Please activate JavaScript in your browser settings to enable all features of this website.

Möchten Sie zur deutschen Seite wechseln?JaNeina
Close
Smart Automotive Insights image

Smart insights: Technology

In today’s connected society, technology impacts all industries - driving opportunities and accelerating the speed of innovation.

To stay competitive, technology companies need to understand consumers’ evolving experiences and choices.

Our technology market research experts deliver smart insights to create engaging and relevant concept designs, product positioning, advertising and customer experiences. Our technology industry expertise spans IT and IT B2B, consumer electronics (CE), photo, office equipment and telecommunications market performance, consumer research and trends.

TechTalk newsletter

Get the latest GfK Technology news

Discover the latest Technology industry insights, trends and market data with our Tech Talk newsletter.

Latest insights

Here you can find the latest insights for technology industry. View all insights

    • 01/21/16
    • Media and Entertainment
    • Technology
    • Media Measurement
    • South Africa
    • English

    Is it a Netflix world after all?

    Netflix’s recent announcement of their international expansion in 2016 is not unexpected, but still somewhat breathtaking in its scope. While it may seem natural to those in the United States, where Netflix holds a dominant position in the Subscription Video on Demand (SVOD) space and in other early markets where it is a well-known brand, but this latest overseas growth is not as much “a sure thing” elsewhere.

    Eight key concerns for entering developing markets

    Certainly Netflix will enter these new markets with a well-known brand name, which may be less connected to its actual content than to the fact that US-originating digital brands often have a leg-up on local brands. Netflix will generally appeal to affluent, Western-oriented consumers outside of the North American and Western European markets. But Netflix will have a number of concerns when entering these other developing markets that make up much of the dozens being added. These include:
    • Local competitors in the Pay TV or streaming space may themselves have a dominant position. GfK works with a number of providers in the markets in which Netflix has newly launched to understand how their services are consumed. We often see a large cohort of subscribers actively viewing the kind of on-demand content that Netflix dominates in the US. These are consumers who are well served by streaming or on-demand content. For example, local South East Asian player iFlix has already built up an impressive half million subscribers in a short space of time.
    • The streaming rights to local content of interest may be held exclusively by other services.
    • The streaming rights to even Netflix’ own content may still be controlled by other providers, based on older agreements.
    • Netflix’ original, exclusive Western-focused content may not have an appeal in different cultures. Again, GfK’s work in providing Return Path Data (RPD) services have taught us that local content is absolutely crucial in building a strong customer base – even in markets where the kind of Western-oriented programming in which Netflix concentrates is popular. Netflix itself recognizes this by focusing much of its strategy on creating local content for its various markets.
    • There may be local laws regarding a certain level of locally originating content.
    • Internet access in certain countries may be limited across the population or intermittent.
    • The governments or entities controlling Internet access may arbitrarily cut access based on disagreement with content, or may use such power to censor or control what content is offered.
    • In many markets, particularly in APAC, advertiser-supported or illegal websites are often well established as sources for watching video content. So there may be resistance to paying for content that consumers have traditionally accessed by other ‘free’ means.

    Netflix’s big data advantage

    That being said, Netflix has consistently outperformed expectations of industry experts and those in the financial markets. Its daring moves in the past have mostly panned out. And, aside from content, it has an understanding of its consumers – through the use of its own collected big data – with which few of its potential competitors can hope to compare. As for its competitors, frenemies, and partners – some being all three – the growth of Netflix raises questions that only third-party accounting of Netflix can answer. This way their competition or partnership with Netflix is on a more level playing field. What do you think about Netflix’s expansion? Do you see other challenges? I would like to hear your opinion as well.
    For more information, please contact me at david.tice@gfk.com.
    • 07/31/14
    • Retail
    • Technology
    • Travel and Hospitality
    • Consumer Goods
    • Market Opportunities and Innovation
    • Trends and Forecasting
    • South Africa
    • English

    Additional African countries added to GfK Global consumer study

    GfK now offers insights specifically into African consumers within the ‘GfK Roper Reports Worldwide’ study. For global brands, this kind of information furthers a deeper under-standing that helps them retain relevance in the African market.
    • 03/15/17
    • Technology
    • Travel and Hospitality
    • Global
    • English

    How to leverage consumers’ current travel sentiments

    Currently, there is indeed a heightened consumer awareness around travel, notably with much of the conversation in the US focused on travel bans and increased airport security.  There is no denying that safety is on the forefront of consumers’ minds – 61% of Americans agree that they are “always concerned about their safety and security”, according to a recent study from GfK Consumer Life. But how does this affect consumers and their attitudes and behaviors towards travel?  Travel is actually one of the last things that Americans are willing to give up – only behind their mobile phones (and ahead of other indulgences including dining out, out-of-home entertainment, and hobbies).  In fact nearly three-quarters of Americans have traveled for leisure in the past 12 months (60% of those by plane).  It is probably safe to assume that at least a similar number would like to continue to do so in the future.

