2021 Digital Consumer Index Pinpointing The Most Promising Digital Opportunities

2021 DIGITAL CONSUMER INDEX: PINPOINTING THE
MOST PROMISING DIGITAL OPPORTUNITIES
April 2021
INTRODUCTION
INTRODUCING THE DIGITAL CONSUMER
INDEX
UNCOVERING WHERE TO PLACE DIGITAL
BETS
IDENTIFYING KEY E-COMMERCE
OPPORTUNITIES
10 MARKETS TO WATCH
KEY TAKEAWAYS
APPENDIX
INTRODUCTION
About the report
▪ This report explores findings from the 2021 edition of the Digital Consumer Disclaimer
Index. Much of the information in this
briefing is of a statistical nature and,
▪ These are the key methodologies used in Passport Digital Consumer analysis: while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
Industry held responsible for omissions or
Research errors.
• E-commerce Figures in tables and analyses are
database
calculated from unrounded data and
may not sum. Analyses found in the
Consumer
briefings may not totally reflect the
Survey
Socioeconomic companies’ opinions, reader
Research
• Voice of the discretion is advised.
• Digital
Consumer: Digital Landscape
Digital Consumer database
Survey Exploring how
technology is During the pandemic,
changing countries saw a restated
commerce
demand for digital connectivity
leading market players to
Analytics accelerate their digital
Industry
Survey • Digital initiatives. Thus, the global
Consumer digital landscape is expected to
• Voice of the Index
Industry: • E-Commerce see shifts over the forecast
Digital Readiness
Survey period, where developed
Model
markets will further strengthen
sophisticated digital solutions
▪ Report closing date: 1 April 2021, the date the report writing stopped. and emerging markets will
▪ Discussions with our clients are a key part of our research. We welcome the enhance their connectivity and
chance to continue the conversation. Author details can be found at the end of commerce infrastructure,
leading to greater opportunities
the report. for investment.
© Euromonitor International 2021 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL PASSPORT 3
OPPORTUNITIES
INTRODUCTION
Key findings
Wider digital inclusion 2021 will mark the first time that more than half of the population in emerging and
and digital literacy leads developing countries will be connected, with nearly 52% of the population in
to exponential these markets using the internet. With 79% of the global internet population living
development in digital in emerging markets, wider digital inclusion and evolving digital literacy in these
access markets is driving demand and supply of digital services.
Internet connectivity is As digital connectivity is evolving around wireless solutions, both in terms of
driving both remote and wireless connectivity and wireless devices, most solutions are becoming mobile-
in-person commerce, centric. This is resulting in the emergence of commerce solutions beyond remote
thereby driving experiences, towards in-person digital engagement. From contactless payments,
innovation AI and smart retail this opens a new array of digital engagements.
South Korea to remain a South Korea is expected to retain its lead on the Digital Consumer Index, given
leader on the Digital strong impetus to its digital commerce development from retail e-commerce
Consumer Index sales. E-commerce players are investing in new technologies including digital
wallets. Increased investment such as Coupang’s IPO will further strengthen
South Korea against other markets globally.
The rise of China on the China is expected to increase by eight places on the Digital Consumer Index to
Digital Consumer Index rank among the top 10 markets globally over the forecast period. China will
will lead to shifts in specifically improve on digital connectivity, particularly mobile connectivity, which
global rankings will lead to enhanced digital access in second-tier cities.
COVID-19 has led to The COVID-19 pandemic not only put pressure on the quality of internet access
unprecedented shifts on across markets, accelerated digitally-driven commerce in industries such as retail
the Digital Commerce and foodservice delivery, but it also spearheaded investment in digital
Index infrastructure, leading to accelerated development across these sectors.
OPPORTUNITIES
Introducing the Digital Consumer Index
The pandemic underscored the importance of technology in everyday life. With

more consumers turning to digital platforms in greater numbers, companies
must rethink where to deploy resources. In order to assist clients with this
market prioritisation exercise for all digital initiatives, Euromonitor International
publishes the Digital Consumer Index on an annual basis. This report explores
the fifth edition of this proprietary index.
INTRODUCING THE DIGITAL CONSUMER INDEX
COVID-19 has underscored the importance of internet access
▪ The internet has been one of the most

transformative technologies in recent
decades. It continues to change the way
consumers interact and serves as the
foundation for how businesses operate.
The mobile has played a pivotal role in
increasing mass internet access, given
the functionality and affordability.
Increased adoption of tablets during
2020 is set to augment mobile
connectivity and further innovation will
be driven by mobile-led solutions.
▪ As COVID-19 halted in-person
interactions in 2020, internet access
added another dimension for separating
the haves and have nots. Being
connected became critical for
4.4 billion 57% 51% businesses and consumers during the
Of global health crisis. The internet sits at the
Number of internet Of the global population
population using core of all other technologies, shaping
users globally in using mobile phone to
the internet in the new normal and aiding in path to
2021 access the internet in
2021 economic recovery. Internet access is
2020
no longer a luxury.
OPPORTUNITIES
Greater digital inclusion doubles global internet population
▪ In 2021, an estimated 57% of the global population will have access to the internet, equating to roughly 4.4
billion internet users. While developed countries now report over 87% of the population covered with
internet, this will be the first time that more than half of the population in emerging and developing countries
will be connected, with nearly 52% of the population in these markets using the internet.
▪ Over the last five years, 2016-2021, over 1.3 billion new internet users have been added worldwide, of
which nearly 94% of the new users belong to emerging and developing markets. Increased focus on driving
digital inclusion backed by the role of digital in economic development has led more governments to invest
in access to digital connectivity.
▪ Of the top 10 markets expected to post the highest increase in new internet users in 2021, five are from
Asia and three from Africa. China and India, the next billion-people markets, are on track to add half a
billion internet users in the next five years. The total number of internet users in both markets will reach
nearly two billion in 2026, which will account for one third of the total internet population of the world at that
time.
Percentage of Population Using the Internet 2010-2021
Percentage of Population
100
80
60
40
20
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
World Developed Countries Emerging and Developing Countries

Source: Euromonitor International Passport: Digital Consumer Database
OPPORTUNITIES
Gaps in smartphone possession and internet access via mobile
▪ With 76% of the world’s population

possessing a smartphone, only 51%
are using mobile to access the internet,
which shows that relevance of other
digital devices remains important for
many regions across the world, such as
Asia Pacific, Middle East and Africa,
Australasia and North America.
▪ Australasia, which has the highest
smartphone possession rate globally at
over 90%, has only 44% of the goods
and services bought online done via
mobile devices. Similarly, in Western
Europe, share of mobile e-commerce is
only 32% despite 77% of the population
using mobile to access the internet-
showing use of mobile connectivity for
wider user engagement than e-
commerce.
Share of Mobile Commerce from Total E-Commerce (Goods and Services)
▪ Asia Pacific is distinctive with share of
Possession of Smartphone Among Households
mobile e-commerce being over 73%,
Use of Mobile Phone to Access the Internet ( % Population) despite only 50% of the population
Source: Euromonitor International Passport: Digital Consumer Database accessing internet via mobile.
OPPORTUNITIES
Connectivity driving both remote and in-person digital engagement
▪ While the early phase of consumer engagement with Mobile Phone Activities with Greatest
digital devices was characterised by communication Positive Movement During 2020
and consumption of media such as music or video, Order food and drink online for
this has evolved over time as greater numbers of takeaway/home delivery
connected consumers use their devices to engage in Make an in-store mobile payment
digital commerce activities such as ordering a ride-
Remotely monitor or control
sharing service, ordering food and drink for delivery or home appliances
takeaway, keep track of their health and fitness in Make or receive a voice call over
addition to making other purchases. Browsing the the internet
internet remains the most common activity with nearly Use an app to track my health or
98% of the global connected consumers using mobile fitness
to browse the internet, according to the Voice of the Stream music online
Consumer: Lifestyle Survey.
Use a banking service
▪ However, digital connectivity is now making inroads
into in-person digital engagement around devices. Buy an item or service
During 2020, for example, one of the key shifts was
seen in the use of mobile to make an in-store mobile Compare prices while in store
payment. With many of these shifts also encouraged
Use a communication or
by the COVID-19 pandemic during 2020, more messaging app
consumers reported using mobile for a banking
service as well. With expected lasting shifts in 0% 1% 2% 3% 4% 5%
consumer behaviour in the post-pandemic world, Change between % connected consumers reporting
mobile activities in 2020 and 202
technology and connectivity is going to play a key role
in re-defining many products and services. Source: Euromonitor International Passport Voice of the Consumer:
Lifestyle Survey, fielding Jan/Feb 2020 and 2021
OPPORTUNITIES
Digital maturity creates pressing need for market prioritisation
▪ Technologies, including internet connectivity, are driving

