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Description

Description

A digital connection is one of the most important services that consumers have today. In a world transitioning through the impact of COVID-19, a digital connection has never been more critical to maintaining communication and participating in society following stay-at-home orders and social distancing policies. COVID-19’s impact on consumer behavior and trends will have a short-term impact that could result in long-term changes due to the disruption.

- Buddy Lo, Senior Technology Analyst

This report examines the following areas:

  • The potential impact of COVID-19 in the digital and tech space
  • Home and personal electronics ownership and purchase intent
  • Essential tech device shopping resources
  • Services primarily accessed via an app
  • Attitudes toward technology and the environment
  • Attitudes toward apps
  • Attitudes toward technology and self-image

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
        • Executive Summary

            • Figure 1: Short, medium and longer term impact of COVID-19 on technology hardware and digital services, April 2020
          • Consumers and digital trends adjust to impact of COVID-19
            • The issues
              • COVID-19 impacts day-to-day life in the US
                • Figure 2: COVID-19 lifestyle changes, March 4-6 – April 10-16, 2020
              • Hands-on/in-person experience is often a “must have” for purchasing tech products
                • Figure 3: Essential resources for tech purchases (NET) – Across any surveyed products, February 2020
              • The opportunities
                • Tech’s time to shine
                  • Figure 4: Services most accessed using an app, by age, February 2020
                • Apps could be a touchpoint for financial services to engage younger women with investing
                  • Figure 5: Services most accessed by an app – Financial services, by gender and age, February 2020
                • Key trends
                  • The young and wealthy are willing to spend more for better environmental results
                    • : Figure 6: Attitudes toward tech and the environment, by age and household income, February 2020
                  • Younger consumers find apps more secure than browsers
                    • Figure 7: Attitudes toward tech and electronics – App security, by age, February 2020
                  • What’s next
                  • The Impact of COVID-19 on Digital Trends

                    • What you need to know
                      • Figure 8: Short, medium and longer term impact of COVID-19 on technology hardware and digital services, April 2020
                    • Opportunities and threats
                      • Technology hardware and digital services have longer-term resiliency
                        • Telecommuters will help to prop up the market
                          • Figure 9: Ashley Furniture Industries Inc. Creative, April 2020
                        • Video conferencing will stick post COVID-19
                            • Figure 10: Growth of downloads of video conferencing apps, March 15-21, 2020 vs Q4 2019 weekly average
                          • Telecoms respond to increasing needs with home internet promotions
                            • Figure 11: Estimated acquisition mail volume of US Gigabit Internet Offers, 2018 Q1-2019 Q4
                          • Streamers push content and promotions to rack up subscribers
                            • Figure 12: Projected volume of win back emails by week, November 2018- March 2020
                          • Impact on the consumer electronics market
                            • Telecommuting will shift home electronics spending from entertainment to productivity in the mid-term
                              • Economic uncertainty will increase focus on pricing
                                • Gaming industry to thrive amidst the lockdown and retain its audience
                                  • Consumer electronics manufacturing completely upended
                                    • How the crisis will affect key consumer segments
                                      • Increased digital usage among 55+
                                        • Impact among younger tech users will be economic
                                          • How a COVID-19 recession will reshape the industry
                                            • Discretionary spending cuts will hit consumer electronics
                                              • Telecoms won’t be able to go back to pricing as usual
                                                • Figure 13: AT&T Instagram post – “Pledging To Keep You Connected,” March 2020
                                                • Figure 14: Verizon Instagram post – “We’re here. And we’re ready.,” March 2020
                                              • Recession could delay 5G device adoption
                                                • A catalyst for category innovation
                                                  • COVID-19: US context
                                                  • The Market – What You Need to Know

                                                    • COVID-19’s impact on tech is unprecedented, widespread and varied
                                                    • Market Factors

                                                        • COVID-19 disrupts supply chains for tech industry
                                                          • Recession expected due to the outbreak
                                                            • Digital communication services more important than ever
                                                            • Key Players – What You Need to Know

