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DISRUPTORS: HOW COMPANIES NEED TO PREPARE FOR THE SUPER APP ERA IN COMMERCE November 2019 Downloaded from www.warc.com
INTRODUCTION DIGITAL LIFE CONVERGES IN SUPER APPS HOW WECHAT BIRTHED THE REVOLUTION HOW SUPER APPS HAVE SPREAD ACROSS ASIA WHY SUPER APPS SPROUTED UP IN THE EAST PROSPECTS FOR SUPER APPS BEYOND ASIA SUPER APPS: FAD OR THE FUTURE OF MOBILE?
© Euromonitor International DISRUPTORS: HOW COMPANIES NEED TO PREPARE FOR THE SUPER APP ERA IN COMMERCE PASSPORT 3 Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. A super app is a do- everything-mobile app, with the best ones combining all aspects of a consumer’s digital world into a single platform. The trend developed in Asia on the back of the popular messaging app WeChat, but has since spread to other countries. This report will explore key players behind this trend and the lucrative avenues these companies are pursuing. Scope of the Digital Consumer INTRODUCTION ▪ These are the main components of Digital Consumer’s data offering: Digital Consumer Digital Commerce By Payer’s Location By Device By Industry Digital Landscape Internet Mobile Telecom Possession of Digital Devices
© Euromonitor International DISRUPTORS: HOW COMPANIES NEED TO PREPARE FOR THE SUPER APP ERA IN COMMERCE PASSPORT 4 Digital life converges in super apps A super app is a do-everything mobile app, with the best combining all aspects of a consumer’s digital world into a single platform. Consumers have embraced these apps because they offer a contextualised and cohesive experience. WeChat birthed the super app revolution Tencent-owned WeChat is a tight ecosystem of 1 billion users that leverages social media as a fabric for a connected web of services. WeChat emerged as the revolution’s poster child, owing to its success in leveraging the social platform as a jumping off point for other services in areas like retail and finance. Super apps have sprouted up in domains besides messaging While many super apps are rooted in the messaging domain, like WeChat, others started in the transportation domain. This notion is best illustrated by the super app battle unfolding in Southeast Asia between Grab and Gojek. There are also some hints of super apps emerging from retail, with marketplaces like Alibaba and MercardoLibre continuing to diversify their service offerings. Super apps first took root in China because of the market’s specific characteristics China and the US, which could be used as proxies for exploring the West versus East dynamic, are fundamentally different markets when it comes to their political, cultural and economic approaches. Other variables, like the mobile-first mentality of China, also played a factor in the emergence of super apps there. Non-Asian players are beginning to mimic the super app strategy Players such as Alphabet, Facebook and Uber continue to add more functionality to their core offers, which could lay the groundwork towards one day becoming a super app of sorts for Western consumer markets. Are super apps just a fad? The future of super apps will continue to be intertwined with the trajectory of mobile apps themselves. As the world shifts from mobile-first to AI-first societies, super apps may be just a bridge to another era. Key findings INTRODUCTION

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