unprecedented changes across all aspects of society. With more
consumers shifting to digital platforms, companies must rethink where
to deploy resources in order to compete in the digital era. As such,
companies need to understand how and where to place digital bets in
order to guarantee the best return on investment.
▪ In order to assist companies with identifying which geographic markets
are the most digitally attractive and offer the best prospects for future
deployment of digital initiatives, Euromonitor International has been
publishing the Digital Consumer Index on an annual basis since 2016.
This tool pinpoints a country’s relative digital standing in the present,
as well as offering forecasts for where it is expected to be five years
from now. With this proprietary index, companies can quickly make
sense of the multitude of factors impacting digital uptake in order to
prioritise markets in a way that is simple, intuitive and effective.
▪ Leveraging more than 2,500 data points from Passport, Euromonitor
International’s syndicated research platform, the Digital Consumer
Index helps clients identify which geographic markets are the most
digitally attractive and offer the best prospects for future deployment of
digital initiatives, including digital commerce. This index utilises 18
different metrics, all weighted according to Euromonitor International’s
industry expertise, to provide an overall market attractiveness score for
each component of the index.
OPPORTUNITIES
Introducing Euromonitor International’s Digital Consumer Index
Digital Consumer ▪ The 2021 Digital Consumer

Index Index consists of two central
components: Connected
Commerce Index and the Digital
Connectivity Index, which was
renamed from Connected
Consumer Index this edition.
Digital Connectivity Connected Commerce ▪ Each component is broken
Index Index down into further
subcomponents, which are
given equal weight in the overall
Digital Consumer Index.
▪ Each index contains a current
and forecast score. The Digital
Consumer Index score (out of
100 points) reflects the current
Home Mobile Market Commerce Digital or forecast readiness in a
Connectivity Connectivity Environment Infrastructure Commerce particular country. Coverage
Index Index Index Index Index spans 50 countries.
Measures the Measures the Measures Measures the Measures ▪ A full explanation of the
market’s overall market’s mobile economic and infrastructure’s consumer spend
internet connectivity demographics across digital
methodology can be found in
digital commerce
connectivity specifically factors readiness channels the Appendix at the end of this
document.
OPPORTUNITIES
Uncovering Where to Place Digital Bets
Despite the significant development by internet service providers, both in terms

of scale and service, COVID-19 has exposed the gaps in internet connectivity.
Changes in consumer lifestyles and path to purchase have also redefined
market needs for internet connectivity across both emerging and developed
markets. This section explores where digital connectivity leads and lags to
uncover markets growing most in demand for digital connectivity.
UNCOVERING WHERE TO PLACE DIGITAL BETS
The internet is the world’s largest connector
▪ The internet has been one of the most transformative innovations of the modern era, ushering new scale
and speed to make real-time communication possible for both consumers and businesses. Its important to
note that the internet has emerged as a mainstream technology for masses only over the last decade.
▪ During this period, access to the internet in emerging markets has expanded rapidly with wider availability
and access through mobile devices. Over the last five years, the number of internet users in emerging
markets has grown by over 52%, with over 3.5 billion users in 2021. Relatively, the number of internet users
grew by only 10% in developed markets, where 21% of the total internet population resides in 2021.
▪ During 2020, COVID-19 has validated the internet to be the world’s greatest connector, keeping consumers
and businesses connected. Despite fast-paced adoption of the internet across many markets in the pre-
pandemic period, demand for broadband services and mobile internet significantly increased. Moreover, the
high dependence on the internet further exposed the differences in the quality of internet access between
developed and emerging markets.
Internet Users in Developed vs Emerging Markets 2001-2021
5,000
4,000
Million Users
3,000
2,000
1,000
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Developed Countries Emerging and Developing Countries
Source: Euromonitor International Passport: Digital Consumer Database
OPPORTUNITIES
Access to quality mobile internet essential for improved connectivity
▪ Possession of smartphones Emerging vs Developed Markets on Digital Connectivity

across both developed and Index
emerging markets has led to 25
considerable shifts, with over

86% of households in developed
markets and nearly 78% of 20
households in emerging markets
Home Connectivity Index Score

having a smartphone.
▪ However, while over 77% of the 15
population in developed markets
uses mobile to access the
internet - also leading to higher
scores on the Mobile Connectivity 10
Index - only 47% of the

population in emerging markets
does so, which shows existing 5
gaps in smartphone ownership
and access to quality internet via
mobile in these markets.
0
▪ Correspondingly, developed 0 5 10 15 20 25
markets also score better on the Mobile Connectivity Index Score
Home Connectivity Index than Emerging Market Developed Market

emerging markets. Source: Euromonitor International 2021 Digital Consumer Index
OPPORTUNITIES
Middle East and Africa and Latin America lag on connectivity
Regional Comparison on Digital Connectivity Index

25 Czech Republic South Korea United Arab Emirates
Hong Kong, China Australia
Hungary Saudi Arabia
20 Japan
Home Connectivity Index Score
Singapore USA
Ukraine
China
Malaysia Poland
15
10
Nigeria India
5
0
5 10 15 20 25
Mobile Connectivity Index Score
Australasia Eastern Europe Asia Pacific Latin America Middle East and Africa North America Western Europe
Source: Euromonitor International 2021 Digital Consumer Index
▪ The variations in Home Connectivity and Mobile Connectivity index scores across countries broadly
translate into regional differences in terms of digital readiness and access to the internet. This ultimately
defines digital consumption behaviour in these regions.
▪ Overall, Australasia, North America and Western Europe score strongest on current and forecast Digital
Connectivity indices as 18 of the 24 developed countries on the Digital Consumer Index are from these
three regions. On the other hand, Latin America is the weakest region on the Digital Connectivity Index.
The Middle East and Africa is the second weakest region, with four of the bottom 10 markets on the Digital
Consumer Index from that region.
OPPORTUNITIES
Poland makes the biggest strides on connectivity
Highest Current Scores on the 2021 Digital ▪ Among the leading 15 markets on the Digital Connectivity
Connectivity Index Index, only two make an exception being emerging
Rank Country Current score markets. The United Arab Emirates continues to lead the
1 UAE 45.1 Digital Connectivity Index with slight improvement in its
current score as well. The country is also expected to retain
2 Japan 43.3
its leading place over the forecast period as it is expected
3 Australia 41.5 to increase its ranking in home connectivity in addition to its
4 Denmark 41.1 global lead on the Mobile Connectivity Index.
5 USA 40.5 ▪ Poland makes the biggest stride this year by increasing its
6 UK 39.9 rank by five5 places to rank 10th on the 2021 Digital
Connectivity Index. With a penetration rate of 186 per 100
7 South Korea 39.5
people, Poland ranks as the third highest country on the
8 Sweden 39.5 Mobile Connectivity Index, ahead of countries such as
9 Singapore 39.2 Australia, the US as well as its regional peer - the UK.
10 Poland 39.2 ▪ Poland undertook “Operational Programme Digital Poland
11 Norway 38.9 (OPDP)”, co-financed by EU structural funds, to increase
investment in the domestic digital economy, improve
12 New Zealand 38.9
broadband access, widen the digitalisation of public
13 Netherlands 38.8 services and increase levels of digital competence. Two of
14 France 38.5 its operators Polkemtel and T-Mobile also launched 5G
15 Belgium 38.2 networks in Poland in 2020, in addition to 100% population
Source: Euromonitor International 2021 Digital Consumer Index
already having access to 4G.
OPPORTUNITIES
Noticeable shifts in leading markets with the rise of China
Highest Forecast Scores on the 2021 Digital ▪ The Digital Connectivity Index also provides forecast
Connectivity Index scores offering insight into the projected development
Forecast Rank in digital landscape over the next five years. Given a
Rank Country
score change strong correlation between a country’s income level and
1 UAE 48.0 0 its digital connectivity, developed markets fare better in
2 Japan 44.9 0 terms of their digital competence than emerging
markets. The continuous strive towards building
3 Australia 44.4 0
smarter services will keep developed markets ahead
4 USA 43.4 1 over the forecast period.
5 UK 43.1 1 ▪ Developed markets will see their collective score
6 Greece 42.9 12 increase by 2.7 points, to reach 40.8 in 2025. Emerging
7 Denmark 42.4 3 markets will see a larger collective increase of 4.3
points, to reach 33.4 by 2025, as upcoming expansion
8 New Zealand 41.8 4
will be more pronounced in emerging markets.
9 China 41.6 16
▪ However, Singapore and the Netherlands are expected
10 Belgium 41.6 5 to lose their place among the top 15 markets on the
11 France 41.4 3 Digital Connectivity Index by 2025. Most noticeably,
12 Poland 41.3 2 China from the emerging markets is set to surface
among the leading markets with increase in ranks by 16
13 Sweden 41.3 5
places, on account of increased mobile access.
14 Norway 41.2 3 Greece, which is currently lagging behind the digital
15 South Korea 40.7 8 adoption within Europe, is expected to catch up and
Source: Euromonitor International 2021 Digital Consumer Index increase in ranks by an impressive 12 places by 2025.
OPPORTUNITIES
Nigeria to show progress in connectivity, India to leap in ranks
▪ Of the 10 fastest growing markets for digital readiness over the Greatest Positive Movement
next five years, nine will be emerging markets. Nigeria is on the Digital Connectivity
projected to make the greatest leap in the Digital Connectivity Index
Index scores, however despite the progress, the country will see Nigeria
no change in its comparative ranking, where it stands at the
bottom of the index. India, however, the next fastest progressing India
country in terms of Digital Connectivity will move up the rankings Ukraine

