One billion digitally native consumers will enter the market over the next decade in eight rapidly growing countries creating growth opportunities for retailers and brands, a new study by Accenture has found.
According to the study, The Next Billion Consumers: A Fast Growing Opportunity for Digital Commerce, the influx of younger consumers into fast-growing markets such as Bangladesh, Egypt, Ethiopia, India, Indonesia, Kenya, Nigeria and the Philippines will bring increased opportunities for companies that can deliver relevant and engaging digital experiences.
Approximately 1.4 billion new consumers are set to enter these markets, marked by high digital commerce growth potential, an emerging digitally astute population and little to no competition among most consumer-facing companies.
The study notes that digital commerce revenues have quadrupled since 2017, reaching $211 billion in 2022, while 36% of the population is made up people between the ages of 6 and 26 years old. In addition, 40% of the world’s largest consumer brands have no presence in these markets.
“These findings are relevant for brands in these markets and for digital commerce globally,” the study’s authors said.
“Younger consumers who have grown up with digital will expect superior digital commerce experiences as they enter the market. Many companies are not prepared for this influx. While it’s not going to happen tomorrow, it’s time to start building capability today. Companies need agile business models and data-powered commerce operations, so they have the scale to flex fast with market change.”
Several headwinds remain for companies looking to attract and keep customers in these markets. In addition to operational risks, which are already high, the introduction of digital commerce brings new issues such as last-mile delivery challenges due to poor roads and infrastructure.
The study also reveals that companies are struggling to keep up with consumers’ expectations in these markets, which are rising rapidly. More than half of digitally astute consumers in these countries prefer shopping on social media apps to other purchasing apps. Yet, 52% of social media comments related to consumer experience are negative. Among other insights, the study highlights the need for companies to continue to develop data insights, technology and partnerships to keep pace with further change.
