Connected consumers are not created equal a global perspective

1Connected Consumers Are Not Created Equal: A Global Perspective
Connected Consumers
Are Not Created Equal:
A Global Perspective
Continuous connectivity is both an opportunity
and a threat for brands and retailers.

You would think that our world’s remarkable connectivity would be a marketer’s dream come
true—the opportunity to reach consumers anytime, anywhere. But, in reality, connectivity has
created unforeseen challenges: siloed and dislocated marketing budgets; global brand
builders and retailers that, in most cases, still have not unified their approaches to shoppers;
and consumers in both developing and developed markets who are becoming dramatically
more sophisticated, often in surprising ways.
The Internet has become a 24-7
activity. More than half of survey
respondents say they are connected
nearly every waking hour.
Recognizing this challenge, we embarked on the Connected Consumer Study to better
understand today’s connected consumers. Who are they, what motivates them, how do they
behave, and how do they buy differently? How do they differ in developing and developed
markets? What is their online shopping journey?
For the study, we surveyed 10,000 “connected consumers”—those who say they connect to the
Internet at least once a week, but oftentimes much more. Our survey includes approximately
1,000 consumers each in the United States, the United Kingdom, Germany, Japan, Brazil,
Russia, China, India, South Africa, and Nigeria, and it is statistically significant and census-
proper in each market (see appendix: About the Study on page 15).
The findings of our study are fascinating and at times counterintuitive. Here’s the quick view:
• Continuousconnectivity. The Internet has become a 24-7 activity. More than half of our survey
respondents—already chosen because they are already regular users of the Internet—say
that they are connected to the Internet nearly every waking hour. On a country-by-country
basis, we find Brazil and Nigeria more connected, and Japan and China less so.
• Four motivations for connectivity. People go online because it meets four basic, universal
needs: interpersonal connection, self-expression, exploration, and convenience. But
respondents from different countries were more motivated by different factors. For example
in emerging markets and places where offline expression is limited, the ability to express an
opinion rates very highly; in more mature markets, exploration and convenience matter more.
• The power of social media. Social networks are the places where connected consumers
spend the largest amount of their time online. Social networks and social marketing are very
effective in generating brand interest and purchases among younger consumers. However,
the number of users on a social network is not necessarily an indication for engagement or,
importantly, purchases. Furthermore, different social media sites display different usage
patterns in different countries.
• Pop-upads’surprisingeffectiveness—butonlyinsomemarkets. In some emerging markets,
particularly Brazil, China, and Nigeria, pop-up ads and banners are surprisingly effective.
Respondents from those three countries say they don’t mind the ads and often click on them
to see what’s up. In Western Europe and the United States, these ads are far less effective.

• The convergence of physical and online stores. While most purchases today are still made
in store, more than half of the survey respondents say they prefer shopping online as well
as the online experience. Connectivity does not mean that consumers do everything online,
but being connected offers access, speed, and convenience, and enhances the overall
the experience.
The following sections examine the results in detail and highlight the implications for retailers
and brands.
Continuous Connectivity
More than half of the connected consumers we surveyed say they are “continuously
connected”—that is, they are online practically every waking hour (see figure 1). With smart-
phones, tablets, and computers, most of our respondents comfortably move among different
platforms, applications, and websites to inform themselves, search for products, interact with
others, and make purchases.
Continuous connectivity varies by country. In countries such as Brazil and Nigeria, with younger
populations and solid smartphone penetration, two-thirds of respondents say they are contin-
uously connected. In Japan and China, less than 40 percent of respondents say the same.
The respondents who are continuously connected tend to be younger and single. Gender
was not a statistically significant indicator of connectivity (see figure 2 on page 3).
Even as smartphones become a common way to log into the Internet, 64 percent of the
continuously connected consumers in our survey prefer using PCs to connect—ranging from
79 percent in Japan to 47 percent in China, where 31 percent of the continuously connected
Frequency of connection
(% of respondents)
Global United
States
United
Kingdom
Germany Japan Brazil Russia China India NigeriaSouth
Africa
Source: A.T. Kearney analysis
Figure 1
For most, connectivity is a continuous activity
42%
23%
28%
All day long
Every hour
(>10 times a day)
2-4 times a day
Once a day
or less
7%
42%
26%
25%
7%
48%
21%
24%
7%
51%
18%
22%
9%
50%
26%
13%
11%
24%
20%
51%
5%
38%
24%
32%
5% 5% 5%
58%
21%
15%
6%
40%
22%
31%
7%
34%
29%
29%
37%
26%
35%

say they prefer smartphone connections. Preferences for smartphones among the continuously
connected class also varied significantly from country to country, with emerging markets
rating higher than developed markets. Only 12 percent of global connected consumers
frequently use tablets to connect to the Internet.
The Four Motivations of Connected Consumers
Our survey identifies four important motivations for connected consumers across the globe.
We asked respondents to tell us how important each motivation was for why they go online
(see figure 3 on page 4).
1. Interpersonal connection. People clearly crave connection with each other. Seventy-three
percent of survey participants say this is a key reason they go online. This is particularly evident
in places such as India (94 percent), Nigeria (89 percent), and China (88 percent), where work
takes people far from home, as well as Brazil (89 percent), where family ties are strong and
social media has taken off fast. In Japan (34 percent), the lower scores may be a result of the
many preexisting social structures that bind friends and family together.
2.Self-expression. We all have our opinions about world events or the latest TV show but never
before have we been able to broadcast these opinions so widely, even to people we do not know.
Connectivity allows us to express ourselves and be heard. This is particularly true in emerging
markets and places where offline self-expression is limited. In these countries, social networks
have enabled a degree of “democratization.” In China, Nigeria, and India, more than 85 percent
of respondents say that the ability to express their opinions is a key reason for being online.
In addition, the ability to share one’s creativity, on “creative” social networks such as Pinterest
or in photo feeds on Instagram or Facebook, is important to 68 percent of consumers across the
world. This is particularly true in China (93 percent), India (88 percent), and Brazil (85 percent).
Respondents who say they are online at least 10 times a day
Marital status Gender
Notes: The 5,152 “continuously connected” respondents log in at least once an hour while they are awake. Unmarried respondents include those
classified as single, divorced, widowed, or living in unmarried partnerships.
Figure 2
Continuously connected consumers tend to be younger and unmarried
16–25 26–35 36–45 46–55 56–65 Above
65
Un-
married
Married Male Female
21%
32%
53% 53%
47%47%
21%
13%
13%
8%
4%
Age

3. Exploration. We are curious beings, and we like to continuously explore the world around
us. The Internet empowers our curious tendencies and is widely used to satisfy our thirst
for knowledge. Globally, 95 percent of respondents agree that the need for exploration—
that is, to find and learn new things—is a primary motivator for going online, making it the
universal need.
Connectivity allows us to express ourselves
and be heard—particularly in places
where offline self-expression is limited.
4. Convenience. Whether finding products and services, navigating a street in an unknown
city, or seeking entertainment, the connected consumers we surveyed almost universally
find convenience central to their desires to go online. For instance, 83 percent of connected
consumers have a desire to choose their own entertainment (music, videos, or games),
whenever and wherever they want it. Similarly, 92 percent of respondents say they use the
Internet to access products and services. In developed markets, being a connected consumer
provides incredible depth and convenience; in developing markets, it broadens consumer
access. Convenience means different things to different people, but there is no question that
it is a main reason to stay connected.
Note: Percentages reflect consumers who responded “agree“ or “strongly agree“ to relevant questions related to motivation for connection
Figure 3
Consumers’ motivation to go online is driven by four primary needs
Connecting with
family and friends
Expressing opinions
and being heard
Exploring new
subjects
Increasing
convenience
Flexibly choose my enter-
tainment when I want it
Access products and services
and make purchases
Find locations when walking
or driving around
United
States
United
Kingdom Germany Japan Brazil Russia China India
South
Africa Nigeria
71%
38%
97%
80%
93%
87%
70%
52%
93%
80%
95%
81%
60%
32%
92%
62%
93%
74%
34%
30%
87%
75%
86%
75%
89%
75%
98%
96%
95%
77%
61%
64%
98%
83%
88%
89%
88%
89%
98%
97%
98%
93%
94%
88%
94%
90%
92%
84%
79%
64%
97%
87%
84%
86%
89%
88%
98%
84%
93%
66%
Global
average
73%
62%
95%
83%
92%
82%
90%+ of respondents
motivated
70%-89% of respondents
motivated
50-69% of respondents
motivated
<50% of respondents
motivated
1
2
3
4

