App analytics platform - App Annie, explores how mobile has transformed every industry across the globe and become a mainstay of consumers' daily routines. Retail expert Erekle Tokhosashvili, will explore the key indicators behind the booming app economy and uncover the market trends you need to watch in 2019.

1. Presented by:
Erekle Tokhosashvili
THE STATE OF
APPS

2. D I S C O V E R
Understand the
opportunity,
competition and
discover key drivers of
success
S T R A T E G I Z E
Develop a mobile
strategy to drive
market, Corp Dev or
global objectives
A C Q U I R E
Increase app visibility
and optimize user
acquisition
E N G A G E
Better understand
targeted users and
drive deeper
engagement
M O N E T I Z E
Accelerate revenue
through mobile
The Most Complete Offering
to Confidently Grow Businesses Through Mobile

3. 1,000+
Enterprise Clients
1M+
Registered Users
1M+
Connected Apps
The Most Trusted Partner in the App Economy

4. MACRO TRENDS

5. — Worldwide 35%
— China 70%
— India 165%
— United States 5%
— Brazil 25%
— Indonesia 55%
2016
120B
100B
80B
60B
40B
20B
0
Country-LevelDownloads
240B
200B
160B
120B
80B
WorldwideDownloads
Top Countries by App Store Downloads
Two Year Growth
2017 2018
40B
0
Note: iOS, Google Play, Third-Party Android in China combined
Global App Downloads Exceeded 194B in 2018, up 35% From 2016

6. — Worldwide 75%
— China 140%
— United States 70%
— Japan 30%
— South Korea 80%
— United Kingdom 55%
Top Countries by App Store Consumer Spend
Two Year GrowthCountry-LevelSpend(USD)
WorldwideSpend(USD)
2016 2017
2018
$60B
$50B
$40B
$30B
$20B
$10B
0
$120B
$100B
$80B
$60B
$40B
$20B
0
Note: Spend is gross, the cut taken by app stores has been removed; iOS, Google Play, Third-Party
Android in China combined
Global App Store Consumer Spend Reached $101B in 2018, up 75% From
2016
2019 Projected
to Exceed $120B

7. 5
4
3
2
1
Average Daily Hours Spent Per Device on Mobile in 2018
Emerging Markets Mature Markets
Note: Android phone
Mobile Carved Out 17% of Daily Time In Emerging Markets

8. Monthly Average Number of Apps Used and Installed
Smartphone Users in Select Markets, 2018
Apps Used Apps Installed
0 10 20 30 40 50 60 70 80 90
China
Japan
Brazil
United Kingdom
France
Germany
United States
India
Canada
South Korea
100 110
8
The Average Consumer in the US, South Korea, Japan and Australia
Has Over 100 Apps on Their Smartphone

9. Gen Z Defines the World Order Through Mobile
#
*Average per app among top 25 apps by usage penetration on Android phone, excluding pre-installed apps
Average among: Australia, Brazil, Canada, France, Germany, Indonesia, Japan, South Korea, UK, US
Engagement of Apps and Games by Demographic*
Gen Z Aged 25+
AvgMonthlySessionsPerUser
Avg Monthly Hours Spent Per User
125
100
75
50
25
150
175
0 2 4 6 8 10
Apps
Games

10. Retail Trends

11. Peer-to-Peer Marketplaces Were 2nd Most Popular Way to
Shop on Mobile in 2018

12. Total Sessions in Shopping Apps
Two Year Growth
Note: Android phone
2016
2017
2018
+5%
+70%
+35% +20%
+95%
+75%
+80%
+100%
+110%
Global Time Spent in Shopping Apps Grew to 18 Billion Hours in 2018, up
45% From 2016

13. Note: Android phone; Average of Top 5 apps by time spent
2018 | Engagement in Digital-First vs. Bricks-and-Clicks Apps
Average Monthly Sessions Per User
2016vs.2018Growth
100%
75%
50%
25%
0%
-25%
-50%
45200 5 10 15 25 30 35 40
CA JP
UK
US
FRBR
DE
BR
JP
KR
DE
FR
UK
CA
US
KR
Bricks-and-Clicks Digital-First
Digital-First apps saw greater
average sessions per user than
Bricks-and-Clicks apps
Engagement Grew for Bricks-and-Clicks Retailers in 2018

14. Source: US Census and App Annie; Time Spent on Android phone
DigitalSales
Total Hours Spent in Shopping Apps
$150B
$100B
$50B
$0B
0 100M 200M 300M 500M400M
Correlation of Quarterly Digital Sales and Time Spent in Shopping Apps
Q1 2014 — Q3 2018 | United States
r = 0.97
Increase time spent per user through
● Increased browsing capabilities
● Loyalty programs
● Product recommendations
Time Spent in Shopping Apps Correlates Strongly with E-Commerce Sales

15. Mobile Fueled Flash Sales and Shopping Events
To Record Levels in 2018
130M Hrs.Spent in the weeks of Black Friday and Cyber
Monday in the US on Android devices,
up 25% year over year.
*Android phone
$30.8BSpent globally in 24 hours on
Alibaba’s Singles Day 2018
$5BSpent on mobile on
Thanksgiving,
Black Friday and Cyber
Monday

16. Retail Best Practices

17. App Annie’s mobile metrics are
closely linked to m-Commerce KPIs
In particular, total time spent is a
strong driver of e-commerce sales
Increase engagement and revenue
by learning from feature sets of best-
in-class apps
Business KPIS
App Annie Metrics
What do mobile metrics
mean for retail?
New Mobile
Customers
Downloads
Returning
Customers
Retention
# Customers
Active Users
Revenue
Total Time
# Purchases
Sessions per
User
Basket Size
Session
Duration

18. Time spent is a key indicator of Sales volume for most e-
commerce apps
• Etsy is an e-commerce marketplace generating
revenue from charging a commission on
merchandise sold
• In Q2 2018, 55% of Etsy’s gross merchandise
sales (“GMS”) came from a mobile device
• Time spent in the Etsy app drives gross
merchandise sales

19. Key Retail pillars - Worldwide Ranking
iPhone and Android Phone, September 2018, Worldwide

20. • In less than 2 years, H&M global downloads
market share decreased from 12% to 7%
• Fast-fashion entrants Romwe & Shein
experienced impressive growth WW & “low-
cost” m-commerce platforms like Joom/Wish
have become go-to platforms for cheap &
free items → User acquisition driven by
aggressive pricing/ free shipping strategy
The mobile landscape is rapidly changing for fashion with new
entrants like Joom and Shein scaling fast
Source: App Annie data; Apps with less than 60% downloads from one single country as of October 2018

21. Preview of 2018 Holiday Trends
Black Friday came
early!
Free Shipping
Cross-channel
strategy
Updated
on 9/11

22. Mobile-Fueled Sales Events -Best Practices from Southeast Asia

23. Dedicated shopping Days Drive Engagement

24. THANK YOU!