by four places, from 48th to 44th.
Peru
▪ Nigeria represents the Middle East and Africa with the highest
number of internet users, with over 96 million internet users in China
2020. As the government banks on the mobile ecosystem to drive
economic development with its young population driving mobile Brazil
internet usage through affordable smartphones, the percentage of Greece

the population using the internet is expected to rise to nearly 73%
by 2025. Furthermore, Nigeria is also expected to roll out 5G over Russia
the forecast period, making it one of the few African markets to do

South Africa
so, which will lead to more affordable 4G accessibility and
coverage. Morocco
▪ India will see its overall Digital Connectivity Index forecast 0 2 4 6 8

improve due to its performance on the Mobile Connectivity Index Change between Current and Forecast
as penetration rates of mobile internet will increase from 60% in Digital Consumer Index
2020 to 97% in 2025, adding over 277 million new internet users. Source: Euromonitor International 2021 Digital
Consumer Index
OPPORTUNITIES
Japan and Australia to lead developed markets in connectivity
Individual Developed Markets vs Developed Market ▪ Japan and Australia will retain their
Average leading places as the second and third,
24
South Korea France respectively, most connected markets
Germany Denmark over the forecast period. Greece,
23 Netherlands
Switzerland Norway Sweden United Kingdom Belgium, Italy, New Zealand and
Portugal Leaders
Belgium Austria will see the biggest stride in
Home Connectivity Index Forecast Score
Hong Kong, Greece Australia

22
China Canada connectivity. Other leaders among
Spain New Zealand
USA Japan developed markets advancing their
21 Developed Avg.
Czech Republic
Austria
leadership ranks will include the UK
Singapore and the US.
20
Italy ▪ Among the developed markets, Israel
Israel Taiwan
will be a notable laggard over the
19
forecast period, despite improved
scores on both Home Connectivity and
18
Mobile Connectivity indices. Israel will
be outperformed by Italy, which ranked
17
the lowest among developed markets
on the Digital Connectivity Index based
16 on current scores, but will improve from
Laggards 31st to 26th on the Digital Connectivity
15 Index due to noticeable improvement
15 16 17 18 19 20 21 22 23 24
Mobile Connectivity Index Forecast Score on its Mobile Connectivity Index
Source: Euromonitor International 2021 Digital Consumer Index ranking from 26th to 17th in 2025.
OPPORTUNITIES
UAE to lead across all connectivity indices
Individual Emerging Markets vs Emerging Market ▪ Over the forecast period, China
Average will join the ranks of the UAE
26
and Poland to establish
United Arab
Emirates leadership across the Digital
Leaders
23 Connectivity Index as the
Hungary
China second most connected
Romania
emerging market and the ninth
Home Connectivity Index Forecast Score
Turkey Russia Saudi Arabia Poland

20 most connected market globally.
Thailand Ukraine Chile
The UAE will not only lead
Mexico Brazil
emerging markets but also
17 Malaysia
Colombia Egypt Emerging Avg. retain its leadership across all
connectivity indices globally.
Philippines
Morocco
14
South Africa
▪ Other emerging market
Peru India frontrunners will include Saudi
11
Arabia, with Russia and Brazil
also improving their rankings by
two places each. India and
Laggards
8 Ukraine will also make
Nigeria
noticeable progress.
5
▪ Countries such as Nigeria, the
10 13 16 19 22 25 Philippines, Morocco and South
Mobile Connectivity Index Forecast Score Africa will continue to lag behind
Source: Euromonitor International 2020 Digital Consumer Index their emerging market peers.
OPPORTUNITIES
Identifying Key E-Commerce Opportunities
The Digital Consumer Index examines the interplay of both digital connectivity
and digital commerce to identify promising markets for digital commerce
opportunities. Of the top 20 markets on the Digital Consumer Index, all but two
are developed markets. China and the United Arab Emirates continue to
outperform their emerging market peers on the Digital Consumer Index. This
section explores those countries where digital connectivity and propensity to
spend online are the strongest.
IDENTIFYING KEY E-COMMERCE OPPORTUNITIES
South Korea continues to lead the Digital Consumer Index
Digital Consumer Index Ranking ▪ South Korea continues to retain its leadership on the 2021 Digital
Rank Country Current score Consumer Index. South Korea is the world’s fourth largest market
for retail remote e-commerce, where some 36% of total consumer
1 South Korea 75.2 retail is conducted online, according to Euromonitor International.
2 UK 68.5 Retail e-commerce has posted a 24% CAGR over the last five
3 USA 68.3 years as e-commerce players such as Coupang, eBay and Naver
4 Australia 67.1 have aggressively taken share from physical retail. As these e-
commerce players continue to invest further in their digital wallet
5 UAE 65.1
solutions such as Coupang Pay, eBay’s SmilePay and Naver Pay,
6 Denmark 64.4 proximity payments have accelerated in the country as well,
7 Netherlands 63.2 ranking South Korea as fourth largest market for proximity e-
8 New Zealand 62.6 commerce globally. Digitalisation of retail has played a key role in
South Korea’s Digital Commerce Index scores, despite average
9 Singapore 62.5
scores on Market Environment and Mobile Connectivity indices -
10 Israel 61.7 which shows a greater effect of the consumer-driven digital trends
11 Belgium 61.4 such as growth of single households favouring various categories
Hong Kong, in digital commerce and increased adoption of e-commerce
12 61.2 among older consumer segments.
China
13 Japan 61.0 ▪ The UK, improving by four places, rose to second position on the
14 Sweden 60.9 2021 Digital Consumer Index, replacing the long-standing leader
Australia. The country’s rise is due to improved Mobile
15 Norway 60.1
Source: Euromonitor International 2021 Digital
Connectivity and Connected Commerce infrastructure, spurred by
Consumer Index public and private investment as well as technological innovation.
OPPORTUNITIES
Western Europe dominates developed markets
▪ South Korea and the UK lead the Individual Developed Markets vs Developed Market
developed markets in terms of the Average
44
current Digital Consumer Index
scores. Australia, which previously Japan
held second place, now ranks 42 Leaders
fourth.
Australia
Digital Connectivity Index Current Score

