|Innovating The Next Big Thing||August 23, 2014|
• Analyst Insights
• Enterprise Insights
• Network & Information Security
• Enterprise Mobility
• Remembering 9/11
Next Innovator Group
Feedjit Live Web Stats
• Ghost City
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...
Commentsblog comments powered by Disqus
Support This Site
• 8/20 Gartner Identifies Eight Steps to Build a Compelling Business Case for Social Initiatives
• 8/19 Gartner Says Consumer 3D Printing Is More Than Five Years Away
• 8/14 Gartner Says Traditional Development Practices Will Fail for Mobile Apps
• 8/13 Ovum: Ovum forecasts global OC market to grow 8% in 2014
• 8/12 Plan Now to Avoid Windows XP Deja Vu With Windows 7
• 8/11 Gartner's 2014 Hype Cycle for Emerging Technologies Maps the Journey to Digital Business
• 8/11 Gartner Says Chromebook Sales Will Reach 5.2 Million Units in 2014
• 8/10 Gartner Says Software Spending for Middle Eastern and North African Banking and Securities Firms to Grow More Than 9 Percent in 2014
• 8/7 Gartner Announces Symposium/ITxpo 2014, October 5-9, in Orlando
• 8/7 Faultline: EBU churlishly talks down LTE, but has no answers of its own
• 8/7 Faultline: Apple and Samsung stop fighting, notice Chinese creeping up
• 8/7 Canalys News: Canalys Channels Forums gather tech leaders to inspire and engage with partners and accelerate change
• 8/6 Gartner Says Indian Banking & Securities Firms To Spend 470 Billion Rupees on IT In 2014
• 8/4 Ovum: Ovum and Informa Telecoms & Media Research complete merger; creating a top-tier telecoms, media & IT research firm
• 8/4 Canalys News: Xiaomi becomes China’s top smart phone vendor
• 8/4 Canalys News: Notebook decline eases as tablet shipments level out
• 8/1 Ovum: Myanmar’s under-developed telecoms market is set to become the world’s fastest-growing
• 7/31 Wireless Watch: More twists and turns for Sprint as Iliad jumps in with TMO bid
• 7/31 Wireless Watch: European networks giants have adjusted to life with Huawei at last
• 7/30 Gartner Says India Security Market is on Pace to Grow 8 Percent in 2014
• 7/29 iSuppli: Fire Phone Hits the Sweet Spot for Hardware Costs, but Will Amazon's R&D Investment Pay Off?
• 7/25 Gartner Says IT Asset Managers and CIOs Should Work Together to Foster Digital Innovation and Avoid Technology Debt
• 7/24 Gartner Says Indias Mobile Services Market To Reach $19.2 Billion In 2014
• 7/24 Gartner Says Supply Chain Management Software Revenue Is on Course to Reach $10 Billion in 2014
• 7/24 Faultline: Poor awareness, content complacency; 4K TVs doomed to niche?
• 7/24 Faultline: Comcast will build over 1 million commercial hotspots in US
• 7/24 Wireless Watch: Subsidies out, non-handsets in, for the US’s big two carriers
• 7/24 Wireless Watch: The smartphone era is ending as the growth engine runs out of steam
• 7/23 McAfee Blogs: W32/Worm-AAEH Replaces Cryptor With One Used by Dofoil Downloaders
• 7/23 McAfee Blogs: The Firewall is Turning 25, but is it Really All Grown Up?
• 7/22 Ovum: Rushed analog switch-off threatens African TV
• 7/21 McAfee Blogs: 10 Experts, One Topic, 800 Million AETs
• 7/17 Ovum: Ovum Decision Matrix: Sustainable competitive advantage with the efficient use of data
• 7/17 Gartner Says the Business Consumer Requires a Digital Workplace
• 7/16 McAfee Blogs: Texas Tech University HSC Unifies Security and Compliance with McAfee SIEM Solutions
• 7/16 Ovum: To survive and thrive in today’s dynamic business climate, enterprises must treat data as an organizational asset, according to global analyst firm Ovum. Enterprises increasingly need to shift the basis of differentiation to focus on smarter
• 7/16 Gartner Says Mobile Application Strategies Will Be Transformed by Cognizant Computing
• 7/15 McAfee Blogs: Targeted Attacks on French Company Exploit Multiple Word Vulnerabilities
• 7/15 McAfee Blogs: Continuous Incident Response
• 7/15 Gartner Says CIOs Should Make Digital Business Technologies an IT Responsibility
• 7/15 Gartner Announces Keynote Lineup and Gartner Blueprints for Catalyst Conference 2014
• 7/15 iSuppli: Domestic Suppliers Dominate Chinese Solar Inverter Market as Demand Doubles
• 7/14 McAfee Blogs: Dofoil Downloader Update Adds XOR-, RC4-Based Encryption
• 7/14 Ovum: Analyst view: Amazon enters the file sync and share market with Zocalo
• 7/14 Ovum: Analyst view: Amazon enters the file sync and share market with Zocalo
• 7/12 Frontline Sentinel: The Impact of Red Team Drills
• 7/12 Frontline Sentinel: Integrating Threat Intelligence Into Your Security Program
• 7/12 Frontline Sentinel: Creating a Secure Guest Network
• 7/12 Frontline Sentinel: Onward Through the Cloud
• 7/10 Ovum: Analyst view: Teleperformance Group announced it will be buying Aegis’ US operations