FIVE DIGITAL SHOPPING TRENDS SURGING DUE TO THE

CORONAVIRUS
August 2020

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Introduction
Impact of Covid-19 on Shopping Behaviour
Trend no. 1: Brand Engagement goes Virtual
Trend no. 2: E-commerce as the Default Setting
Trend no. 3: New Era of Contactless Retail
Trend no. 4: Commerce without Humans
Trend no. 5: Forced Reinvention of Last Mile
Key Takeaways
Appendix
INTRODUCTION

Scope of Digital Consumer

 These are the main components of Digital Consumer’s data offering: Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made to
Digital ensure accuracy and reliability,
Consumer Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
Digital Digital Voice of the Digital may not sum. Analyses found in the
Commerce Landscape Industry: Digital Consumer Index briefings may not totally reflect the
companies’ opinions, reader
Consumer discretion is advised.

The Coronavirus (COVID-19)

By Payer’s
Internet pandemic has dramatically
Location altered consumer shopping
behaviour. Using the Digital
Consumer Survey, which was
fielded in March and April during
the height of mandated lockdowns,
By Device Mobile Telecom this report explores consumer
sentiment with regard to digital
trends accelerated by the crisis.
Topics of exploration include
contactless retail, new fulfilment
Possession of
By Industry and delivery methods, the rapid
Digital Devices surge in e-commerce, virtual
brand engagements and the role
of emerging technologies such as
robots

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INTRODUCTION

Key findings

Brand engagement goes With COVID-19 placing constraints on physical operations, consumer-facing
companies have become more reliant on the digital channel to drive all forms of
virtual engagement with their customer base.
The growth of e-commerce was an established trend long before COVID-19 was
E-commerce as the default declared a global pandemic. Even so, this period will likely have one of the most
setting long-lasting impacts on this channel’s long-term trajectory as more consumers turn
to digital channels to shop and execute purchases.
New era of contactless Concerns over virus transmission led retailers and foodservice operators to adopt
more aggressive “contactless” options, which impacted areas ranging from
retail payments to ordering to delivery.
Robots have been in the spotlight as businesses attempt to reduce human-to-human
Commerce without
contact. While applications were previously focused on manufacturing, the crisis is
humans
accelerating use cases in the service sector.
Even before the pandemic, delivery and logistics were highly competitive fronts for
Forced reinvention of last
retailers, foodservice operators and third-party delivery platforms, but the boom in
mile
e-commerce is underscoring the need for a reinvention of last-mile options.

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Introduction
Impact of Covid-19 on Shopping Behaviour
Trend no. 1: Brand Engagement goes Virtual
Trend no. 2: E-commerce as the Default Setting
Trend no. 3: New Era of Contactless Retail
Trend no. 4: Commerce without Humans
Trend no. 5: Forced Reinvention of Last Mile
Key Takeaways
Appendix
IMPACT OF COVID-19 ON SHOPPING BEHAVIOUR

COVID-19 crisis is driving radical shifts in consumer shopping behaviour

 Consumer spending is undergoing unprecedented levels of channel shift

due to the COVID-19 pandemic. Sharply reduced travel flows globally and
the temporary closure of restaurants and non-essential stores in many
markets have led to seismic shifts in how and where consumers spend
their money. Given that many restaurants have had to close their outlets
during the height of the outbreaks, consumers have been cooking more at
home and correspondingly spending more money at grocery stores. With
the closure of non-essential stores for periods of time, consumers have
also had no choice but to turn to the digital channel to obtain products.
Even among channels that remained open, the ways consumers were
shopping changed as many consumers sought to reduce time in stores.
 Such shifts require significant operational and strategic changes for
companies to meet the new needs of consumers. In some cases,
companies are finding that adapting their marketing and operations is not
sufficient and have begun changing business models to drive existing and
new revenue streams. Technology is at the core of many of these efforts.
 Even before the pandemic, technological advances were changing the way
companies operated. In fact, 50% of industry respondents agreed that
having a digital presence is an important part of their company’s value
proposition. This sentiment was captured in November before COVID-19
became a global pandemic. If fielded today, it would likely be higher as the
crisis is accelerating the digital transformation. In fact, as a society we will
likely look back to COVID-19 as the catalyst for a stronger move towards
digitalisation in general and for commerce specifically.

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IMPACT OF COVID-19 ON SHOPPING BEHAVIOUR

Five digital shopping trends in the spotlight due to COVID-19

 These dramatic shifts in consumer lifestyles are accelerating a number of digitally-inspired trends, some of
which were already in motion even before the global pandemic began. This report explores consumer sentiment
with regard to five specific digital commerce trends that have been in the spotlight more than others during
these unique times. In order to understand consumer sentiment with respect to these trends, Euromonitor
International leveraged its new Digital Consumer Survey, which was fielded in March and April when much of
the world was in mandated lockdowns due to COVID-19 outbreaks.

Brand E-Commerce as New Era of Commerce Forced

Engagement the Default Contactless Without Reinvention of
Goes Virtual Setting Retail Humans Last Mile

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Trend No. 1: Brand Engagement Goes Virtual

The COVID-19 pandemic is re-orientating the way that consumers shop, including
how they discover and eventually purchase products or services. Outlet closures
during the height of the virus outbreaks coupled with ongoing measures such as
social distancing aimed at reducing virus spread have shifted commerce from
physical to digital channels. As a result, brands of all shapes and sizes have become
reliant on the digital channel to drive engagement with consumers that are either
forced or voluntarily reducing time in physical outlets during the global health
crisis.
BRAND ENGAGEMENT GOES VIRTUAL

Crisis forced brands to pivot consumer engagements to digital channel

 With mandated lockdowns and ongoing social distancing

Social media engagement
measures putting constraints on physical operations, many • Example: AB InBev, the company behind beer brands
in-person experiences have suddenly lost their impact. As such as Budweiser and Corona, launched a marketing
retailers, hospitality operators and brands find themselves campaign to support local, pubs, bar and restaurants
during this period.
unable to interact with consumers in person during the
pandemic, many turned to digital channels to engage Livestreaming product demos
• Example: Amazon launched Amazon Live in 2019 and in
consumers, drive discovery and inspire purchases. mid-2020 added livestreaming as an option to its existing
 Of course, brands have been leveraging digital for years to influencer programme.

engage with consumers, but with physical channels Virtual try-on tools
• Example: Chinese beauty tech company, Meitu, launched
severely constraining other options, digital ones became a free AR-based make-up trial system to help beauty
“must have” rather than “nice to have”. Companies had no companies overcome COVID-19 challenges.
choice, but to get creative in order to engage with Virtual malls
customers through virtual touchpoints as digital emerged • Example: The town of Whakatā ne on New Zealand’s
as the only channel for reaching these shut-in consumers. North Island created a virtual mall featuring local and
regional businesses to help these companies grow their
 These virtual efforts took a variety of forms from enhanced online presence.
social media engagement to livestreaming product Virtual classes
demonstrations. The concept of browsing with just one’s • Example: UK department store John Lewis launched
virtual classes on home design and personal styling to
eyes, also known as virtual try-ons, emerged in recent bring some of its traditional in-store engagements into
years, but accelerated during the pandemic. Players used homes during the lockdown.
technology such as virtual or augmented reality to mimic Digital consultations
the experience of touching or trying on a product in a • Example: US-based David’s Bridal launched a virtual
appointment service to allow its stylists to assist brides
physical store. and bridal parties remotely during the crisis.

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BRAND ENGAGEMENT GOES VIRTUAL

More consumers turning to social media, but engagements forced to evolve

 Given mandated lockdowns globally and restrictions on gatherings, consumers

have had more free time, which has led social media engagements to soar. In
fact, only 2.4% of respondents taking the Digital Consumer Survey, which was
fielded in March and April, reported not having used a social media platform in
the previous month. The most popular social media platforms globally were
YouTube, Facebook and Instagram.
 Although consumers had more time in which to spend on social platforms, the
rules of engagement changed. Marketers were faced with the new challenge of
not sharing content that would make their brand appear tone deaf or detached
during these unique times. A number of global brands from McDonald’s to
Nike to YouTube pushed their products and services in several ways through
#stayathome campaigns.
 Many advertising campaigns and influencer deals also froze due to economic
constraints. At the same time, the backdrop of many influencer campaigns
became irrelevant as the social aspects of life came to a halt. The too-perfect
images of years past will not be appropriate for some time. Authenticity has
never been more important for influencers.
 During this unprecedented period, trusted social media influencers can
continue to be a reliable source of information for consumers. They also can be
an effective and authentic way for brands to engage with their audiences.
However, the rise of the global pandemic is prompting brands and companies
to pause and re-evaluate their marketing strategies, which includes the role of
influencers and the return on investment of such campaigns.

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BRAND ENGAGEMENT GOES VIRTUAL

China pioneered and still leads the way on the livestreaming trend

 Livestreaming, which refers to streaming media that is

simultaneously recorded and broadcast in real time, is still a
relatively niche way of viewing content. This concept is by far
the strongest among younger cohorts as well as in emerging
markets, with China leading the way. As an example, 43% of
consumers aged 15-29 report using livestreaming in China as
compared to 19% for these same cohorts in the US and the UK.
 Alibaba’s Taobao Live platform is the undisputed leader of
commerce livestreams. However, other platforms stepped up in
2020 to add capabilities. For example, China’s tech platforms
such as Douyin (Chinese version of TikTok), mobile messaging
app WeChat and social shopping app Xiaohongshu (or “Red”)
added it too.
 Red, which is a combination of Western social sites such as
Instagram and Pinterest, pushed harder during the pandemic.
In March, Louis Vuitton became the first international luxury
brand to host a livestream, an hourlong event showcasing its
summer collection.
 In addition, this concept has moved West. Amazon launched
Amazon Live in 2019 and opened it up to influencers in mid-
2020. Facebook also offers livestreaming on its Facebook and
Instagram platforms, allowing brands to connect with
consumers in real time.

