Retail Reinvented: Digital Commerce Trends in 2017
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Transcript of Retail Reinvented: Digital Commerce Trends in 2017
RETAILING REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
TRUSTECH 2017, CANNES
PHILIP BENTON – LEAD ANALYST, SERVICES & PAYMENTS
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2RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
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3RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Number of connected consumers has more than doubled in last decade
20%Buy an item/service via mobile on a weekly basis
47% CAGR for mobile proximity payments 2017 - 2022
MEET THE DIGITAL CONSUMER
3.4 bnGlobal internet users as of 2017
STATE OF RETAIL
DIGITAL COMMERCE TRENDS
CONCLUSION
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5RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Online retailing has increased exponentially, and is still growing
1.0%
2.3%
4.2%
9.7%
13.0%
2002
2007
2012
2017
2021
Penetration of Global Online Retailing
Value sales at constant 2017 USD prices (100 markets)
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6RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
The shopper journey in an “unconnected world”
PurchasePre Purchase Post Purchase
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7RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
The shopper journey in a “connected world”
PurchasePre Purchase Post Purchase
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8RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
Global Consumer Payments 2003 – 2021*
Card & Electronic Cash
How has the shift in retail impacted payments?
US
$ v
alu
e s
ale
s (
con
sta
nt 2
01
7 p
rice
s)
*47 researched markets
STATE OF RETAIL
DIGITAL COMMERCE TRENDS
CONCLUSION
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10RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Mobile Tipping PointNew Channels of
CommerceNew Places to Pay
The three most impactful trends reshaping digital commerce in 2017
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80%Internet purchases made via mobile in 2017 by China
88%Internet purchases made via mobile by 2022 in Indonesia
1) MOBILE TIPPING POINT
Smartphones are becoming
the default screen for brand
engagement and digital
commerce transactions.
65%Global households are expected to own a smartphone as of 2017
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China Indonesia Thailand SouthKorea
Australia US UK
Co
mp
ute
r v
Mo
bile
Dig
ital
Pu
rch
ase
s (U
S$)
Mobile Computer
China’s Asian neighbours are now adopting the “mobile-first” mindset
•2015 China
•2016 Indonesia
•2017 South Korea,Thailand
•2018
•2019 Australia
•2020 US,UK
•2021
Mobile Tipping Point
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13RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Tao Café showcases frictionless payments of the future, today
Alibaba, a leading pure-play retailer with 19% of share globally, wants to replicate the online experience in an offline environment.
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14RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
37%Connected washing machines in S. Korea, the global leader
85%Interactions will happen without a human by 2020 (IBM Watson)
2) NEW CHANNELS OF COMMERCE
Beyond mobile, there are a
plethora of things all with
the potential to disrupt
commerce.
28%Forecast CAGR of smart wearables, fastest growing electronics category
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15RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Could “voice” replace “search”?
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0 10 20 30 40 50 60
Japan
Germany
France
UK
South Africa
Australia
South Korea
Russia
US
Mexico
Indonesia
Brazil
India
China
Thailand
% of Online Respondents
Willingness to Share Personal Information Online, 2016
Privacy concerns in Western Europe could hamper success of ‘voice’
Euromonitor International’s 2016 Global Consumer Trends Survey
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2017$127 billion spent via mobile proximity payments
202090% of smartphone users will have made a mobile proximity payment
3) NEW PLACES TO PAY
Payments getting pushed
into the background as
commerce enters a
‘seamless’ world
1997Contactless payments technology introduced by Mobil (Speedpass)
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18RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
Making payments in an VR/AR world
Source: Mastercard News YouTube Channel
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19RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
The robots are coming and they are taking your payments too
10,000 Pepper robots have been sold since 2015 with players in retail, foodservice and travel using them in consumer-facing environments.
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20RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017
What are the Long-term vs. Short-term effects of these trends?
Short-term Mobile commercepurchases will overtake PC
Commerce players are experimenting with voice
Consumers will get used to paying via VR and robots
Long-term Frictionless payments will become the norm
Gestures and eye movement are the next step
Payments willbecome more automated
THANK YOU FOR LISTENINGPhilip Benton
Lead Analyst, Services & Payments
Euromonitor International
www.euromonitor.com
Follow us on Twitter:
@Euromonitor
@PhilipBentonEMI