The consumer technology market in Western Europe has grown for the third quarter in a row (year-on-year figures) according to a recent report from GfK TEMAX. Growth is being driven by increasingly demanding consumers who are seeking more innovation, connectivity and mobility, which is leading to a blurring of market categories.

The same GfK TEMAX report showed that Q2 2010 saw a +3.6% increase in comparison to the same period last year. Particularly strong this quarter were the Consumer Electronics (+8.9%) and Information Technology (+4.6%) sectors. And this isn’t surprising, given the rapid pace of innovation and thus the enormous growth in breadth and depth of product range for both sectors.

Despite smartphones and mobiles with open operating systems (making up a quarter of the mobile market in Western Europe) having a volume growth of 62%, the Telecommunications market actually declined in year-on-year figures (-0.2%). It’s an extremely positive sign that the consumer technology market appears to be back on track, particularly after the year which was dubbed the “year of crisis”.

For consumers there may have never been a better time to buy DVDs, with prices falling and new avenues for purchasing appearing almost daily, but how has this affected the consumer mindset and where does this leave traditional retailers?

Online retailing is by no means a new entry to the consumer electronics market; in fact it’s been five years since Online first overtook Supermarkets in terms of % market share [1]. Consumers have long since embraced Online and its ability to compete on both price and choice (with supermarkets and traditional high street retailers respectively), especially in the realm of high price purchasing such as consumer electronics. In this case, Online represents a step forward in consumer purchase planning, with the internet offering access to a range of price comparison websites, manufacturer specifications and consumer forums to collate information before purchasing, offering the consumer the chance to be more methodical in their decision making than in the pressure cooker environment of a Saturday afternoon trip to the local electronics department.

The past decade has been marked by two revolutions in market research and both are associated with the internet. The first is the move to online research, especially to access panels. Access panels are collections of people who have volunteered to take our surveys. Access panels have allowed us to provide speedy, cost effective research, using the compelling, visual medium of the internet.

The second is the growth of social media. Consumers are no longer passive. They are empowered; they socialise online; they get instant information about brands, often over their mobile. In this new social world the key question is who owns the brand? Brand owners are now part of a real time conversation where customers’ experiences and a brand’s performance are transparent for all to see. These new social media tools are moving us from access panels to increasingly socialised panels and to research based around communities, and they are one of the easiest ways for brands to converse with consumers.

Technology cycles tend to last about ten years, from the personal computing era of the ‘80s, through the desktop computing era of the ‘90s to the mobile computing era of the early 21st century. Each has brought more computing power, better user experiences, lower prices and expanded services to more people. And with every new technology comes new opportunities for the research industry. None more so than the saturation of mobile phone ownership and the increasing power and capabilities of the modern smartphones.

GfK has been investigating various ways that mobile technology can be leveraged for research purposes, and this is a brief introduction to a few of our recent initiatives.

Taking mobile-based surveys mainstream: a Nokia case study