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BRAND ENGAGEMENT GOES VIRTUAL

Case study: Alibaba’s livestreaming platform sees uptake amid COVID-19

More than 30% of connected consumers in China reported using livestreaming, which is triple what
connected consumers report doing in the US and the UK, according to the Digital Consumer Survey.

 Alibaba Group Holding Ltd and JD.com Inc recently  Alibaba has seen its flagship livestreaming channel,
hosted their annual 6.18 shopping festival, which was Taobao Live, post strong growth during the pandemic as
first created by JD.com to commemorate its 18 June savvy Chinese consumers turned to such platforms to
founding anniversary. The two Chinese e-commerce explore and find out more detailed information on
giants handled record sales of USD136 billion during available products.
the 18-day event, which was the first shopping gala Our Take
during the pandemic period.  Livestreaming was already emerging as a tool for
 During the 6.18 event, Alibaba Group’s Taobao Live reaching the world’s most sophisticated consumers, but
welcomed 300 celebrities and 600 brand executives COVID-19 has further fuelled such interest from Alibaba
to engage with consumers in real time. More than and others. E-commerce and social media have both
50,000 retailers leveraged livestreaming capabilities experienced an unprecedented boom in this era, which
to reach consumers during the event. together are helping to propel livestreaming.

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BRAND ENGAGEMENT GOES VIRTUAL

Case study: Naixue Tea chain uses livestreaming for product launch

 After sales declined amid the COVID-19 outbreak, one

of China’s biggest bubble tea chains Naixue Tea
decided to launch a new line of themed drinks that
customers could enjoy at home via a livestreaming
event on Taobao Live in late March.
 In order to extend its reach to millennials and Gen Z,
it teamed up with livestreaming influencer Zhang
Dayi and her BigEve beauty brand. Together they
created a gift box shaped like a to-go cup filled with a
limited-edition cleanser, facial scrub, body wash and
Naixue drink vouchers. Nearly 3,000 sets were sold
within the first second of the livestream with more
than 10,000 units sold by the end of the broadcast.
Our Take
 The sharp shifts in demand caused by the pandemic
created opportunities for companies that could
quickly pivot to serve consumers via digital channels.
Launching and promoting products via livestreaming
In China, the greatest usage of livestreaming was events has the potential to remain the norm even
among the millennial generation, according to after COVID-19. This is especially important for those
the Digital Consumer Survey. companies with a target audience that overlaps with
those using livestream platforms or even more
broadly social media platforms.

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BRAND ENGAGEMENT GOES VIRTUAL

Virtual try-on features enable brands to mimic in-person experience

 One way to recreate the physical

experience in the digital channel is
through virtual try-on features.
Almost 30% of connected
consumers globally indicate that
the ability to try on products
virtually as an important online
feature.
 Globally, the sentiment is highest
among millennials. It also is highest
among emerging market
consumers. India, in particular,
posted the highest rate globally
with 40% of connected consumers
there wanting such a feature as part
of their online shopping experience.
 Perfect Corp, which provides virtual
try-on technology to beauty brands,
reports that such a feature
generated 2.5 times higher e-
commerce conversations for
brands, even before the COVID-19
Source: Euromonitor International’s Digital Consumer Survey, fielded from March to April 2020 pandemic.

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BRAND ENGAGEMENT GOES VIRTUAL

Case study: Ace & Tate introduces online styling advice and try-ons

 Founded in 2013, Amsterdam-based optician Ace & Tate

operates across several Western European markets
offering affordable eyewear by selling sunglasses,
spectacles and other eyewear accessories directly to
consumers bypassing customary licence holder and retail
fees.
 In a rather generic and primarily store-based retail
landscape, Ace & Tate’s ethos has revolved around
digitalisation and convenience from its inception, offering
home try-ons operating with an omnichannel strategy.
 With most stores closed as a result of COVID-19, Ace &
Tate launched virtual appointments and virtual try-ons for
free in April 2020. The goal is to provide a digital
customer service addressing people's questions and
concerns during lockdowns. With this service, the brand
provides styling advice via online styling assistants,
following a by-appointment system.
Our Take
E-commerce only accounts for 9% of  The deployment of digital technologies to enhance retail
global eyewear revenues today, according and boost consumer engagement is gradually bringing
to Passport Eyewear. eyewear specialists into fashion territory, bolstering the
ongoing shift from eyecare to eyewear.

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BRAND ENGAGEMENT GOES VIRTUAL

Case study: Lazada helps mall operators in Southeast Asia go virtual

 Marina Square Shopping Mall, located in central Singapore, is

taking more than 30 of its tenants online with Lazada, the
Southeast Asian unit of Alibaba Group. Marina Square is the first
shopping mall in the city-state to create a virtual replica of its
physical mall.
 The shopping mall and Lazada entered into a partnership that
will see about a dozen of the mall’s brands go online for the first
time. Marina Square also will offer vouchers to consumers that
can be used in physical stores as part of its efforts to ensure that
shoppers visit physical outlets as well.
 Lazada also entered into a similar partnership with Bangkok’s
landmark shopping mall Siam Center to help bring 40 of its
tenants online. In Indonesia, it partnered with developer
Pakuwon Group to bring 100 tenants across three malls online.
Lazada launched its virtual mall concept call Lazmall in 2018,
but interest has exploded during the pandemic.
Our Take
Lazada is the largest online  Even before COVID-19, traffic to brick-and-mortar stores was
marketplace in Southeast Asia. As of declining. While the transition to e-commerce will not fully
2019, its largest market was Thailand, counteract the in-store shopping decline anytime soon, digital
followed closely by Indonesia, solutions mimicking the physical shopping experience may be
according to Passport Retailing. able to help businesses stay connected and afloat.

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BRAND ENGAGEMENT GOES VIRTUAL

AR/VR technologies used to create virtual try-on experiences

 One of the ways to execute upon the concept of virtually trying on a

product is by using augmented or virtual reality. Although these
technologies have been commercially available for years, 55% of
connected consumers globally report not having used either. From a
consumer perspective, gaming remains the main avenue for exploration.
The top commerce use cases are tied to travel, including previewing a
holiday destination or taking a tour of a hotel room. Between 20-28% of
connected consumers who have used AR/VR in the past year have done
so to shop for household items, clothes and make-up.
 Even before the pandemic, Israeli start-up Zeekit had been working with
retailers to enable digital consumers to virtually try on an article of
clothing while shopping online. The technology, which uses real-time
image processing technology and augmented reality, is already
embedded in websites of US-based Walmart and Macy’s and UK-based
Asos. The partnership with Asos deepened during the pandemic with it
using Zeekit’s AR technology to simulate real-life model photography as
the fashion house sought to promote social distancing in its studios.
 In June, the online marketplace Etsy joined IKEA, Wayfair and others in
trying to make online goods feel more tangible. The new AR feature on
its app shows customers how paintings, photographs and other décor
would look on the walls in their own homes. In the previous three
months to launch, Etsy reports that searches for wall décor or art had
jumped 94% compared to the same period last year.

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BRAND ENGAGEMENT GOES VIRTUAL

Case study: IKEA continues augment virtual shopping features

Almost 30% of connected consumers who have used AR/VR technologies in the last year report using
them to shop for household items and furniture based on the Digital Consumer Survey.

 Swedish home furnishings giant IKEA has been  In April, IKEA acquired Geomagical Labs. With this
investing more and more into AR to help consumers technology, consumers will be able to virtually remove
visualise home furnishings in their living spaces. all the furniture in a room before testing new home
 IKEA Place, which was launched in 2017, features furnishings in the space. IKEA had already developed
realistically-rendered, true-to-scale 3D products and an AR-based visualisation tool, but this represents a far
automatically scales products, based on room more accurate and useful development on that.
dimensions. As of 2019 update, the app now lets Our Take
users try multiple pieces of décor in a room instead  Incorporating AR into an online shopping app is a
of just one at a time. It also allowed consumers for unique selling point as it allows consumers to better
the first time to purchase products remotely as envisage the suitability of the products without having
opposed to the app merely making a shopping list to leave their homes, which has become a much more
that then would need to be purchased in store. critical shopping feature in the COVID-19 era.

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BRAND ENGAGEMENT GOES VIRTUAL

While being experiential remains important, it raises privacy concerns

 Cultivating an experiential mindset has become an important value proposition for many consumer-facing
companies as shopping has transitioned from being transactional in nature to more about relationship building.
Creating these memorable experiences for consumers emerged as a way for many to differentiate themselves in
the face of endless consumer choice as magnified by the internet.
 Prior to COVID-19, consumers were increasingly seeking such experiences whether by travelling or seeking out
stores that cultivated them. More than half of connected consumers said that they shop in stores that create
engaging experiences, according to the Lifestyles Survey, which was fielded in January and February. This
sentiment is strongest among the most digitally savvy consumers with 77% agreeing.
 Consumer-facing companies are being challenged on many fronts during the COVID-19 pandemic. One of those
areas is maintaining such experiences at a time when the emphasis is on no touch. Technology and the data that
come along with it have long played an important role for companies wishing to provide a memorable customer
experience, but now it is absolutely central to most of these experiences.
 As more consumers virtually try on clothes or cosmetics, companies are getting access to even more valuable
personal information, such as biometrics, personal sizing or geolocation tags. Previously a shopper could try on
clothes at a store without the retailer ever knowing who they were. It is feasible that due to COVID-19, retailers
and others will gain an even more intimate view into a shopper’s lifestyle and habits, which raises privacy
concerns.
 This commercial trade-off has become much more top of mind for more consumers, as a result of privacy
regulations that have come into effect in developed markets around the world. These evolving dynamics have
been leading consumers to expect companies to be more transparent about data-gathering practices.
 Although some consumers are more open during COVID-19 to sharing data in the name of the public, privacy
concerns will not go away for more privacy-conscious subsets. Companies must continue to be transparent
when it comes to data collection and be clear as to the benefits they provide consumers in exchange for these
data.

