A billion new online shoppers entering the market: Accenture

A new generation of over one billion digital native consumers between the ages of six and 26 are emerging out of Bangladesh, Egypt, Ethiopia, India, Indonesia, Kenya, Nigeria and the Philippines, according to the latest research from Accenture. These one billion consumers represent 36% of the aforementioned countries’ population. Understandably, their behaviour offers key insights for companies looking to capitalise on commerce-driven growth.

The research, which was carried out on 3,000 consumers across eight countries, also highlights that despite digital commerce revenues having quadrupled in these markets since 2017—equating to US$211 billion in 2022,—most MNCs are not set up to serve these digital-first consumers. Ultimately, those with reinvented commerce models to meet the needs of their future consumers will have the first-mover advantage.

“These new consumers are relevant to companies operating in these countries today, as well as multinationals looking to expand their footprint and balance their global portfolios,” said Fabio Vacirca, global commerce lead at Accenture Song.

“However, strategies based on the western consumption model – the steady evolution from brick-and-mortar to digital retail models that is taking place over decades – will not work for these consumers. Businesses need to go digital first and leapfrog older legacy approaches.”

Know thy consumer

Four core digital shopper archetypes were identified: digital native purchasers, digitally savvy millennials, digital native content creators and digital alpha influencers.

These span three generations—Gen Alpha, Gen Z and Millennials.  

• The majority (80%) of surveyed consumers have an online presence and are social media users, they also socially network and use digital channels to research before buying.
• “Likes” and “good comments” on social media influence 76% of these consumers’ online buying decisions. More than half of emerging consumers prefer shopping on social media apps to other purchasing platforms.
• At least six in 10 (63%) social commerce shoppers say they are more likely to buy from the same seller again.
• 65% of consumers prefer to use e-payment methods. Convenient delivery options like “click and collect” (73%) and free delivery (79%) are critical drivers of their online purchase.
• Three-quarters see easy-return policies as a key influence on their online purchasing decisions.

Simone Morandi, Accenture Song’s Growth Markets Commerce Lead tells Campaign: “It’s an incredibly exciting time for companies as we welcome shifts in commerce driven by the rise of a younger audience, new technologies, modes of engagements, and the explosion of channels that bring limitless opportunities for business growth and consumer experiences.”