▪ The developed market leaders Denmark
40 USA
hold strong representation of Sweden Singapore
United Kingdom
Western Europe, as six of the Norway New Zealand
South Korea
leading 15 developed markets are Netherlands
38 France Switzerland Belgium
from this region. Spain
Developed Avg
Canada
▪ Italy, Portugal, Austria and Spain Greece Hong Kong, China
36 Austria Germany
score the lowest among developed Taiwan
Portugal Czech Republic
market counterparts given low
Israel
scores on the Connected 34
Commerce index. Despite having Italy
reasonable scores on the Digital
32
Connectivity Index, given these
markets partly benefited from Laggards
Europe’s e-commerce directive, e- 30
commerce adoption has generally 14 16 18 20 22 24 26 28 30 32 34 36 38
Connected Commerce Index Current Score
lagged due to weaker infrastructure
and traditional market models. Source: Euromonitor International 2021 Digital Consumer Index
OPPORTUNITIES
Several emerging markets aim to follow the trail of leaders
▪ The UAE and China are leading Individual Emerging Markets vs Emerging Market
emerging markets on the Digital Average
Consumer Index with high scores on 30
both Digital Connectivity Index and

Connected Commerce Index. On the Leaders
contrary, Nigeria, Peru and India fare 25
the lowest among emerging markets
Digital Connectivity Index Current Score

China
on these metrics.
Chile
20
▪ A number of emerging markets show Brazil
Russia United Arab
Argentina
strong prospects with improvement in Turkey
Emirates
digital connectivity, such as Saudi Indonesia Saudi Arabia
15
Arabia, Poland and Turkey. These Philippines
Emerging Avg.
Hungary
Poland
Colombia
markets are also seeing strong e- Ukraine Romania
commerce development and Thailand
Peru
10 South Africa
investment from global players which Morocco
Vietnam
leads them well on the way to follow India Egypt
the trail of leading emerging markets. Nigeria

5
▪ Lowest performing markets lag in
connectivity, where poor digital Laggards
commerce infrastructure and a late 0
0 5 10 15 20 25 30 35 40 45 50
adopting consumer base are also key
hurdles in progressing on connected Connected Commerce Index Current Score
commerce. Source: Euromonitor International 2021 Digital Consumer Index
OPPORTUNITIES
Forecast rankings will continue to see developed market dominance
Forecast Top 20 on Digital Consumer Index ▪ The Digital Consumer Index also
50 provides a forecast score, which
reflects how the digital commerce
United Arab
Emirates
landscape might look in five years.
As is to be expected, developed
markets are more digitally
45 Japan advanced today than emerging
Digital Connectivity Index Forecast Score
Australia
USA markets and will be in five years,
Belgium Denmark United Kingdom
New Zealand though some emerging markets
China
Sweden Norway such as China will make major
Netherlands South Korea
40 Canada Singapore strides and join the global top 10.
Switzerland Hong Kong, China
Taiwan
Czech Republic ▪ Of the top 15 markets on the
Israel Digital Consumer Index based on
forecast scores, 14 were in the top
35 15 based on current scores,
though some of the rankings have
shifted. Israel is expected to fall
from the top 15 as China rises to
eighth, Norway will also see
30
15 20 25 30 35 40 45 considerable progress ranking
Connected Commerce Index Forecast Score 12th while the Netherlands will
Emerging Market Developed Market lose three places to rank 10th in
Source: Euromonitor International 2021 Digital Consumer Index the forecast rankings.
OPPORTUNITIES
Emerging markets make noticeable strides in connected commerce
Greatest Positive Movement on ▪ Looking at the pace of progress of scores on the Connected
the Connected Commerce Index Commerce Index over the forecast period, the majority of
improvements are expected to be from developed markets as
Mexico
increased digital adoption, innovation and digital-led agenda will
Indonesia widen the digital commerce services in these markets.
▪ However, four of these top 10 performers for Connected
Turkey
Commerce Index scores are expected to be from among
Philippines emerging markets. Mexico and Indonesia will see the highest
increase on the Connected Commerce Index ranking, such that
USA both markets will rise from the bottom 15 to the top 15 on the
Connected Commerce Index. These markets will see the impact
Singapore
of improved performance of Digital Commerce Index scores due
Denmark to widening of digital commerce adoption by consumers, despite
ongoing modest market environments and commerce
New Zealand infrastructure.
Norway
▪ In Mexico, for example, numerous players made substantial
investments in e-commerce, improving and expanding online
United Kingdom platforms as well as establishing distribution centres around the
country. Last-mile delivery companies, including Cornershop
0 5 10 15
and Rappi, expanded substantially and formed partners with
Changes Between the Current and Forecast
Connected Commerce Index Score essential and non-essential businesses alike. Many companies
Source: Euromonitor International 2021 Digital Consumer
have stated their desire to rather invest in e-commerce over
Index opening new brick-and-mortar stores.
OPPORTUNITIES
South Korea to lead Digital Consumer Index forecast rankings
Comfort Level with New Technology:South Korea vs World

% of Connected Consumers who are
60%
very or extremely comfortable
50%
40%
30%
20%
10%
0%
Robots Companies Companies Riding an Brands Voice Robots helping Robots guiding Ordering food
preparing automatically using facial automobile tracking my assistants with Check-ins me to products from a delivery
entire meal for ordering recognition to without a emotions to providing at a Hotel in-store only restaurant
dine-in at products on my personalise in- human driver personalise information
restaurant behalf person experiences
interactions
South Korea World
Source: Euromonitor International Passport Voice of the Consumer: Digital Survey, fielded March and April 2020
▪ South Korea is expected to retain its top spot in the forecast Digital Consumer Index rankings, given its
increased score on the Connected Commerce Index, driven primarily by continued development in its
commerce infrastructure and high online spend. As consumers increasingly use digital platforms, South
Korean players are expected to lead with use of more sophisticated applications of technology. According
to Euromonitor International’s Digital Consumer Survey, more consumers in South Korea have shown
higher comfort levels with use of artificial intelligence in commerce experiences, such as brands tracking
their emotions to personalise services or companies automatically ordering on a customer’s behalf, than
their global peers. South Korean consumers also seem to be more ready for autonomous vehicles and
robotics.
OPPORTUNITIES
Key leaders to watch on the forecast Digital Consumer Index
Highest Forecast Scores on the 2021 Digital UAE

Consumer Index ▪ Driven by smart city and government initiatives such as
Forecast Rank cashless economy, the presence of influential business
Country
Score Change
groups in key sectors such as retail and travel will lead to
1 South Korea 80.6 0 continued investment in the e-commerce sector such as the
2 USA 76.7 1 expansion of Noon.com by Emaar Group. There is a clear
3 UK 76.5 -1 direction towards establishing a regional e-commerce hub,
4 UAE 72.5 1 with Dubai Commerce City, establishment of fulfilment
5 Australia 72.3 -1
centres and logistics capabilities. The UAE has also seen
growth of the fintech sector, making it attractive for innovation
6 New Zealand 71.0 2
in digital payments. Digital innovation is set to be at the core
7 Denmark 70.8 -1 as service providers aim for sustainable business practices.
8 China 68.9 8 New Zealand
9 Singapore 68.7 0 ▪ Ranked eighth on the current Digital Consumer Index, New
10 Netherlands 68.5 -3 Zealand is one of the developed markets characterised by
11 Belgium 68.2 0 higher levels of mobile connectivity and high levels of banked
12 Norway 67.1 3
population at 99%. However m-commerce accounts for only
2% of consumer payment transactions and retail e-commerce
Hong Kong,
13 65.6 -1 is only 11% of total retail in New Zealand. While travel has
China
14 Sweden 65.5 0
been the biggest sector thus far, growing retail e-commerce in
categories such as consumer appliances and electronics and
15 Japan 65.0 -2
food and drink e-commerce will offer new opportunities for
Source: Euromonitor International 2021 Digital Consumer Index investors, as use of mobile and digital wallets increases.
OPPORTUNITIES
Key laggards of note on the forecast Digital Consumer Index
Lowest Forecast Scores on the 2021 Digital Indonesia

