2017 DIGITAL CONSUMER INDEX: PINPOINTING

THE MOST PROMISING DIGITAL OPPORTUNITIES

October 2017
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
Key findings
Connectivity gives way
to the Connected
Consumer
Mobile phone fuelled
the digital
democratisation of
society
South Korea sits atop
current digital
connectivity rankings
Australia leads in Digital
Consumer Index as
consumers embrace
digital mindset
UAE and China
continue to outpace
emerging market
counterparts
© Euromonitor International
Digital connectivity has altered all of life. Consumers leverage it for purposes such
as entertainment, education, knowledge, social sharing and shopping. This
connectivity has disrupted - and arguably improved upon - many structures for
engaging in such activities.
While there is no disputing how this device transformed life for developed market
consumers, it served an even more pivotal role for emerging market consumers.
The cheaper handsets and less costly mobile networks put internet access into the
hands of emerging market consumers, thus democratising internet access for
more of the global population.
South Korea is a leader in technological development and implementation, with
some of the fastest and most extensive networks in the world. The strength of
these digital connections has propelled it to the top spot in the Digital Connectivity
Index current rankings. While South Korea is strong in both fixed and mobile
connectivity, it is the strength of its home connectivity propelling it to the top.
High levels of technological investment and consumer adoption of such tools for
digital commerce, propelled Australia to the top spot in the Digital Consumer Index
based on current scores. In a quest for ultimate convenience, these consumers
are actively shifting digital purchases from the computer to the on-the-go mobile
device.
The United Arab Emirates and China are outpacing their emerging market
counterparts based on the Digital Consumer Index based on current scores. The
former is the highest ranked emerging market, coming in at number 15 based on
current rankings. China, however, is projected to make one of the greatest leaps
over the forecast period.
2017 DIGITAL CONSUMER INDEX: PASSPORT 2
PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
Introducing the 2017 Digital Consumer Index
Consumers are more connected than ever before, and this rapid increase in
digital connections has ushered in speed and convenience across all aspects of
life. Whether or not a company needs a digital strategy is no longer up for
debate. The question is how and where to deploy limited resources for these
digital initiatives. Leveraging more than 2,500 data points, Euromonitor
International created the Digital Consumer Index to assist clients with this market
prioritisation for all digital initiatives, including digital commerce.
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

The internet has been one of the most transformative innovations

 Technology continues to play a critical
role in the evolution of society, including
the upheaval of consumer-facing
industries. Artificial intelligence opened
the door to brands creating more
personalised experiences. Virtual and
augmented realities provided a new
lens from which to view the world. 3D
printing made it possible to individually
manufacture products
 While each of these technologies is
disruptive in its own right, the internet,
in particular, has been one of the
modern era’s most transformative
innovations. In fact, connectivity is the
new normal. As of 2017, almost half of
the global population uses the internet.

45% 76% Euromonitor International projects that

three quarters will be using the internet
by 2030. In particular, the smartphone
and its on-the-go access introduced
Population using Population using
borderless internet, enabling
internet as of 2017 internet as of 2030 consumers to plug in no matter who
they are or where they were.

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 4

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

Connectivity underpins very existence of Connected Consumers

 The constant innovation driven by technology has generated and

inspired a number of megatrends, or macroeconomic or geostrategic
shifts, that are reshaping the world. Out of the eight megatrends
identified by Euromonitor International, internet connectivity is most
fundamental to the Connected Consumers megatrend. Connected
Consumers use a variety of devices and interfaces to connect to the
internet, in order to interact with digital content, services and
experiences. While computers first brought the internet into the home,
mobile, in particular, ushered in a borderless internet, giving more
consumers instant access to anything, from anywhere.
 This digital connectivity has altered all of life. Consumers leverage it
for purposes such as entertainment, education, knowledge, social
sharing and shopping. This connectivity has disrupted - and arguably
improved upon - many structures for engaging in such activities. It
has led to new value creations, giving consumers greater
convenience, simplicity and knowledge. It has altered the competitive
landscape, disrupted long-standing industries, and ushered in new
business models. This connectivity has redistributed power, giving
consumers a megaphone in the business transaction. It has also
boosted companies born in the modern era, as data has emerged as
the most important commodity. As such, the world’s most valuable
companies are no longer the likes of Exxon Mobil, but Amazon, Apple
and Facebook - the biggest purveyors of data.

