[MUSIC] Welcome back. In the past 15 years there have been major changes in the world In year 2000, 30% of the population in developing countries live in extreme poverty and today it's less than 15%. Only 12% of people owned a mobile phone. Now, more than 60%. Facebook, which almost has 1.5 billion users, have not launched yet. These and other developments have changed how consumers live, think, and shop. And the changes are going to accelerate. According to a Marketing study, in the consumer sector in 2013. There are five domino forces that will drive change in consumers landscape in the next 15 years. Number one, the changing face of the consumer. Number two, evolving geopolitical dynamics. Number three, the new patterns of personal consumption. Fourth, the technological advancements. And finally, the fifth, are the structural industry shifts. I want to highlight two of them, the changing face of the consumer, characterized by an aging population. Women in the workplace. Rich becoming richer. Millenials taking over, and a shrinking household size. In addition, spending among middle class consumers globally, will almost triple by 2030. Mainly due to the growth in emerging markets. And further more, the urbanization process, city dwellers are increasing at the rate of 65 million per year. A majority of consuming population will be Urban. And thee quarters of world GDP growth will continue to come from emerging market countries. An another important force will be the new partners of personal consumption. The size of the sharing economy will exceed the 300 billion by 2025. More than 75% of the world's population will own a mobile and have access to Internet. There will be an increase inconvenience, focus on health and wellness, and demand for personalization will grow. There will be a shift in discretionary spending, a better focus on shopping experience, demand for customization, and simplification of choices. The trench will not effect all consumer markets and product categories equally. In addition, according to a BCG article on what really shapes the customer experience. In today's multi channel world consumers have many more ways to learn about and purchase products and services. Four aspect of the customer experience have an impact on brand advocacy. Value for money, customer service and product satisfaction. But, once companies master differential factors an emotional connection separates. The good companies from he great. Emotional factors that by industry and can include brand identification, social responsibility, innovation and trustworthiness. People who have excellent customer experiences become a strong advocate for brand. Is spending significantly more and are much more loyal than customers that have poor experiences. Customer expectations are rising and customers now expect price consistency across channels. They are limited to buy online and pick up or return in the store. And arrange of payment option. These means that price transparency puts pressure on retailers to develop ultra-efficient operative model. In addition, they will or available only information available to customer raises the bar for in-store services and expertise. Thus it will be extremely important to establish a well-define retailer strategy to capture and keep the loyalty of the target customer. We will learn about it in the next lesson, see you soon. [MUSIC]