Ecommerce View On Mary Meeker’s 2016 Internet Trends

Ecommerce View On Mary Meeker’s 2016 Internet Trends

Ecommerce View On Mary Meeker’s 2016 Internet Trends

It’s that time again… Need to know all things internet trends? Don’t worry, Mary Meeker is here to school us once again. This year it’s 216 pages of Wall Street level analysis applied to all things internet.

You can grab the slides here: 2016 Internet Trends Slides

2016 Internet Trends Report from Kleiner Perkins Caufield & Byers

or watch Mary’s presentation of the slides here: Mary Meeker’s Internet Trends 2016

Below is my summary, which focuses on her Ecommerce points.

Ecommerce Summary:

Although the internet has been growing it is still in the early stages and continues to grow but at a faster rate across evolving mediums. How consumers are interacting with the internet is changing as device usage has shifted from desktop to mobile to many devices connected by the cloud.  The millennial (Gen Y) segment offers a unique and growing opportunity to grow internet based products & services as both Gen Y & Z have high trust and usage patterns for the internet / technology, but Gen Y is quickly becoming the largest population and strongest individual spending power demographic. Online commerce is quickly converging with social mediums, especially with messaging apps (facebook messenger, wechat, etc.) and video apps (snapchat) leading with the highest growth in both customer/brand engagement and $ transactions.

Key Takeaways:

Online Commerce

  • Millenials are redefining commerce with their preferences and behaviors – Globally minded, optimistic, and tolerant. More urban, diverse, single.
  • Millenials are largest generation with spending power expected to rise significantly in next 10-20 years
  • Ecommerce grew past 10% of retail sales mark and is expected to continue to grow at fast rate
  • Lines between brands and retailers are blending as retailers go vertical by private labeling and brands become retailers
  • Brick and Mortar becomes digital while digital becomes data optimized physical
  • Hyper targeted marketing driving growth for retailers – leveraging intent based data from social media interactions to target campaigns
  • Closed Loop UX ( = Netflix like experience for shoppers. 1. Data driven on-boarding process 2. Curate items based off of onboarding 3. Customer preferences & feedback to drive future product selection iteration.
  • Large retailers hitting $100MM in annual sales in <5 years compared to 14 years for Nike

Internet Trends

  • Global Internet User Growth Rate is flat as growth is maintained
  • Global Smart phone growth rate slowing
  • Android global share expected to grow while iOS shrinks

Global Macro Trends – Rising risks create unique opportunities for efficient internet companies

  • Global GDP growth is slowing
  • Interest rates continue to be at all time low
  • Debt is rising faster than GDP
  • Slowing population growth due to slowing birthrates and rising lifespans

Online Advertising

  • US advertising growth is accelerating
  • Google + Facebook dominate at 76% of total share – Facebook is seeing faster growth but lower market share
  • Adblocking on the rise 94% YOY mobile and 16% YOY Desktop
  • Snapchat creating 3V’s of mobile video advertising that works

Social Changes Communication


  • Millenials communicate with text vs. Gen Z (ages 1-20) communicate with images
  • Videos are more real time and are growing fast
  • Using geofencing to communicate personalization via snapchat videos
  • User generated content w/ brand mentions causes surge in brand usage


  • Growth remains strong
  • Monetization opportunities are growing on social platforms
  • Use of augmented reality tools (Houzz) to increase user engagement and sales


  • High growth continues
  • Conversational commerce driven by device personalization and data allows businesses to monetize messaging platforms across different industries (retail, travel, banking, etc.)
  • Millenials and Gen Z prefer social media and messaging platforms over previous generation’s preference for phone for ways to contact businesses
  • Phone home screen is the new web portal but messaging inbox is quickly becoming second home screen


  • Voice should be most efficient form of computing input
  • Growth of voice usage requires increase from 95-99% accuracy and low latence for fast response back from device
  • Google improved voice accuracy in low noise environment from 70% in 2010 to 90% in 2016. Next phase is heavy background w/ different voice types
  • Voice accuracy is improving accuracy with major companies above 90%
  • Voice queries in google up 35x since 2008
  • 2020 forecast expects 50% of all queries to be from voice or image search
  • Amazon goal for alexa voice platform to reduce shopping friction
  • iPhone sales have peaked while Amazon echo is expected to grow


  • Higher ad spend on internet vs. other channels. More than US
  • China ecommerce companies dominate retail ranking where US brick and mortar still rank higher
  • China ecomm gaining retail share faster than US
  • China seeing shift to social commerce
  • Chinese digital payments per user are higher than any other form of payment (compared to both US and China)
  • Digital wallet payments are driving merchant loyalty and CRM in china

Impact Of The Internet

  • Large but still in early stages
  • New internet leaders are growing at significantly faster rates than previous generations
  • Incumbents are betting on tech companies to fuel growth thru acquisitions

Data As A Platform / Data Privacy

  • Data growth rising fast +50% CAGR while infrastructure is falling
  • Data sources are increasing rapidly with internet of things
  • Data is now being used and updated by commom business users instead of business analysts via specialized platforms
  • Consumer data privacy concerns rising rapidly

That’s a ton of information! What are your thoughts?

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