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BRAND ENGAGEMENT GOES VIRTUAL

Key takeaways

Engagement has gone all digital

• With COVID-19 constraints on physical operations, many in-person experiences have suddenly lost
their impact, putting emphasis on digital.

Consumers have more time for social

• With more time on their hands, consumers are turning to social. Brands are responding with a
variety of #stayathome campaigns.

Virtually trying on products gains traction

• One way to recreate the physical experience in the digital channel is through virtual try-on
features executed using tech such as augmented reality.

Discovery digitalisation raises privacy concerns

• In this era of hyper digitalisation, it is important for companies to be transparent about data
collection in order not to discourage consumers.

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Trend No. 2: E-Commerce As the Default Setting

One of the most profound changes unfolding in commerce is the digital shift.
Globally, consumers ordered USD6.3 trillion in goods and services online in 2019,
nearly doubling the amount from five years earlier. The pandemic will accelerate e-
commerce adoption, as many consumers experiment and even become reliant on
the digital channel while in isolation.
E-COMMERCE AS THE DEFAULT SETTING

E-commerce posted a double-digit percentage point increase during crisis

 Euromonitor International has fielded two surveys in 2020 asking consumers about their path to purchase
habits. Comparing results of these two surveys, which were fielded at staggered times, provides insights into
what percentage of connected consumers have shifted towards digital channels during the COVID-19 pandemic.
For context, the annual Lifestyles Survey was taken by 40,000 consumers globally between 6 January-27
February whereas the new Digital Consumer Survey was taken by 20,000 consumers globally between 12
March-8 April. It is also worth noting that 80-90% of the responses were gathered during the first week of
fielding.
 Almost every industry explored in this analysis saw a double-digit percentage point increase in consumers
making digital purchases between the two fielding timeframes. The exception was beauty, health and personal
care, which only jumped eight percentage points. In contrast, purchases of consumer electronics and appliances,
foodservice and travel all grew by twice as many percentage points. Foodservice takeaway and delivery posted
one of the strongest increases as mandates led to the closure of dine-in operations, pushing operators and
consumers to digital channels. The consumer electronics and appliances industry also saw a digital bump as
shut-in consumers bought products to ready their home offices as well as to prepare for entertaining themselves
in isolation.

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E-COMMERCE AS THE DEFAULT SETTING

Consumer spotlight: 30-44 year-olds led digital shift during crisis

 Connected consumers aged 30-44 years are the most

frequent users of the digital channel across all industries
explored in this analysis. The 30-44 age group, which
consists of the oldest millennials and youngest Gen Xers,
are largely digital natives, who are comfortable with using
the internet and devices across their lives. Unlike their
younger counterparts, who have had their entire life
unfold in the digital era, the 30-44 group has greater
spending power that boosts e-commerce growth.
 Given that this 30-44 group already has the highest
penetration of digital spenders, one might not think this
group would be the most likely to post the greatest
increases in digital spend during the COVID-19 pandemic
as the potential of e-commerce comes into focus.
However, the 30-44 age group posted the greatest
percentage point increase in digital spend across all
industries analysed as part of this analysis, with the
exception being travel.
 In addition, it is also worth noting the rising e-commerce
penetration among the 60+ age group, which to date have
been slow to adopt e-commerce. This group’s increase in
e-commerce outpaced the total consumer group for all
industries except beauty.

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E-COMMERCE AS THE DEFAULT SETTING

Consumers turned to mobile more for purchases during COVID-19

 Across most industries explored in this analysis, a higher

percentage of connected consumers turned to
smartphones as opposed to computers to execute e-
commerce purchases during the COVID-19 pandemic.
Given the stationary nature of many consumers during the
pandemic, the fact consumers turned even more towards
their mobile devices to execute such purchases is
especially telling of just how much this device has become
the centre of the consumer’s world and commerce
activities.
 Prior to COVID-19 becoming a global pandemic,
Euromonitor International had forecast that 2020 would
mark the first time that more than half of all digital
commerce spend globally would be executed using a
mobile device. 2015 was the first year Chinese consumers
bought more via mobile than any other device. As of 2020,
80% of digital commerce is expected to be mobile based in
China. This shift towards mobile has already spread across
Asia, with 72% of online sales predicted to be made via
mobile in 2020. Developed nations have been slower to
make the transition to mobile, since the first experience
for many of these consumers with e-commerce unfolded
through computers.

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E-COMMERCE AS THE DEFAULT SETTING

Digital channel becomes a lifeline for struggling foodservice operators

 One of the pandemic-inspired trends that has been in the

spotlight has been the dramatic channel shifts around food.
Consumer spending on foodservice fell sharply as
restaurants were forced to close to eat-in traffic due to
mandated lockdowns and consumers opted to cook at
home more often to reduce virus spread. Some restaurants
pivoted to retail channels to offset the decline. For many,
delivery and takeaway services emerged as lifelines.
 Ordering and paying for foodservice via digital channels,
and specifically mobile, is accelerating due to the crisis. For
comparison, 35% of connected consumers reported using a
mobile phone to order foodservice in the Lifestyles Survey
with that percentage increasing to 48% about nine weeks
later when the Digital Consumer Survey began fielding.
 Two thirds of connected consumers taking the second
survey reported ordering foodservice for takeaway or
delivery digitally, as opposed to 42% who placed such
orders in person. Whether ordering at home, on the go or
at a physical outlet, mobile has become central to
operations with 57% of connected consumers of those
ordering foodservice online using a mobile app, and 40% a
mobile website, to pay for an order.

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E-COMMERCE AS THE DEFAULT SETTING

Case study: Sysco pivots operations to capture the retail surge

 Sysco Corp is one of the world’s largest foodservice

distributors with USD60 billion in sales from operations in
In 2019, the size of the foodservice the US, Canada, the UK, France, Sweden, Ireland, Mexico and
industry was USD2.9 trillion, with China Costa Rica. Sales to restaurants were 62% of its sales in
and the US combined accounting for 45% 2019, with the rest to schools, healthcare, travel and leisure.
of the total global market. COVID-19 presented a threat to Sysco as lockdowns severely
limited away-from-home food channels. Sales fell by 60% in
the second half of March.
 Sysco pivoted to reach new channels. It partnered with
grocery retailers to supply fresh meat, dry goods and
produce. It also helped thousands of restaurants repurpose
themselves as pop-up “grocerants” where consumers can
shop for pantry items that were in short supply at grocery
retailers. Sysco has also created new direct-to-consumer
(DTC) platforms such as Sysco@HOME in Canada to offer
bulk frozen and dry grocery items, fresh produce and
restaurant-quality steaks.
Our Take
 As a result of consumers rapidly shifting channels due to the
crisis, companies must quickly adapt to be where consumers
are shopping. DTC models can be viable routes to market
during the crisis as retailers struggle to keep up with
consumer demand.

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E-COMMERCE AS THE DEFAULT SETTING

Case study: Ritual Coffee began selling grocery items during the crisis

 With on-trade coffee struggling as consumers stay at home,

one California-based artisanal coffeehouse chain got creative
and started stocking basic grocery items in its outlets as well.
Customers at Ritual Coffee can not only pick up their coffee to
go, but also a loaf of bread, butter, eggs, or other essential
grocery items. All of these are sourced from local businesses.
 Many consumers are reducing their trips outside the home
whether because of fear of the virus or out of a general sense
of social responsibility. Ritual is attempting to capitalise on
this mindset shift by offering select groceries that allows
consumers to avoid a full trip to the grocery store. Visitors to
the “general store” can both feel responsible by supporting
small businesses and avoiding the grocery store while also
allowing themselves a small indulgence such as a cup of
coffee.
Our Take
 Many consumers are eager to resume their former lives as
soon as possible, but others will look to keep their time in
In 2019, 84% of sales at cafés/bars public spaces to a minimum for some time. The drinks
globally came from eat-in traffic with the industry will need to find solutions that speak to both groups
next highest being takeaway at 13%. as cafés and bars are heavily reliant on eat-in traffic, which
has been severely reduced due to the crisis.

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E-COMMERCE AS THE DEFAULT SETTING

Grocery e-commerce moves into the digital spotlight during COVID-19

 Grocery stores were thrust into overdrive during these

lockdowns globally, as they sought to feed homebound
consumers. French retailer Carrefour reported that
vegetable deliveries increased by 600% year on year
during the Lunar New Year period in February, while
Chinese online retailer JD.com reported its online
grocery sales grew by 215% year on year during a 10-
day period between late January and February.
 Food and beverages is the top category that connected
consumers say they purchase in physical stores, followed
closely by household essentials. Although the Digital
Consumer Survey was fielded in March and April, when
much of the world was in lockdown, 65% of connected
consumers reported buying food and beverages in
physical stores, compared with only 48% digitally, which
was the lowest of all industries.
 While consumers may still frequent grocery stores post-
COVID-19, a portion of overall grocery spend will likely
permanently shift from physical to digital channels.
Though consumers will continue visiting physical
grocers in the future, a long-term shift in spending is
expected as consumers increase their usage of digital
channels for such purchases.

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E-COMMERCE AS THE DEFAULT SETTING

Case study: Walmart experiences a 30% jump in online orders

Walmart is the largest retailer in the US, with a 12% overall market share as of 2019, followed by
Amazon with a 6% share. Amazon leads e-commerce however, with a 36% share in 2019.

 As US consumers rushed to stockpile, retailers such Our Take

as Walmart benefited. Sales from its over 4,700 US  Walmart and Amazon have been duelling as Amazon
stores increased nearly 20% in March compared with expands. The thrust of e-commerce into overdrive
the same period in the previous year, according to benefits Amazon, but the fact that so much of the
documents viewed by The Wall Street Journal. Sales demand is driven by the shift to at-home
on Walmart.com rose by over 30% in February- consumption means that Walmart may have an
March. Downloads of its online grocery mobile app advantage in the grocery war. Amazon’s grocery
skyrocketed, making it the most downloaded app in efforts are limited to Whole Foods and cities where
the Shopping category on Google Play and the iPhone Amazon Fresh is available. In contrast, Walmart has
App Store during that period. thousands of stores offering delivery or pick-up.

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E-COMMERCE AS THE DEFAULT SETTING

Case study: MercadoLibre launches grocery interface in new markets

 MercadoLibre is Latin America’s dominant e-commerce leader

with 19% value share - nearly double that of its closest
competitor in the region.
 Its new Supermercado Libre platform offers consumers 20,000
grocery products for delivery within 24 hours. MercadoLibre
first launched this offering in Mexico in 2019 with plans to
launch it in Argentina and Brazil in mid-2020. With COVID-19,
however, it moved this launch up to the first quarter of 2020. As
lockdowns led an online surge, it provided an alternative to
other online grocers.
 The retailer was agile with this launch, prioritising an inventory
of high-demand items during the pandemic. It has also used
livestreaming to launch and promote new product launches. As
it builds an initial base of customers, MercadoLibre is working
behind the scenes to expand SKU selection with incremental
assortment that can retain shoppers as the situation normalises.
Our Take
Nearly half of Latin American  The sharp shifts in demand created opportunities for those that
connected consumers report buying can quickly pivot to digital channels. Using livestreaming has the
food and drinks via the digital potential to remain even post-COVID-19. This is a tool for those
channel, according to the Digital companies where their target audience overlaps with those
Consumer Survey. using such tools.

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E-COMMERCE AS THE DEFAULT SETTING

Half of industry respondents expect e-commerce boom to be permanent

 It is a widely-held belief that the digital channel will benefit

from the permanent shift away from physical channels. The
big unknown is how much of this e-commerce spike will
remain after a vaccine is found and consumers move more
freely in their lives.
 Only 20% of industry respondents surveyed as part of
Euromonitor International’s special Voice of the Industry
Survey on COVID-19 in April thought the increase in online
shopping would be a short-term change lasting through
only the first half of 2020. Another quarter of respondents
thought it would be a mid-term change, but that online
spending would eventually return to pre-crisis levels.
 However, perhaps most telling is that 50% of industry
respondents expect the COVID-19 crisis to provide a
permanent boost to e-commerce. This sentiment was
consistent across industry respondents regardless of
whether the respondent worked in the travel, technology,
retail, foodservice or financial services sectors. In fact,
industry respondents were most confident about this crisis
driving a permanent shift towards greater online spending
as opposed to other topics such as consumers buying more
health and wellness-related products.

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E-COMMERCE AS THE DEFAULT SETTING

Key takeaways

Shopping occasions shifted amid the pandemic

• Consumers are being more intentional about purchases and as such are limiting visits to physical
outlets and turning instead to digital channels.

Xennials are behind e-commerce boom globally

• Consumers aged 30-44 years report using e-commerce more often and also have seen the highest
rate of new COVID-19 digital shoppers.

Mobile solidifies itself as the default commerce device

• Although consumers have been more stationary during COVID-19, consumers turned more
towards their mobile devices to execute purchases.

Part of e-commerce shift is likely permanent

• More than 50% of industry respondents surveyed by Euromonitor in April expect COVID-19 to
provide a permanent boost to e-commerce.

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Trend No. 3: New Era of Contactless Retail

The pandemic prompted some retailers and foodservice operators to adopt more
aggressive “contactless“ options to lower the risk of virus transmission among both
consumers and employees. While already present in some markets, the COVID-19
pandemic globally drove a renewed push towards contactless payments options,
including card and mobile based. This notion of contactless retail also spread to
other areas, including ordering and delivery, due to this health crisis.
NEW ERA OF CONTACTLESS RETAIL

COVID-19 pandemic ushers in the era of touch-free shopping

 Those companies that operate physical outlets, including

retailers and restaurants, adjusted their business practices
during the COVID-19 pandemic in order to keep employees and
consumers safe.
 Some started screening for the sick by taking temperatures of
employees and visitors at entrances. They limited the number Virtual trying
QR codes for
of people who could enter outlets. Some even add marketers on products and
more information
floors to direct traffic in order to encourage social distancing. services
 The concept of trying products virtually gained popularity.
Contactless payments and digital wallets made strides even in
markets such as the US that previously were more resistant. Contactless
Checkout-free
Retailers and foodservice operators also introduced contactless payments/digital
options
delivery. For example, Walmart offers customers no-contact wallets
services for payment, pick-up and delivery. Employees load
groceries into a customer’s car without the need for a signature.
Similarly, delivery drivers will leave an order on a customer’s
Contactless
doorstep.
delivery
 From retailers to restaurateurs to hospitality operators, the
goal was to create the most touch-free commerce experience
that they could offer to their customer base. These contactless
efforts spanned all phases from discovery to payments to
delivery.

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NEW ERA OF CONTACTLESS RETAIL

Consumers see greatest value from checkout-free options

 When shopping in physical stores, the two features that

connected consumers said they most preferred to enhance
that experience would also severely reduce human
interaction. Globally, 35% of connected consumers pointed
to scan-as-you-go and walk-in, walk-out technologies, both
of which eliminate interaction with associates, as the top
two options that would improve their in-store experience.
Such tech-forward checkout experiences were already
being integrated in formats, such as convenience stores, by
retailers such as Amazon, Alibaba and JD.com as well as
third-party technology firms.
 When Amazon launched of its fully automated store
Amazon Go in late 2016 it generated headlines in
mainstream media and prompted some to contemplate the
potential demise of retail as we know it. Since then it has
slowly unveiled stores in US cities such as New York and
Chicago. Many, however, still view it from a place of
technological curiosity with limited long-term potential.
Such concepts will likely receive a long-term boost from
the pandemic in part due to its ability to reduce human-to-
human contact, but also potentially to lower operating
costs magnified during the economic downturn.

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NEW ERA OF CONTACTLESS RETAIL

Consumer spotlight: PayPal users are least open to walk-in, walk-out tech

 Unlike many tech-driven concepts, those who see the most value in using
walk-in, walk-out technology made famous by the likes of Amazon,
Alibaba and JD.com do not vary much across generations at a global level.
There is stronger interest, however, among parents and big-city residents,
which indicates this concept would most appeal to time-starved
consumers.
 There is strong correlation, however, among those who view this walk-in,
walk-out technology as adding value to the in-person customer
experience and those who use a digital wallet. For example, 45% of those
who have used a digital wallet to buy at least one product in a physical
store and online see this concept as beneficial as opposed to 35% for the
remaining respondents. There is a strong correlation, in part, because this
type of experience is often powered in part by a mobile wallet. For
example, Amazon Go shoppers must use a dedicated app to enter the
store. Consumers visiting Alibaba’s self-service market Tao Café, must
scan the QR code in the Alipay app to enter.
 There is variance among users of different digital wallet brands. An
analysis of those connected consumers who report buying a digital wallet
to make an online purchase finds that PayPal users are the least receptive
to walk-in, walk-out technologies, with only 40% of users seeing this
concept as adding value to their in-person experience. In contrast, 50% of
LINE Pay, Masterpass and Mercado Pago users view the walk-in, walk-out
concept as a desired feature of their in-store shopping experience.

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NEW ERA OF CONTACTLESS RETAIL

Consumer spotlight: fans of shopping malls also like virtual fitting rooms

 Having virtual fitting rooms in

brick-and-mortar outlets can be a
way to create a more contactless
shopping experience. Globally, 30%
of connected consumers perceived
that virtual fitting room would
enhance the in-store experience.
From a global perspective, younger
consumers, specifically millennials
and Gen Z, view this use case more
favourably as do emerging market
consumers.
 There is also strong correlation
between those who view this
positively and those who like
visiting shopping malls, in general.
This suggests that this concept
most appeals to those who find
value and enjoyment from
shopping in stores. They also likely
perceive this idea as enhancing
rather than replacing the physical
shopping experience.

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NEW ERA OF CONTACTLESS RETAIL

Case study: SenseMi offers virtual fitting in store and online

In the UAE, 40% of connected consumers report being interested in using virtual fitting technology,
according to the Digital Consumer Survey, which was fielded in March and April.

 SenseMi has a patented technology for virtual fitting. Our Take

The UAE-based start-up offers three products  Much like Fit:Match, SenseMi is likely to see an uptick
including virtual dressing in retail stores, a virtual due to the global pandemic. Part of this will be driven
dressing experience online and online accurate size by the long-term boost in e-commerce and the need
recommendations available through an API. for retailers to better match consumers with clothes
 When deployed in the retail store setting, its ViuBox that fit in order to improve the customer experience
Mirrors are zero-touch, virtual try-on solutions for and reduce expensive returns. Concerns over
fashion stores. With such technology, switching potential transmission of the COVID-19 virus also will
clothes is as simple as swiping one’s hand. Shoppers likely drive interest around integrating such
can try on different styles or colours and even take technology in stores to create a more touch-free
selfies to share with friends and family. experience.

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NEW ERA OF CONTACTLESS RETAIL

Case study: AI-powered Fit:Match tech reduces need to try on clothes

Interest in using virtual fitting rooms is highest among younger cohorts, according to the Digital
Consumer Survey, which was fielded in March and April.

 Retailers have been considering virtual fitting rooms Our Take

for the years, but the potential need increased during  Fit:Match’s tech can be integrated within a brand’s
the health crisis. Start-up Fit:Match has 3D website to better direct consumers to the apparel
technology that scans a consumer’s body and then that would fit and hide the items that will not. For
uses those biometrics along with style preference those consumers willing to share such intimate
data to match shoppers with the apparel products details, this could have the potential to improve
that fit them. In June 2020, it announced a customer satisfaction given that the technology might
partnership with Brookfield, one of the largest mall better match what a consumer wants with the
operators in the US, to start opening kiosks in malls fashion brand’s inventory. As such, there is the
across the country. They will be available in cities potential for fashion brands to increase conversion
such as New York City, Las Vegas, Chicago, Los rates and reduce returns, which ultimately erode
Angeles and Dallas by September. bottom lines.

