publicis sapient HowtheConsumerTechnologyIndustry CanGetAheadofConsumerPreferences AstudybyPublicisSapient INTRODUCTION Consumertechnologycompanieshaverecordedmassivegrowthsince2020asthenewnormforschoolsandbusinesseshasshiftedbetween thehome,officeandclassroom.AccordingtoStatistaandtheConsumer TechnologyAssociation,worldwideconsumertechsalesincreasedfrom $422billionin2020toa2022forecastof$505billion. $505b Astheworldsettlesonwhatanewrealitylookslike,ahybridmodelisheretostay.(2022forecast) So,whatdoesthismeanforbrands?Althoughthedemandisstrong,consumersare becomingincrediblyintentionalabouthow,whereandwhattheypurchase.Theirbehaviorsaredrivinghomenewmessagesaroundloyaltyandnewbusinessmodels $422b INTHISREPORTPUBLICISSAPIENTWILL DIVEDEEPLYINTOTWOMAINAREAS: 2020 Consumertechnologyinhomes:Preferencesandbehaviorsaround devicesandconnectedhomesandsecurity. 2.Shopperpurchasebehavior:Preferencesandbehaviorsaround brandtrust,loyaltyandin-storeandonlineplatforms. TECHNOLOGYEHLLOMECONNECTIVITYKING? THESENTIMENT:IT'SALOT Whenyouthinkabouttechnology,whatfirstcomestomind?Commonthemesincluded(innoparticularorder): Producttypes/features:smartTVs videogames :smartphones&tabletssmartdevicesautomation computersinternet&Wi-Fi Sentiments/feelings: toomany ever-changing makeslifeeasier innovativeconfusing userfriendly&convenientSpecificbrands:Sony,Samsung,Microsoft,HP,Google,Dell,Apple/iPhone Thein-hometechstackisstrongthesedays.Researchindicatesthat84%ofhouseholdshavelaptops,and75%haveatleastonetablet.Itisalsomorelikelythathomeshavemorelaptopsandtabletsthandesktops.ThemostcommonlaptopbrandsareHP(40%),Dell(29%)andApple(21%).Generationally,thepreferencesshiftslightly.Appleisthemostprevalentforthose18to34yearsofage(35%)andHPforconsumers50to64yearsofage(47%) THEMOSTCOMMONLAPTOPBRANDS MostPopularBrandbyGeneration 40%29%21%47% HPDELL APPLE35% HP APPLE 18-34y/o50-64y/o Inadditiontodeviceslikelaptopsandcomputers, 96%ofhouseholdshaveatleastonecellularphone, with28%havingthreeormore. NumberofCellularPhonesatHome Cellularphone(s) MostPopularCellular PhoneBrands Total Apple 54% Samsung 43% LG 12% Motorola 8% 46% 22% 4% 13%15% None1234ormoreGoogle5% BrandUsagebyGenerations APPLESAMSUNGGOOGLE 67%among18-34,Lowestfor18-34at32%(comparedHighestfor18-34(7%)and35-49(7%) 60%among35-49,to40%-49%byoldergroups)comparedtooldergroups(4%for50-64 49%among50-64,andand2%for65+) 43%for65+ Withsomanytechproductsunderoneroof,peoplearespendingmoretimeonlinethaneverbefore.Globally 92%saytheyarespendingmore,orthesame amountoftimeonlinecomparedto2020.Withtheconstantconnectiontoproducts,easeofuseandexperiencewillcontinuetobefrontandcenterforconsumers.Thisleadsto anothermajorshiftinconsumerpreference:howconsumerschoosetousetheirdevicesandwhichdevicestheybuyhasmoreintentbehinditthesedays.Beingintentionalismore thanjustabuzzword;it'salifestylechoice PEOPLEARESPENDINGMORETIMEONLINETHANEVERBEFORE Peopleengageindigitalactivitiesacrosseveryfacetoftheirdigitallives. PeopleinThailand(92%),theUnitedArabEmirates(82%)andSingapore(74%) reporthigherlevelsofonlineengagementyearoveryearwhencomparedtoothercountries GenZ(71%)andMillenials(69%)alsoreporthigherlevelsofonlineengagement whencomparedtooldergeneration 7% 61% 31%Global92% average ofpeoplearespending thesameamount Moreormoretimeonline comparedtolastyear Aboutthesame Less GAMEON ConsumersarebringingintentionalitytotheirAlmostallbrandshaveD2Ce-commercesites techchoicestoo,Althoughtechnologyusehasthatsellproducts.Still,usually,thesesitessell beensteadilyclimbingforyears,pandemic-onlyabrand'sspecificproducts--orifthey inducedlockdownshaveforcedbillionsofsellotherproducts,thebrandselectswhat peopletospendmoretimeonlineandwiththeirproductsarepresented.Thoseproductsare devices,whetherforwork,schoolorconnectinggenerallyonlyofferedasanupsellopportunity withlovedones.ButtheendlessZoommeetingsInamarketplace-basedexperience,abrand andtimescrollingthroughsocialmediahavecouldcuratewhichotherbrandsappearinthe addedtoserioustechburnout.marketplace,butgiveallproductsequalfooting. PeoplewanttheirdevicestoserveapurposeSamsungmaysellGoogleproductsthatwork andhelpimprovetheirlives.AsmentalhealthwellintheSamsungecosystem.Whirlpoolmay andwell-beingcontinuetobeattheforefrontofsellreplacementpartsfromothermanufacturers globalconversations,activitieslikegaminghavealongsideitsown.Marketplaceexperienceshave providedsomereprieve.ArecentMicrosoftfoundtheirplacewithintheconsumertech surveylinkedthemanybenefitsofgaminglandscapeandshownosignsofslowingdown. tomentalwellness.Gamingsales,especiallyAmarketplacehelpsconsumerscutthrough hardware,continuetoincrease,withStatistatheclutterofoverwhelmingchoicesandfeel reportingthattheU.S.video-gamehardwareconfidentthattheirchoiceswillworkandwork revenuein2021hitS1.3billion.PublicisSapienttogetherwithotherpartsoftheirecosystem. researchshowsthathalfofhouseholdshave atleastonegamingdeviceandthatuseofthe PlavStationandNintendoaresimilar(27-28%) withXboxnottoofarbehind(with22%of Itisnotthatconsumersareatwarwi