It's that time of year and right on track, Mary Meeker has unveiled her 2016 Internet Trends Report. We scrolled past the doom and gloom of the economy section and focused on the changing landscape for retailers, brands, consumers, messaging and advertising: here's our recap of the 11 most relevant trends for the future of shopping:
Re-imagining Retail, Brands & Commerce
1. At 27% of the US population, Millennials is the largest US generation. Spending power should rise significantly over the next 10-20 years.
2. Products become Brands. Brands become Retailers. Retailers become Products and Brands. Retailers come into homes. Physical retailers become digital retailers (Neiman Marcus: 26% of F2015 sales via the internet with +24% Y/Y growth). Digital retailers become data-optimized physical retailers, e.g. Warby Parker.
3. User Experience is now made up of micro data-driven engagement and satisfaction plus personalization and curation, plus feedback driving 100% of purchases from recommendations driving increased wallet share.
4. Messaging is evolving from simple social conversations to business-related conversations that encompass both customer service and conversational commerce.
5. Brands see a 20x increase in messaging interactions within a month and 65% increase in customer satisfaction with a corresponding decrease of 65% in complaints.
6. Social media and chat are the best way for businesses to contact millennials, with the telephone as the worst method.
Re-imagining Voice & Data
7. The telephone notwithstanding, voice as the primary means for interfacing with apps is a new paradigm because it is fast, easy, personalized and context driven. Unique qualities of voice interfaces include random access versus hierarchical GUI e.g. Google search versus Yahoo! directory. Advances in natural language recognition and processing accuracy will catapult these systems from no one using them, to everyone using them.
8. Data is a new growth platform as it evolves into being able to improve people's lives and enables enterprises to operate more efficiently.
9. US internet advertising is accelerating, with 66% of growth coming from mobile.
10. Huge growth coming from Facebook, with Google and Facebook garnering over 76% of all internet advertising growth.
11. Advertisers still spend across all consumer touchpoints, including legacy media with no bridge to digital engagement.
Now watch Mary Meeker review the full report at the Code Conference: