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Copyright2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
CONNECTIVITY IS
ENABLING LIFESTYLE
EVOLUTION
Today, 4 billion1 people (53% of the global population) are connected
to the internet, and nearly all of them (92.6%1) do so using their mobile
devices. Everyday, 85% of users (3.4 billion) connect to the internet and
spend, on average, six and a half hours online. Consumers are spending
more time, with increasing frequency, on an expanded range of diverse
digital activities. It is undisputed that internet accessibility, mobile
technology and digital innovations are redefning consumers’ every
interaction and will continue to enable and disrupt many aspects of
consumers’ lifestyles well into the future.
The “connected life” is well established and the proliferation of access and
utility continues to transform how consumers incorporate information,
interfaces and exchanges, not only to simplify their lives, but also to add
fexibility and personalization, into their increasingly demanding lives.
Conventional connected usage has multiplied across communication
platforms, social engagement spaces, information portals, fnancial
transactions, gaming and video content, to include a burgeoning appetite
for online shopping.
Companies recognize the infuence and impact that their online presence
(via branded digital properties—websites, advertising and social media)
has had on their in-store sales growth, and for other companies this
sparked the origins of e-commerce retailing. Development in retailing has
quickly become greater in scope than either the physical or virtual store.
Success and sustained growth for manufacturers and retailers will
be about creating strategic advantages across converged channels,
touchpoints and experiences along the path to purchase, in both
developed and developing markets, and evolved and emerging categories.
E-commerce advancement hinges on the consumers—their online usage
behavior and habits, adoption drivers, tipping points and challenges. The
Nielsen Connected Commerce report provides insights into the global
connected consumer, shopping traits, category evolution and barriers, to
identify future growth prospects.Copyright2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
PAVING THE WAY FOR
E-COMMERCE
Connectivity today brings the convenience of hassle-free shopping - anytime,
anywhere. At no point in time could this be more apt than now, considering
the merging of multiple factors impacting the complexity of consumers’
lives—and shaping new found shopping experiences.
Busy City Dwellers – urban, on-the-go lifestyles call for simpler, quicker and
easier ways to perform regular shopping activities.
Retail Transformation – new players, investment in technology and beyond-
the-border retailers have opened up additional avenues to browse and buy.
Native Digital Shoppers – Generations Y (Millennials) and Z, accustomed to
using digital devices and services, are early adopters of e-commerce.
Global online sales in 2017 totaled US$2.3 trillion2 or 10.2% of total retail sales
and is expected to reach 17.5% by 2021. Online retail development correlates
strongly with constantly improving internet access, especially in mobile-frst
communities. With connectivity and digital development exploding in Asia, it
is no surprise that the fastest growing e-commerce markets are located there.
In 2019, online retail trail blazer, Amazon, will turn 25 years old. It is easy
to overlook the fact that e-commerce is still in a nascent stage, despite
considerable advances in online retail subscriptions, augmented and virtual
reality services, addressable, personalized advertising, mobile connected
payments and drone delivery. With continued technological innovation
ecommerce growth is set to outpace traditional formats for years to come.
Around the globe, the number of consumers who are connected and making
online purchases will continue to multiply every year as newly connected
consumers enter the online retail environment.
THE COMBINATION OF EXISTING CONNECTED CONSUMERS SPENDING MORE, MORE
OFTEN, AND NEWLY CONNECTED CONSUMERS PURCHASING FOR THE FIRST TIME
WILL PROPEL E-COMMERCE GROWTH.Copyright2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
TOP ONLINE CATEGORY
PURCHASING
% Global Consumers Claimed
Purchasing, 2018
FASHION
TRAVEL
BOOKS &
MUSIC
IT &
MOBILE
EVENT
TICKETS
STARS AND
STARTOUTS
In markets around the world categories such as
travel, entertainment (books, music, events) and
durable goods (fashion, IT/mobile, electronics)
are the front runners for consumers to enter
the online retail sphere. After two decades of
e-commerce retailing, these categories have
higher online purchasing penetration and
frequency of purchasing than most consumer
goods categories.
The ability to search and compare product
and service specifcations, product availability
and prices, as well as access to products from
beyond home borders, has contributed to
the success of these categories. Additionally,
for many durable goods, entertainment and
service categories, consumers make a one-time
purchase or replenish less frequently than they
do for most fast-moving consumer goods (FMCG)
categories. While the individual transaction
value may be higher, these combined factors
have made them more attractive to consumers
to experiment with.
Consumers are, however, also looking for
e-commerce options for an increasing range of
categories, as their more immediate needs for
convenience and ease expand. The availability of
suppliers, quality products, broader assortment,
competitive pricing, alternative fulflment and
delivery, payment options, simpler website/
application interfaces and increasing user
trust and confdence are all aligning to entice
more consumers online, more often. These
factors point to signifcant opportunities for
FMCG categories, which need to be replenished
weekly or daily, and take up a sizeable portion of
consumers’ time to shop in physical stores.
61%
59%
49%
47%
45%
CATEGORY PERFORMANCE。