Consumer Index ▪ Indonesia is expected to be one the top three countries with
Forecast Rank greatest positive movement in score on the overall Digital
Country
Score Change Consumer Index by 2025. The country will see major
36 Hungary 55.5 -3 improvement on the Connected Commerce Index such that it
37 Romania 55.0 -1 is expected to rank third on the Digital Commerce Index
forecasts. With three main factors driving e-commerce in
38 Indonesia 53.6 1
Indonesia - a growing middle-class population, high internet
39 Argentina 53.1 -2 and mobile penetration rates, and the fast growth of fintech
40 Ukraine 50.1 1 and alternative financing options - the country is expected to
41 Thailand 48.9 -1 see the e-commerce penetration rate of total retail rise to
over 34% in 2025 from the current level of 20%.
42 Colombia 45.4 0
Nigeria
43 Philippines 45.4 2
▪ Despite a lower internet penetration rate of 56%, the number
44 Vietnam 45.1 -1 of internet users in Nigeria is more than three times than that
45 India 44.3 3 of Saudi Arabia. The country’s leading telecom players Airtel
46 Egypt 42.8 -2 Africa and MTN are the biggest companies on Nigeria’s
Stock Exchange, fuelling mobile connectivity and increasing
47 South Africa 41.8 -1 4G coverage. Retail e-commerce accounts for the greater
48 Morocco 39.8 -1 share of total e-commerce, driven by key players such as
Jumia and Konga.com. Also, as Konga.com considers a
49 Peru 38.0 0 public stock offering, prospects for Nigeria’s digital
50 Nigeria 27.4 0 commerce look bright, making considerable progress in its
Source: Euromonitor International’s 2021 Digital Consumer score on the overall Digital Consumer Index.
Index
OPPORTUNITIES
10 Markets to Watch
Utilising the Digital Consumer Index, this section highlights developed and
emerging markets providing great digital promise relative to other markets at a
similar state of economic development. Each market spotlight explores the
product and service categories that will most influence future digital commerce
expansion, in order to provide companies with greater understanding of the
market’s underlying digital opportunities.
10 MARKETS TO WATCH
China to post the highest absolute growth in e-commerce
▪ Rapid investment in the e-commerce sector, growth in mobile internet

subscribers and rising consumer affinity to digital platforms continue to Spotlight | China
59.9
fuel the digital commerce landscape in China. China is set to post the
CURRENT DIGITAL
highest increase on the Digital Consumer Index rankings over the
CONSUMER INDEX
forecast period, moving up eight places by 2025.
▪ Expansive ambitions of key players such as Alibaba, Ant Group and
JD.com will further growth in second-tier cities and penetrate services
across new consumer segments. As super apps such as WeChat
8.3 SCORE AS COMPARED
TO REGIONAL AVERAGE
become part of the norm, opportunities for mobile commerce

integration will continue to strengthen, especially with the rise of trends 2021 DIGITAL CONSUMER INDEX RANKINGS
Rank out of 50 markets
such as livestream selling and social shopping.
DIGITAL CONSUMER INDEX
▪ Overall retailing is the largest industry, posting double-digit growth in
recent years as retailers and brands in China develop omnichannel
strategies. Cross-border e-commerce players, such as Kaola and
Xiaohongshu, have risen to prominence with increased demand for
imported high-quality products. Alibaba announced an investment in
Farfetch - a UK-based luxury retailer - with prospects for it to be
included on Tmall Luxury Pavilion and Luxury Soho e-commerce sites. 1 10 20 30 40 50
▪ Foodservice is the next prime opportunity, where full-service
restaurants is the largest category. Food delivery platforms have seen
TOP THREE CATEGORIES FOR DIGITAL GROWTH:
interesting developments, where leading platform Ele.me began losing Based on 2020-2025 absolute value growth (million)
market share to Meituan, following Meituan’s IPO. Backed by Tencent 1. Online Travel Agencies: USD77,900
Group, Meituan’s integration into WeChat to become omnipresent also 2. Food and Drink: USD37,247
played a key role. 3. Consumer Appliances: USD35,163
OPPORTUNITIES
10 MARKETS TO WATCH
Penetration in second-tier cities to increase opportunities in India
▪ While India falls among the bottom ranks of the Digital Consumer
Index, it also ranks the lowest in Asia Pacific with only 44% of the Spotlight | India
32.9
population having access to the internet. However, given it is home to
CURRENT DIGITAL
the second highest number of internet users in Asia Pacific, following CONSUMER INDEX
China, the country offers an attractive opportunity for future growth.
▪ Through its “Digital India Initiative”, the government is focusing on; the
development of stable digital infrastructure; increased internet access,
delivering government services digitally and universal digital literacy, to
TO REGIONAL AVERAGE
establish a conducive ecosystem for e-commerce development.

2021 DIGITAL CONSUMER INDEX RANKINGS
▪ With increased smartphone penetration, as affordable brands such as Rank out of 50 markets
Xioami become widely accessible, mobile connectivity is set to improve DIGITAL CONSUMER INDEX
over the forecast period. Furthermore, presence of players such as
Amazon and Flipkart along with the rising local start-up culture in India
is giving rise to players such as Bulbul - a video shopping app.
▪ Lower ticket items and essentials have seen early adoption in India.
Thus, food and drink e-commerce was the largest category in 2020.
India is the fourth largest market in Asia Pacific for food and drink e-
commerce and will be the third largest market globally in absolute
1 10 20 30 40 50
value growth over 2020-2025, after China and the US. Both leading
marketplaces Flipkart and Amazon have launched grocery delivery
platforms such as Amazon Pantry. With local players such as Based on 2020-2025 absolute value growth (million)
Bigbasket, Grofers and Reliance SMART expanding rapidly in second- 1. Food and Drink : USD13,228
tier cities, food and drink e-commerce is set to increase its penetration 2. Apparel and Footwear: USD11,771
in India. 3. Consumer Electronics: USD10,159
OPPORTUNITIES
10 MARKETS TO WATCH
Mexico set to be the fifth largest emerging digital consumer market
▪ With the efforts of the Mexican government to enhance digital

connectivity and reduce the digital divide, the percentage of the Spotlight | Mexico
44.3
population using the internet has increased from 57% in 2015 to 73%
CURRENT DIGITAL
in 2020. This involved bringing the internet to 10,000 communities CONSUMER INDEX
and partnering with private tech players to provide free Wi-Fi access
0.3
in public areas. The deployment of Red Compartida, a wholesale SCORE AS COMPARED
wireless network, will expand coverage to 90% of the population with TO REGIONAL AVERAGE
4.5G LTE technology.
▪ With second largest internet subscriber base in the region after
Brazil, Mexico is a viable market for investment in Latin America. With 2021 DIGITAL CONSUMER INDEX RANKINGS
ICT influencing demand for new business and service models and DIGITAL CONSUMER INDEX
COVID-19 encouraging the digital services adoption in Mexico, the e-
commerce sector seems to have passed the key challenges to evolve
from stagnancy. With trends set in motion, Mexico is expected to
report the highest improvement on Digital Consumer Index score
globally, increasing its rank by 11 places by 2025.
▪ Retailing e-commerce is set to see noticeable shifts as stores invest
in online platforms in 2020. As online sales surged, Home Depot
made extensive investment in e-commerce. Payment platform Stripe 1 10 20 30 40 50
is partnering with various players such as grocery delivery platform
Cornershop and foodservice delivery aggregator Rappi to integrate TOP THREE CATEGORIES FOR DIGITAL GROWTH:
digital payments and reduce cash on delivery in Mexico. Alibaba is Based on 2020-2025 absolute value growth (million)
1. Consumer Electronics: USD2,561
partnering with GINgroup to develop e-commerce skills and develop 2. Lodging Direct: USD2,045
“digital villages” in all 32 Mexican states. eBay launched a similar 3. Online Travel Agencies: USD1,782
initiative to bring the SME sector into the e-commerce market
OPPORTUNITIES
10 MARKETS TO WATCH
Saudi Arabia lays groundwork for robust digital commerce
▪ Saudi Arabia is positioning itself as the new bright spot for digital
investment in the Middle East region. Driven by Vision 2030, the Ministry of
Spotlight | Saudi Arabia
53.0
Commerce and Investment in Saudi Arabia implemented the E-Commerce
CURRENT DIGITAL
Law in 2020 to increase confidence in e-commerce transactions; provide CONSUMER INDEX
consumers necessary protections against fraud; and boost and develop e-
commerce activities in the Kingdom.
▪ Characterised by highly connected young consumers, with higher average 9.7 SCORE AS COMPARED
TO REGIONAL AVERAGE
times spent on mobile devices, Saudi Arabia ranks among the top 10
countries globally in terms of mobile connectivity. With the Financial Sector 2021 DIGITAL CONSUMER INDEX RANKINGS
Development programme, focusing on enhancing e-payments, the digital DIGITAL CONSUMER INDEX
commerce landscape is being further strengthened.
▪ With a large expat base that forms over 30% of the population and a strong
outbound travel market from the Kingdom, airlines direct online has been
the biggest e-commerce category in Saudi Arabia. Online travel agencies
are also playing a key role in digitising travel booking solutions, local
players such as Seera Group’s Almosafer and Tajawal have been very
successful such that foreign booking platforms face stiff competition from 1 10 20 30 40 50
these players. Retail e-commerce has been fast developing with total goods
bought online surpassing the UAE, adding over USD1.8 billion in sales in
2020. During 2020, Amazon launched Amazon.sa, rebranding Souq.com, Based on 2020-2025 absolute value growth (million)
which it acquired earlier in 2017. It also launched Amazon Prime in 2021. 1. Airlines Direct Online: USD8,441
Food and drink e-commerce is showing burgeoning growth with leading 2. Online Travel Agencies: USD1,254
3. Limited-Service Restaurants: USD775
grocery retailers such as BinDawood investing in digital platforms.
OPPORTUNITIES
10 MARKETS TO WATCH
Turkey eager to bank on investment to secure digital opportunities
▪ Turkey is expected to post the biggest leap in the rankings in Western