Social Networks: The Town Center
for Connected Consumers
Brands and retailers always aim “to be where the consumer is,” and indeed our survey findings
indicate that social networks are indeed the place to be. Overall, 46 percent of respondents say
social networking accounts for the largest portion of their time online, although at the country
level there are some differences (see figure 4). In Brazil, Nigeria, India, and Russia, more than
half of respondents say social networks consume the greatest amount of their online lives,
ahead of entertainment, shopping, and transactional services such as banking. In the United
States, Germany, and Japan, the percentages are 40 percent and lower, in favor of more trans-
actional purposes such as shopping.
But within the social media bucket are many different platforms with a wide variation of
commitment and use. Yes, Facebook and Twitter are at most connected consumers’ fingertips;
however, use of those platforms (and others) is quite different depending on the country.
China and the United States offer a good study in the contrasts (see figures 5 and 6 on page 6).
In the United States, although 53 percent of respondents have a Google Plus account, far fewer
consider themselves “active” (that is, they write and post on the network) or even log in daily.
Similar patterns are observed on other social networks—except for Facebook.
In China, where there are many homegrown social media sites, the landscape is quite different.
Qzone has nearly universal participation, and daily logins show the intensity of China’s
connected consumers. Weibo and Tencent QQ reflect a much more intense online activity than
the U.S.’s second- and third-ranked social networks. It’s little wonder that Alibaba’s recent IPO
popped off the charts.
Ranking of activities based on time spent online
(% of respondents)
Figure 4
Connected consumers spend most of their online time on social networks
Global United
States
United
Kingdom
Africa
18%
23%
46%
Social
networking
Online
entertainment
Shopping
Transactional
services
13%
18%
26%
39%
17%
24%
20%
41%
16%
31%
15%
36%
18%
35%
28%
32%
5%
9%
25%
58%
8%
16%
24%
52%
9%
18%
11%
35%
12%
47%
6%
11%
18%
54%
17%
9%
19%
14%
57%
22%
50%

User penetration by social network, United States
1
“Post on network” (versus just reading feeds)
Figure 5
In the United States, having a social network account does not guarantee engagement
Have an account
Facebook
LinkedIn
Google Plus
Twitter
Pinterest
Instagram
Tumblr
Are very active1
Log in daily
81%
54%
53%
37%
34%
23%
11%
51%
12%
13%
11%
15%
13%
5%
56%
4%
13%
9%
5%
8%
3%
–37%
–78%
–75%
–70%
–56%
–43%
–55%
+10%
–67%
0%
–18%
–67%
–38%
–40%
–41% –61%
User penetration by social network, China
1
“Post on network” (versus just reading feeds)
Figure 6
Chinese connected consumers have higher engagement across different networks
Have an account
Qzone
Weibo
Tencent QQ
Pengyou
Kaixin001
Renren
51.com
Douban
Are very active1
Log in daily
99%
97%
92%
76%
77%
81%
62%
74%
80%
77%
62%
44%
42%
44%
35%
44%
68%
62%
39%
18%
16%
19%
10%
17%
–19%
–21%
–33%
–42%
–45%
–46%
–44%
–15%
–19%
–37%
–59%
–62%
–57%
–71%

