latin America, Turbo is
expected to change
consumers’ delivery
time expectations in the
region’s urban areas.

© Euromonitor International
DELIVERY IN MINUTES 21

What to expect in 2022 and beyond

Retailers will build

Viability of current
ultrafast delivery
labour practices
infrastructure of
will be tested
their own

Consumers will use

Dark stores are the ultrafast delivery to
way of the future bring back impulse
purchases
© Euromonitor International
3
Green E-Commerce
GREEN E-COMMERCE 23

The surge in e-commerce globally collides

with rising environmental concerns

Percentage of Goods Bought Online by Region, 2019/2026

Goods e-commerce sales as a share of

30%
total retail value

15%

0%
World Asia Pacific North America Australasia Western Eastern Latin America Middle East
Europe Europe and Africa
2019 2026
Source: Euromonitor International’s Passport Retailing data, 2022 edition

© Euromonitor International
 60%
Value growth of goods
e-commerce globally between
2021 and 2026

65%
Global digital consumers who
indicate they are worried about
climate change

Sources: Euromonitor International’s Passport:

Retailing (top), Voice of the Consumer: Lifestyles
Survey, fielded in November 2021 (bottom)
GREEN E-COMMERCE 25

Green online shoppers are becoming

increasingly mainstream

Consumers Worried About Climate Business Expectations: Impact of Climate

Change, 2015/2021 Change, 2021
Consumer demand

2015
Regulation

2021 Supply chain

0% 20% 40% 60% 80% 100% Business resilience

% of digital consumers
Investor decisions
Agree Strongly Agree
Neither agree nor disagree Disagree
0% 20% 40% 60% 80% 100%
Strongly Disagree % of industry professionals

Source: Voice of the Consumer: Lifestyles Survey, fielded in January and February 2021 Source: Euromonitor International Voice of the Industry: Sustainability Survey, June 2021

© Euromonitor International
GREEN E-COMMERCE 26

Reputational risks at the heart of industry

shift towards green e-commerce

Post-COVID-19: Reasons for Company Climate-Related Actions Corporate

Sustainability Investment, 2021 Priorities, 2021
Education and consumer
Brand reputation
behavioural change
Brand image and ethos Low carbon product
innovation
Comply with legislation Offsetting carbon emissions

Attract investors Supporting suppliers to

decrease their emissions
Increase profit
Electric vehicles
0% 20% 40% 60% 80%
0% 20% 40%
% of industry professionals
% of industry professionals

Source: Euromonitor International’s Voice of the Industry: Sustainability, fielded in June 2021

© Euromonitor International
 27

In 2021, Deutsche Post

DHL Group announced
significant investments
to accelerate the
electrification of its last
mile delivery fleet.

The company expects it

can strengthen its last
mile position by
transitioning early to
emission-free deliveries.

© Euromonitor International Photo credit: Deutsche Post DHL Group

 28

In 2021, last-mile firm

Alfred24 and green
packaging player
Invisible partnered to
combine their green
solutions.

By providing a more
holistic approach and
incentives for
merchants, the two aim
to quicken the shift to
green e-commerce.

© Euromonitor International Photo credit: Alfred24, Invisible Company

 29

The transition towards

Strategic Priorities for Retailers and
green e-commerce will Brands, 2021

require brands, retailers

and others to make Invest in sustainability
initiatives

strategic adjustments
Increase revenue in
online channels

0% 20% 40% 60%

% of retail professionals

Strategic priority in the next 12 months

Strategic priority in the next five years

Sources: Voice of the Industry: Retailing Survey, fielded in June 2021

© Euromonitor International
GREEN E-COMMERCE 30

What to expect in 2022 and beyond

Intensifying climate Value-driven Gen Z

debate will accelerate will set new online
transition towards shopping expectations
green e-commerce in 2022

Sustainable solutions Conversation will shift

will increasingly from compensation to
become a reduction and
differentiating factor avoidance
© Euromonitor International
4
Pickup Perks
PICKUP PERKS 32

With e-commerce surging, consumers are increasingly

choosing to pick up their digital orders

Percentage of Goods Purchased Online (by Value), 2019-2026

24,000 30%
22,000

E-commerce % share of total retail sales

20,000 25%
18,000
Retail value sales, USD billion

16,000 20%
14,000
12,000 15%
10,000
8,000 10%
6,000
4,000 5%
2,000
0 0%
2019 2020 2021 2022 (f) 2023 (f) 2024 (f) 2025 (f) 2026 (f)

All other retailing sales E-commerce sales Share of e-commerce to total retail
Source: Euromonitor International’s Passport Retailing, 2022 edition
Note: E-commerce refers to goods bought online.

© Euromonitor International
 18%
Percentage of goods bought
online globally in 2021, the
highest ever e-commerce
penetration rate

60%
Digital’s contribution to the
absolute value growth for the
retail industry over the 2021-
2026 period

Source: Euromonitor International’s Passport

Photo credit: Best Buy
Retailing, 2022 edition
PICKUP PERKS 34

As supply chain issues intensify into 2022,

click and collect is set to expand

Global Consumer Motivations for Visiting Outlets Instead of Opting for Delivery, 2021

Immediate purchase

Convenient location/access

To avoid paying for shipping

No delivery-related hassles

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

% of digital consumers
Source: Voice of the Consumer: Lifestyles Survey, fielded January to February 2021

© Euromonitor International
 Operators are now ramping up click and collect – not only
to meet consumer demand, but also for their own benefit.
© Euromonitor International
 36

In late 2021, Ulta offered

promotional discounts of
up to 20% on click-and-
collect orders - discounts
that were not offered on
delivery orders.

