Recently I bought myself a tablet, a Samsung Galaxy Tab 8.9 to be precise, and since I brought it home my three children regularly “borrow” it to play games. Games like Bunny Shooter, Shoot the Apple, and World of Goo are among their favorites. But when possible (and allowed), they prefer playing games on the PC. Second choice is the Nintendo Wii, at the moment they mainly play Skylanders and Just Dance. The only game device that hasn't been touched for a while now is the Nintendo DS.
Although uptake of tablets is growing in Europe, the installed base is still much lower than for PCs, Wii, PlayStation, or Xbox. Forrester's Technographics® data shows that about one-third of European online adults use a PC to play games or own an Xbox 360, a Sony PlayStation3, or a Nintendo Wii.
We recently ran a poll on Forrester's Facebook page: “Which market do you think has a higher percentage of sales coming from online channels — US or UK?"
While most respondents thought the US leads in online retail sales, the answer is actually the UK. Per Forrester's ForecastView latest estimates from the Forrester Research Online Retail Forecast, 2011 To 2016 (US) & (Western Europe), online retail sales in the US will top $200 billion, representing close to 7% of total retail sales of $3 trillion in 2011. Online retail sales in the UK will be £30.2 billion, representing 10% of total retail sales of £297 billion (per the Economist Intelligent Unit- EIU) in 2011.
The UK continues to have larger online channel share because:
The online buying population as a percentage of total population is higher in the UK.
UK online buyers’ average spend levels are slightly higher than those of US online buyers.
The UK population is more deal-sensitive and more prone to buying online.
Thanks to Tesco, online food (grocery) sales are a large contributor to online retail sales in the UK.
The New York Times recently published an article based on a Forrester report (Mobile Is The New Face Of Engagement) about the uptake of smartphones worldwide in the years to come. And for 2011 it was estimated that just under 500 million smartphones were shipped. Knowing the drivers behind the growth of smartphones gives businesses confidence in mobile technology investment — even when uptake is currently still limited.
In the US today, Consumer Technographics® data shows that mobile usage is still far from mature in many industries. Take the financial industry as an example: 21% of US online adults with a mobile phone do any form of mobile banking versus 73% of US online adults who do online banking. When looking at the different generations, we see that younger generations, who are more likely to be early smartphone adopters, dominate in mobile banking.
As part of our Demographic Overview series, we just published Digital Natives: A Demographic Overview; previously, we published research on digital dads and digital moms. For readers who haven’t heard the term before, Digital Natives are the individuals currently ages 12 to 17, and they will soon become the most sophisticated consumers in the digital world. Forrester defines Digital Natives as “individuals whohave grown up in the age of technology and cannot imagine a life without computers, cell phones, and social networking.”
With the increasing numbers of these Digital Natives, it is imperative that companies get to know them — and the earlier the better. They adopt digital technology faster than older generations; they can’t imagine a life without digital “essentials”; and they combine these digital activities in sophisticated ways.
For example, Forrester’s Consumer Technographics® data shows that boys, on average, spend 6.1 hours playing video games per week, and when they have discussions on social networks, video games are the No. 1 topic. Moreover, despite having little disposable income yet, more than one-third of Digital Natives have either researched or purchased a product or service online in the past three months.
Over the weekend, one of the most reputable online retailers in the US, Zappos, broke the news that its database was hacked and that the information for about 24 million user accounts was breached.
How do stories like this affect consumers’ attitude toward online privacy? In our August 2011 Community Speaks Qualitative Insights report, “Consumer And Online Privacy: How Much Information Is Too Much?” (available for Community Speaks subscribers only), we found that online privacy is one of the most concerning topics in online users’ minds. Two-thirds of US online consumers report being very concerned about the recording and collection of their personal details by websites.
Recently, my colleague Olesia Klevchuk published a report about the behaviors of consumers in India, China, Japan, South Korea, and Australia, called 'Understanding The Changing Needs Of Online Consumers In Asia Pacific'. Forrester has been tracking consumer online behavior in Asia Pacific for six years now. In 2011, we polled Asia Pacific consumers in two separate surveys to find out about their use of the Internet for media, entertainment, shopping, communications, and social computing.
This year's Asia Pacific data shows continuous growth in the amount of time consumers spend with online media, including widespread adoption of social activities, as well as growing importance of the mobile phone. For consumers in Asia Pacific, PCs at home and high-speed Internet connections are becoming the norm.
In metropolitan China and Japan, at least nine in 10 adults have access to a computer at home, and almost eight in 10 are already online. In metropolitan India, the numbers are much lower, with only 27% regularly going online. But India is a populous country, and there are currently around 100 million online users, which puts it in third place after China and the US.
I love this time of year. As a real nostalgic I enjoy all these ‘best of 2011’ lists and ‘year in review’ overviews and it feels there are more every year. In the past two weeks we also have been bombarded with opinions about the developments in the market insights industry in 2011, as well as what people expect to happen in 2012 (and beyond). We’ve seen Twitter 2011 reviews, crowd sourcing activities, expert views, and so on. And I read them all. However, I do this with my favorite end of year activity playing in the background: The Top2000. This is an annual five day event that counts down the 2,000 best records ever produced - as voted by 3 million Dutch adults.
In the current time of digital disruption, market insights professionals need to know the market their organization plays in well enough to identify the “adjacent possible” but also to understand how receptive their customers are to new offerings. With that in mind, I’ve taken a fresh look at Forrester’s Technographics® segmentation. This segmentation is built on three main components: motivation, income, and technology optimism/pessimism using a proprietary algorithm and is created in 1997 when we first began collecting our Technographics® data to help companies understand and predict changes in the consumer technology landscape. In 1999, Forrester published a book, called 'Now or Never', that covered how companies should use the model.
Recently I was wondering: does the segmentation still hold for current technologies like tablets and can it still help companies understand and predict technology behaviors? For this, I analyzed tablet uptake as well as buying intention of tablet from one of our European surveys by segment:
Since 2007, Forrester has been advising companies about how to use its POST— people, objectives, strategy, technology — methodology to develop social media strategies that help them engage with their audiences via social media. Since then, social media uptake has grown enormously, and brands now have a multitude of social platforms from which to choose. Before you decide which platforms to go with, do you actually know where your audience is in the social media world?
Even today, when social media usage is close to mainstream in the US, different target groups still show different behaviors. For example, when you want to target moms, you have to understand what makes them tick online.
Forrester’s Technographics data shows that the majority (71%) of US female Internet users are Joiners and Spectators. They maintain their profiles on social networking sites and actively consume shared content online. This shows that it is important for brands to have a website, a blog, videos on YouTube, and a social network presence. It is also important for brands to update the information on their website or social network profile regularly and make it both informative and entertaining.
As some of you know, I really have a thing for doing research in multiple countries. I’ve been working in market research for two decades now and have always conducted international research projects — and experienced all the challenges that come with them. But I believe that conducting international research is even more challenging now than it was 20 years ago when I started my research career.
I see three key challenges that market researchers must deal with when doing multicountry projects:
1) How to collect globally comparable data. As soon as the surveyed cultures are so different that you need to adapt research methodologies and localize questionnaires, you’ve lost the chance for global comparisons. How do you walk that fine line between globalization and localization?
2) How to put this data into a local context. It’s really hard to understand the real drivers of behavior in different regions. Just looking at the results and comparing them with those of other countries might result in the wrong conclusions.
3) How to distribute and communicate these results back. Collecting information is one thing, but communicating it back to the local organizations and having them act on it is quite another. Will your local market insights teams use, share, and implement the data that you’ve collected globally?