From Connection to Consumption
For retailers and brands, there remains an overriding question: How does connectivity translate
into consumption? Does connectivity influence purchasing decisions, and if so, how?
We sought to understand how our survey respondents view and react to, and are influenced
by, online marketing:
Banners and pop-ups. In mature countries, banners and pop-ups often generate rolls of the
eyes, but in some of the developing markets we surveyed, they remain effective engagement
tools. The majority of consumers in South Africa, Brazil, India, China, and Nigeria are open
to online ads and willing to check out the offers behind them. In Nigeria, 93 percent of respon-
dents say they click on banners and ads at least sometimes, and 70 percent say they find
them relevant or useful. Respondents from India (84 percent) and China (83 percent) also
say they click on banners at least sometimes, although they are somewhat less enthusiastic
about their value.
On the other hand, just 7 percent of American respondents say they click on banners and
advertisements, and only 6 percent say they find them useful or relevant—the vast majority
are either bothered by them or ignore them.
In mature countries, banners and
pop-ups often generate rolls of the eyes,
but in some of the developing markets
we surveyed, they remain effective
engagement tools.
Social media “likes” and comments. We wanted to understand whether buying decisions are
based on what’s happening in the social network of a connected consumer. How much social
media influences shopping decisions correlates closely to age, our survey shows. More than
two-thirds of respondents 35 and younger say they either frequently or occasionally base their
buying decisions on what’s happening in their social networks; in contrast, more than 80 percent
of respondents older than 65 say that they rarely or never base their buying decisions on what’s
happening in their social networks (see figure 7 on page 8).
The differences by country are also stark. Between two-thirds and three-quarters of connected
consumers in the United States, United Kingdom, Germany, Japan, and South Africa say they
rarely or never consider social media chatter when evaluating products, services, and brands.
On the other hand, the majority of connected consumers in China, India, Russia, Brazil, and
Nigeria either occasionally or frequently use social networks in shopping. Chinese consumers,
in particular, value social media commentary: almost 95 percent say they occasionally or
frequently use social networks to evaluate products, services, or brands.

2,0572,6761,685 7681,2271,571
Global U.S. consumers are less influenced by their
social networks…
…whereas in China, social networks are influential
in buying decisions
1
Fewer than 60 percent of respondents answered “yes, frequently” or “yes, occasionally”
2
More than 60 percent of respondents answered “yes, frequently” or “yes, occasionally”
Figure 7
We found a clear correlation between age and social networks’ influence on buying decisions
16–25 26–35 36–45 46–55 56–65 Above
65
35%
32%
Yes, I frequently base my decision upon
what’s happening in my social network
Yes, but I only occasionally base my decision
upon what’s happening in my social network
No, I rarely or never base my decision upon
what’s happening in my social network
33%
32%
33%
34%
32%
28%
39%
26%
15%
59%
22%
12%
65%
14%
5%
81%
16–25 26–35 36–45 46–55 56–65 Above
65
32%
5%
63%
31%
7%
63%
29%
7%
64%
18%
78%
19%
4%4%
77%
12%
3%
84%
16–25 26–35 36–45 46–55 56–65 Above
65
33%
61%
29%
68%
34%
63%
49%
11%
49%
35%40%
16%
22%
44%
33%
6% 4% 3%
Other countries
with this pattern1
• United Kingdom
• Germany
• Japan
• South Africa
Other countries
with this pattern2
• India
• Russia
• Brazil
• Nigeria
Shopping Preferences vs. Behaviors
The vast majority of purchases today are made in physical stores, yet 54 percent of connected
consumers say they prefer shopping online (see figure 8 on page 9). When they shop online,
pure-play online retailers are the most popular destinations (see figure 9 on page 9). These
results highlight the growing importance of the multichannel shopping experience. Consumers
may check prices and talk to friends online on their way to the store, or, conversely, they may
shop for items in the store, then go online to evaluate products and then buy them. Nearly half
of respondents use their smartphones to check prices or product information while in the store.
China is the clear leader in our study, with 84 percent expressing a preference for online
shopping; more than 60 percent of Brazilian and Indian consumers say the same. On the other
hand, fewer than 35 percent of consumers in Russia, Japan, and South Africa prefer online
shopping. These numbers are slightly higher for continuously connected consumers, where
the global average of people preferring to shop online is as high as 59 percent (vs. 48 percent
for our less-connected respondents).

