At a time when innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate, what trends can we expect to emerge in the forthcoming months? Using GfK data to explore how technology is likely to evolve throughout this year, we’ve identified five consumer-led trends to look out for…

1 – Reaching the Cloud

This is the year that cloud-based solutions will creep into the mainstream. Offering internet-based computing where shared information, software, and resources are accessible on demand, this trend is largely driven by the ever-increasing use of smartphones, connected devices and other advanced mobile applications. As such, it is an essential development to complement the ecosystem as it facilitates consistent service usage and storage across any device.

We recently took over the AOP Gallery in Shoreditch to hear from former AdMob top exec, Russell Buckley and his thoughts on the future of mobile technology, retail and civilisation. So sit back, have a cup of tea and prepare to embrace ‘The Singularity’.

 

The youth market is accelerating technological adoption in Brazil which is radically changing consumer needs especially in how they’re entertained and how they socialise.

The internet and technological innovation has firmly gripped the new youth generation in Brazil. The Brazilian youth are using the internet in very similar ways to mature markets. It is becoming a primary source of entertainment and a means to communicate and make their voice be heard. The core values and needs of young consumers in Brazil are very different to their predecessors. As a result, the Brazilian youth are redefining consumerism in this exciting new country and what is clear is that their hunger to consume will create opportunities that previously did not exist.

The radically different needs of Brazil’s new youth generation

The Western European technology sector continues to grow, according to the latest GfK Retail and Technology TEMAX report, which showed Q4 year on year growth of 0.2%. This equates to 2.1% growth for 2010, driven by innovation in IT connectivity and Smartphone sales.

Looking back to establish future trends

Rapid innovation in the technology sector has continued to drive consumers and businesses to adopt devices that enable increasingly mobile and connected access to their favourite content and services. In addition, the overwhelming growth in the smartphone market has resulted in year-on-year growth in the Telecommunications (TC) market. The growth trends established at the beginning of the year continue to strengthen, and influence businesses and consumers to invest in the latest technology.

Innovation in IT connectivity and devices

The trend towards mobility and connectivity as outlined in Q2 continues to drive growth in the tech sector in Q3. Both consumers and businesses are investing in new hardware that enables them to be more productive and to access a diverse and exciting mix of services and software. This unquenchable thirst for advanced technology has resulted in 2.2% year-on-year growth (value of EUR 44.0 billion) for the Western Europe technology sector. The technology industry is showing great resilience to the recession as total revenue is expected to reach the same level of Q3 2008, just a year on after the economic crisis. Sales of notebooks and smartphones are all driving factors of growth in Q3 2010, which is highly likely to continue into 2011.

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.

Mobile phone users under the age of 16 are extremely sophisticated, with deep brand experiences and preferences. This raises significant questions for network operators, handset manufacturers and service providers regarding how best to engage an increasingly important market segment.

You could be forgiven for a sense of déjà vu. After all, rising mobile phone use amongst children is not a new phenomenon. As long ago as 2004 the Guardian was reporting growth in ownership amongst under-10s, [1] and media coverage concerning potential health concerns can be traced back even further. However, our ever-increasing reliance on, and immersion in, mobile phones and the digital services we use them to access, justify revisiting the topic.

Growth returns to Western European consumer technology markets in Q1 2010. GfK TEMAX data shows that consumers are more willing to upgrade their home technology as well as experiment with new smartphone mobile technology.

GfK TEMAX data shows that, overall, the consumer technology market recorded 2.7% growth in Q1 this year compared to Q1 in 2009. Key technology sectors have recorded year on year growth, including Telecommunications (+4.9%), Information Technology (+3.6%) and Consumer Electronics (+0.7%) in Q1 2010. Smartphones, Windows 7 and LCD TVs are all driving factors of growth in their respective sectors.

Smartphones continue to drive growth in the Telecommunications market

While the telecommunications market declined by -3.2% in the fourth quarter 2009, the first quarter of 2010 returned to growth with a +4.9% increase year on year.

In recent weeks, so much has been said about what 2010 will bring to the tech landscape that one can’t help but reading with a pinch of salt. For someone that works with customer opinions and observes their behaviour for a living, it becomes apparent that some of the predicted products and services, if they do make it to market, are destined to remain within that niche group of technology enthusiasts that created them in the first place.

Many of course have potential, and if implemented and marketed correctly have high chances of making it to the wider masses. That is, if they were ever intended to do so.

So – what is going to really work?

The answer is, well.. simple. Or, rather: simplicity. If given a choice, customers will always choose and glorify products and services that will offer them “more” in less time and with fewer headaches, the tools that empower them to reach a given goal with the minimum of disruption.