As North American retailers

become more aware of the
drawbacks of partnering
with third-party delivery
services, the industry will
see similar promotions.

© Euromonitor International
 37

In 2020, Meituan launched

an app that brings
community group buying
to rural China. Orders are
delivered to designated
pick-up points - typically
stores in a nearby towns.

Community group buying

apps such as Meituan
Youxuan are making click
and collect viable in vast
swathes of rural China for
the first time.

© Euromonitor International
PICKUP PERKS 38

What to expect in 2022 and beyond

Click-and-collect In North America,

service will continue curbside pick-up will
to thrive into 2022 continue to gain
and beyond ground

Pick-up lockers will Click and collect will

become more finally make real
visible throughout inroads into Asia
Europe Pacific
© Euromonitor International
5
Into the Metaverse Shop
INTO THE METAVERSE SHOP 40

Virtual technology has the potential to take

online shopping to a new level

Typical AR/VR Commerce Activities, 2020/2021

Preview a holiday destination

Tour a potential hotel room

Shop for household items and furniture

Visualize how clothes might fit

Try on makeup

0% 30% 60%
% digital consumers who have used AR/VR in past year
2021 2020
Source: Voice of Consumer: Digital Survey, fielded in March and April 2020 and March 2021

© Euromonitor International
 55%
Baby boomers who are against
freely sharing online as opposed
to 41% of millennials

58%
Millennials who value virtual
experiences online as opposed
to 34% of baby boomers

Sources: Voice of the Consumer: Lifestyles Survey, fielded in

January and February 2021
INTO THE METAVERSE SHOP 42

Existing gamers and social media users likely

to be more interested in virtual worlds

Participate in an Online Video Game, 2021 Visit a Social Networking Website, 2021

Brazil
Generation Z
China
Millennials
Japan
Generation X Russia

Baby Boomers UK
US
0% 50% 100%
% of digital consumers 0% 50% 100%
Almost daily 1-2 times a week % of digital consumers
1-2 times a month Less than once a month Almost daily 1-2 times a week
Never 1-2 times a month Less than once a month
Never
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, fielded in January and February 2021

© Euromonitor International
INTO THE METAVERSE SHOP 43

Corporate metaverse strategies thus far

focus largely on building brand equity

How AR/VR Will Impact Commerce in Five Years, 2021

Create a virtual showroom

Replicate physical experience online

Enhance online path to purchase

Enhance in-person shopping experience

Purchase transaction

Brand engagement

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

% of industry professionals

Source: Voice of the Industry: Digital Survey, fielded November 2021

© Euromonitor International

Nike partnered with online gaming platform
Roblox to create a virtual world. In Nikeland,
users will be able to dress up their avatars in
Nike-branded apparel in this alternative world.
© Euromonitor International
44
Photo credit: Nike
As the metaverse comes to the forefront, small
and big brands are exploring how they can make
money. While Nikeland will be free at launch, it
could become a plan to test new products.
 45

Zepeto is Asia’s busiest

metaverse platform with 2
million daily active users –
four times the Roblox
platform.

Users can buy virtual items.

Fashion brands like Gucci,
Dior and Ralph Lauren have
sold virtual collections. CU
convenience chain also
launched a virtual store.

© Euromonitor International Photo source: Flickr Photo credit: BCF Retail Co Ltd
INTO THE METAVERSE SHOP 46

What to expect in 2022 and beyond

These platforms offer

Metaverse movement
an opportunity to
will be shaped by key
engage with loyal
behaviours
audiences

Consumers will likely 2022 will be for the

demand more frontrunners, but soon
substantive immersive all brands will need a
experiences metaverse strategy
© Euromonitor International
Key Takeaways
KEY TAKEAWAYS 48

COVID-19 accelerated the digital

transformation for most companies

Tech-Related Investments and Initiatives Accelerated Due to COVID-19, 2021

Development or improvement of omnichannel presense

Expansion of mobile applications and platforms

Tailored marketing or personalised recommendations

Enhanced website search or site navigation

Fulfillment and logistics to improve delivery efficiency

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

% of global industry professionals
Source: Voice of the Industry: Digital Survey, fielded November 2021

© Euromonitor International
 49 49

VIETNAM MARKET RESEARCH x MARKET REPORT COMMUNITY

Predictive Personalisation Delivery in Minutes Green E-Commerce

With consumer perception of
loyalty in flux, those companies
who amass the most useful data
and leverage to maximum benefit
are best positioned.
With ultrafast delivery times now
attainable in many cities, urban
consumers can utilize the
internet to make what are, in
effect, impulse purchases.
Climate action will become a key
focus of consumers and
policymakers amid the growing
urgency to find ways to make
e-commerce sustainable.

Pickup Perks Into the Metaverse Shop

As rising concerns over supply
chain issues force consumers to
look for delivery alternatives,
click and collect will become a
preferred option for some items.
Virtual commerce technology
will take online shopping to the
next level with advancements
like the metaverse adding more
dimension to the experience.

© Euromonitor International