% who say they prefer to shop online
Figure 8
Connected consumers prefer to shop online
United
States
52%
United
Kingdom
57%
Germany
64%
Japan
33%
Brazil
64%
Russia
34%
China
84%
India
62%
South
Africa
31%
Nigeria
57%
Global average
(54%)
Figure 9
Consumers are increasingly using multichannel offerings, but online the pure-play
leaders stand out
Pure-play
online retailer
Mass merchant
Department
store
Ticket
Airline or hotel
Travel
aggregator
Flash sale
Specialty store
Drug store
84%
39%
32%
30%
30%
28%
28%
24%
18%
89%
56%
34%
42%
47%
41%
30%
35%
17%
91%
50%
35%
29%
32%
23%
19%
23%
24%
91%
49%
22%
31%
22%
33%
24%
20%
25%
92%
19%
7%
15%
15%
31%
10%
15%
10%
78%
68%
75%
37%
35%
32%
40%
34%
18%
68%
16%
43%
26%
25%
16%
30%
30%
16%
93%
53%
19%
22%
22%
21%
20%
25%
33%
87%
23%
32%
45%
32%
44%
41%
20%
8%
65%
27%
27%
38%
38%
18%
33%
17%
15%
86%
28%
18%
11%
38%
23%
30%
16%
7%
At least 5% lower than globalWithin +/- 5% of globalAt least 5% greater than global
Online shopping destinations (% of respondents)
United
States
GlobalWebsite type United
Kingdom Germany Japan Brazil Russia China India
South
Africa Nigeria

When asked what products they shop for online, respondents identify a wide array of items,
indicating e-commerce’s evolution and its geographical differences. Clothing, electronics,
books, music, and services rate highly, but bigger-ticket items such as home appliances and
furnishings also rate high (see figure 10).
Fifty-four percent of connected
consumers prefer shopping online.
The results are not only a tale of consumer confidence and e-commerce adoption, but also
of the evolution of e-commerce within specific countries and categories. For example, the
United States has low grocery penetration due to fragmented grocery retailing and its vast
geography, whereas the smaller, more concentrated UK market has much higher online
grocery sales, especially driven by well-developed offers already in place for more than
a decade (led by Tesco.com).
Respondents’ favorite online sites include, at a global level, Amazon and eBay, but several local
favorites emerge as well—Jumia in Nigeria, Ozon in Russia, Flipkart in India, and Jingdong and
Lynx in China are just a few.
Figure 10
Electronic goods, apparel, and books are among the most popular online categories
Electronics
Home appliances
Home furnishings
Fashion and apparel
Sports and outdoor
Beauty products
Household items
Groceries
Toys, kids, and babies
Tickets
Music and games
Books
Services
United
States
United
Kingdom Germany Japan ChinaIndia Brazil Russia
South
Africa Nigeria
83%
46%
56%
87%
56%
50%
36%
26%
48%
74%
74%
82%
80%
84%
65%
65%
85%
53%
56%
48%
60%
53%
69%
75%
82%
76%
90%
58%
66%
88%
66%
62%
40%
36%
49%
63%
66%
80%
77%
53%
41%
53%
66%
36%
48%
41%
68%
32%
43%
46%
65%
63%
79%
67%
59%
84%
52%
68%
60%
52%
61%
79%
65%
70%
82%
86%
70%
48%
75%
49%
59%
35%
29%
47%
65%
62%
75%
70%
71%
62%
43%
64%
51%
53%
36%
31%
44%
51%
43%
52%
63%
96%
83%
65%
97%
78%
85%
84%
90%
75%
71%
69%
89%
87%
60%
41%
34%
47%
35%
41%
31%
31%
38%
69%
64%
64%
79%
65%
52%
30%
65%
35%
45%
35%
30%
34%
47%
57%
71%
80%
>75% have bought the category online 50%-75% have bought the category online <50% have bought the category online
% respondents who say they have bought online in the past three months
77%
59%
53%
76%
52%
57%
45%
45%
49%
64%
62%
73%
76%
Global
average