Europe, together with Italy, each improving by four places between the Spotlight | Turkey
49.5
current and forecast rankings. Most improvements are expected in
CURRENT DIGITAL
Turkey’s commerce infrastructure as card payments are set to make up CONSUMER INDEX
69% of consumer payments by 2025 and household smartphone
8.1
possession will increase to 90% from a current level of 77%. SCORE AS COMPARED
Reshaping the Turkish digital landscape, these will drive opportunities TO REGIONAL AVERAGE
to launch more sophisticated digital products.
▪ Increasing investment in Turkey's airline sector has supported
burgeoning demand for air travel in the country. With the domestic 2021 DIGITAL CONSUMER INDEX RANKINGS
market comprising nearly 50% of air travel and opening of the new DIGITAL CONSUMER INDEX
Istanbul Airport connecting to more outbound destinations, airlines
direct online is set to be the leading category. Turkish Airlines and low
cost carriers such as Pegasus Airlines offer well-developed online
booking platforms, which are being supported by increased online
payments via digital wallets such as BKM Express.
▪ Retail e-commerce is rapidly growing with increased foreign investment
in leading online platforms. Apparel and footwear, one of the key
1 10 20 30 40 50
categories, has been the biggest revenue segment for Trendyol, the
leading e-commerce player. The category is set for further growth as
specialist e-commerce players such as Modanisa, receive investments TOP THREE CATEGORIES FOR DIGITAL GROWTH:
Based on 2020-2025 absolute value growth (million)
from Goldman Sachs and the European Bank of Reconstruction and 1. Airlines Direct Online: USD2,477
Development. N11, one of the prominent players, plans an IPO to 2. Apparel and Footwear: USD1,129
support growth in an evolving retail e-commerce market. 3. Media Products: USD1,036
OPPORTUNITIES
10 MARKETS TO WATCH
Russia to make biggest stride on digitalisation in Eastern Europe
▪ Russia’s national “Digital Economy” project is leading strongly

towards broader transformation of the digital landscape across key Spotlight | Russia
49.6
economic and social areas, which is expected to lead the country to
CURRENT DIGITAL
post the highest increase in score on the Digital Consumer Index over CONSUMER INDEX
the forecast period in Eastern Europe. Historically, digital connectivity
0.4
scores have been weaker given the large country area resulting in SCORE AS COMPARED
unequal internet access. Smartphone accessibility, through affordable TO REGIONAL AVERAGE
brands such as Xiaomi, has increased the household possession of
smartphones to 80%. Additionally, NFC-enabled POS terminals and
digital wallets such as Mir Pay, are accelerating the consumer shift to 2021 DIGITAL CONSUMER INDEX RANKINGS
digital payments. While 4G still remains limited to larger cities, under Rank out of 50 markets
the “Digital Economy” project, 5G will be launched in cities with DIGITAL CONSUMER INDEX
populations of over one million citizens, to be achieved by 2024.

▪ Online sales of goods is the largest driver of the digital commerce
space in Russia, with consumer electronics and apparel and footwear
e-commerce constituting 21% and 19%, respectively, of total remote
retail e-commerce in 2020. Various delivery and payment options
from leading players such as Wildberries and AliExpress have led
these players to capture the sizeable opportunity Russia offers, such 1 10 20 30 40 50
that Russia is the largest international market for AliExpress.

Accelerated by COVID-19, food and drink e-commerce is expected be TOP THREE CATEGORIES FOR DIGITAL GROWTH:
one of the highest growing categories following airlines direct online. Based on 2020-2025 absolute value growth (million)
1. Airlines Direct Online: USD6,569
While more than half of total airlines sales are made via direct 2. Food and Drink: USD4,253
booking, this will only be further accelerated as travel recovers over 3. Online Travel Agencies: USD3,897
the forecast period.
OPPORTUNITIES
10 MARKETS TO WATCH
US to be second leading digital consumer market globally
▪ The US, historically home to many new technological innovations, has

been ahead of the curve across many facets of digitalisation. With over
Spotlight | USA
68.3
91% of the population using the internet, the US has the third highest CURRENT DIGITAL
number of internet users globally, after China and India. AT&T and CONSUMER INDEX
Verizon, the two leading carriers have been launching 5G network
variants. During 2020, two other key mobile carriers; T-Mobile and
Sprint, achieved a successful merger, which will lead to improving 5.2 SCORE AS COMPARED
TO REGIONAL AVERAGE
network coverage across the country. As Apple holds a significant share

of the mobile market, release of the iPhone 12 series with 5G 2021 DIGITAL CONSUMER INDEX RANKINGS
capabilities in 2020 is expected to establish early 5G connectivity in DIGITAL CONSUMER INDEX
major US cities. Improvements in digital connectivity will lead US to be
the second leading market on the Digital Consumer Index by 2025.
▪ Being the second largest e-commerce market globally and apparel and
footwear having the biggest share from sales of goods sold online, the
category is expected to be a key driver of forecast growth as more store-
based retailers adopt an omnichannel strategy. With key players such
as Amazon offering one-day Prime Shipping and Walmart extending its
1 10 20 30 40 50
one-day shipping to wider customers, e-commerce will grow further.
Food and drink is the third largest category in the US. With Instacart’s
partnership with C&S Wholesale Grocers reaping the platform great TOP THREE CATEGORIES FOR DIGITAL GROWTH:
success, delivery aggregators that had previously only worked with 1. Online Travel Agencies: USD72,392
consumer foodservice operators in the US - such as DoorDash and 2. Apparel and Footwear: USD67,805
Uber Eats - have also started to add grocery retailers as partners. 3. Lodging Direct Online: USD67,805
OPPORTUNITIES
10 MARKETS TO WATCH
Czech Republic will make biggest leap among developed markets
▪ The Czech Republic, the only developed Eastern European market

on the Digital Consumer Index, ranks 23rd globally. Two main drivers
Spotlight | Czech Republic
55.3
are expected to inspire the Czech Republic’s future digital
CURRENT DIGITAL
development: 1) The agenda of stronger and unfragmented digital CONSUMER INDEX
transformation, under the “Digital Europe” directive of the EU; and 2)
The growing Global Business Services sector in the Czech Republic,
as many European companies move their shared services for tech
from India to Europe post-pandemic, with the Czech Republic being
TO REGIONAL AVERAGE
the centre of Europe for quality talent. Vodafone’s acquisition of

