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Big Tech Grew During the Pandemic as Reliance on Their Products and Services Grew

From the tools that we use to work, study, and play to how we interact and communicate, shop and entertain ourselves, we’re using more technology in an increase that is expected to outlast Covid-19

In the aftermath of the Covid-19 pandemic, digital commerce is experiencing a boom at unprecedented levels, taking existing tech giants from Alphabet (Google’s parent) to Microsoft, Amazon, Facebook and Apple to soaring valuations. This is in large part due to increased user adoption swiftly at scale for products and services for daily work, study and play.

Digital avenues have existed for over two decades in these areas, but the level of adoption today is considerably higher than before. Tech titans that already benefited from such use, are reaping in the benefits as people rapidly adopt technology in almost every aspect of life. Despite a painful economic downturn, demand for computers, online retail, cloud computing, video games, digital marketing and advertising and online services have soared. The shift to remote work has also accelerated purchasing of computers and associated technology and use of platforms, products and services for work.

This has resulted in monumental growth for technology giants, while traditional brick and mortar retailers struggle to survive. The combined revenue of five of the largest tech companies in the United States (Apple, Microsoft, Alphabet, Amazon and Facebook) grew past $1 trillion while profit surged lsat 24%, raising market capitalization to $8 trillion. This success has also resulted in large hiring. Amazon for example, added half a million workers - 500,000 people - in just one year, which is roughly the size of the entire population of the city of Atlanta, GA, according to data pulled by the Wall Street Journal.

While regulators seek to rein in the power and colossal wealth of these tech giants, the demand for big tech continues to rise and will outlast the pandemic in all likelihood.

tags: big tech, ecommerce, pandemic, COVID-19, technology, user adoption, digital commerce
categories: COVID-19, Industry Insight
Sunday 02.14.21
Posted by Elf
 

App Store Generates $519 Billion Dollars in Commerce in 2019

With global sales surpassing half a trillion dollars in 2019 alone, Apple’s App Store offers a flourishing dynamic and competitive platform for e-commerce for developers and companies worldwide

Image via Apple

Image via Apple

Market research conducted by independent economists at the Analysis Group in a new study revealed the scale of the App store’s economy and where the highest value categories lie — mobile commerce (m-commerce) apps, digital goods and services apps, and in-app advertising. This encompasses the full range of the entire app ecosystem of the App Store that has spurred innovation in 175 countries, transforming the way that we connect, learn and work.

The App Store launched in 2008. Today, the App Store is home to almost 2 million apps and is visited by half a billion people each week across 175 countries, helping creators and curious people eager to learn and connect.

Image via Apple

Image via Apple

“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better.”
— Tim Cook, Apple CEO

The Analysis Group study looked at 2019 data to capture an accurate snapshot of the full App Store ecosystem, taking into account all sources of commerce. The study revealed that sales from physical goods and services accounted for the largest share of 2019 sales at $413 billion. In that category, m-commerce apps generated the majority of sales, and retail was the largest within this division at $268 billion. Retail apps included apps of traditional brick-and-mortar stores such as Target and Best Buy, and virtual marketplaces that sell physical goods, such as Etsy. They do not include grocery delivery, which is its own category.

Image by Jean-Marc Giboux | Credit: AP Images for Target

Image by Jean-Marc Giboux | Credit: AP Images for Target

Other m-commerce apps that also generated significant sales from physical goods and services included travel apps such as Expedia and United, that accounted for $57 billion; ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales; and food delivery apps, including DoorDash and Grubhub, making up $31 billion.

Billings and sales from digital goods and services totaled $61 billion. This category included apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others. Games were the most popular apps within this category. Notable games of 2019 included “Mario Kart Tour,” which was the most downloaded game of 2019, and “Sky: Children of the Light” from indie developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.

In-app advertising sales also accounted for $45 billion, and of that, 44 percent was derived from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.