Emerging Connected Consumer Segments
In the end, considering the differences in connectivity and shopping preferences, four unique
consumer segments emerge, based on connectivity levels and consumption preferences
(see figure 11).
Online champions. Online champions like being online—surfing the Internet, interacting
on social networks, or buying products and services. They buy the widest range of products
online and are the heaviest users of smartphones. Social networks have a strong influence
on their purchasing—they engage intently with brands on social networks and are heavily
influenced by “likes.” Most click on ads and banners while surfing and are also the most likely
to actually purchase something following ads. They are really the digital marketer’s dream.
This segment is dominated by developing markets, indicating the relative “newness” of the
Internet in those countries. Brazil, China, India, and Nigeria have at least a 30 percent share of
online champions. The United States, United Kingdom, and Germany are close to the global
average, while Japan, Russia, and South Africa have relatively lower shares, indicating a
relatively lower preference for shopping online (see figure 12 on page 12).
Social animals. Social animals are online, like to connect with people, enjoy entertainment,
surf the Web, and like their smartphones, but they shop offline because that remains an
important social experience for them. They do buy online, but at a lower level than online
champions. They have a good brand engagement on social networks and consider “likes”
to some extent when making a purchase. They are most likely to use the Internet to evaluate
their available options before deciding to do what they want. Online ads don’t really work with
them as the conversion from clicks to purchasing is low. Due to their high online presence
they are a good segment to target, but are relatively tough nuts to crack.
In developing markets with high shares of online champions—Brazil, China, India, and
Nigeria—this segment is much smaller than the online champions. Only 5 percent of Chinese
Shopping
preference
Connectivity
Figure 11
The four segments of connected consumers
Offline
Lower Higher
Online
Bricks, no clicks
30%
Social animals
24%
Transactionals
19%
Online champions
28%

respondents are categorized as social animals. This is because so few prefer offline shopping
channels—the consumers in our sample who spend a lot of time online also tend to buy
online, with online convenience outweighing the social aspects of shopping in stores. For
the United States, United Kingdom, and Germany, social animals are the smallest category;
in Japan, Russia, and South Africa, this segment is big.
Transactionals. These consumers represent the most pragmatic segment. They don’t spend
quite as much time online, but when they do, they are focused and know what they want. Their
preferred shopping destination is online, though there are far fewer categories in which they
buy online. They tend to use their smartphones selectively and are more likely to be driven by a
specific need to go online. They are somewhat similar to the online champions when it comes to
brand engagement on social networks, being influenced by “likes,” clicking on ads, and making
purchases following those clicks. This is a segment that is likely to buy or do more online as long
as they believe there is a need to do so.
Most countries had similar rates of transactionals—except for China, whose population clearly
prefers using the Internet to shop.
Bricks, no clicks. These consumers are relatively less connected and do few things online. They
have a clear preference for stores and use smartphones sparingly. They know what they are
doing and are most likely to be loyal to the shopping channels and destinations they are used to.
They use the Internet, but certainly seem to have well-defined boundaries on what they want to
do while online. Their brand engagement is relatively low on social networks and so is the
influence of “likes” on their purchasing decisions. Similar to social animals, the conversion ratio
of ad clicks to buys is low. This is a segment whose loyalty is probably yet to be tapped into
effectively by brands through other channels.
The markets where physical retail is best developed had the highest number of bricks, no clicks
consumers in our survey, particularly the United States, United Kingdom, Germany, and Japan.
(% of respondents)
Figure 12
On a country-by-country basis, segmentation differs
Global United
States
United
Kingdom
Africa
23%
21%
31%
Online champions
Social animals
Transactionals
Bricks, no clicks
25%
22%
21%
30%
27%
28%
15%
29%
27%
35%
11%
29%
25%
18%
24%
15%
43% 14%
21%
49%
15%
11%
33%
23%
32%
29%
16%
52%
32%
12%
23%
15%
38%
24%
10%
17%
26%
40%
40%
21%
5%

