Understanding The Market

The key focus for e-commerce is mobile.

E-commerce will continue to rapidly grow over the next two years, especially globally.

Source: Statista 2019

Mobile will be a key driver of e-commerce growth.

Source: Statista 2019

Insights:

Focus on millennials

as a key audience and segment.

Ensure product/service offerings and experiences are compatible

By 2020,

84%

of all US online buyers will also be

mobile buyers

.

Ensuring success

in e-commerce, in the next two years, means that companies must make business and product decisions that

prioritize mobile

.

Millennials

are the driving force of mobile and e-commerce growth.

33%

of all US online buyers are

millennials.

They are the driving demographic behind e-commerce growth.

Millennials spent 1.4X more

than the average online shopper in 2018. They also purchased

1.4X more frequently

.
Millennials are more likely to shop via mobile.

82% purchased via mobile

in the second half of 2018.

Insights:

Double, triple-digit growth,

Look out for high frequency verticals.

Rideshare

industry growth is driven by Uber and Lyft. Lyft leads with

+55.4% YoY growth in revenue

and +46.8% YoY growth in total rides.

Source: Rakuten Intelligence Data 2019

In the

Fashion Subscription

space, Stitch Fix dominates overall market share but

Le Tote has the highest YoY growth, +108%

Source: Rakuten Intelligence Data 2019

In

Food Delivery

, average YoY revenue growth was

+68%. UberEATS

has the largest market share and with a sizeable

+87% YoY growth. Doordash

takes the lead with

+163% growth YoY

.

Source: Rakuten Intelligence Data 2019

Insights:

Shoppers of these high frequency verticals exhibit unique e-commerce shopping behavior.

  • 44% of heavy rideshare users are millennials.

  • Heavy rideshare users spend 2.3X more than the average online shopper

  • They purchase 3.3X more frequently in grocery delivery

Source: Impact of Ridesharing on Ecommerce, Rakuten Intelligence April 2017

  • 20% of Birchbox users also subscribed with a meal subscription service such as Blue Apron

  • ipsy users spend 25% more on beauty after subscribing

  • 50% of beauty subscribers repeat purchase at least 4+ times

Source: Stitch Fix + Ipsy Marketing Analysis, Rakuten Intelligence, April & November 2017

Insights:

A majority of high frequency verticals buyers are millennials. There are 40% more millennials in these segments than the average shopping population.

Insights:

Partnering with high frequency verticals will drive parallel high frequency shopping behaviors, capture high spending, frequent shoppers, and target millennials.

  • $481 per user
  • 32 rides per user
  • $15 per ride
  • $334 per user
  • 14 orders per user
  • $25 per order
  • $1063 per user
  • 2 bookings per user
  • $500 per stay
  • $68 per user
  • 6 orders per user
  • $12 per order
  • $416 per user
  • 7 orders per user
  • $61 per order

Source: Rakuten Intelligence Data 2019