2013 is going to be a fascinating year for retail in Europe.
When I look at what’s to come this year, I can paint a picture of what Forrester predicts by looking at a tale of two brands. Both are iconic, heritage British brands that have responded to their increasingly digitally enabled consumers in two very different ways. Naturally, this has resulted in two very different levels of success.
Tablet ownership in Western Europe is set to quadruple in the next five years: The percentage of European online consumers who own a tablet will increase from 14% in 2012 to 55% in 2017, according to the Forrester Research World Tablet Adoption Forecast, 2012 To 2017 (Global). This dramatic growth follows what was a pivotal year for tablets: Ownership doubled in 2012, and one in seven online Europeans now owns a tablet. The recently published Forrester report “The European Tablet Landscape” draws on our Technographics® data and looks at the profile of European tablet owners and their usage patterns. We found that:
Unsurprisingly, tablet owners are tech-savvy. Today, tablets are most popular with 18- to 24-year-olds, with one in four online consumers in this age group now owning a tablet. Of all tablet owners, a high 45% state that they “like technology” and 36% agree that “technology is important for me.”
Income is a driver . . . for now. About 24% of high-income European online consumers have a tablet, compared with 15% of online low-income consumers. But the growing variety of tablets and form factors as well as more competitive pricing will make tablets affordable for a wider range of consumers.
I’ve spent the past two days at Finovate Europe in London, which has rapidly established itself as the leading European retail financial technology event of the year. This year’s event was bigger than last year’s, with 64 exhibitors spread over the two days.
Here are my impressions from the two days:
Innovation is hard and usually incremental. Our expectations are so high. It’s easy to sit in the audience and think ‘I’ve seen something like that before’. It’s a lot harder to develop truly new ideas, let alone build them and market them. Innovation is necessarily incremental, moving into the adjacent possible opportunity as my colleague James McQuivey puts it (see him explain it on video here). True invention is extremely rare. As James puts it in his new book, “The most powerful ideas consciously draw from and incorporate elements that were being developed by others along the way, ultimately generating the best outcome in the shortest time at the most efficient cost.” That’s what makes events like Finovate so useful.