    Building on experiences

    Rising personal values of consumers that include learning, open-mindedness and internationalism suggest that Americans are open to new experiences when it comes to travel.  In addition, 63% of Americans agree that they ‘always like to experience local culture and foods’.  Concurrently, industry trends show that international travel was up 6% in 2016 vs. 2015. How does this reconcile with the current shakeups within the travel industry?  Well one particular case is that advancements in technology are allowing for consumers to experience travel like never before.  The evolving wants and needs of the connected consumer continue to push for new innovations in travel.

    Incorporating relaxation

    Prioritizing experiences does not necessarily mean everyone is looking to go the backpacking-rugged-adventurous route.  R&R is also sought after – 54% (+6 pts from 2012) of Americans prefer a vacation where they can relax and take it easy (vs. only 38% looking for “active” vacations where they can do/see a lot of things).  This can probably be attributed to the increased stresses of life today – stress levels have hit an all-time high by some metrics (54% of Americans feel stressed at least once or twice a week, the highest point since GfK started tracking more than two decades ago). This can have implications across a wide range of categories – from food to technology to wellness… anything that will help them unwind during their travels.

    Opportunity: The appeal of business travelers

    One consumer target that can be especially attractive is the business traveler, with their overall affluence and spending tendencies (along with the notion that they probably would be less affected by any changes in consumer sentiment around travel, since it is tied to their careers). About one in five Americans have traveled for business in the past 12 months.  Priorities of course shift – work takes precedence and companies typically handle expenses.  So it comes as no surprise that 75% have stayed at hotels/accommodations rated at 4-stars or higher (+29 pts from the average traveler).  And proper sleep clearly is more important – 71% of business travelers agree that they need to sleep really well (+13 pts from the average traveler). Other opportunity areas that resonate with the business traveler include: health (80% actively look for health products/services, +13 pts from average travelers); technology (61% say they are passionate about tech, +28 pts); and small indulgences (81% look for novelty/fun in everyday products, +17 pts).

    Conclusion

    The recent dialogue within the travel space seems to suggest increased consumer anxiety. Yet brands and companies should not let that be a deterrent – travel is still a mainstay within Americans’ lives.  Both new experiences and relaxation can be drawn upon to give consumers true pleasures in their travels – while business travelers continue to have strong appeal across many facets. Mihir Bhatt is a Senior Consultant on the Consumer Life team at GfK. He can be reached at mihir.bhatt@gfk.com.
    • 03/07/17
    • Technology
    • Global
    • English

    Why consumer behavior and digital convergence matter for electronics manufacturers

    Since the mid-nineties, digitalization has ensured a regular boom in the tech industry. Many new products, applications and services have succeeded in massively boosting the use of the latest technology at ever lower prices. At the same time, consumer behavior has changed fundamentally due to the ubiquitous and unlimited access to the internet, social media and networking between content and hardware. In a relatively short period of time, the high demand for smartphones and smart TVs has drastically and sustainably reversed the use and distribution of music and television or film. However, the development of digital products has not only characterized consumer behavior, but has also been the source of some convergence of hardware. In many cases today a smartphone replaces the MP3 player, the navigation device, the photo camera or the tablet and the credit card, the fitness tracker and much more thanks to ever-increasing screen sizes and advanced technology.

    Structural change in the multimedia sector

    The market for multimedia products is now in a deep crisis as measured by demand. The high demand of the past years has led to strong market saturation, so the manufacturer has had to foot the bill for the end customers the past two years. On the one hand, a large number of devices are only in the middle of their service life, which means that the consumer often does not see any additional use or buy-in for a replacement purchase due to small or even poorly communicated innovations in conventional products. Even for 2017, the bottom is still not reached. The prospects for recovery are low, with a noticeable, structural change in the sector.

    Smart TV dominated CES

    The groundbreaking annual CES fair in Las Vegas produced a glimmer of hope at the beginning of the year with the industry presenting a large number of innovations. The focus, however, was once again on smart televisions with bigger and better pictures. The TV market is, of course, an essential part of the entire multimedia business and the decline in sales recorded in recent years is indeed striking. Whether the presented innovations can stimulate the saturated TV market in the short term, however, is questionable.

