2021
9
UK Researching and Buying Technology Products Market Report 2021
2021-09-07T04:05:46+01:00
OX1049489
2195
142175
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Report
en_GB
“COVID-19 showcased the need for brands and retailers to have a robust digital presence as consumers relied on online platforms for researching and buying technology products. Consumers’ increased confidence to…

UK Researching and Buying Technology Products Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Researching And Buying Technology Products market, including the behaviours, preferences and habits of the consumer.

49% of consumers say that “positive reviews would encourage me to make an expensive technology purchase (eg new TV) without seeing it in-store first”. The COVID-19 pandemic has meant consumers have become increasingly confident about using digital channels for purchasing high-end technology products, further boosting their importance to brands and retailers.

Lockdowns and increased working from home has meant consumers have had more time to consider upgrading household technology. The home-orientated focus has created opportunities for smart devices as consumers look to digitally renovate their living spaces. Smart home security devices, such as the Ring doorbell and smart smoke alarms, as well as technology for upgrading home working environments, such as wireless headsets, keyboards, mice and smart plugs, will continue to benefit as consumers look for ways to improve their home working and leisure set-ups.

56% of consumers use three or more sources to inform their research when shopping around for technology products. Consumers are also using a blend of off and online approaches to inform their decision-making. Meeting consumers on the customer journey in the researching and decision-making process is a challenge for brands and marketers, requiring a multi-faceted approach to understand the drivers that can turn a browser into a purchaser.

The twin factors of increased awareness of the environmental impact of technology and the ongoing semi-conductor shortage means that second-hand and refurbished products can make a greater impact with consumers. 47% of consumers say that they “would be happy to purchase refurbished technology products (eg laptop, mobile phone)”. There is an opportunity for a mainstream retailer to push a trusted refurbished or ‘green’ line of technology products to cater to shortages and boost sustainable credentials.

Read on to discover more details or take a look at all of our UK Retail market research.

Quickly understand

  • The impact of COVID-19 on researching and buying technology products.
  • Launches and innovation by technology brands and retailers.
  • The drivers affecting how consumers are researching and purchasing technology products.
  • How consumers gather information relating to technology purchases.
  • Purchase drivers for new smartphones, TVs and laptop computers.
  • Factors influencing choice of retailer.
  • Consumer attitudes towards researching and buying technology products.
  • Technology market research.

Covered in this report

Brands: Apple, LG, Google, ADT, SimpliSafe, Samsung.

Expert analysis from a specialist in the field

This report, written by XXXXXXXXXX, a leading analyst in the XXXXXXXX sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 showcased the need for brands and retailers to have a robust digital presence as consumers relied on online platforms for researching and buying technology products. Consumers’ increased confidence to buy big-ticket technology purchases online will mean omnichannel sales approaches will be of paramount importance post-COVID-19. Retailers will need to meet consumers’ expectations not just on price but on expertise and convenience to stand out from the crowd.
Joe Birch
Consumer Technology Analyst

Table of Contents

  1. Overview

    • Key issues covered in this report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on researching and buying technology
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on researching and buying technology products, August 2020
    • The market
    • Online channel was vital for technology purchases during the pandemic
      • Figure 2: Online and in-store purchasing of technology products during COVID-19, 2020
    • Social channels play an increasingly important role in purchasing
    • Use of apps for purchasing technology to grow
    • Consumer confidence hit new highs in June 2021
    • At-home lifestyles drive interest in smart devices
    • QR codes can offer a quick way for consumers to interact with advertising and product information
    • Companies and brands
    • John Lewis spends £1bn on a digital transformation
    • Dixons Carphone aims for best of both with pandemic-influenced omnichannel proposition
    • Curry’s PC World strikes partnership with Uber as it aims to cut down delivery times
    • The consumer
    • Nearly half of consumers look at a retailer’s website when researching technology products
      • Figure 3: information sources used to shop around for technology products, 2021
    • Price is the most significant factor for smartphone purchases
      • Figure 4: Top factors consumers consider when purchasing a new smartphone, 2021
    • Product specifications are a key driver for purchase of TVs
      • Figure 5: Top factors consumers consider when purchasing a new TV, 2021
    • Younger people are more impacted by user reviews when purchasing laptop/desktop computers
      • Figure 6: Top factors consumers consider when purchasing a new laptop/desktop, 2021
    • Free delivery and previous experience with retailer influence choice
      • Figure 7: Factors that contribute to choice of technology retailer, 2021
    • Refurbished lines of technology can cater to consumers’ concerns over environmental impact of technology purchases
      • Figure 8: Attitudes towards researching and buying technology products, 2021
  3. Issues and Insights

    • Free and instant delivery can be a point of differentiation for technology retailers
    • Brands should look to be at the forefront of emerging social and live streaming trends
    • New shoppable formats for interactive TV can help widen the shop window
  4. The Market – Key Takeaways

