Innovating The Next Big Thing January 27, 2015 ph.gif
ph.gif
Sections

Analyst Insights
Enterprise Insights
Network & Information Security
Enterprise Mobility
Remembering 9/11
About

Next Innovator Group

TechnologyInnovator
• NextInnovator
EnterpriseInnovator
SecurityInnovator
DefenseInnovator
WirelessInnovator 
• HPinnovator
EnergyInnovator
TransportationInnovator  

Contact

• NextInnovator(at)Live.com

Writers Wanted

Writers Wanted

Feedjit Live Traffic Feed


Next Innovators

Ghost City
Frontline Sentinel
• Innovation Insights
WebInno
Over the River
Enderle Group
Security Insights Blog 
McAfee Audio Parasitics
Rethinking Security
Ovum
iSuppli
Canalys
• eMarketer 
• CRM Help Desk SW 
Rethink Research

McAfee AudioParasitics


 
Barry's Book Shop
Ads

ph.gif ph.gif
Enterprise Insights Gartner Outlines 10 Consumer Macro Trends to Impact Technology, Media and Service Providers for Next 10 Years
Apr 16, 2012 – Christy Pettey

STAMFORD, Conn., April 16, 2012— Consumer technology markets are being redefined by a new set of consumer expectations and values shaped by global economics, technology and social change, according to Gartner, Inc. Analysts have identified 10 consumer macro trends shaping the technology, media and service provider markets over the next 10 years. All 10 of these trends converge around questions of value — what consumers value enough to pay for, how consumers' values are changing, and how technology and service providers (T&SPs) can respond to this to increase their sales and margins.

"Technologies are changing fast, but so are consumers. An understanding of the major demand-side dynamics is critical in order to build a 360-degree view of how the volatile market for digital technologies and services will evolve the next 10 years," said Nick Ingelbrecht, research director at Gartner. "Consumer macro trends are summaries of often complex and interrelated shifts in consumer behavior. All of these aspects of consumer behavior are dynamic and specific change drivers, and all of them impact technology markets."

Market Trend No. 1 — The Great Depression, Part 2: Consumer Confidence and the New Normal

Consumer technology markets are being redefined by a new set of consumer expectations and values shaped by global economics. In mature markets, many consumers have cut back on discretionary spending in the wake of successive financial crises. However, consumers seem to put a higher value on media and communications products in times of recession as they cut back on more-expensive substitutes. Tough times create "buyer's markets," meaning that T&SPs must adjust their operations to accommodate changing consumer expectations. This involves switching to more recession-friendly marketing messages, a greater range of "affordable" or "value" product options, more-strenuous customer engagement efforts, and improved customer experience.

Market Trend No. 2 — The Impact of Acceleration/Deceleration: The Temporal Digital Divide Widens

Structural acceleration is changing consumption patterns and leaving some consumers behind. Acceleration means consumers expect regular and increasingly frequent product upgrades. Over time, there has been a closing of the classic "digital divide" between the haves and have-nots in terms of access to basic technology products and services. However, new digital divides have opened up, especially inequalities in relation to the social graph and consumers' ability to access and manage — or not manage — real-time, nonstop ubiquitous connectivity that is the product of technological acceleration.

Acceleration should in theory give consumers more spare time to do the things they want. In reality, they experience the reverse. Therefore, the most valuable product that T&SPs can deliver to consumers is extra time in the day to do things that they want or need to get done. Products and services that help consumers fill their time more productively and/or pleasurably are the most compelling

Market Trend No. 3 — Women Wanted: Unlocking Gender Opportunities

The consumer technology market is trending toward the production and marketing of more female-friendly technology products targeted at the market's single biggest demographic: women. Women are underrepresented in key job roles within the technology and media sectors. This is clearly a missed opportunity given that women typically control from 70 to 80 percent of household spending, including big-ticket items such as computers, cars and houses. T&SPs should conduct a gender audit and invest, if necessary, in recruiting suitable talent to redress underrepresentation of genders in key decision-making and creative roles.

Market Trend No. 4 — The Power Customer Replaces Consumer Power

Technology is facilitating more customized shopping experiences and putting greater power into the hands of the customer. Consumers have unprecedented access to the information they need to make more-informed decisions about switching between brands. Dealing with empowered consumers makes life more challenging for brands, but presents an opportunity for competitive differentiation to organizations that are prepared to invest in meeting the demands of power customers. Technology brands need to assess and improve their ability to interact and develop a relationship with their customers through customer care initiatives, including after-sales and technical support.

