Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

2

Share

Download to read offline

Decoding the digital consumer, bcg

Download to read offline

Knowledge Report - Decoding the digital consumer by Namit Puri, Partner & Director, BCG ( Boston Consulting Group)

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Decoding the digital consumer, bcg

  1. 1. Decoding the digital opportunity in retail
  2. 2. Report launch deck.pptx 1Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. By 2021, India will have more Internet users than the entire population of 'six G7' countries 60 66 66 83 337 170 0 100 200 300 400 500 600 700 330 202120212016 ~600-650 650-700 USA Number of people (Mn) Germany Canada 2013 France Italy 38 UK Internet users in India Population of G7 countries Source: BCG CCI Digital Influence Study, EIU, BCG Analysis
  3. 3. Report launch deck.pptx 2Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. Digital is all pervasive – goes well beyond stereotypes % of Internet users in 2014 % of Internet users in 2016 Source: BCG Buzz to Bucks study 2014,2016 Young (<25 Yrs) 47% 75% 1.6x Male 39% 57% 1.5x Metro/T1 30% 51% 1.7x Not So Young (35+ Yrs) 12% 29% 2.4x Female 15% 27% 1.8x Non- Metro 27% 44% 1.6x Affluent 55% 60% 1.1x Strugglers 16% 39% 2.4x People who we think use internet in India... ... but many others beyond the stereotype are online
  4. 4. Report launch deck.pptx 3Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. This digital usage has no 'time slot' in user's life – it is omnipresent! 7 am 8:30 am 11:30 am 12 pm 1 pm 5 pm 6 pm 7:30 pm 8:30 pm 10:30 pm 11 pm Downloads study material and uses the university websiteTransfers funds to mother through bank account, recharges mobile Surfs e-commerce websites for the latest deals Shortlists the most attractive deals to discuss with family later Checks WhatsApp messages and browses Facebook Listens to music on his phone on the way to college Wakes up and checks messages on WhatsApp Updates latest events, uploads pictures and shares jokes on Facebook and WhatsApp Calls friend studying in Australia over Skype Plays Mini Militia, a multi-player game with his friends and brother 1 am Discusses e-commerce deals with family over dinner, orders the most attractive ones Checks WhatsApp before going to bed References study material, watches Youtube during study breaks Typical day of an Indian internet user
  5. 5. Report launch deck.pptx 4Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. 'Each' digital consumer displays a distinct behavior online 0 1 2 3 4 5 See Select Search Socialize Spend Study Save Sell Each line represents the activity map of a sample online user Source: BCG consumer immersion surveys 2016
  6. 6. Report launch deck.pptx 5Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. To "Many" (hundred) segments using: Implication: New segmentation possibilities, enabling predictive and customized targeting ? Mass Targeting Micro Segmentation Time of day Day of week Location Weather Season Phone Email Billboard Product Previous behaviour Timing Context Channel Personalized product offering Shirt recommendations based on previous browsing history, purchases, "likes" on social media ( Facebook/ Instagram), usage and latest trends... Personalized communication and promotions Source: BCG Targeted contextual promotion such as, "It's a foggy day, try our new hot beverage " From A "handful" of segments.... • Limited data availability • Demographic data based segmentation
  7. 7. Report launch deck.pptx 6Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. E-commerce expected to be 50-55 Bn USD by 2021 E-commerce could become a significant channel across many categories 0 20 40 60 2021 50-55 2016 12-14 2015 6-8 0 10 20 30 40 Online share of total retail sales (%) 13-15% Consumer electronics 38-42% Appliances 6-8% 16-18% Apparel 5-7% 13-15% Homeware and furniture 2-4% 11-13% Luxury 3-5% 9-11% Health 2-4% 9-11% FMCG 1-2% 7-9% Food & Grocery 0-1% 1-3% 2016 2025 Online retail spends (Billion USD) Percentage penetration of e-commerce across categories E-commerce values are total annual sales, net of returns / discounts, for physical goods sold. It does not include services like travel / banking insurance etc. All estimates are at constant currency USD =68 INR -
  8. 8. Report launch deck.pptx 7Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. Business strategy, powered by digital Enable Transform the core Winning in the new reality: Digitize and Disrupt Organisation Data & Insight Support FunctionsIT & Infrastructure Disrupt & Innovate New Business Models Digitize core business Enhance effectiveness across the retail value chain Digital engagement Enhance consumers digitally; build strong advocates Digital commerce Use digital as a sales channel 1 2 5 Digital in store Redefine role of physical stores: enhance experience through in-store interventions 3 4
  9. 9. Report launch deck.pptx 8Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. Re-imagine consumer journeys in light of new and emerging technologies Key takeaways for a true digital transformation Do not treat digital as an "add on" – It should be central to the CEO's agenda Challenge the organization to digitize across the value chain Harness the power of data – The hidden goldmine of BIG DATA Reorganize for the digital world & create network of partnerships for new capabilities – CANNOT be done in-house 2 3 4 5 1
  10. 10. Report launch deck.pptx 9Draft—for discussion only Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved. The services and materials provided by The Boston Consulting Group (BCG) are subject to BCG's Standard Terms (a copy of which is available upon request) or such other agreement as may have been previously executed by BCG. BCG does not provide legal, accounting, or tax advice. The Client is responsible for obtaining independent advice concerning these matters. This advice may affect the guidance given by BCG. Further, BCG has made no undertaking to update these materials after the date hereof, notwithstanding that such information may become outdated or inaccurate. The materials contained in this presentation are designed for the sole use by the board of directors or senior management of the Client and solely for the limited purposes described in the presentation. The materials shall not be copied or given to any person or entity other than the Client ("Third Party") without the prior written consent of BCG. These materials serve only as the focus for discussion; they are incomplete without the accompanying oral commentary and may not be relied on as a stand-alone document. Further, Third Parties may not, and it is unreasonable for any Third Party to, rely on these materials for any purpose whatsoever. To the fullest extent permitted by law (and except to the extent otherwise agreed in a signed writing by BCG), BCG shall have no liability whatsoever to any Third Party, and any Third Party hereby waives any rights and claims it may have at any time against BCG with regard to the services, this presentation, or other materials, including the accuracy or completeness thereof. Receipt and review of this document shall be deemed agreement with and consideration for the foregoing. BCG does not provide fairness opinions or valuations of market transactions, and these materials should not be relied on or construed as such. Further, the financial evaluations, projected market and financial information, and conclusions contained in these materials are based upon standard valuation methodologies, are not definitive forecasts, and are not guaranteed by BCG. BCG has used public and/or confidential data and assumptions provided to BCG by the Client. BCG has not independently verified the data and assumptions used in these analyses. Changes in the underlying data or operating assumptions will clearly impact the analyses and conclusions. Disclaimer
  11. 11. Thank you bcg.com | bcgperspectives.com
  • YukiOzaki

    Nov. 27, 2019
  • jamesherrera1

    Nov. 24, 2018

Knowledge Report - Decoding the digital consumer by Namit Puri, Partner & Director, BCG ( Boston Consulting Group)

Views

Total views

1,122

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

76

Shares

0

Comments

0

Likes

2

×