Implications for International Retailers and Brands
For brand and retail executives, now is the time to stay even-keeled, and to remain true to your
brand. You don’t have the stage anymore—you can tell your story and offer your product, but there
are many more terabytes of data about your product that are created by people not in your market-
ing department. Social media is both wonderful and, at times, nasty. Can you deal with both? Can
you embrace the notion that your brand is crowdsourced, and that your voice is just one of many?
Perhaps the sea change in marketing to the connected consumer is that you’re not communi-
cating to some type—to the king and queen, or to mom and dad—but rather to an individual
shopper who is connected to his or her network every hour of every day. Regardless of whether
your brand message is about getting people to grab your products off shelves or click on “buy”
on a website, the truth is that today's consumers get their inspiration in an entirely different way
than they did 10 or even five years ago.
A few crucial learnings stand out.
Value can be created at every touch point. Physical stores remain the foundation of retailing
in most categories. Ninety percent of retail sales still occur in stores, and 95 percent are captured
by retailers with a brick-and-mortar presence. Stores will continue to provide consumers with the
sensory experience to touch and feel products, immerse in brand experiences, and engage with
sales associates. In addition, connectivity does not mean that consumers do everything online,
but rather that being connected offers access, speed, and greater choice. Stores will continue
to make a significant contribution to converting the sale, even if transactions eventually happen
online. Two-thirds of customers purchasing online say they use a physical store before or after
a transaction.
The debate is not a question of digital versus physical. Successful retailers and brands understand
how each customer touch point creates value for customers, and they develop omnichannel
strategies that maximize customer value, satisfaction and profitability.
Personalization is not a cliché anymore. As consumers become more discerning—and
over-advertised to—personalization has become regular part of digital marketing. Opt-in and
geo-location are still developing, but most leading retailers (and CPG manufacturers) recognize
and appreciate that 10 or 12 terabytes of data is something they can (or should be able to) handle.
The consumer is just one person—complex and discerning and changing frequently—but he
or she expects you to keep up while also maintaining carefully respected privacy.
The role of brands and retailers has changed. The need for connection, self-expression,
exploration, and convenience have changed the roles brands and retailers play in their industries.
Leading companies are addressing these needs by building communities, holding conversations,
entertaining, and educating consumers. Where value is created in the shopping journey is very
different from where it is captured.
• Building communities. The notion of community has done miracles for businesses both
online and offline. From the cozy environment of Starbucks and the communal table at Le Pain
Quotidien to the avid online communities of Burberry’s and Nike+, rallying consumers around
a common interest, idea, or value gives them good reason to come back, engage, and advocate
for a brand.
• Holding two-way conversations. To facilitate more self-expressive consumers, companies
must have an ongoing conversation, be open to feedback, and take risks. Having a Facebook