                                                              • Telecoms address concerns during COVID-19 fallout
                                                                • Online services overloaded by higher usage during social distancing
                                                                  • Streaming services release content early to draw viewers
                                                                    • Isolated people turn to video conferencing services for social contact
                                                                      • Retailers see record app downloads
                                                                        • Hoarding concerns creeping into digital retail
                                                                          • Tech firms work toward sustainability
                                                                            • Third-party delivery platforms look to support their restaurant partners
                                                                            • What’s Working

                                                                              • Telecoms respond to provide relief for consumers during crisis
                                                                                • Figure 15: AT&T Instagram post, March 2020
                                                                                • Figure 16: Verizon Instagram post, March 2020
                                                                              • Social distancing leads consumers to depend on tech for socializing
                                                                                • Figure 17: #VirtualHappyHour Instagram post, March 2020
                                                                                • Figure 18: Peloton Tweet, March 2020
                                                                              • Grocery delivery and big box retailers see record app downloads
                                                                                • Third-party delivery companies forgo fees for restaurants
                                                                                  • Figure 19: Uber Eats COVID-19 email, March 2020
                                                                                • Sustainability initiatives gain prominence within tech operations
                                                                                • What’s Struggling

                                                                                  • Higher data usage hits unprepared services
                                                                                    • EU urged video streaming services to lower video quality to lessen the strain
                                                                                      • Video game servers crash amidst rush to online gaming
                                                                                        • Figure 20: #xboxlivedown tweet, March 2020
                                                                                      • Robinhood investing service experiences outages during extremely volatile trading sessions
                                                                                        • Supply concerns have retailers bracing for hoarding behaviors
                                                                                        • What to Watch

                                                                                          • Streaming services launch content earlier than anticipated during social distancing
                                                                                            • Figure 21: Disney+ Frozen 2 Twitter response, May 2020
                                                                                        • The Consumer – What You Need to Know

                                                                                          • COVID-19 will shift consumer digital behaviors
                                                                                            • Smartphones and laptops top personal electronics purchase intent
                                                                                              • Online reviews remain a top resource for electronics shoppers
                                                                                                • Younger women are app power users
                                                                                                  • More than half of the market relies on apps for three or more services
                                                                                                    • Higher-income, younger consumers seek sustainability from their tech
                                                                                                      • Multicultural consumers view wearable tech as success symbols
                                                                                                        • Younger consumers view apps as a more secure platform
                                                                                                        • Home Electronics Ownership and Purchase Intent

                                                                                                          • COVID-19 will likely depress purchase intent for various household electronics
                                                                                                            • 4K UHD TV ownership holds at around 30%
                                                                                                              • Figure 22: Home electronics ownership and purchase intent, February 2020
                                                                                                              • Figure 23: UHD TV ownership and purchase intent, by UHD owners and non-owners, February 2020
                                                                                                            • Opportunity to increase wireless router ownership
                                                                                                              • Figure 24: Router ownership, by household income, February 2020
                                                                                                            • Smart speaker ownership continues to grow at a modest rate
                                                                                                              • Figure 25: Smart speaker ownership and purchase intent, August 2019 and February 2020
                                                                                                            • Entertainment products should get a boost amidst social distancing
                                                                                                              • Figure 26: Home electronics ownership and purchase intent, by age, February 2020
                                                                                                          • Personal Electronics Purchase Intent

                                                                                                            • COVID-19 will depress sales of personal electronics
                                                                                                              • Figure 27: Personal electronics purchase intent, February 2020
                                                                                                            • Earbuds more popular than headphones in hearables space
                                                                                                              • Figure 28: Personal electronics purchase intent, by age, February 2020
                                                                                                          • Essential Resources for Tech Purchases

                                                                                                            • Two thirds of consumers found hands-on essential before COVID-19
                                                                                                              • Figure 29: Essential resources for tech purchases, February 2020
                                                                                                              • Figure 30: Essential resources for tech purchases (NET) – Across any surveyed products, February 2020
                                                                                                            • In-market shoppers want more resources before buying
                                                                                                              • Hearable technology
                                                                                                                • Smartphone shoppers
                                                                                                                  • Laptop shoppers
                                                                                                                    • UHD TV shoppers
                                                                                                                      • Smartwatch/activity tracker shoppers
                                                                                                                        • Tablet shoppers
                                                                                                                          • Streaming media player shoppers
                                                                                                                            • Video game console shoppers
                                                                                                                              • Smart speaker shoppers
                                                                                                                                • Figure 31: Essential resources for tech purchases, by in-market shoppers, February 2020
                                                                                                                            • Services Most Accessed Using an App