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NEW ERA OF CONTACTLESS RETAIL

COVID-19 accelerates interest in contactless payment options

 Given safety concerns, consumers are opting for

contactless card and mobile payments over handling cash
or touching POS terminal keypads. As of late March-early
April, 22% of connected consumers globally used a digital
wallet to buy at least one product in a physical store.
 Several players acted quickly in response: Mastercard,
which reports that 75% of its transactions in Europe are
contactless, raised the limits for contactless payments
across 29 European countries to remove the need of a PIN;
Walmart modified self-checkout stations to make these
systems contactless; and Publix Super Markets sped up its
tech transition to accept contactless payments ahead of
intended plans. Prolonged social distancing will further
ingrain this consumer habit, which will likely stick long
term due to increased precautionary measures even after
lockdown restrictions are eased.
 Ease of use is the top reason that those consumers using a
digital wallet point to as the attraction. This sentiment is
stronger in emerging markets, where digital wallets do not
face as much as of an uphill battle as they do in developed
markets with more established payment methods.

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NEW ERA OF CONTACTLESS RETAIL

Case study: Visa reports surge in contactless payments usage globally

 Payment networks such as Visa have reported a surge in tap-to-

pay usage since the onset of the COVID-19 pandemic as consumers
sought out contactless payment options to reduce virus exposure.
 Visa has worked with payment industry partners and
governments to raise contactless payment limits in 50 countries
around the world in order to reduce the need for cardholder
verification. Visa reports that off the back of those efforts, it saw
an approximate 50% reduction in the number of times Visa
cardholders in the UK, specifically, needed to touch a POS terminal
to complete their transaction during the first three weeks of April.
 Even in countries such as the US where contactless payments have
been slow to take off, Visa is seeing greater usage. Visa reported
that 31 million US consumers used a contactless Visa card or
digital wallet in March. In contrast, only 25 million did in
November.
Our Take
The most popular digital wallet for
 The pandemic is likely to lead to a long-term boost in contactless
in-person transactions is Google Pay
mobile and card payments globally, especially in everyday
with 34% of global consumers
segments such as grocery and pharmacy. This is likely to be the
saying they have used it in the last
case in markets that were already embracing it as as well as others
year, according to the Digital such as the US.
Consumer Survey.

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NEW ERA OF CONTACTLESS RETAIL

Case study: Presto’s contactless tech helps restaurants open safely

 Presto is a US-based company providing technological

solutions for the restaurant sector, from streamlining
operations to improving the guest experience. Its tools
allow customers to do everything from booking tables,
ordering and paying for their food to leaving feedback
and even playing games between courses.
 In May, Presto launched its free Contactless Dining Kit
which enables guests to connect via their mobile devices
to order and pay for food with no contact with staff or
menus. Since its launch, the kit has orders from
thousands of restaurants, both chains and independents,
from around the world.
Our Take
 Foodservice outlets face numerous challenges to reopen;
how to provide a safe dining space and experience
for guests and maintain social distancing between staff
and guests. Contactless technology plays a key role in
Mapping apps are the top digital tool used limiting physical touchpoints for diners and enabling
by connected consumers globally to book restaurants to maximise capacity within guidelines and
dining experiences, according to the Digital turning tables more efficiently. Consumers
Consumer Survey. value proactive thinking and actions that make them feel
comfortable and safe.
Source: www.presto.com

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NEW ERA OF CONTACTLESS RETAIL

Key takeaways

Companies are aggressively pushing “contactless”

• The concept of contactless retail is gaining popularity as consumer-facing companies and
consumers look to reduce the potential of virus exposure.

Consumers embrace cashier-free checkouts

• Consumers see great value in technologies that puts more power in the hands of the consumer and
removes the cashier from the checkout.

Virtually trying on in physical outlets

• Virtually trying on also extends to physical outlets in the COVID-19 era as virtual fitting rooms,
even in store settings, gain momentum.

Contactless payments surge

• The surge in both card- and mobile-based contactless payments is likely to boost this payment
method going forward.

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Trend No. 4: Commerce Without Humans

Robots have been in the spotlight during COVID-19 as businesses attempt to

eliminate human-to-human contact to reduce the spread of the virus. Before the
pandemic, robots were mainly used in the manufacturing sector, but the crisis has
accelerated the use of robots in the service sector. In fact, robots can be used across
the commerce ecosystem from packing items in warehouses to guiding consumers
in stores to delivering items to homes. In response to the crisis, companies have
been ratcheting up their investments and bringing forward deployments.
COMMERCE WITHOUT HUMANS

Robots are becoming more intertwined with commerce ecosystem

 Before the pandemic, automation had been gradually replacing human workers as companies sought to cut
labour costs and boost profits. Robots can play a role in driving greater efficiencies across the entire commerce
experience, from warehouses to brick-and-mortar outlets to public streets even when making deliveries.
 During the COVID-19 pandemic, businesses have been exploring the use of automation and robotics with greater
interest with some increasing such investments or bringing forward commercial rollouts. Given heightened
health concerns due to COVID-19, humanoid robots, specifically, have been leveraged at different points in the
commerce journey to eliminate human-to-human contact and reduce virus transmission. Unlike employees,
humanoid robots, of course, cannot contract the virus.
 The economic climate also plays a key role. Government-mandated lockdowns and restrictions on travel and
large gatherings have put pressure on profits for many companies. As such, businesses are looking to reduce
costs. The reality is that employees become more costly to the company as revenues decline.

Warehouse Consumer
Disinfecting Stocking store
fulfilment navigation in
public spaces shelves
operations outlets

Drink and meal Goods and

Hotel operations
preparation and foodservice
such as check-in
service delivery

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COMMERCE WITHOUT HUMANS

Case study: Gap accelerates plans to modernise its supply chain

More than 60% of connected consumers globally typically buy apparel and accessories online,
according to the Digital Consumer Survey, which was fielded in March and April.

 Like many other retailers, US apparel retail chain Gap Our Take
experienced an unprecedented surge in e-commerce  Gap’s decision to accelerate plans to modernise its
orders during the pandemic, but had fewer supply chain capabilities underscores how the
employees to fulfil such orders due to the social pandemic could speed up the transition towards
distancing rules Gap had put in place. greater automation in the workplace. Gap is not only
 In response to these shifting dynamics, Gap sped up deploying more robots, but it is also integrating them
the rollout of warehouse robots that it was already deeper into operations. Gap has been using Kindred’s
using to assemble online orders. To do so, it brokered item-picking robots for secondary sorting points at
a deal with venture start-up Kindred to more than three distribution centres in the US since 2017, but
triple the number of item-picking robots it uses to will soon have them integrated with all the
106. Every machine handles work typically automated primary sorting systems across its
performed by four people. distribution network.

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COMMERCE WITHOUT HUMANS

Case study: Tyson expects to invest more in automation due to COVID-19

Less than 20% of industry respondents surveyed in November as part of the Voice of the Industry:
Digital Consumer Survey saw digitising the supply chain as the most important commerce
development in the next 12 months, a figure that will likely increase due to the pandemic.

 Meat and poultry processing plants have been  The largest US meat company, Tyson Foods Inc, has
especially conducive to spreading the COVID-19 invested about USD500 million over the past three
virus. This forced companies to close plants from years in technology to transition to more automation.
North America to Europe during the pandemic, In late 2019, it opened a new state-of-the-art facility
leading to meat shortages on grocery shelves. focused on automation. In light of the pandemic,
 While automation has transformed industries such as Tyson’s CEO expects to increase such spending.
automobiles, uptake has been slower in meatpacking Our Take
because it is still difficult for robots to match the  While the challenges of incorporating more
ability of humans to disassemble animal carcasses of automation into this type of factory are more
different sizes and shapes. Operational challenges difficult, it is likely that the current crisis will drive
compounded by COVID-19 are forcing meat giants to renewed interest and investment, leading to a
revisit the role of automation in their plants. significant uptake in robotics and automation in the
years to come.

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COMMERCE WITHOUT HUMANS

Case study: lockdown tests online grocery pioneer Ocado’s robots

UK consumers spent USD10.6 billion on food and beverages e-commerce in 2019.

In 2019, Ocado accounted for 2% of e-commerce value in the UK.

 UK-based Ocado pioneered highly automated, hive- Our Take

like warehouses designed to support online ordering  While e-commerce giants such as Amazon and third-
and delivery for groceries. It has also entered into party delivery services went on hiring sprees to boost
partnership with grocers to sell its automation. capacity, it was not as easy for Ocado because it relies
 Ocado’s tech was put to the test as the UK went into heavily on robots. Increasing capacity would mean a
lockdown. CEO Melanie Smith said in a customer big investment in new machinery. In addition, it would
email at the time that demand spiked to 10 times the take so long to roll out that Ocado would miss the spike
normal level. In mid-March, it suspended access to its in demand brought forth by the lockdowns. Despite the
website for a few days. It also put a priority system in upfront investment, Ocado is likely better placed long
place for regular customers and also stopped term to benefit from the rising online grocery demand
accepting new customers during that time. using this more cost-effective approach.