2021 DIGITAL CONSUMER INDEX RANKINGS
Liberty Group’s operations in CEE markets and rebranding of Libli as Rank out of 50 markets
Nordic Telecom which aims to be one of the top three fixed internet
providers in the Czech Republic is set to enhance connectivity. The
country is thus expected to pose the biggest increase in score on the
Digital Consumer Index among developed markets by 2025.
▪ As a result of the surge in online sales of food and drink in 2020, the
Czech Republic saw a boom in the number of online grocery players.
Many players, such as COOP, reprioritised online platform launches
planned for 2021. Major online grocery players Kosik.cz and Rohlik.cz 1 10 20 30 40 50
saw their sales almost double in 2020. Kosik.cz started a partnership
with Kaufland, making its platform available to Kaufland private label TOP THREE CATEGORIES FOR DIGITAL GROWTH:
products. Rohlok.cz also launched its own private label product line 1. Online Travel Agencies: USD798
and raised EUR190 million funding to fuel its growth in other markets 2. Food and Drink: USD749
such as Germany. The platform also operates in Austria and Hungary. 3. Apparel and Footwear: USD319
OPPORTUNITIES
10 MARKETS TO WATCH
UK to continue leading European markets
▪ The UK is one of the most digitally advanced markets in the world, with
its digital evolution being spurred by public and private investment as well Spotlight | UK
68.5
as technological innovation. The UK government is embracing the digital
CURRENT DIGITAL
revolution and acting as a key catalyst in the transition. The country has CONSUMER INDEX
the third highest number of internet users among developed markets and
10.9
key actions from the government include investing GBP1 billion to SCORE AS COMPARED
improve mobile connectivity in rural areas and providing 4G coverage to TO REGIONAL AVERAGE
95% of the UK by 2025. Key mobile network operators in the UK,
including EE, Three, Orange and Vodafone, have rolled out 5G in key
cities in the UK, including London and Manchester, and with the rollout of 2021 DIGITAL CONSUMER INDEX RANKINGS
5G phones in 2020, they will see early adoption of 5G. Rank out of 50 markets
▪ While COVID-19 has severely impacted the travel sector during 2020, DIGITAL CONSUMER INDEX
online travel agencies and lodging bookings are expected to be the

leading categories for e-commerce growth by 2025, as the sector
rebounds. This high growth is due to the greater shift to online booking
platforms among UK residents, which also led to the demise of the
traditional travel agency Thomas Cook.
▪ Given the UK was faced with stricter and longer lockdown periods, this
also led to noticeable shifts in demand for foodservice delivery,
prominently via limited-service restaurants. Leading players, Deliveroo
1 10 20 30 40 50
and Just Eat, are expected to continue to expand as Deliveroo goes
public in 2021. Retail e-commerce in the UK is set to further develop TOP THREE CATEGORIES FOR DIGITAL GROWTH:
given the pandemic accelerated omnichannel development of leading Based on 2020-2025 absolute value growth (million)
retailers. Integration of social media commerce and the rising influencer 1. Online Travel Agencies: USD11,405
community in the UK will facilitate penetration of online retail in categories 2. Direct Lodging Bookings: USD7,9334
such as apparel and footwear. 3. Other Travel Intermediaries: USD5,543
OPPORTUNITIES
10 MARKETS TO WATCH
Improvement in digital commerce experience for Norwegians
▪ Norway is a highly developed market globally with strong digital

infrastructure and higher levels of internet and smartphone penetration. Spotlight | Norway
60.1
Norway is expected to increase its position by two places on the Digital
CURRENT DIGITAL
Consumer Index by 2025 to rank as the fifth highest European market. CONSUMER INDEX
Penetration of digitally innovative platforms in services will lead to
2.5
improvement in home connectivity and digital commerce. Telecom, SCORE AS COMPARED
financial services and retail are three leading industries driving digital TO REGIONAL AVERAGE
innovation in Norway. Telecom leaders such as Telenor are leading
applications of IoT and AI with various partners across industries. Telia
and Ericsson are trailing carrier aggregation to drive early 5G market 2021 DIGITAL CONSUMER INDEX RANKINGS
success which can enhance 5G coverage up to 50%. Rank out of 50 markets
▪ Airlines direct online is expected to be the leading category for e-
commerce growth in Norway, given 92% of airlines sales are made
online. Greater domestic reliance on airlines due to the geographical DIGITAL CONNECTIVITY INDEX
landscape of the Norway has led sizeable investment in regional airports
and subsidised domestic flights. This also led the local carrier Widerøe
to be the leading Scandinavian airline by number of flights. CONNECTED COMMERCE INDEX
▪ Amid a pre-pandemic penetration rate of 10% for online retail sales, the
sector holds evident opportunities as leading players such as Komplett
1 10 20 30 40 50
do not operate on third-party merchant models and focus on categories Current Forecast
such as consumer electronics with private label products. Thus, with a TOP THREE CATEGORIES FOR DIGITAL GROWTH:
handful of players across categories and reliance on cross-border e- 1. Airlines Direct Online: USD1,953
commerce, international players such as Amazon see an opportunity to 2. Online Travel Agencies Sales: USD1,498
enter the market, which could reshape retail e-commerce in Norway. 3. Other E-Commerce: USD1,492
OPPORTUNITIES
Key Takeaways
The Digital Consumer Index can be leveraged by companies as a tool for

market prioritisation and further development of digital strategies. This section
highlights the key insights from Euromonitor International’s 2021 Digital
Consumer Index that should be incorporated into strategic plans today.
KEY TAKEAWAYS
Key digital connectivity takeaways from the index
5G rollout across markets to make changes to LTE infrastructure improving mobile connectivity
▪ With the deployment of 5G at different stages across markets, there has been an emergence of 4G+ or
4.5G internet in many markets. Deployment is taking many shapes including consolidation of legacy
frequencies and infrastructure to develop 5G network on existing infrastructure to create interoperability and
making LTE 5G ready. This is likely to lead to variances in LTE pricing across markets. In many markets
4G will become more accessible due to ruling out of legacy frequencies, while in others 4G+ variances will
offer new price packaging.
While smartphone possession has matured, gaps exist in internet access via mobile
▪ While increased internet connectivity via mobile has been the key driver of improving access to digital
services globally, mobile connectivity data still show gaps when compared with the smartphone possession
rates across regions. Thus, despite considerable progress on device penetration with the emergence of
economic mobile handsets, mobile internet still needs to improve in pricing and coverage structure. This is
highly associated with regulatory aspects in the telecom sector. As governments push digital connectivity,
we expect noticeable improvements in these areas, given mobile will drive more in-person digital commerce
The UAE leads the Digitfor broader sectors beyond retail.
UAE and Japan will continue to lead in terms of connectivity
▪ al Connectivity Index globally and is expected to retain its leadership over the forecast period, given greater
government focus on use of technology to streamline public services. Interest in maintaining the UAE’s
attractiveness to foreign workers and high quality of living standards is leading to investment in digital
commerce. Japan is also expected to retain its second rank given greater integration of digital platforms in
the daily lives of consumers. Australia, which overtook Denmark for the third rank, is also expected to retain
its rank over the forecast period.
OPPORTUNITIES
KEY TAKEAWAYS
Key digital commerce takeaways from the index
China to increase emerging market presence in the top 10 digital consumer markets
▪ The emerging market representation in the top 10 ranking countries on the Digital Consumer Index was
limited to the UAE. However, this is likely to improve with China expected to rank ninth by 2025. While
China is the biggest consumer market and home to one of the biggest e-commerce players globally, the
size of Chinese digital commerce will further improve due to increased connectivity which will bridge
second-tier cities and rural populations to the broader Chinese economy.
Digital Europe Programme likely to improve performance of many Eastern European markets
▪ Western European markets show higher rankings on the Digital Consumer Index, with greater
representation among the developed markets as well. Western European markets are concentrated in the
top and middle positions of the index, while most Eastern European markets are ranked middle and bottom
of the index, which shows the clear disparity in digital development in Europe. Under the umbrella of the
EU, the Digital Europe Programme is likely to benefit many Eastern European markets to improve digital
connectivity with access to affordable internet and calling for investment in digital services. With payments
set to be digitised at a rapid pace in these markets, mobile connectivity and m-commerce are expected to
drive improvement.
Czech Republic to make biggest leap among developed markets
▪ Over the next five years, most developed markets are expected to retain their standings on the Digital
Consumer Index with a few seeing shifts due to improvements from emerging markets. However, Canada
and the Czech Republic will make notable improvements among developed markets. Canada will increase
its rank by three places due to improvement in its home connectivity, while the Czech Republic is set to
improve by five places. The Czech Republic is expected to further strengthen its place as a business
services provider in Europe as digital transformation becomes more mainstream among companies in
Europe and globally.
OPPORTUNITIES
Appendix
The Appendix includes a complete listing of the 2021 Digital Consumer Index
scores and rankings, as well an explanation of the methodology used in
constructing the index and its subcomponents. The final slide provides
definitions of ancillary data points used in this strategy briefing.
APPENDIX
Methodology for the Digital Consumer Index (1)
Digital Consumer Index and Subcomponents