Market Trend No. 5 — The Social Information Lifeline

The consumer market is increasingly turning to social networks for news and information and tuning out of mainstream media news feeds. Increasingly, consumers are turning to social networks to get their daily fix of news and information about the wider world, as well as sharing their news and posting their commentaries. As a result, news format and content are progressively being reconstructed around social media channels. News media and content providers need to move to a multiscreen distribution arrangement using social, mobile and interactive channels. Social media will continue to challenge traditional brand relationships and business models, and a whole-organization response will ultimately be required in building a cohesive social CRM.

Market Trend No. 6 — Humanity 2.0: Consumers Become the Computer's "Killer App"

The market is being driven by self-reinforcing patterns of technology usage that are fundamentally changing consumer behavior. The self-reinforcing characteristics of technology usage shows that not only will the consumer technology market grow, but it will also take a bigger share of the consumer wallet in the future, as well as creating new markets. Technology providers must anticipate changes in consumer behavior early in order to create a credible presence in the new media environment. At the same time, two-thirds of the market can be considered later adopters, who will be slow to absorb new services and digital interactions, and T&SPs should consider developing bridge products and services that will allow later adopters to embrace these technologies and products.

Market Trend No. 7 — Renegotiation of Consumer Trust

The consumer market is seeking new institutions, brands and values to trust in. The collapse of confidence in traditional institutions following bank failures, government collapse, corruption, economic and civil unrest and the disruption to previously accepted "norms" (such as local communities and nuclear families) have sent consumers searching for new brands, values and social organizations that they can trust. Brands that help their customers through hard times can build strong emotional and cognitive loyalty among consumers, leading to significant opportunity for brand extension.

Market Trend No. 8 — Changing Channels: Brands Chase the Migration of Consumer Mind Share

The consumer market is shifting online, but consumers still expect a multichannel brand experience. In terms of scale, retail stores will remain dominant revenue generators for some time to come, and the importance of online channels depends on the product. However, customers don't think in channels; they just shop, and retailers, therefore, need to make the shopping experience as integrated and seamless as possible. T&SPs should build their multichannel operations around their business intelligence systems in order to understand the voice of the customer, using business analytics to track the behavior of consumers across channels, reallocate resources and rebalance priorities as necessary.

Market Trend No. 9 — The Death of Complexity

The consumer market is becoming progressively less tolerant of complexity. Although consumers tend to buy products with ever-richer features, they often prefer those that are simple and intuitive. The ability to provide appealing and intuitive user interfaces has become a critical point of differentiation among competing technology providers. As technology becomes more complex, vendors need to invest more in keeping the user interface simple and intuitive. T&SPs therefore need to focus on simplifying technology, pricing, brand messaging, and feedback and interaction, and consider offering chargeable help services for consumers challenged by installing and configuring new equipment and services in their homes.

Market Trend No. 10 — The Destiny of Demographics and Rise of the Mainstream Middle Class

The focus of innovation and consumption is shifting to emerging economies. By 2030, China will have world's most rapidly aging population, aging faster than Germany or Japan and, by that time, India will be world's youngest in terms of population trajectory. Demographics clearly impact consumption patterns, but so, too, do consumer culture, values and attitudes, including consumer expectations. Class matters to brands because the middle classes tend to control a disproportionate share of the national income and make brand choices based on factors other than price. T&SPs need to increase engagement and exposure to emerging markets, in particular recruiting and building an understanding of local consumer needs and preferences, and applying those to the broader innovation process and strategy.

Additional analysis is available in the Gartner report "Market Trends: Consumer Macro Trends, Worldwide, 2012-2022." The report is available



Read the rest...

» Send this article to a friend...
» Comments? Tell us what you think...
» More Enterprise Insights articles...