Changes Due to COVID-19

As social distancing protocols have become common worldwide due to COVID-19, individuals have changed the way they live and are using more apps. Social apps help friends and families stay connected, while education and business collaboration apps are helping students and employees adjust to remote working environments. Food and grocery delivery apps have benefited from increased consumer demand at the same time that apps related to businesses that have faced restrictions, or those that require in-person interactions, have seen a sharp drop-off. Many brick-and-mortar businesses have also turned to mobile commerce, including some that may otherwise have been forced to close without access to this alternative and popular digital platform.





tags: App Store, ecommerce, developers, analysis, economy, tools, Apps, COVID-19
categories: Apple News, Apps
Tuesday 06.16.20
Posted by Elf
 

What Starbucks Got Right With Its App: The Coffee Company Wins Big with E-commerce

The popular coffee company wins big in e-commerce, attracting 23.4 million consumers aged 14 and up, more than any other mobile payment method, including Apple Pay, GooglePay and SamsungPay

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You may be surprised to discover that the most popular mobile payment method isn’t a technology giant, but a coffee company. Starbucks dominates consumer preferences for mobile payment, with its app offering the most popular mobile payment method. The coffee chain is essentially functioning like a bank.

According to market research firm eMarketer, 23.4 million consumers ages 14 and up use the Starbucks app to make an in-store purchase at least once every six months in 2018. This means that Starbucks has more users than mobile payment products directly from Apple (Apple Pay), Google (Google Pay) and Samsung (Samsung Pay). Apple Pay comes in second with 22 million users, followed by Google Pay with 11.1 million consumers and Samsung Pay with 9.9 million.

Shocking as this may seem, it starts to make sense when you put this news in perspective - the rise of Starbucks app’s popularity occurs at a time where the coffee company is a household name worldwide, consumers consider commerce platforms their own personal assistants and many users get their news from social media. The convenience of ordering a drink and food from your smartphone cannot be underestimated.

Starbucks.0.0.png.jpeg

Starbucks is expected to maintain this lead for the next few years foreseeably as the company brings value to its customers in ways that the tech giants do not offer directly, such as the Starbucks Rewards program. Currently Starbucks Rewards members receive two stars for every $1 spent. This can be redeemed for free food and drinks, birthday rewards and free in-store refills. One of the biggest conveniences of the app is the ability to order ahead and pay by phone - not an option for other fast food restaurants. The app also eliminates the need to carry cash and with the mobile payment option, customers can enjoy picking up their food without having to wait in line.

Benefits for the customer include:
- ease and convenience
- saving time
- avoiding long lines at the register (mobile orders)
- gaining rewards and special offers

sbux-app-delivery.0.0.jpg

In the first quarter of 2016 alone, Starbucks had over $1.2 billion loaded onto Starbucks cards and its apps, according to a 2016 MarketWatch report. This amount was more than all the deposits at several financial institutions including California Republic Bancorp ($1.01 billion), Mercantile Bank Corp. ($680 million) and Discover Financial Services ($470 million). Starbucks first started offering mobile payments back in 2011.

Starling Bank in the UK, has capitalized on the mobile trend, recognizing how customers love the ease and convenience of doing their financial transactions all from their smartphones.

In some respects, the popular coffee company functions like an unregulated bank. Mobile payments are expected to rise annually. While Samsung Pay is accepted by the most merchants, the app is the least used of mobile payment options. Apple Pay is the most popular mobile payment option among the three tech giants and was the first app to launch. Google Pay, while not as commonly used by consumers, does come preinstalled on Android devices.

Additional merchant-branded apps are entering the market now, including fast food chain McDonald’s, Dunkin’ Donuts, Target and Walmart. These companies aim to capture valuable data about their customers while adding rewards programs to build customer loyalty.


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tags: Starbucks, app, ApplePay, SamsungPay, GooglePay, coffee, consumers, emarketer, ecommerce, understanding consumers, UX, UI, customer experience, customer happiness
categories: Industry Insight, Apps
Saturday 02.02.19
Posted by Elf
 
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