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COMMERCE WITHOUT HUMANS

Case study: Brain Corp experienced sharp rise in robotics interest

 The use of autonomous robots surged during the pandemic

as retailers and hospitality operators adjusted to new
cleaning demands necessitated by the health crisis. Brain
Corp, a California-based start-up that makes software used
in automated floor cleaners, said retailers were using them
13% more in March than the year-earlier period. Brain
licenses its robotics software to original equipment
manufacturers (OEM) to create autonomous mobile robotics
that can operate safely in indoor public spaces. Self-driving
robots powered by Brain are used by US retail chains such
as Walmart and Kroger.
Our Take
 In April, Softbank-backed Brain announced it had raised
USD36 million in Series D funding to help meet the growing
demand for autonomous mobile robots amid the health
crisis. The funds will be used to expand the company into Just less than half of industry
new areas, including inventory delivery and shelf analytics, respondents expects
which are two areas that have gained attention as supply robotics/automation to impact business
chains have come under stress amid the crisis. The in the next five years, according to
increasing interest in robotics and automation is likely to Euromonitor’s Voice of the Industry
continue even after the pandemic ends as companies look to Survey.
cut labour costs or pivot workers to higher value tasks.

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COMMERCE WITHOUT HUMANS

Still early days for robotics being leveraged across commerce

 Despite the uptake in investments for robotics, companies

are only scratching the surface in terms of commerce
applications for robotics. Only 20% of industry
respondents said robotics were a key factor influencing
digital commerce in the past year. In fact, only 44% expect
robotics/automation to impact business in the next five
years compared to 68% who view artificial intelligence as
the most impactful tech. This survey was fielded in
November before COVID-19 became a pandemic so some
of these sentiments would likely change if fielded now.
 While the aforementioned survey speaks to business’
interest and investment in technologies, the Digital
Consumer Survey tracks consumer behaviours and
attitudes as they relate to tech-forward commerce.
Although still a new concept, 44% of connected consumers
said they would be comfortable receiving a delivery
directly via drone or robot, as an example. Companies are
responding to this interest. Robot delivery service Starship
Technologies added grocery delivery services in several US
cities amid the outbreak. Chinese delivery app Meituan
Dianping started using autonomous vehicles to deliver
grocery orders to customers in Beijing in February.

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COMMERCE WITHOUT HUMANS

At least a third of consumers are comfortable interfacing with robots

 Of the five scenarios that speak to

consumer comfortability with
robots in the Digital Consumer
Survey, connected consumers are
most comfortable with robots
guiding them to products in a
store aisle (45%) and least
comfortable with robots
preparing an entire meal while
dining at a restaurant (33%).
 At least one third of connected
consumers globally are
comfortable interfacing with a
robot in some part of their
commerce experience. The level
of consumer comfort declines as
the action becomes more
intrusive. For example, having a
robot prepare an entire meal
would be a much more personal
experience than asking a robot to
guide the consumer to a product
within a brick-and-mortar store.

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COMMERCE WITHOUT HUMANS

Consumer spotlight: big-city consumers most open to robots in store

 Consumer comfortability in interacting with robots in store

settings is strongest in urban areas and further rises as the
city size increases. Over half of respondents (54%) living in
cities with populations greater than 1.5 million feel
comfortable with robots guiding them in store as compared
to only 40% of those living in cities with less than 1.5 million.
 Big-city consumers are more likely to be open because these
advances add convenience to hectic lifestyles. These are also
the same consumers most likely to be exposed to these novel,
tech-forward experiences. Companies often pilot and even
commercially roll out next-generation concepts in big cities
where they are likely to build greater traction before
expanding to smaller geographic populations.
 In major developed markets such as Australia, France,
Germany, the UK and the US, around 40% of connected
consumers in cities with more than 1.5 million are
comfortable with robots guiding them in physical stores. The
level of comfortability increases sharply among such big-city
consumers in emerging Asia. In markets such as India and
Indonesia nearly 70% of consumers in cities of more than
1.5 million report being comfortable with such an
experience.

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COMMERCE WITHOUT HUMANS

Consumer spotlight: married millennials most open to robotic chefs

 Only a third of connected consumers globally are comfortable with robots preparing an entire meal while dining
at a restaurant, which was the lowest of the five robot scenarios explored in the Digital Consumer Survey.
Comfortability is highest among millennials, with 41% embracing such an experience as opposed to 21% of
baby boomers. In particular, millennials in Asia Pacific and Latin America are the most comfortable. In contrast,
Gen Zers report being slightly more comfortable than millennials in North America and Europe.
 Beyond age, however, another factor that boosts a consumer’s comfort level in a robot making an entire meal
while dining at a restaurant is the consumer’s living situation at home. Connected consumers who are married/
in a civil partnership and also those with children under the age 18 living at home indicate higher levels of
comfortability as compared to their counterparts. For example, 45% of millennials with children at home are
comfortable with such an experience as opposed to 35% for those millennials without children at home. This
suggests that alongside age, the busy nature of a consumer’s lifestyle might also make them more open to
technology being integrated into commerce, such as a robot serving as the chef for the family.

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COMMERCE WITHOUT HUMANS

COVID-19 likely to boost long-term investment in robotics

 High levels of consumer openness, as well as the pandemic,

will drive a continued interest in robots among retailers
and hospitality operators as they seek to reduce operating
costs, minimise human interaction and boost customer
engagement.
 In Euromonitor International’s Voice of the Industry: Digital
Consumer Survey, which was fielded in November prior to
COVID-19 becoming a global pandemic, 46% of industry
respondents said their companies planned to invest in
robotics and automation in the next five years. While this
technology would likely remain in fourth place after hot
tech such as cloud, IoT and AI, COVID-19 is likely to boost
long-term investment in robotics.
 Robotics has been in the spotlight more during the
pandemic much like augmented and virtual realities. The
latter are being leveraged to assist consumers with
visualising products before final purchase, the benefits of
which are hard to track and quantify. In contrast, the ability
of robotics to reduce operating costs could provide this
technology with longer-term potential over augmented and
virtual realities. That being said, companies will still need to
conduct a cost-benefit analysis to determine viability in the
long term.

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COMMERCE WITHOUT HUMANS

Key takeaways

COVID-19 shines spotlight on robotics

• The ability to reduce human-to-human contact as well as to improve operational efficiencies
during a recession are driving interest.

Applications for service sector rising

• Before the pandemic, robots were mainly used in manufacturing, but the crisis has accelerated the
use of robots in the service sector.

Consumers open to least intrusive use cases

• At least one third of connected consumers globally are comfortable interfacing with a robot in
some part of their commerce experience.

Current crisis likely to drive investment

• The need to reduce operating costs, minimise human interaction and boost customer engagement
will lead to a rise in related investments.

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Trend No. 5: Forced Reinvention of the Last Mile

Delivery and logistics are competitive fronts for retailers, foodservice operators and
third-party delivery platforms. Rising last-mile delivery costs and environmental
concerns magnified by the e-commerce boom are forcing retailers and foodservice
operators to explore new delivery and collection methods. Last-mile options
receiving greater attention range from low-tech, click-and-collect services that
require consumers to retrieve items from central locations to high-tech robotics
that deliver products or meals all the way to the consumer’s home.
FORCED REINVENTION OF THE LAST MILE

Cost outweighs speed in terms of desired delivery features

 Consumers increasingly have an array of options available at their

fingertips. With a few clicks, customers can have almost everything from
groceries to lipstick to shoes delivered to their doorstep, sometimes in
an hour.
 Although expectations of speed have increased over time as e-
commerce giants such as Amazon and Alibaba continue to raise the bar,
cost outweighs speed in terms of delivery features desired by
consumers. The most desired delivery feature among connected
consumers globally is free delivery, followed by free returns. For
comparison, 70% of consumers desired free delivery as opposed to 30%
desiring either next-day or same-day delivery.
 The pandemic is putting a greater spotlight on last-mile delivery
options, including both delivery and consumer collection options. Even
so, only 24% of global connected consumers viewed click-and-collect
options and 28% viewed being able to pick up at a more convenient
location as important delivery features, according to the Digital
Consumer Survey, which was fielded in March and April.
 Many retailers and foodservice operators launched or ramped up click-
and-collect services during COVID-19 to offset the decline in spend in
physical channels due to a combination of mandated outlets closures or
consumers just wanting to reduce time spent in stores. Long term such
features could offset rising fulfilment and delivery costs associated with
transporting items safely all the way to a consumer’s doorstep.

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FORCED REINVENTION OF THE LAST MILE

Consumer spotlight: Chileans have strongest desire for click and collect

 Of the 20 countries where the Digital Consumer Survey was fielded,

Chileans expressed the strongest preference for click and collect as an
important delivery feature. In Chile, 45% of connected consumers in Chile
agree with this sentiment - more than doubling the percentage in France,
which is viewed by many in the retail industry as the click-and-collect
pioneer. French grocer Auchan introduced the drive-and-pick-up concept in
partnership with Chronodrive in 2004.
 This concept is taking off in Chile as the demand for e-commerce,
accelerated in part due to the pandemic, is outpacing the maturity of its
logistics networks. The shipping infrastructure in Chile is supported by
private players, such as couriers, and even retailers and foodservice
operators themselves. Few companies offer delivery through the state-
owned postal service. In fact, key retailers and foodservice operators often
partner with third parties to incorporate delivery services.
 Click-and-collect services are more prominent for groceries, with nearly all
hypermarkets having such services. This feature is orientated towards
consumers with fast-paced lifestyles. It has been well received among those
consumers as it is perceived to provide a significant time-saving benefit
due to consumers being able to shop online versus the physical outlet.
There is also a financial benefit with offering click-and-collect services as
opposed to delivery. During COVID-19, department stores also expanded
such services and became more reliant on this collection method because
their own e-commerce delivery logistics were inefficient.