                                                                                                                              • App usage somewhat limited before COVID-19
                                                                                                                                • Figure 32: Services most accessed using an app, February 2020
                                                                                                                              • Millennials and Gen X most likely to use an app as the primary access method for financial services
                                                                                                                                • Figure 33: Services most accessed using an app – Financial services, by generation, February 2020
                                                                                                                              • COVID-19 could change age dependent behaviors
                                                                                                                                • Figure 34: Services most accessed using an app, by age, February 2020
                                                                                                                              • Younger women are more app reliant for apparel and food
                                                                                                                                • Figure 35: Services most accessed using an app, by gender and age, February 2020
                                                                                                                            • Repertoire Analysis of Services Most Accessed Using an App

                                                                                                                              • Majority of consumers use apps to access three or more services
                                                                                                                                • Figure 36: Number of services most accessed by an app, February 2020
                                                                                                                              • Younger women lead app usage across categories, except investing
                                                                                                                                • Figure 37: Number of services most accessed by an app, by gender and age, February 2020
                                                                                                                                • Figure 38: Services most accessed by an app – Financial services, by gender and age, February 2020
                                                                                                                            • Attitudes toward Technology and the Environment

                                                                                                                              • Environmental and sustainability initiatives should increase consideration
                                                                                                                                • Figure 39: Attitudes toward tech and the environment, February 2020
                                                                                                                              • Younger Millennials willing to put their money where their environment is
                                                                                                                                • Figure 40: Attitudes toward tech and the environment, by age, February 2020
                                                                                                                              • Age, along with household income, drives willingness to switch
                                                                                                                                • Figure 41: Attitudes toward tech and the environment, by age and household income, February 2020
                                                                                                                            • Attitudes toward Technology and Image

                                                                                                                              • Age and income are strongly correlated with tech and image attitudes
                                                                                                                                • Figure 42: Attitudes toward tech and electronics – Tech and self-image, by age and household income, February 2020
                                                                                                                              • Multicultural consumers view wearable tech as status symbols
                                                                                                                                • Figure 43: Attitudes toward tech and electronics – Tech and self-image, by race/Hispanic origin, February 2020
                                                                                                                              • Men more likely to be self-conscious of their smartphone
                                                                                                                                • Figure 44: Attitudes toward tech and electronics – Tech and self-image, by gender and age, February 2020
                                                                                                                            • Attitudes toward Apps

                                                                                                                              • Apps need to have continuous value for consumers to download them
                                                                                                                                • Figure 45: Attitudes toward tech and electronics – Apps, February 2020
                                                                                                                              • Nearly half of Millennials willing to pay for an app
                                                                                                                                • Figure 46: Attitudes toward tech and electronics – Downloading and paying for apps, by generation, February 2020
                                                                                                                                • Figure 47: CHAID analysis of “I am willing to pay for an app,” February 2020
                                                                                                                              • App security is an issue – younger consumers have more confidence
                                                                                                                                • Figure 48: Attitudes toward tech and electronics – App security, by age, February 2020
                                                                                                                            • Appendix – Data Sources and Abbreviations

                                                                                                                              • Data sources
                                                                                                                                • Consumer survey data
                                                                                                                                  • Direct marketing creative
                                                                                                                                    • Abbreviations and terms
                                                                                                                                      • Abbreviations
                                                                                                                                        • Terms

                                                                                                                                        About the report

                                                                                                                                        This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                        • The Consumer

                                                                                                                                          What They Want. Why They Want It.

                                                                                                                                        • The Competitors

                                                                                                                                          Who’s Winning. How To Stay Ahead.

                                                                                                                                        • The Market

                                                                                                                                          Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                        • The Innovations

                                                                                                                                          New Ideas. New Products. New Potential.

                                                                                                                                        • The Opportunities

                                                                                                                                          Where The White Space Is. How To Make It Yours.

                                                                                                                                        • The Trends

                                                                                                                                          What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                        Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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