Smart home, online video consumption, mobile payments and drones – check out the recording and slides from our Tech Trends 2016 webinar. We present our insights and analysis to help you better understand which emerging trends will have the greatest impact on consumer needs and behavior. Want to see all 10 trends? Download the full report: http://connected-consumer.gfk.com/tech-trends/
Smart home gold rush – loads of diff types of organizations getting involved in this exciting market
But technology is driving it’s evolution…not consumers
So how can brands maximize the opps in this market and make it more consumer focused?
Going to use some insights from our recent smart home study to support our story
Good thing is that most consumers like the idea of the ‘smart home’
Awareness is high, the concept is appealing
We can look to LECs as indicators of how a market will evolve – these are early adopters, passionate about tech, often influential
Clearly see that LECs are ahead in terms of finding certain smart home categories appealing – they appreciate the potential the smart home offers them
Security and control, and smart entertainment particularly high for them
Evolution can happen very smoothly. But there are barriers that need to be considered/addressed. Classic tech barriers were seen to come out strongly. Knowledge linked to how does it work? Is it seamless? How can I make my home smart? Do al the devices work together?
And while privacy is often something consumers are aware of, here it came out we found it came out at the same level as knowledge of products being a barrier. Exponential amount of data will produced from the smart home. In particular, when looking at the individual markets, privacy came out strongly in Germany, China and South Korea – not so much of an issue currently in UK, US. Again, need to look at individual markets, e.g.
Germany – tight data protection controls
China & S Korea – sensitivities around government authorities monitoring consumer data, etc. – particularly around entertainment
Need to reassure consumers where their data goes
Adoption is currently piecemeal – often it may be part of a replacement cycle (e.g. replacing a TV with a smart TV because these are now quite prevalent)
Incremental evolution, not an overnight revolution
Today’s connected consumer expects the smart home to be simple and work seamlessly
Challenge is for one providers to work together to meet consumer expectations and needs
There will likely be interesting partnerships
Communication of benefits + consumer education are key
Consumers currently lack understanding and knowledge or how it can benefit their lives
Plus, as we’ve seen, privacy is a key concern for consumers
In 2016, players need to ensure this market moves from being tech-led to consumer-led
This can be achieved with three key steps:
Communicating the benefits to consumers
Collaborating with other players in the market to deliver a seamless experience
Giving consumers the confidence they need from a data privacy and security stand point
Global mobile payments market is complex, fragmented…and small (as we see on this slide)
Many diff solutions
Varied implementation & uptake
But connected consumers are keen to pay by mobile
So how can brands maximize the global picture now + in future?
Adoption rates vary by geography
Mature markets hampered by existing payment mechanisms
While Africa + Asian markets have leapfrogged to mobile payments in diff shapes and forms – think about Kenya and China
But mobile payments won’t see blanket adoption in 2016
2 barriers – security and privacy
We argue mobile payments is actually more secure…just that the message in the media is negative
The industry needs to get the message across to consumers that it is safe…and convenient!
Also opportunity for personalized offers
For the market to really work and respond to consumers’ needs, especially in backward developed markets, three industries need to work closer – technology, financial services + retailers
It will mean a more efficient in-store experience and integrated – and personalized – rewards and discounts
Just thinking of existing examples – Starbucks offers free coffees to loyal customers – Uber offers free rides and offers, etc.
Mobile payment helps improve POS experience
As more consumers see the benefits, more will adopt it and expect it to work seamlessly
Retailers who get on board = increase in loyalty
Will see consolidation in 2016 as more partnership are announced with retailers
And a more consumer-focused approach = more personalized offers
The technology has existed for years, but the extensive use of drones is only now being realized
Captured the attention of consumers, media and businesses looking to push innovation in this space
In 2016, will continue to see improvements in technology and falling costs
The market has huge potential
Businesses will use drones to meet the high expectations of connected consumers
Amazon is a company taking the lead here – it hopes to use drones to deliver around 90% of its packages if it can overcome current weight and flight time limitations
Showing how drones can be a catalyst to reduced cost and increased efficiency
Europe is the largest regional market for consumer drones
Currently, 2 manufacturers account for around three quarters of the market’s total sales value – Dajiang and Parrot
But this is moving now beyond a consumer market – fulfilling deliveries as we’ve seen with Amazon, even being used to transport people as seen at CES from Chinese manufacturer Ehang
Big tech players are entering the market – Amazon, Google, Facebook, GoPro – signalling the opportunity this market presents
There’s still a long way to go
A number of challenges still to overcome – also offers exciting opportunity though for players entering the space
Progress rests partly on evolution of automation technology
We believe that developing reliable, efficient “sense and avoid” and self-powering technology through automation is the single most important factor for the drone industry today
Without it, there can be no drone presence in urban areas – America’s Federal Aviation Authority (FAA) is still testing drone deliveries
2016 will continue to see innovators pushing the boundaries of what drones are capable of – we’ve already seen this at CES
More big names will enter the market, while other smaller tech companies will gain headlines
Drones will increasingly experiment with how they can use drones to reduce cost and increase efficiency
Industry regulators will be pushed to move with this fast-moving market – this will underpin the extent to which we’ll see these devices in the skies