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

Euromonitor International

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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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11RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017

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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12RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017

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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16RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017

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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17RETAIL REINVENTED: DIGITAL COMMERCE TRENDS IN 2017

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

Philip.Benton@euromonitor.com

www.euromonitor.com

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