Connect with us

Reports

Consumers moving away from traditional forms of entertainment and media consumption

MD Staff

Published

on

Consumers are increasingly using digital technology for more than just shopping. There is a revolution occurring in how consumers access entertainment and media, for example. Thirty-eight percent of global consumers stream entertainment at least daily, and among Gen Z consumers, cord-cutting for entertainment is at more than 50%.

The findings are published today in PwC’s Global Consumer Insights Survey, which assesses the behaviour, habits and expectations of over 21,000 online consumers in 27 territories. PwC’s research reveals rapidly changing consumer behaviour in a host of areas other than entertainment and media.

When it comes to news, 25% of consumers now go to social media first to hear about current events. Given how pervasive social media is today, this likely doesn’t come as a surprise. Social media-placed ads that allow consumers to interact with a brand is now ranked as the third most effective form of advertising, and among millennials, this is the most popular form of advertising – beating out traditional television ads.

The easier and better the experience, the more consumers will spend

The study finds that consumers — bombarded with a multitude of choices — are constantly seeking tools to help simplify their purchasing decisions. In addition to using digital technology, they are looking to their trusted communities and other experts:

According to those surveyed, the top three attributes that can improve an in-store shopping experience are easy store navigation, knowledgeable sales associates and easy payment options.
 

61% of consumers are influenced by social media for their purchases, either as inspiration or following positive reviews. Conversely, less than 20% of consumers say they’re likely to buy a product because of a celebrity or influencer.
 

Almost 50% of those surveyed let family and friends’ opinions guide their choice of a vacation travel provider.

John Maxwell, Global Consumer Markets Leader, PwC comments, “The key to a great end-to-end customer experience isn’t just about the shopping and retail experience – it spans across industries. Consumers are looking for a seamless and easy purchasing journey, and companies can achieve this by using a blend of both physical and digital approaches. The result is a greater return on experience with the customer and more lasting results for businesses.”

Two-thirds of consumers are now more willing to access non-traditional health services online. Nearly 75% own health-related apps, with exercise/health-monitoring being the most popular. More than half (51%) of consumers surveyed used a smartphone to pay bills and invoices online, and the same percentage transferred money online. For the first time in the 10 years that PwC has conducted this survey, consumers surveyed are using smartphones over other mobile devices to shop online, with 24% of consumers using a smartphone to shop online weekly.

In emerging countries, mobile payments in stores are increasing, with Vietnam seeing the biggest increase to 61% in a period of one year, followed by the Middle East (45%). Globally, there was an overall increase of 24% over the past year. In general, Asian countries are more likely to adopt this behaviour more quickly than Western countries.

Continue Reading
Comments

Reports

MENA: Trade and Regional Integration are Critical to Economic Recovery in the Post-Covid Era

Newsroom

Published

on

Trade and integration — within the Middle East and North Africa (MENA) region and with the rest of the world — will be critical to lowering poverty, empowering the poor, and igniting economic growth in the post-COVID era, according to the World Bank’s latest regional economic update.

The report, titled Trading Together: Reviving Middle East and North Africa Regional Integration in the Post-Covid Era, paints a comprehensive picture of MENA’s economic situation six months into the COVID-19 pandemic. It examines the lasting effects of the dual economic shocks from the spread of the coronavirus and the collapse in oil prices, and it recommends policy changes and reforms to build a new integration framework across the region.

The MENA region was already lagging behind economically before the COVID-19 pandemic struck. Six months into it, we can see — with stark clarity — the severity of the devastation on lives, livelihoods, and region-wide prosperity,Ferid Belhaj, World Bank Vice President for the Middle East and North Africa, said. “We are continuing to help MENA countries stop the spread of the disease and protect and care for their people. We will keep insisting on the need for MENA countries to give the highest priority to transparency, governance, the rule of law and market contestability, and to instill trust, promote the private sector, and build a new framework for the sustained regional economic integration that will make trade a powerful tool to alleviate poverty and expand access to opportunities for all.”

The Economic Shocks of the Pandemic and Decline in Oil Prices

The dual economic shocks of the COVID-19 pandemic and decline in oil prices have affected all aspects of MENA’s economies, which are projected to contract by 5.2% in 2020 — 4.1 percentage points below the forecast in April 2020, and 7.8 percentage points worse than the forecast in October 2019. The latest data reflect an increasingly pessimistic outlook for the regional economy, which is expected to recover only partially in 2021.

The outlook for MENA’s current account and fiscal balances has also deteriorated. Driven by lower oil export revenue, declines in other fiscal revenues, and the high expenditures required to respond to the pandemic, the region’s current account and fiscal balances in 2020 are forecast at -4.8% and -10.1% of GDP respectively, much lower than the forecasts from October 2019. Public debt is projected to rise significantly in the next few years, from about 45% of GDP in 2019 to 58% in 2022.

The pandemic continues to inflict economic losses, and the poor and vulnerable are being disproportionately affected,” said Ha Nguyen, Senior Economist and co-author of the report. “The growth outlook for 2021 suggests that a V-shaped recovery is unlikely, although the forecasts are fluid and subject to great uncertainty.”