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FORCED REINVENTION OF THE LAST MILE

Tech products are the most common click-and-collect purchases

 The consumer electronics and appliances category is the

most frequent product category purchased online as well as
the most popular one for click and collect. While one third of
connected consumers report ordering most consumer
electronics and appliances purchases for click and collect,
only 23% do so for food and beverages, which has been in
the spotlight more due to the pandemic.
 Syncing in-store inventory management systems with e-
commerce operations remains a key challenge for retailers
offering click-and-collect services. Skyrocketing demand for
certain products and stockpiling magnified this disconnect
during the pandemic. One third of connected consumers
report out-of-stock products as the top challenge when
using click-and-collect services, with the highest sentiment
coming from emerging markets. In India, for example, more
than 60% of essential online product SKUs were out of stock
from 27 March through 4 April, consecutively, according to
Euromonitor’s Via Pricing.
 Out-of-stock rates will subside as lockdowns ease. However,
out-of-stock products will remain a key challenge for
consumers using click-and-collect services. Retailers often
fulfil these orders from store shelves, which makes tracking
real-time inventory difficult.

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FORCED REINVENTION OF THE LAST MILE

Case study: Best Buy added curbside pick-up in light of closures

 US electronics retailer Best Buy was deemed an

“essential” retail store, allowing it to stay open in most
parts of the country during mandated lockdowns. Even
so, it decided as a safety measure to close its stores to foot
traffic from 22 March, limiting purchases to curbside
pick-up or home delivery. That decision meant that Best
Buy went from only offering curbside at 100 stores as of
late December, to approximately 1,200 locations.
 This quick pivot enabled Best Buy to retain 70% of its
sales during the first month. Best Buy reported that
online sales skyrocketed 250% in that month with about
half being curbside pick-up orders and the rest home
delivery. CEO Corie Barry said at the time that this was
“quite an achievement given that we have gone from
being a retailer with nearly 1,000 stores to one that does
all of its business online.”
Our Take
Buy-online-pick-up-in-store orders, which  Curbside pick-up will become commonplace for many
includes curbside, jumped 87% year on more retailers after the pandemic. Given the expected
year between late February and 29 March, continued rise in e-commerce, this is one way that
according to data from Adobe Analytics. retailers can control delivery and fulfilment costs. From
the consumer perspective, it does provide an immediacy
that home delivery may not.

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FORCED REINVENTION OF THE LAST MILE

Case study: Westfield introduces multi-retailer click and collect

 Australian shopping centre brand Westfield launched a new

service for consumers at its approximately 35 malls in
Australia in mid-April due to the pandemic. Called Westfield
Direct, the service allows consumers to place an order and
collect via a low-contact drive-thru.
 Many retailers globally are racing to implement click-and-
collect and curbside pick-up options for shoppers wary of
entering brick-and-mortar locations. What sets Westfield’s
initiative apart is the fact that consumers can include items
from any merchant with a storefront at the selected shopping
centre in a single transaction. Consumers can order from
more than 350 brands via Westfield Direct, ranging from fast
food and supermarkets to beauty specialists and pet shops.
Our Take
 While the service was introduced in response to COVID-19,
consumers will likely enjoy the convenience of such a service
In Australia, 30% of connected
to continue utilising it over the long term. Being able to pick
consumers report having click-and-
up orders from several retailers at one collection point as
collect options as an important delivery
well as the drive-thru concept could have merit as the
feature, according to the 2020 Digital collection point concept reaches the next step of its maturity.
Consumer Survey.

Source: Unsplash

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FORCED REINVENTION OF THE LAST MILE

Almost half of population is open to robots or drones making deliveries

 The decade-long boom in e-

commerce and rising last-mile
delivery costs that cut into margins
are forcing retailers and foodservice
operators to explore new delivery
and collection methods that would
reduce costs and thus boost profits.
The need for such alternatives was
compounded due to explosion in e-
commerce during the crisis.
 Using robots or drones could be a
way of eliminating part of the labour
costs associated with delivery.
Globally, 44% of connected
consumers said they would be
comfortable receiving a delivery via a
drone or robot. More than two thirds
said they would feel comfortable
granting a robot rather than a human
access to a trusted place to make
such a delivery, which might include
a home, garage or automobile.

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FORCED REINVENTION OF THE LAST MILE

Consumer spotlight: Chinese consumers most open to robotic delivery

 Chinese connected consumers are the

most open to new delivery concepts.
Based on results from the Digital
Consumer Survey, 70% of Chinese
consumers would be comfortable
receiving a delivery via a drone or robot.
In contrast, 43% in the US and 38% in
the UK are open to tech-forward delivery
concepts.
 While this sentiment is strongest among
Chinese millennials, it is certainly not a
trend only driven by younger cohorts as
is common with tech-forward initiatives.
In China, 77% of millennials are open to
it as compared with 63% of baby
boomers. In fact, there is strong uptake
across the population, regardless of
gender, income and parental status,
indicating robotic or drone delivery is
already widely accepted in China. In fact,
less than 5% of the entire Chinese
population were against this delivery
method. Source: Euromonitor International’s Digital Consumer Survey, fielded from March to April 2020

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FORCED REINVENTION OF THE LAST MILE

Case study: Meituan Dianping unveils robotic delivery in February

 In February 2020, China’s leading food delivery app started

using autonomous vehicles to send grocery orders to
customers in Beijing. Testing began for indoor delivery
Based on results from the Digital robots and drone deliveries in 2019, but this was the first
Consumer Survey, 70% of connected time autonomous delivery vehicles were deployed on public
consumers in China say they would be roads.
comfortable receiving a delivery via a  As Meituan Dianping warned that its Q1 2020 revenue
drone or robot. would shrink as a result of the pandemic so this was an
important response for the company. As well as aligning
with long-term global growth in home delivery of groceries
and meals, this also feeds into environmentally-friendly
trends as these autonomous delivery vehicles ease traffic
congestion and are electrically powered.
Our Take
 Retail operations involving the use of robotics is the most
extreme extension of “no-touch or contactless” retail
because it often removes humans entirely from the
experience. Companies that invest now in robotic
capabilities, not only provide consumers with a solution to
their short-term concerns about health, but also will appeal
in the longer term. In time, the focus of consumers will shift
back to concerns with balancing the desire for convenience
with the impact of such wants on the environment.

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FORCED REINVENTION OF THE LAST MILE

Case study: Amazon could slash delivery costs with new acquisition

 Amazon announced in June its intent to acquire Zoox, a privately-

held company that has been working on autonomous driving
technology. The deal, reported to be worth more than USD1
billion, would be the e-commerce giant’s biggest move yet into
self-driving, but Zoox’s tech could in time feed into Amazon’s
larger logistics strategy.
 The California-based start-up has been working on self- driving
technology, specifically for ride-hailing services, since its
founding in 2014. While Amazon said that the deal will help
bring Zoox’s “vision of autonomous ride-hailing to reality”, it is
likely that Amazon could eventually integrate this tech into its
logistics network to offer cheaper and faster delivery.
Our Take
 Finding ways to reduce last-mile costs is more important for
Amazon than a competitor such as Walmart because Amazon
sells more online, but also it does not have an extensive footprint
from which to offer more low-cost, last-mile options such as a
Walmart. Zoox’s technology could be incorporated into Amazon’s
Amazon’s fulfilment costs last-mile strategy, enabling it to ramp up in e-commerce while
represented 25% of its product sales deploying more cost-effective shipping options to boost profits.
in 2019, up from 15% in 2014, In time, this acquisition could have a bigger impact on how it
according to company filings. moves goods as opposed to ride-hailing passengers.

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FORCED REINVENTION OF THE LAST MILE

Curbside pick-up, robots and nano-fulfilment centres all part of the future

 Retailers or those that rely on in-person interactions could face a prolonged dip in store traffic as public officials
continue to promote social distancing. As such, the boom in online shopping will continue putting greater
spotlight on last-mile delivery options. These same trends also are impacting foodservice operators as online
ordering booms in that industry as well.
 Curbside pick-up could become a mainstay option. More retailers could join foodservice operators by offering a
drive-thru model to better facilitate in-person collection. While retailers could lose out on upsell from
consumers not browsing their physical stores, it is perhaps more imperative for retailers to find a way to control
delivery costs that cut into margins. Of course, all of this calls into question the role of stores or outlets in a
world where e-commerce is the default setting.
 With the closure of restaurants and non-essential stores in many markets, some retailers and operators quickly
pivoted their physical space into makeshift fulfilment centres. During the pandemic, for example, Amazon’s
Whole Foods temporarily shut stores in busy urban areas such as New York City’s Manhattan borough and
Chicago’s Lincoln Park neighbourhood to fulfil Prime grocery orders. The rise of ghost kitchens in foodservice
also speaks to the same trend. Ultimately, it is all about getting items or meals closer to the consumer before
ordering so as to reduce the time and expense of making that delivery.
 More and more retailers and foodservice operators will also likely explore more high-tech options such as
robotics and even drone delivery. Delivery humanoid robots could be especially promising in high-density areas
to reduce costs associated with taking products or meals that final mile to the consumer.
 The reinvention of the last mile is undoubtedly one of those trends that will continue after a vaccine is found.
While the global pandemic and the subsequent boom in e-commerce has put greater urgency on the need for
rethinking last-mile operations due to how the e-commerce boom is eroding profits given the greater emphasis
on the digital channel presently, the issue existed before COVID-19 was declared a global pandemic. The
pandemic has merely accelerated what likely was already going to happen.

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FORCED REINVENTION OF THE LAST MILE

Case study: Ohi uses nano-fulfilment centres to get items closer to homes

 US-based Ohi is a start-up that operates micro-fulfilment

centres in a few US cities, enabling brands to offer
sustainable, same-day or two-hour delivery. It has
proprietary tech that positions products closer to end-
consumers before an order is placed to reduce time and
cost of delivery. Ohi partners with third-party services
such as Postmates, Doordash and Uber for final delivery.
“Our fundamental belief is that all commerce in the
future will be instant,” founder Ben Jones said in an
interview with Euromonitor International. “Our belief is
that you can get anything you want in a matter of hours.”
 During the crisis, Ohi has seen great interest from
brands wanting to go direct to consumers. More
companies are leveraging the proprietary tech to
manage their own fulfilment spaces, such as stores that
went dark due to the crisis. As of July, Ohi is operating at
16 times more weekly volume than it did in February.
One quarter of online respondents globally Our Take
say they are motivated to shop in stores to  Ohi highlights the role of tech plays in bringing down
avoid delivery-related hassles, according to last-mile costs. By using micro-fulfilment centres closer
Euromonitor International’s Lifestyles to where consumers live or work, companies can deliver
Survey 2020. products more efficiently and effectively, reducing the
impact to the bottom line as well as the environment.

