MANAGING in the

NEW WORLD

Companies that are consumer-facing are going through several existential changes right now. The global middle class is shrinking and growth rates have slowed down even in the emerging markets. In such a scenario, it makes particular sense to take care of the “connected spenders”. These connected spenders are those who display certain features such as having constant access to the internet. They possess significant sums of discretionary income that they are willing to spend. Whenever they can afford, they are ready to purchase premium goods. Such connected spenders are also followers of cutting edge consumer trends. They are usually urban dwellers, though the percentage rises to an even higher figure of ninety percent in emerging markets. Certain categories such as travel, electronic gadgets and dining out see them on top of the spending pile. Companies must realize that only three developed economies- USA, Japan and Germany- will be among the top ten of connected spender numbers in less than a decade’s time. Newer markets will emerge such as Nigeria, Indonesia and Pakistan. Companies must be able to tap into these new markets while continuing to woo customers in mature economies. This segment is digitally oriented thus online forms are best methods. Thus e-commerce must be eased up to make it more convenient for this group. Shopping experiences must be designed in such a way as to be relevant to the particular market. In China for example, among the younger people smartphone possession is universal so digital marketing has proven to be the most successful method of advertising. More traditional forms of the same are being adopted in Nigeria. Companies must also display agility in reaching out the last mile to the customer.

Source:https://hbr.org/2017/02/your-business-is-going-to-depend-on-connected-spenders-so-youd-better-understand-who-they-are?

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