Trade and Regional Integration

According to the report, MENA’s integration — both within the region and with the rest of the world — was underperforming before the pandemic. This is due to economic reasons, such as poor logistics’ performance, inefficient customs, high infrastructure costs, the inadequacy of legal frameworks for investments, and disparate regulations that add up to high trade costs and have become non-tariff impediments to trade. Political economy obstacles have also prevented regional cooperation, while the effects of conflicts and violence have hindered trade and deterred economic growth.

Challenges with logistics and the business environment impede MENA’s integration in regional and global value chains. Despite improvements in recent years, the MENA region underperforms in access to credit, which is lower than anywhere else in the world. Trading across borders is expensive and time-consuming: It costs, on average, US$442 and 53 hours to comply with border requirements for exporting, which is three times more expensive and four times longer than averages in high-income economies. MENA is also one of the most restrictive regions regarding trade in services.

The challenges to overcoming the political and economic obstacles to MENA’s integration would be difficult in ordinary times, let alone in the midst of a pandemic and economic crisis,” said Blanca Moreno-Dodson, Manager of the Center for Mediterranean Integration and leader of the report. “But the COVID-19 pandemic offers a great opportunity for MENA countries to rethink their social and economic policies and strengthen trade integration while reducing their oil dependency at the same time.”

The report proposes a new trade integration framework that goes beyond reducing tariffs. Some of the suggestions it makes indicate that trade liberalization must be comprehensive and benefit all sectors, including agriculture and services. Without improving the overall business environment and without encouraging the role of the private sector, the region will not reap the benefits of trade liberalization. In terms of implementation, a better balance between political and economic objectives will be needed to ensure that trade agreements do not fail. Simultaneous, behind-the-border reforms — within the MENA region and in collaboration with Europe and Africa — necessitate clear rules and effective implementation mechanisms.

A coordinated MENA trade integration framework would facilitate regional value chains and pave the way toward integrating into global value chains. The report recommends focusing on trading regionally in sectors such as food security, health systems, renewable energy, and the knowledge economy. It suggests creating a common MENA digital market so that MENA countries can improve both trade and digital connectivity, with broader markets in Africa and the Mediterranean. This should help increase productivity; coordinate efficient responses to the pandemic; and promote inclusive, resilient, and sustainable jobs in the region.

The African Continental Free Trade Area (AfCFTA) offers an opportunity for MENA and sub-Saharan Africa to simplify and harmonize non-tariff measures between them. Ongoing bilateral dialogue with the European Union could at the same time focus on including agriculture and services, which would greatly benefit MENA countries while addressing issues of labor mobility as they relate to trade.

Continue Reading

Reports

Half of Working Adults Fear for Their Jobs

Newsroom

Published

on

In a new World Economic Forum-Ipsos survey of more than 12,000 working adults in 27 countries, more than half (54%) say they are concerned about losing their jobs in the next 12 months. Perceived job insecurity varies widely across countries: it is stated by three in four workers in Russia, compared to just one in four in Germany.

Two thirds of workers worldwide say they can learn skills needed for the jobs of the future through their current employer. Nearly nine in ten workers in Spain think they can gain essential new skills on the job, whereas fewer than half in Japan, Sweden and Russia.

Concern about job losses

On average, 54% of employed adults from 27 countries say they are concerned about losing their job in the next 12 months (17% are very concerned and 37% somewhat concerned). The prevalence of job-loss concern in the next year ranges from 75% in Russia, 73% in Spain, and 71% in Malaysia, to just 26% in Germany, 30% in Sweden, and 36% in the Netherlands and the United States.

Ability to acquire new skills

Globally, 67% of employed adults surveyed say they can learn and develop skills needed for the jobs of the future through their current employer (23% are very much able to do so, 44% somewhat able). Across the 27 countries, perceived ability to learn and develop those skills on the job is most widespread in Spain (86%), Peru (84%), and Mexico (83%) and least common in Japan (45%), Sweden (46%), and Russia (48%).

Saadia Zahidi, Managing Director at the World Economic Forum said, “The current crisis means that the job creation rate has gone significantly down compared to two years ago, but there is an optimistic scenario overall compared to the rate of job destruction. Of course, it depends on the choices we make today. It depends on the kinds of investments governments make today – and the investments workers make in terms of their own time. And it depends on the choices that business leaders make when it comes to retaining and protecting jobs versus shorter-term decisions that are more focused on quarterly results.”

New skill acquisition versus job insecurity

Globally, workers are more likely to say they can learn and develop skills needed for the jobs of the future through their current employer (67%) than to express concern about losing their job in the next 12 months (54%), a difference of 13 percentage points.

The countries where those who can gain new skills on the job outnumber those who are concerned about losing their job by the largest margins are the United States and Germany (by 40 points).

In reverse, job loss concern is more prevalent than perceived ability to acquire skills in Russia (by 28 points) and, to a lesser extent in Malaysia, Poland, Japan, Turkey, and South Korea.