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FORCED REINVENTION OF THE LAST MILE

Case study: Rebel Foods maps path to delivery-only foodservice success

 This strategy of getting the item closer to the consumer before

delivery with the aim of driving greater efficiencies is also
playing out in the foodservice industry in the form of ghost
kitchens. They have no customer-facing areas and produce
food solely for delivery.
 One of the world’s largest operators of ghost kitchens is Rebel
Foods. The Indian wraps chain with 75 brick-and-mortar
outlets has been reimagined into a virtual restaurant chain
with 11 separate online-only brands. It operates more than
200 delivery kitchens across 18 cities that makes food for
multiple brands.
 Ghost kitchens have been in the spotlight during COVID-19 as
restaurants have been forced to close to dine-in traffic, making
them more reliant on delivery.
Our Take
Half of global connected consumers are  Ghost kitchens and more broadly delivery are overturning the
comfortable ordering from a delivery- industry, forcing operators to re-examine what the restaurant
only restaurant, according to should look like. Ghost kitchens, which could create a USD1
Euromonitor International’s 2020 trillion global opportunity by 2030, represent the first step
Digital Consumer Survey. towards the creation of third-party production platforms,
which theoretically any brand can plug into, continuing the
ongoing “modularisation” of the restaurant industry.

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FORCED REINVENTION OF THE LAST MILE

Key takeaways

Last mile emerges as an area in need of reinvention

• Rising last-mile costs as well as environmental pressures are leading retailers and foodservice
operators to rethink delivery and collection operations.

COVID-19 brings challenges into focus

• The pandemic has magnified this disconnect as retailers and foodservice operators have seen
profits further eroded by the drastic channel shift.

New delivery methods gain traction

• Low-tech click-and-collect services and high-tech delivery robots have both received attention due
to their ability to reduce overall last-mile costs.

Getting closer to consumers rises in importance

• The rise of micro-fulfilment centres and ghost kitchens speaks to the need to reduce the distance
to the consumer’s home at the time of delivery.

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Key Takeaways

The COVID-19 pandemic is accelerating several digital shopping trends that were
already in motion before the first outbreaks were reported in China. The internet
turned into a lifeline for shut-in consumers as they sought to live, work, play and
shop all via the digital channel during mandated lockdowns. Consumers, including
older cohorts, learned new skills or perfected digital habits, such as engaging with
brands digitally or making purchases online. Many of these digital-first trends are
likely to experience high levels of occurrences in the recovery phase and beyond.
KEY TAKEAWAYS

Crisis likely to accelerate many digital shopping trends already in motion

 Consumer attitudes will be forever transformed, and

many behaviours that have become ingrained during
the pandemic will be retained even as life begins to
approach something that resembles normality. This
period of mandated lockdowns and prolonged social
distancing is likely to accelerate many shopping trends.
 For example, one of the most significant outcomes of
the pandemic has been the rapid move to e-commerce
for most goods and services. Only 20% of industry
respondents in a special COVID-19 survey that
Euromonitor fielded in April believe the reduction
in store-based shopping is a short-term change.
Most expect the decline to last into the mid term and
28% even expect a permanent shift.
 From the overnight boom in e-commerce to contactless
retail to the use of robots to reduce human-to-human
contact, all of these developments are made possible by
advances in technology. In fact, the linchpin that bonds
all of these shifts in consumer behaviour together is
technology. To survive and thrive, companies need to
adopt technologies and innovative business models
that allow them to remain competitive in this digital
reality.

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KEY TAKEAWAYS

Digital investment is thought to be key factor in remaining competitive

 Even before COVID-19 became a global pandemic, a

majority of professionals saw being digital as an
important part of their future growth. Half of industry
respondents in the Voice of the Industry: Digital
Consumer Survey, fielded in November, viewed having a
digital presence as an important component of their
company’s value proposition.
 Being digital has become even more paramount during
the crisis with the internet serving as the backbone of
social, business and shopping activities. In a special
survey fielded in April, professionals viewed
implementing digital strategies as one of the key ways to
mitigate similar risks in the future. Preparing for channel
shifts and investing in automation were viewed as ways
to ready the supply chains for such uncertainties.
 For some time, the biggest issue holding companies back
was not the availability of technologies, but the inability
to understand these generational shifts and most
importantly adopt the technologies that solve their
operational needs and further their brand ethos. The
pandemic has created a sense of urgency and laser focus,
guiding companies to make the right investments in
order to remain competitive.

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KEY TAKEAWAYS

How we can expect these trends to change the future of commerce

Brand Engagement Goes Virtual

• With constraints on physical operations, many in-person experiences have lost their
impact, putting the emphasis on digital, especially emerging concepts such as
livestreaming.

E-Commerce as the Default Setting

• The pandemic will likely forever boost e-commerce as shut-in consumers are turning
to digital channels for commerce at unprecedented levels during this health crisis.

New Era of Contactless Retail

• While touch-free commerce is a concept gaining steam due to the fear of virus spread,
some of these technologies that add convenience to the experience could stay long
term.

Commerce Without Humans

• While robotics is in the spotlight for its potential to reduce virus transmission, the
pandemic could lead to a long-term boost due to this technology’s ability to reduce
operating costs.

Forced Reinvention of Last Mile

• The e-commerce boom has magnified the impact of delivery costs to the bottom line,
which is leading companies to explore new methods from high-tech robots to low-tech
curbside pick-up.

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Introduction
Impact of Covid-19 on Shopping Behaviour
Trend no. 1: Brand Engagement goes Virtual
Trend no. 2: E-commerce as the Default Setting
Trend no. 3: New Era of Contactless Retail
Trend no. 4: Commerce without Humans
Trend no. 5: Forced Reinvention of Last Mile
Key Takeaways
Appendix
APPENDIX

Digital Consumer analysis regularly leverages multiple methodologies

Industry
Research
• Digital Commerce
database

Consumer Socioeconomic
Survey Research
• Digital Consumer • Digital Landscape
Survey Digital database
Consumer
Exploring how
technology is
changing
commerce

Industry Survey Analytics

• Voice of the
• Digital Consumer
Industry: Digital
Index
Consumer Survey

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APPENDIX

An overview of methodologies often used in Digital Consumer analysis (1)

Digital Commerce Database Digital Landscape Database Digital Consumer Index

 Data in the Digital Commerce  Data in the Digital Landscape  Leveraging more than 2,500 data
database measure digital spend database measure a market’s points, the Digital Consumer
by payer’s location, device type digital readiness. This database is Index identifies which geographic
and industry. This database is developed via a combination of markets are the most digitally
developed using a multisource secondary research, econometric attractive and offer the best
methodology, giving analysts the estimation and modelling, and prospects for future deployment
flexibility to utilise the sources cross-country checking. of digital initiatives, including
and methodologies most  The approach begins with digital commerce.
appropriate for their market and secondary research, consisting  The index utilises 18 metrics,
datapoint in question. These primarily of national and regional weighted using Euromonitor
methodologies include a mix of statistics agencies, such as International’s industry
secondary research, interviews EUROSTAT, as well as the expertise, to provide a market
with industry players, forecasting International attractiveness score. The index
and modelling, cross-country Telecommunications Union (ITU). measures digital connectivity and
checking, and data validation. digital commerce readiness in 50
 Key datapoints intersect with countries at two different points,
other Passport products, which include a current view and
including Consumer Finance, 5-year outlook.
Consumer Foodservice, Retailing
and Travel, enabling clients to get
more value out of the digital
research contained across all.

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APPENDIX

An overview of methodologies often used in Digital Consumer analysis (2)

Digital Consumer Survey Voice of the Industry: Digital Consumer Survey

Focus and Design Focus and Design

 The Digital Consumer Survey tracks consumer  The Voice of the Industry: Digital Consumer Survey
behaviour and attitudes with regard to tech-led asks industry professionals about topics including
commerce. The annual survey began in 2020. digital transformation, planned investments in
 Survey, design, execution and analysis were technology and its potential impact to commerce. The
developed collaboratively across teams within survey began in 2018 and is tracked annually.
Euromonitor International, in conjunction with  Survey, design, execution and analysis were
outside sample partners. developed collaboratively across teams within
Fielding Euromonitor International.
 A diverse set of online panellists in 20 countries were Fielding
invited to participate from 12 March to 8 April 2020.  Professionals with an interest in topics related to
1,000 responses were captured per market. Digital Consumer were invited to participate. This
 Panellists were pre-screened to ensure the sample survey has been fielded in February 2018, September
matched each country’s population according to 2018 and November 2019.
nested quotas for age (15 to 74 years) and gender.  Past sample sizes of professionals taking the Digital
Data Cleaning Consumer Survey have ranged from 600 to 1,445.
 Only unique, complete responses to the Digital Results Publication
Consumer Survey questionnaire were used in  Results of past surveys can be found in reports called
analysis. Data cleaning included removing illogical “Voice of the Industry: Digital Consumer”, which are
responses and responses with fast completion times. published on Passport: Digital Consumer.

© Euromonitor International FIVE DIGITAL SHOPPING TRENDS SURGING DUE TO THE CORONAVIRUS PASSPORT 77
FOR FURTHER INSIGHT, PLEASE CONTACT
Michelle Evans
Senior Head of Digital Consumer, Euromonitor International
[email protected]
https://twitter.com/mevans14/
https://www.linkedin.com/in/michelleevansmaclachlan
https://www.forbes.com/sites/michelleevans1/#