1.
0
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 1: Emerging Markets’ Use of Digital Is Booming
19
82
0
2017
56
2010
69
39
2017
27
9
2013
Sources: Forrester, Economist Intelligence Unit, Internet World Stats, International Telecommunications Union, World Bank and Oxford Economics; BCG analysis.
Note: The emerging markets used for these analyses include Algeria, Angola, Brazil, China, Egypt, India, Indonesia, Kenya, Malaysia, Morocco, Myanmar, Nigeria, Philippines, Russia,
South Africa, Thailand, Turkey and Vietnam. The Internet penetration data uses all 18 of these countries, smartphone penetration uses 13 of them, and mobile data tariffs uses nine of
them.
50
23 22
44
Highest
country
Average
country
Lowest
country
Internet penetration Smartphone penetration Mobile data tariffs
Internet users as a percentage of
population
Smartphone users as a percentage of
population
Cost of 1 gigabyte of data as a
percentage of gross national
income
0.11
1.03
2013
0.49
2017
0.03
Highest
country
Average
country
Lowest
country
Highest
country
Lowest
country

2.
1
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 2: Digital's Influence on Emerging Market Retail is
Expanding
8.3
5.4
3.9
1.8
0.8
0.2
1.7
0.5
2022F2012 2017
4.1
Sources: Forrester, Euromonitor, eMarketer, Economist Intelligence Unit, BCG Emerging Market digital survey 2018, BCG Center for Customer Insight surveys (2017-18); BCG analysis.
Note: Digitally influenced expenditures reflect the dollar value of retail purchases that consumers make with the help of information they collect on the Internet. The figures here are for nine
emerging markets: Brazil, China, India, Indonesia, Kenya, Morocco, Nigeria, Philippines, and South Africa. Respondents were asked about their activities in 15 product categories.
Retail spending (USD tn)
E-retail
Digitally influenced
Total
12% 5%% of total retail
spending
33% 15% 47% 20%

3.
2
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Share of
total
retail
spending
in 2017
(%)
Digitally aware Digitally advancing Digitally evolved
Indonesia
3.1
India
4.1
Brazil
5.0
South Africa
1.0
Philippines
1.2
Stage of digital maturity
Digitally influenced
E-retail
12.0
14.0
35.0
39.0
5.0 7.0
China
20.0
France
11.0
Germany
10.5
US
12.7
UK
15.7
Kenya
0.6
Morocco
0.8
3.02.4
Nigeria
0.3
4.8
Source: Forrester, eMarketer, Euromonitor; BCG analysis.
Note: Digitally influenced expenditures refers to the percentage of all retail purchases that consumers make with the help of information they collect on the Internet.
Exhibit 3: Countries Lie Along Three Different Stages of
Digital Evolution

4.
3
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 4: How Product Categories Fare at Different Stages
of Evolution
Digitally aware Digitally advancing Digitally evolved
0
40
80
40
60
1008060
20
20
% Online shoppers
% Digitally influenced shoppers
Air travel
PC, Laptop, Tablet
Holiday booking
Beauty products/CosmeticsFresh food
Large appliances
Cars
Clothing
FootwearSmall appliances
Other food
Home/personal/hair care
Baby care products
Mobile phone
Loan and Insurance
Air travel
Fresh Food
20
80
60
40
0
80604020 100
% Online shoppers
% Digitally influenced shoppers
Mobile
Footwear
0
100
60
40
20
80
8040 6020
% Online shoppers
% Digitally influenced shoppers
Air travel
PC/ Tablet
Fresh
Food
Clothing
Source: BCG Emerging Market digital survey 2018; BCG Center for Customer Insight surveys (2017-18); BCG analysis.
Note: Vertical axis shows the percentage of emerging market users who have made an online purchase in the category at least once. Horizontal axis shows the percentage of emerging
market users who gather information from the Internet when they’re making a purchase in the category.
Fresh food
Air travel
Clothing
Footwear
Cars
CarsCars
Holiday Booking
Clothing
PC/Tablet
Large Appliances
Large
Appliances
Mobile
Loan &
Insurance
Mobile

5.
4
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 5: How Consumer Attitudes Evolve
at Different Stages of Maturity
Source: BCG Emerging Market digital survey 2018, BCG Center for Customer Insights surveys (2017-18); BCG analysis.
Notes:
1. % of digitally influenced shoppers who use each type of online platform to get information
2. % of online shoppers who select each benefit as the reason for shopping online versus in-store
3. % of online shoppers who select each reason as the basis for choosing an e-commerce website or app
4. % of online shoppers who prefer each type of e-commerce format
5. % of online shoppers who prefer each mode of payment
6. % of total shoppers who engage in each online post-purchase activity
Respondents had the option of selecting multiple answers.
What
influences
them
online?1
Why do
they buy
online?2
What
distinguish
es a
website?3
Pre-
purchase
Purchase
Which
platforms
do
consumers
prefer?4
How do
they pay?5
What do
they do
after
buying?6
Post-
Purchase
Digitally
Advancing
Digitally
Evolved
Digitally
Aware
Online shopping
websites
Social media/ Chats
Search engines
Price
Convenience
Variety
Price
Variety
Shopping experience
Online marketplace or
retail platform
Social media
Brand websites
Cash on delivery
Digital methods
Post a review on a
public platform
Share an experience
with friends/family
using digital
62% 79%56%
14% 20%22%
13% 4%13%
35% 3%61%
52% 97%32%
15% 63%7%
44% 62%13%
60% 80%35%
48% 65%42%
63% 79%79%
46% 30%42%
67% 73%62%
29% 30%38%
72% 88%64%
50% 88%52%
10% 81%23%
Very HighHighVery Low Low Medium
Country’s maturity stage

6.
5
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Innovative
Business
models
Consumer-
led products
• Spot consumer trends
• Co-create products/offerings
• Customize solutions
Targeted, socially
activated brands
• Scale up efficiently
• Zero in on a clear audience
• Activate social media
promotion
Seamless,
personalized sales
• Jump-start the business
• Tailor the experience to the
customer
• Simplify the transaction
End-to-end consumer
engagement
• Use a personal appeal
• Connect with the customer
after the purchase
• Turn customers into
advocates
Exhibit 6: Digital is Disrupting Every Aspect of the Value
Chain
Source: BCG analysis.