Written by A. Karlan
Consumers in the US rely on on phones for every imaginable task with usage growing at a skyrocketing rate. According to data from Sensor Tower’s Q2 2020 report, the U.S. App Store’s downloads have surpassed China’s downloads for the first time since 2014. These numbers come from a natural migration towards the newfound boom of distanced commerce as the population is suddenly forced to work, attend school and entertain themselves from home with apps, games, and streaming services. New avenues of interaction and service have been implemented and widely accepted in a staggeringly short amount of time, and while the weight of current events deserves solemn respect, the glaring trend of mobile connectivity cannot be understated or ignored.
Truthfully, there is more to people’s newfound dependence on mobile devices. Phones are turning out to be more of a social and recreational outlet than anyone initially dreamed. People all over the world are spending their evening staring through their screens, not to tune out, but to tune in. The Lunar New Year holiday was extended in China at the year’s beginning to keep people home and distanced. As a result, Chinese game streaming doubled its viewership and game revenue in the nation was up 12% year over year. It is even more critical to note that these numbers did not diminish when the lockdown restrictions were lifted. This behavior marks a shift in the way people are naturally connecting and it is not a singular occurrence.
As the pandemic continues to affect the US, a similar instance can be observed. In a time of monumentally volatile markets, gaming revenue in the states has increased more than 10% year over year; the amount of time US gamers play per week continues to climb even though US gamers already average more time invested than gamers of any other country. Many forms of gaming, especially multiplayer games, have increased levels of social presence – including the ability to share screens and interact with characters-which is a welcome outlet for social connection in a time when folks are afraid to go outside.
In commerce, the instant connectivity provided by outlets like gaming is proving crucial. Digitally-based commerce has been able to take advantage of this as we see customer-focused service surging ahead. This hits a similar mark in the companies that are utilizing personal connectivity, with the emphasis on “personal”. We can see this highlighted in the market pressure that online suppliers like Chewy continue to put on their competition including juggernauts like Walmart and Amazon. Chewy’s CEO Sumit Singh went on record to say he “is not worried about the threat Amazon represents” in regard to the online pet retail space.
Why?
Singh believes Chewy’s wide-ranging offerings are why it is in a position to withstand any pressure from e-commerce behemoths. “For example,” Singh says, “Chewy has customer service representatives who offer guidance on what type of supplements a chocolate lab nearing seven years old should be taking, Singh said. And that customer service is offered 24/7… No one else is doing that” It’s this kind of custom-tailored, personal service that will set the standard of expectations for digital retail as a whole as the digital commerce sector continues to dominate commerce overall in the 21st century. However you slice it, it seems that one’s presence and ability to directly connect to the consumer on the mobile device platform will be the crucial consumer connection of the 2020s.