page means allowing consumer sentiment, positive or negative, to be out there in the open.
It also means that conversations need to take place at multiple levels of the organization,
rendering the idea of “brand control” increasingly obsolete. This in turn requires all stake-
holders across the extended organization to have a much stronger shared view on values,
as the role of each “ambassador” will be much greater. The flip side of reduced brand control
is increased engagement. Good conversations are provocative and open, and they ignite
the creativity that ultimately enriches the community and the brand.
• Educating and storytelling. As for exploration and satisfying of curiosity, companies are
increasingly assuming the role of educators and storytellers. From teaching consumers about
their brands to “how-to” videos for cosmetics or food recipes, companies are developing new
and interesting content to bring consumers back to their stores or websites. Storytelling and
content creation and curation are among the most important business competencies of the
future, and at its best they can create long-lasting loyalty.
In summary, connected consumers are not created equal—in their behaviors and motivations,
in where they get their information, and in who influences their opinions. While they share many
similarities across the world, there are profound differences from market to market, based on
demographics, infrastructure, and social orientation.
This snapshot of the connected consumer reflects the dramatic global similarities as well as the
striking local differences—important considerations as global brands and retailers try to keep pace.
Authors
Hana Ben-Shabat, partner, New York
hana.ben-shabat@atkearney.com
Mirko Warschun, partner, Munich
mirko.warschun@atkearney.com
Rajaganesh Sethupathi, consultant,
New York
rajaganesh.sethupathi@atkearney.com
Michael Moriarty, partner, Chicago
mike.moriarty@atkearney.com
Vishwa Chandra, principal, Chicago
vishwa.chandra@atkearney.com
Niklas Vogelpohl, consultant, New York
niklas.vogelpohl@atkearney.com
The authors would like to thank Adam Pressman and Mihir Vaidya for their significant contributions to this
study. They would also like to thank their many colleagues from around the world who supported them with
local market knowledge.
About the Global Consumer Institute
The A.T. Kearney Global Consumer Institute is a worldwide network of professionals and executives. The Institute
combines proprietary and public data resources with local knowledge to deliver strategic and operational
insights to executives in consumer-facing industries seeking long-term growth and competitive advantage.
For more information, please contact gci@atkearney.com.

Appendix
The Connected Consumer Study was conducted in July 2014, and covered 10 countries with
10,000 evenly distributed respondents. We chose nine of the top 10 Internet-using nations in
terms of number of Internet users—China, the United States, India, Japan, Brazil, Russia,
Germany, Nigeria, and the United Kingdom—plus South Africa (25th globally) to purposefully
over-represent the fast-developing African continent. The survey comprised 29 questions; four
were customized for market-specific household incomes, education systems, popular social
networks, and shopping websites.
The responses were census-representative in every country. Our age distribution focused on
younger demographics, with 64 percent of respondents under 45 years old. We achieved an
almost even split between men and women and have a census-appropriate representation of
income groups in each market (see figure).
Figure
About the survey respondents
United States
1,087
Nigeria
767
China
1,080
Russia
1,069
Germany
1,042
Japan
906
India
1,003
Brazil
1,007
South Africa
1,019 United Kingdom
1,029
Male
52%
Female
48%
16–25 26–35 36–45 46–55 56–65 Above
65
17%
27%
20%
16%
12%
8%
Much below
median
Around
median
Much above
median
Countries Gender split
Age distribution Income distribution
United
States
United
Kingdom
Germany
Japan
Brazil
Russia
China
India
Nigeria
South
Africa
6%
26%
29%
45%
51%
31%
18%
48%
31%
21%
44%
38%
18%
62%
21%
17%
62%
15%
23%
41%
28%
32%
23%
24%
53%
26%
21%
52%
17%
11%
72%

A.T. Kearney is a leading global management consulting firm with offices in more
than 40 countries. Since 1926, we have been trusted advisors to the world's foremost
organizations. A.T. Kearney is a partner-owned firm, committed to helping clients
achieve immediate impact and growing advantage on their most mission-critical
issues. For more information, visit www.atkearney.com.
Americas
Asia Pacific
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and Africa
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Bangkok
Beijing
Hong Kong
Jakarta
Kuala Lumpur
Melbourne
Mumbai
New Delhi
Seoul
Shanghai
Singapore
Sydney
Tokyo
Abu Dhabi
Doha
Dubai
Johannesburg
Manama
Riyadh
For more information, permission to reprint or translate this work, and all other
correspondence, please email: insight@atkearney.com.
The signature of our namesake and founder, Andrew Thomas Kearney, on the cover
of this document represents our pledge to live the values he instilled in our firm and
uphold his commitment to ensuring “essential rightness” in all that we do.
A.T. Kearney Korea LLC is a separate and independent legal entity operating under the A.T. Kearney name in Korea.
A.T. Kearney operates in India as A.T. Kearney Limited (Branch Office), a branch office of A.T. Kearney Limited,
a company organized under the laws of England and Wales.
© 2014, A.T. Kearney, Inc. All rights reserved.
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Connected consumers are not created equal a global perspective

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