    All-in-one smartphone

    The driver in the multimedia area is undoubtedly the smartphone. The steady growth was attributable to the penetration, which had not yet been exhausted, as well as the product innovations up to 2015 and 2016. The turnover in this area was only partially compensated for by other declining multimedia categories. In the future, the opposite will probably be the case despite advances in new devices with higher battery operation times. The trend of growth could decline in the future as a result of the lower subsidies by the telecom providers as well as the often achieved marginal use.

    Unsteady photo market

    The whole photo and video area is almost right in the free fall, as the smartphone increasingly replaces the classic camera with increasingly better camera functions. As CES 2017 showed, the innovations and visions of the industry are likely to hit the market again in many places with new perspectives. Particularly interesting are 360-degree film cameras in combination with VR glasses, as well as compact film drones in addition or as a replacement to Actioncams.

    Renaissance in audio

    As far as the sound is concerned, high-quality audio seems to be experiencing a renaissance. Thanks to high resolution audio, sound quality is coming back to the forefront for consumers. Both audio-players and headphones in the highest resolution promise an unprecedented sound experience and bring the music lover into completely new spheres. This kind of innovation not only enhances the quality of the sound world, but also creates new, desirable products in the market. At the same time, the audio-home market is benefiting from unbroken demand in the streaming and multi-room segments, which grew by 8 percent in value and 5 percent in value respectively. This trend will continue to grow as a result of continuous development and new suppliers.

    Taking a chance on the smart home

    The smart home has become an ever-present catchword at CES. The term is as broad as it is incomprehensible, but everyone seems to be able to imagine something related to home networking. The range of products and innovations also take into account the primary need for safety, energy management and control of all possible household appliances and equipment. The challenge of the manufacturers is to offer the consumer simple and reliable products, which can be installed and operated easily and intuitively at an affordable price. A simple communication of the benefits and understandable advertising play an equally important role.

    Conclusion

    The recent changes in consumer behavior have presented a number of challenges and opportunities for electronics manufacturers. The convergence of hardware has made many products obsolete and led to structural changes in the sector. The markets for smart TVs and phones face growth challenges, while innovative products in the visual and audio segments are opening up new opportunities for established players. The smart home remains a mystery and presents maybe the biggest opportunity, with consumers showing interest but lacking understanding of products in that segment. Luca Giuriato is a Senior Market Manager at GfK. To share your thoughts, please email luca.giuriato@gfk.com or leave a comment below.
Solutions
  • Brand and Customer Experience (BaCE)

    Brand and Customer Experience (BaCE)

    Brands are under pressure to develop emotional connections and relationships with consumers and business decision makers.  Brands need to respond in-the-moment, to enrich the customer experience – and develop strategies that influence ”moments of truth” throughout individual brand journeys.  

  • Digital Market Intelligence (DMI)

    Digital Market Intelligence (DMI)

    When consumers shop, search, communicate, gather information and engage with companies or brands online, they behave differently depending on which device or screen they are using. They expect a consistent experience regardless of the channel or device they are using.

  • Point of Sales Tracking

    Point of Sales Tracking

    Retailers and manufacturers are under pressure to develop products and services that maximize sales and profit and to keep customers coming back.

    Success relies on having the most up-to-date sales data, combined with robust analysis to understand which products and services are performing well in the market – and which are not. With this information, clients can set clear strategies for commercial growth and increase return on investment.

  • User Experience (UX)

    User Experience (UX)

    Our user experience (UX) research and design experts help our clients create and improve customer experiences for existing or new products and services

    Today’s consumer is bombarded with promises for compelling experiences. They are sophisticated and demanding.  To be successful, a new product or service needs to be intuitive, usable, engaging and desirable. The user experience needs to be emotional in order to be memorable.

  • Market Opportunities and Innovation (MOI)

    Market Opportunities and Innovation (MOI)

    Brands are under constant pressure to maintain relevance in an increasingly crowded market. Identifying when, where and how to deliver compelling experiences that deliver new value for both consumers and brands is critical.

  • Trends & Forecasting

    Trends & Forecasting

    ​Today’s steady stream of new offerings and shortening product lifecycles place a unique pressure on businesses to stay ahead. Consumer purchasing behavior shifts more rapidly than ever.

  • Geomarketing

    Geomarketing

    Our geomarketing solutions and consultancy provide our clients with smart insights into location-specific factors that impact the success of business sites, shops, sales territories, target groups, as well as chain store and distribution networks.

  • Mystery Shopping

    Mystery Shopping

    Consumers face a complex array of brand touch points every day of their lives. To deliver a consistent brand experience, marketers need to know how consumers are actually experiencing their brand. Our mystery shoppers give you all the help you need to understand these experiences, and respond to them to maximize the return for your business.

Contact us
Molemo Moahloli
South Africa
+27 11 803 1300
General