▪ Leveraging more than 2,500 data points from Passport, Euromonitor International’s syndicated research
platform, the Digital Consumer Index helps clients identify which geographic markets are the most digitally
attractive and offer the best prospects for future deployment of digital initiatives, including digital commerce.
This index utilises 18 different metrics, all weighted using Euromonitor International’s industry expertise, to
provide an overall market attractiveness score for each component of the index.
▪ The Digital Consumer Index consists of two central components: the Digital Connectivity Index and the
Connected Commerce Index. (In the previous edition of the Digital Consumer Index, the Digital Connectivity
Index was called the Connected Consumer Index.) Each component is given equal weight in the overall
Digital Consumer Index. The 2021 Digital Consumer Index contains a current and forecast score for both
the Digital Connectivity and Connected Commerce subcomponents, as well as the combined score. The
final score (out of 100 points) reflects the current as well as forecast digital readiness in a particular country.
▪ The Digital Connectivity Index takes into consideration a consumer’s ability to access fixed and wireless
broadband, and the speed of those connections. It examines the market’s consumer profile, the
development of the market’s commerce infrastructure, and digital commerce spend across various
consumer-facing industries.
Timeframes and Geographic Coverage
▪ The Digital Consumer Index measures the digital connectivity and digital commerce readiness in 50
geographic markets at two different points in time. The two different data points are referred to as current
and forecast scores. In the 2021 Digital Consumer Index, the current score reflects the current situation in a
particular country using 2020 data as a proxy for the current state of connectivity, whereas the forecast
score reflects the projected situation in a particular geography based on 2025 projections.
OPPORTUNITIES
APPENDIX
Data Sources
▪ All data used in the Digital Consumer Index were derived from Euromonitor International’s syndicated
research platform, Passport. The data used in building the index come from a variety of Passport systems,
including Digital Consumer, Consumer Finance, Consumer Foodservice, Income and Expenditure,
Population, Retailing and Travel.
Estimating Missing Values
▪ For a few countries missing one of the indicators, Euromonitor International estimated the missing value by
calculating regional averages for each specific metric and applying that figure to those affected countries. In
this edition, the number of POS terminals on a per capita basis and mobile commerce were estimated in
this manner for two countries: Belgium and Switzerland.
Weights Applied to Metrics
▪ The Digital Consumer Index was constructed by calculating a country’s score on a particular metric against
the leading country for each metric.
▪ In previous editions of the Digital Consumer Index, the theoretical maximum value of 100% was used as
the denominator for bounded variables, such as household possession rates of digital devices. In the 2020
edition of the Digital Consumer Index, this cap was removed to better reflect access to devices and
consumer behaviour.
▪ Across all metrics, 2025 data were used for benchmarking both the current and forecast scores to allow for
better comparison not only between the metrics, but also the two points in time.
OPPORTUNITIES
APPENDIX
Changes to the 2021 Edition of the Digital Consumer Index

▪ Several updates have been made to the Digital Consumer Index for 2020 compared to the previous one.
Most significantly, New Zealand and Nigeria have been added to the index to provide better geographic
coverage. These markets replace Slovakia and Venezuela.
▪ In the 2021 Digital Consumer Index, the sub-index previously denoted as the Connected Consumer Index
has been renamed as the Digital Connectivity Index
▪ Lastly, in previous editions of the Digital Consumer Index, the theoretical maximum value of 100% was
used as the denominator for certain bounded variables, such as household possession rates of digital
devices. In the 2020 edition of the Digital Consumer Index, this cap was removed to better reflect access to
devices and consumer behaviour. This has the effect of rewarding some of the most highly connected
markets, where access to digital devices often exceeds 100%. For example, multiple members of a
household might own devices, thus indicating a great level of digital sophistication.
OPPORTUNITIES
APPENDIX
2021 Digital Consumer Index
Digital Consumer Index Scores for Leading Markets

Digital Digital Digital Connected
Digital Connected
Consumer Consumer Connectivity Commerce
Connectivity Commerce
Country Index Index Index Index
Index Current Index Current
Current Forecast Forecast Forecast
Score Score
Score Score Score Score
1 South Korea 75.2 80.6 39.5 40.6 35.7 39.9
2 United Kingdom 68.5 76.5 39.9 42.9 28.7 33.6
3 USA 68.3 76.7 40.5 43.4 27.8 33.3
4 Australia 67.1 72.3 41.5 43.8 25.6 28.4
United Arab
5 65.1 72.5 45.1 48.0 20.0 24.5
Emirates
6 Denmark 64.4 70.8 41.1 42.3 23.3 28.5
7 Netherlands 63.2 68.5 38.8 40.5 24.4 28.0
8 New Zealand 62.6 71.0 38.9 42.1 23.7 28.8
9 Singapore 62.5 68.7 39.2 40.0 23.3 28.7
10 Israel 61.7 63.4 35.0 37.3 26.7 26.0
11 Belgium 61.4 68.2 38.2 41.7 23.1 26.5
Hong Kong,
12 61.2 65.6 36.8 39.4 24.4 26.3
China
13 Japan 61.0 65.0 43.3 44.9 17.7 20.2
14 Sweden 60.9 65.5 39.5 40.8 21.4 24.6
15 Norway 60.1 67.1 38.9 40.8 21.2 26.2
Note: Based on the Digital Consumer Index Current Score rankings
OPPORTUNITIES
FOR FURTHER INSIGHT PLEASE CONTACT
Rabia Yasmeen
Consultant, Euromonitor International
rabia.yasmeen@euromonitor.com
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2021 Digital Consumer Index Pinpointing The Most Promising Digital Opportunities

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2021 DIGITAL CONSUMER INDEX: PINPOINTING THE

MOST PROMISING DIGITAL OPPORTUNITIES

About the report

The pandemic underscored the importance of technology in everyday life. With

COVID-19 has underscored the importance of internet access

▪ The internet has been one of the most

Greater digital inclusion doubles global internet population

World Developed Countries Emerging and Developing Countries

Gaps in smartphone possession and internet access via mobile

▪ With 76% of the world’s population

Connectivity driving both remote and in-person digital engagement

Digital maturity creates pressing need for market prioritisation

▪ Technologies, including internet connectivity, are driving

Introducing Euromonitor International’s Digital Consumer Index

Digital Consumer ▪ The 2021 Digital Consumer

Despite the significant development by internet service providers, both in terms

The internet is the world’s largest connector

Access to quality mobile internet essential for improved connectivity

▪ Possession of smartphones Emerging vs Developed Markets on Digital Connectivity

considerable shifts, with over

Home Connectivity Index Score

Index - only 47% of the

Home Connectivity Index than Emerging Market Developed Market

Middle East and Africa and Latin America lag on connectivity

Regional Comparison on Digital Connectivity Index

Poland makes the biggest strides on connectivity

Noticeable shifts in leading markets with the rise of China

Nigeria to show progress in connectivity, India to leap in ranks

country in terms of Digital Connectivity will move up the rankings Ukraine

internet usage through affordable smartphones, the percentage of Greece

the forecast period, making it one of the few African markets to do

▪ India will see its overall Digital Connectivity Index forecast 0 2 4 6 8

Japan and Australia to lead developed markets in connectivity

Hong Kong, Greece Australia

UAE to lead across all connectivity indices

Turkey Russia Saudi Arabia Poland

South Korea continues to lead the Digital Consumer Index

Western Europe dominates developed markets

Digital Connectivity Index Current Score

Several emerging markets aim to follow the trail of leaders

both Digital Connectivity Index and

the lowest among emerging markets

Digital Connectivity Index Current Score

the trail of leading emerging markets. Nigeria

commerce. Source: Euromonitor International 2021 Digital Consumer Index

Forecast rankings will continue to see developed market dominance

Emerging markets make noticeable strides in connected commerce

South Korea to lead Digital Consumer Index forecast rankings

Comfort Level with New Technology:South Korea vs World

Key leaders to watch on the forecast Digital Consumer Index

Highest Forecast Scores on the 2021 Digital UAE

Key laggards of note on the forecast Digital Consumer Index

Lowest Forecast Scores on the 2021 Digital Indonesia

China to post the highest absolute growth in e-commerce

▪ Rapid investment in the e-commerce sector, growth in mobile internet

become part of the norm, opportunities for mobile commerce

Penetration in second-tier cities to increase opportunities in India

establish a conducive ecosystem for e-commerce development.

Mexico set to be the fifth largest emerging digital consumer market

▪ With the efforts of the Mexican government to enhance digital

Saudi Arabia lays groundwork for robust digital commerce

Turkey eager to bank on investment to secure digital opportunities