World Economic Forum Jobs Reset Summit

Job losses and the skills challenge are two of the issues that will be addressed at the forthcoming Jobs Reset Summit. The summit brings together more than 1200 visionary leaders from business, international organizations, government, civil society, media and the broader public to shape a new agenda for growth, jobs, skills and equity.

Continue Reading

Reports

2020 Deloitte-NASCIO Cybersecurity Study Highlights Imperatives for State Governments

Newsroom

Published

on

Deloitte and The National Association of State Chief Information Officers (NASCIO) released their 2020 Cybersecurity Study, “States at Risk: The Cybersecurity Imperative in Uncertain Times.” The national study is based on responses from 51 U.S. state and territory enterprise-level chief information security officers (CISOs). This is the 10th year of this study and the sixth iteration, with a record number of state and territory CISO’s participating this year.
The key themes in this year’s study are:

  • COVID-19 has challenged continuity and amplified gaps in budget, talent and threats, and the need for partnerships.
  • Collaboration with local governments and public higher education is critical to managing increasingly complex cyber risk within state borders.
  • CISOs need a centralized structure to position cyber in a way that improves agility, effectiveness and efficiencies.

The report also details focus areas for states during the COVID-19 pandemic. While the pandemic has highlighted the resilience of public sector cyber leaders, it has also called attention to long-standing challenges facing state IT and cybersecurity organizations such as securing adequate budgets and talent; and coordinating consistent security implementation across agencies.

These challenges were exacerbated by the abrupt shift to remote work spurred by the pandemic. According to the study:

  • Before the pandemic, 52% of respondents said less than 5% of staff worked remotely.
  • During the pandemic, 35 states have had more than half of employees working remotely; nine states have had more than 90% remote workers.

“The last six months have created new opportunities for cyber threats and amplified existing cybersecurity challenges for state governments,” said Meredith Ward, director of policy and research at NASCIO. “The budget and talent challenges experienced in recent years have only grown, and CISOs are now also faced with an acceleration of strategic initiatives to address threats associated with the pandemic.”

“The pandemic forced state governments to act quickly, not just in terms of public health and safety, but also with regard to cybersecurity,” said Srini Subramanian, principal, Deloitte & Touche LLP, and state and local government advisory leader. “However, continuing challenges with resources beset state CISOs/CIOs. This is evident when comparing the much higher levels of budget that federal agencies and other industries like financial services receive to fight cyber threats.”

State governments’ longstanding need for digital modernization has only been amplified by the pandemic, along with the essential role that cybersecurity needs to play in the discussion. Key takeaways from the 2020 study include:

  • Fewer than 40% of states reported having a dedicated budget line item for cybersecurity.
  • Half of states still allocate less than 3% of their total information technology budget on cybersecurity.
  • CISOs identified financial fraud as three times greater of a threat as they did in 2018.
  • Overall, respondents said they believe the probability of a security breach is higher in the next 12 months, compared to responses to the same question in the 2018 study.
  • Only 27% of states provide cybersecurity training to local governments and public education entities.
  • Only 28% of states reported that they had collaborated extensively with local governments as part of their state’s security program during the past year, with 65% reporting limited collaboration.

The 2020 study also revisits the three “bold plays” of the “2018 Deloitte–NASCIO Cybersecurity Study,” covering funding, innovation and collaboration, to assess progress on these strategic issues. While CISOs have made progress in the intervening years, more is needed.

The study is based on responses from U.S. state and territory enterprise-level CISOs. CISO participants answered 61 questions designed to characterize the enterprise-level strategy, governance and operation of security programs.

Continue Reading

Publications

Latest

News48 mins ago

Both sides obliged to ‘spare and protect civilians’ over Nagorno-Karabakh fighting

The UN Secretary-General on Sunday condemned “all attacks on populated areas” in and around the Nagorno-Karabakh zone of conflict, as Armenia and...

Environment3 hours ago

New State of Nature report points to persisting pressures on Europe’s nature

European Commission published its latest assessment of the state of nature in the European Union. It provides a comprehensive overview...

Reports5 hours ago

MENA: Trade and Regional Integration are Critical to Economic Recovery in the Post-Covid Era

Trade and integration — within the Middle East and North Africa (MENA) region and with the rest of the world...

Finance6 hours ago

4 Steps to a Successful International Expansion

Doing business internationally is not only a trivial thing nowadays but is also a must for many entrepreneurs who want...

Environment7 hours ago

Celebrating African youth turning the tide on plastic pollution

More than 400 young Africans were today honoured for their leadership in addressing plastic pollution in their communities as part...

Defense9 hours ago

Nagorno-Karabakh: Will the Landscape Change following the Latest Unrest?

The situation surrounding Nagorno-Karabakh, which has deteriorated dramatically in recent days, has clearly demonstrated that it is becoming increasingly impossible...

Africa Today11 hours ago

Violence, COVID-19, contribute to rising humanitarian needs in the Sahel

A surge in armed violence, coupled with the economic and social fallout from the COVID-19 pandemic, are contributing to worsening...

Trending