With tablet sales projected to grow from 10.3 million in 2010 to 44 million in 2015, we wanted to understand what will be fueling this growth. Since 18- to 24-year-olds will be the ones growing up accustomed to this technology, we honed in on this demographic to see what it is about the tablets that excites them the most. Our Technographics® data shows that they want a tablet for a variety of reasons, but what they are most attracted to is its portability, and they are much more driven than US online consumers in general by its “fun factor.”
With the increasing uptake of technology and online shopping, consumers are getting more comfortable using technology in the store, as well. Data from our North American Technographics® Retail Online Survey shows that consumers like to be informed while they are shopping — they want to be able to access product information instantaneously, and they want to be more independent shoppers (without the help of sales personnel).
The items at the top of the list are those that allow consumers to find product information quickly — with majority of respondents reporting that they found in-store price scanning and computer kiosks valuable (84% and 66%, respectively). The fact that self-checkouts were the second most valuable in-store technology exemplifies how consumers want to be more independent while shopping: It shows that they are willing to take on that responsibility themselves in order to get in and out of the stores quickly.
As some of you might know, I'm quite an active twitterer. Earlier this month, there was a lot of discussion on Twitter about how unique we all were. Why? Because only a very small percentage of people actually tweet regularly. Forrester's Technographics® data shows that only 11% of US online consumers tweet monthly, while more than 84% say that they never tweet.
So who are these “tweeps,” and why are they so attractive to marketers? As one would assume, people who tweet monthly or more display many characteristics of early adopters: They are more educated, more likely to own a smartphone, more likely to be male, and more likely to have a higher income.
What really makes them unique, and at the same time very interesting for marketers, are their attitudes:
Recently, deal-of-the-day Web site Groupon got a lot of attention because of Google’s interest in its business. We understand that there are a few attractive pieces to the Groupon story — it’s theoretically a very lucrative business model. My colleague Sucharita Mulpuru commented on this at the end of November with a post highlighting the business opportunities of deal-of-the-day sites. What I was interested in was the customer side: Who is actually using these sites?
Our Technographics® data shows that the majority of US online consumers aren’t familiar with deal-of-the-day sites like Groupon or Living Social, and another 25% haven't used them yet.
Looking at these numbers, you could say that there's quite some opportunity for growth. However, the current users have quite a unique profile: The 3% of US consumers who frequently use deal-of-the-day sites have a lot of money to spend (about half of them report having an average household income of $100K or more), and they expect to spend more money online this year than last year. They are twice as likely to be influenced by what's hot and what's not, two-thirds are willing to try new things, and 62% agree that they often change their mind about which brand to buy after doing some research — making them the ideal target audience for deal-of-the-day sites.
Forrester’s Technographics® shows that online European consumers have lost their trust in traditional media as an information source. A low 30% of online Europeans state that they trust the TV as an information source. The traditional media that Europeans see as most trustworthy are radio and newspapers. About one-third agree that they trust newspapers as an information source. Funnily enough, this number varies significantly across European countries: 45% of French Internet users trust newspapers as an information source — a number that is almost three times as high as the 16% quoted by their UK counterparts!
In fact, consumers trust consumer reviews and price comparison Web sites more than manufacturers' Web sites. But what does this trust mean? How influential are consumer reviews in the purchasing process? About one in 10 online consumers takes consumer reviews specifically into consideration when making a major purchase. Information sources that influence them most in the purchasing process are going to the shop (34%), talking with family and friends (24%), and the retailer’s Web site (13%). And although we see some differences in the percentages reported by country, these top three are the same everywhere.
Location-based social networks (LBSNs), apps that are downloaded on a mobile phone, offer organizations a possibility of right-time, right-place marketing by connecting people and nearby points of sale with geotargeted media. Forrester's Technographics® data shows that only 4% of US online adults have ever used location-based social networks, such as FourSquare and Brightkite, on their mobile phones, with only 1% using them more than once a week. Although the uptake is limited to a small group, this doesn't mean that LBSNs are not useful.
Looking at the profile of location-based app users, we see that they are:
Influential.Geolocation users are 38% more likely than the average US online adult to say that friends and family ask their opinions before making a purchase decision.
An interesting target group.They are typically young adult males with college degrees.
Heavy mobile researchers.They are also far more likely to search for information about businesses and products, as well as read customer ratings/reviews of products and services
Many people consume content from multiple media channels simultaneously (see for example this recent post on European youth), but does the content they’re looking at actually overlap? We looked into our Technographics® data to see what consumers are doing on their computers while watching a TV show and we found that the top four activities have nothing to do with what they are watching.
Because consumers are using their PC for activities that require more attention than watching TV – which is mostly a passive activity — it’s questionable how much of the TV content they are even registering. Almost one-third of consumers are playing games on their computers while watching television, and one-quarter are doing schoolwork. Has the TV just become background noise?
We also see that 44% of consumers are communicating with friends via social networks, chat, and email on topics that are not related to the show. So consumers are interested in content online, but not necessarily in parallel with the broadcasting of a show. Market researchers need to develop a research plan that helps companies understand how and when consumers watch TV, and when they are checking out online content related to the company's products or brand, in order to build a marketing strategy that reinforces the message across channels.
A recent Forrester report "US Online Holiday Retail Forecast, 2010" forecasts online retail sales during the 2010 US holiday season to grow 16% year over year. Consumers are showing a willingness to spend this season, with affluent consumers driving the most growth. Respondents to our North American Technographics® Retail Online Survey, Q3 2010 (US) plan to complete 37% of their November/December holiday shopping through an online channel, up from 30% last year.
Let’s have a look at the post-mortem of the 2009 US holiday season to understand what is really important to customers: In spite of the economic slowdown last year, nearly three-quarters of US online holiday buyers maintained or increased their spending in the online channel compared with 2008. Online holiday buyers are buying more online for the same reasons that the online channel is a successful and growing component of retail in general: convenience, selection, and price.
In recent years, there has been an increase in the number of US-based companies entering or planning to enter into the Mexican market. For example, Best Buy has rolled out an aggressive plan to invest $400 million to open 20 stores in Mexico over a three-year period. Lowe’s announced earlier this year that it spent roughly $40 million to open two stores in Monterrey, Mexico. And Target is setting its sights on expanding into Mexico, with goals to enter into the market no later than 2013.
Without question, there are many challenges with entering into a new market, such as understanding the country and cultural norms that influence shopping habits, determining how to transfer and modify successful strategies of a winning brand in one country to another, and understanding what the current size of the new market is as well as its growth potential. However, despite these hurdles, my colleague Tamara Barber and I contend that US-based retailers can use the factors that influenced the growth of the US Hispanic eCommerce market as a guide for developing effective growth strategies in Mexico.
Ever wondered how consumers in emerging markets feel about online security? Forrester Technographics® tracks this kind of information in 17 countries worldwide, including China, India, Brazil, and Mexico. We found, for example, that in Latin America there are huge differences between Mexico and Brazil: 65% of Mexican PC owners are concerned that their PCs will become infected with malware, compared with 48% of Brazilians. However, Brazilian PC owners are much more hesitant to share any information online. Ninety-three percent of Mexican PC owners and 95% of Brazilian PC owners use some form of security measure on their home PCs.
Although Mexican PC owners are more concerned about malware and are more likely to share personal details online, they do less to protect themselves than Brazilian PC owners: They’re significantly less likely to install a pop-up blocker, spam filter, or antispyware. My colleague Roxie Strohmenger has published other posts on how Latin American consumers feel about technology, and how Brazilian and Mexican consumers show different interests and behaviors. You can check them out here.