New 'Connected Spender' consumer expected to spend $32 trillion in 2025

By

Obi Anyanwu

Published
Feb 20, 2017

'Connected Spenders' is being considered to be a better way for companies to reach consumers. The new concept that has been introduced by the Demand Institute is an evolution of income-based approaches that are described as “insufficient” and “outdated”.

 
The Demand Institute defines Connected Spenders by two factors: internet access and belief of the possession of discretionary income. These consumers are described as younger, more urban and more affluent “omnichannel shoppers” that use the internet “for a variety of consuming activities, including researching and shopping online, sharing ideas and reviews on social media, and viewing media and advertising.”

The Institute added that Connected Spenders serve as an indicator for where global consumption is headed.

“The Connected Spender is the ideal consumer for a variety of goods and services,” said Louise Keely, president of The Demand Institute and executive vice president of the global retail vertical at Nielsen.

“Consumer-facing businesses should use Connected Spenders as a lens in making decisions about which markets to invest in, how to communicate with and reach consumers and what actions they can take to support growth across different markets.”
 
While income-based approaches ignore consumer mindset, engagement, and access to goods and services, Connected Spender-based approaches prioritize the most engaged consumers from each income group, with no lower or upper boundary.

This consumer segment increased by nearly twice as much as the number of middle class consumers between 2001 and 2011, and it is expected to account for 46% of the world’s consumer spending over the next decade. In addition, this segment could grow from $15 trillion in 2015 to over $32 trillion in 2025.
 
The Demand Institute is a non-profit think tank jointly operated by The Conference Board and Nielsen.