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 5

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

Internet connectivity increasingly used for a variety of activities

 While today’s most popular online activities are

communication-driven, Connected Consumers are Most Popular Mobile Phone Activities
increasingly using online access for entertainment,
health and commerce purposes. More than 80% of Browse the internet
global Connected Consumers use mobile Make or receive a phone call
connectivity to browse the internet on a weekly basis Send and receive emails
- the most popular activity according to the 2017 Sent a text message
Global Consumer Trends Survey. By contrast, only Use of a messaging app
28% use phones to track health and fitness, and only Visit a social networking site
Take a photo or video
24% use them to make purchases.
Watch a TV or video
 Although in the early days, connectivity is reshaping Upload or share multimedia
commerce. About 35% of Connected Consumers Use a banking service
globally use a computer to read reviews or compare Stream music online
prices on a weekly basis, with one quarter using a Use built-in GPS navigation
computer to execute a purchase. In digitally-savvy Read reviews

South Korea and the UK, around 12% of consumer Compare prices in store
Use health or fitness app
payments were made using a digital device in 2016,
Make in-store mobile payment
with that ratio approaching 20% by 2021. Given that
Buy an item or service
future commerce will be digitally influenced and Order foodservice online
executed, these figures will only rise. If, for example, Order ride-sharing service
only 10% of consumer payments globally were made 0 50 100
digitally in 2021, that would equate to USD7.2 trillion % online global respondents performing activity on a
in digital commerce. weekly basis
2017 2016

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 6

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

Digital uptake 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 of 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
developed the Digital Consumer Index. This tool pinpoints a country’s
relative digital standing in the present, as well as offers forecasts for
where it is expected to be five years from now. With this 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 will assist clients with market prioritisation exercises for all
digital initiatives, including digital commerce. In total, the Digital
Consumer 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.

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 7

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
 2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

Introducing Euromonitor International’s Digital Consumer Index

Digital Consumer
Index  The 2017 Digital Consumer
Index consists of two central
components: Digital
Connectivity Index; and
Connected Commerce Index.
Each component, which is
broken down into further
Digital Connectivity Connected Commerce
Index Index
subcomponents, is given equal
weight in the overall Digital
Consumer Index.
 Each index contains a current
and forecasted score. The
Digital Consumer Index score
(out of 100 points) reflects the
current or forecasted readiness
in a particular country.
Home Mobile Market Commerce Digital Coverage spans 50 countries
Connectivity Connectivity Environment Infrastructure Commerce across all regions.
Index Index Index Index Index  A full explanation of the
Measures the Measures the Measures Measures the Measures
market’s overall market’s mobile
methodology and full rankings
economic and infrastructure’s consumer spend
internet connectivity demographics digital commerce across digital can be found in the Appendix
connectivity specifically factors readiness channels at the end of this document.

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 8

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
2017 DIGITAL CONSUMER INDEX: PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES

Five markets to watch based on the Digital Consumer Index

Highest Current Scores on the Australia
2017 Digital Consumer Index
 High levels of technological investment and consumer adoption of
Rank Country
such tools for digital commerce, propelled Australia to the top spot in
the Digital Consumer Index based on current scores.
1 Australia
2 South Korea
China
3 UK  While “mobile first” is a favourite commerce buzzword, this is the only
4 Denmark true mobile-centric nation. As of 2016, 66% of digital purchases were
5 US made on mobile devices.
6 Norway
South Korea
7 Sweden
8 Netherlands
 South Korea’s strong digital backbone coupled with its propensity to
9 Switzerland
spend online will propel it to the top of the Digital Consumer Index
10 Singapore
based on forecast scores.
11 Japan US
12 France  The willingness of US consumers to make digital purchases
13 Belgium continues to grow. The mobile phone is particularly notable, with US
14 Canada consumers expected to purchase more through mobile phones than
15 United Arab Emirates personal computers by 2020.
16 Israel
UK
17 Hong Kong, China
18 Germany
 In this digital-first market, 12% of all consumer payments were
19 Taiwan
transacted through a digital device in 2016, one of the highest
20 Spain
percentages globally. The range of products available online is vast
and continues to widen.

© Euromonitor International 2017 DIGITAL CONSUMER INDEX: PASSPORT 9

PINPOINTING THE MOST PROMISING DIGITAL OPPORTUNITIES
FOR FURTHER INSIGHT, PLEASE CONTACT
Michelle Evans
Head of Digital Consumer Research, Euromonitor International
michelle.evans@euromonitor.com
https://twitter.com/mevans14\
https://www.linkedin.com/in/michelleevansmaclachlan
https://www.forbes.com/sites/michelleevans1/#

RELATED ANALYSIS
 Introducing Euromonitor's Digital Consumer Index (Opinion, October 2016)
 Five Key Insights from the 2017 Digital Consumer Index (Opinion, October 2017)
 Top Five Digital Consumer Trends in 2017 (Strategy Briefing, July 2017)