AddThis Social Bookmark Button

Comments
blog comments powered by Disqus

Search EnterpriseInnovator

ph.gif ph.gif
Support This Site



Newest Articles

• 1/6 Over The River: Pssst, it’s almost time for WebInno44 . . .
• 12/29 iSuppli: IHS and PEG Engineering and Construction Cost Index (ECCI) Closes 2014 at an 18-Month Low
• 12/22 iSuppli: Global Semiconductor Market Set for Strongest Growth in Four Years in 2014
• 12/19 HP Security Products Blog: Sony Pictures Hack: Is this an introduction to a whole new world in InfoSec? …Nah!
• 12/19 iSuppli: High-Speed Broadband and 4G LTE Coverage Dramatically Rises in Europe
• 12/18 Canalys News: Moto 360 leads the first wave of Android Wear devices
• 12/18 Ovum: Industry-led solution to poor mobile coverage triumphs over government’s ill-thought-out proposal
• 12/18 iSuppli: Internet of Things Stimulates MEMS Market
• 12/18 Faultline: Deals, Launches and Products
• 12/18 Faultline: Wyplay puts Sigfox low-power IoT radio in Frog set top stack
• 12/18 Faultline: Dish goes full throttle on Netflix in time for its OTT launch
• 12/18 Faultline: Google Verizon accord offers immunization against patent attack
• 12/18 Faultline: FCC flexes rural subsidy muscles with 10Mbps broadband threshold
• 12/18 Wireless Watch: Baidu alliance is a breakthrough moment for Nokia Here
• 12/18 Wireless Watch: Avi Networks brings hyperscale to smaller mobile cloud players
• 12/18 Wireless Watch: Microsoft to preview mobile Windows 10, for a multi-OS world
• 12/18 Wireless Watch: US cellcos’ market value crashes, shift to new network economics now urgent
• 12/18 Wireless Watch: Qualcomm invests in Qteric to boost AllJoyn ecosystem
• 12/18 Wireless Watch: Russian currency crisis hits mobile projects, Apple closes store
• 12/18 Wireless Watch: WiFi is the bottleneck for streamed video, especially now 4K is here
• 12/18 Wireless Watch: Month-by-month – the 2014 events which will shape the 2015 industry
• 12/16 Ovum: BT in Negotiations with Orange and Deutsche Telekom
• 12/16 HP Security Products Blog: Network Security: No need to drop, cover, and hold on
• 12/16 Gartner Announces Digital Marketing Conference 2015
• 12/15 Gartner Says India Green IT And Sustainability Spending To Reach $ $34 Billion In 2014
• 12/15 Gartner Says Sales of Smartphones Grew 20 Percent in Third Quarter of 2014
• 12/15 Gartner Says Sales of Smartphones Grew 20 Percent in Third Quarter of 2014
• 12/15 Gartner Says the Internet of Things Will Drive Device and User Relationship Requirements in 20 Percent of New IAM Implementations by 2016
• 12/15 iSuppli: Year-End Rush in China Leads Asia-Pacific Solar PV Market to Reach Record Level in Q4 2014, According to Solarbuzz
• 12/14 Gartner Says Organizations in Singapore Need to Invest in Four Key Areas of Security Solutions
• 12/14 Ovum: Ovum forecasts CSP capex over 2014–19 period will surpass US$2tn
• 12/12 HP Security Products Blog: Enterprise security: What’s new for the week of December 8, 2014
• 12/12 Canalys News: Canalys to provide technology industry research to the financial sector through Bloomberg Tradebook
• 12/11 HP Security Products Blog: HP TippingPoint provides protection for new Microsoft bulletins - December 2014
• 12/11 HP Security Products Blog: HP TippingPoint IPS protects against Wipall Malware used in Sony Pictures attack
• 12/11 eMarketer: APAC Digital Ad Spending to Jump Over 30% This Year
• 12/11 eMarketer: 2 Billion Consumers Worldwide to Get Smart(phones) by 2016
• 12/11 Wireless Watch: Freescale slashes wireless device charging time
• 12/11 Wireless Watch: Smart energy will drive connected city market to $1.56 trillion
• 12/11 Wireless Watch: Join Experience offers pan-European network/IT services
• 12/11 Wireless Watch: Even Verizon’s profits are suffering from the LTE squeeze
• 12/11 Wireless Watch: Vodafone partners with JCDecaux for small cell city furniture
• 12/11 Wireless Watch: Microsoft ends ailing Nook Media marriage
• 12/11 Wireless Watch: GSMA clings to conventional thinking in addressing 5G
• 12/11 Wireless Watch: Amid Qualcomm’s cuts, one departure will hit it hard
• 12/11 Wireless Watch: Memories of Europe’s 3G bubble as AWS-3 tops $43bn in US
• 12/11 Faultline: Future of SVoD in Europe looks promising
• 12/11 Faultline: Wyplay completes Canal+ phase one, updates all DTT devices
• 12/11 Faultline: Cox, Magna, AudienceXpress form programmatic ad group
• 12/11 Faultline: Deals, Launches and Products

AddThis Feed Button

Barry's Books


Ads

ph.gif
ph.gif Top ph.gif

© 2008 EnterpriseInnovator. All rights reserved.