    • Online channel was vital for technology purchases during the pandemic
    • Social channels will play an increasingly important role in purchasing
    • Convenience of shopping via social media apps also appeals
    • Consumer confidence hit new highs in June 2021
    • At-home lifestyles drive interaction with technology for working and relaxing at home
  5. Channels to Market

    • Online channel was vital for technology purchases during the pandemic
      • Figure 9: Online and in-store purchasing of technology products during COVID-19, 2020
    • Four in ten have used video calling for sales advice
    • Digital channels will play an elevated role after COVID-19
    • Physical retail stores to become more experiential
      • Figure 10: Impact of COVID-19 on shopping behaviour, 2021
  6. Market Drivers

    • Impact of COVID-19 on researching and buying technology products
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on researching and buying technology products, August 2020
    • Social channels play an increasingly important role in purchasing
    • Social platforms build their digital storefronts
    • Social channels offer convenient way for consumers to shop
      • Figure 12: Use of social media for purchasing, 2021
    • Mobile was an important way to shop in 2020
    • Nearly one in five spend over £50 within retail apps on a monthly basis
      • Figure 13: Typical monthly spend in retail apps, 2021
    • Consumer confidence hit new highs in June 2021
      • Figure 14: The financial wellbeing index, 2016-2021
    • At-home lifestyles drive interest in smart devices
    • As working from home continues, brands can help to serve those looking to upgrade and enhance the experience
    • QR codes can offer a quick way for consumers to interact with advertising and product information
      • Figure 15: Technology purchasing habits pre and post-COVID-19, 2021
  7. Companies and Brands – Key Takeaways

    • John Lewis spends £1bn on a digital transformation
    • Dixons Carphone aims for best of both with pandemic-influenced omnichannel proposition
    • Currys PC World regenerates its virtual, delivery and in-store experiences
    • Partnership with Uber aims to cut down delivery times on tech products to 15 minutes
    • Retailers push live streaming events in 2021
    • YouTube to become a key sales channel
  8. Launch Activity and Innovation

    • John Lewis spends £1bn on a digital transformation
    • Dixons Carphone aims for best of both with pandemic-influenced omnichannel proposition
    • Currys PC World regenerates its virtual, in-store and delivery experiences
    • Partnership with Uber aims to cut down delivery times on tech products to 15 minutes
    • Tie-up with TikTok aims to showcase Currys PC World’s tech credentials
    • Live streaming events in 2021
    • YouTube can become a key sales channel
    • Smart TVs to become an increasingly important channel for purchasing
    • Amazon explores video commerce opportunities
  9. The Consumer – Key Takeaways

    • Digital behaviours were key during lockdowns and have started to see a resurgence as COVID-19 cases grow
    • Nearly half of consumers look at a retailer’s website when researching technology products
    • Price the significant driver for smartphone purchases
    • Free delivery and previous experience with retailer influence choice
    • “Showrooming” continues to be a popular behaviour
  10. Impact of COVID-19 on Consumer Behaviour

    • Consumers still have an ongoing concern about the risk of being exposed to COVID-19
    • Increasing anxiety can have a knock-on effect on consumer financial confidence
      • Figure 16: Consumer concern about exposure to COVID-19, 2020-21
    • Digital behaviours were key during lockdowns and have started to see a resurgence as COVID-19 cases grow
    • Hybrid approach to technology shopping will exist long term
      • Figure 17: Changes in shopping habits since the start of the COVID-19/coronavirus outbreak, 2020 and 2021
    • As a result of COVID-19, consumers are increasingly engaged with measuring health markers via wearable technology
    • Health monitors for vital signs can draw in older consumers longer term
      • Figure 18: Use of health and exercise features on wearable technology, 2021
  11. The Information-Gathering Process

    • Nearly half of consumers look at a retailer’s website when researching technology products
    • In-store expertise still offers a key way to engage older consumers
    • Social proof and expert opinion drive sales
      • Figure 19: information sources used to shop around for technology products, 2021
    • Consumers use multiple sources when researching technology products
      • Figure 20: Repertoire of information sources used to shop around for technology products, 2021
  12. Drivers of Technology Purchasing

    • Price the significant driver for smartphone purchases
    • Mass-market and premium phones can cater to different consumer needs
      • Figure 21: Top factors consumers consider when purchasing a new smartphone, 2021
    • Product specifications a key driver for purchase of TVs
    • Younger consumers prefer reviews from peer groups whereas older, more affluent audiences value expertise
      • Figure 22: Top factors consumers consider when purchasing a new TV, 2021
    • Product specifications are a key consideration in purchasing laptop/desktop computers
      • Figure 23: Top factors consumers consider when purchasing a new laptop/desktop, 2021
  13. Factors Influencing Consumer Choice of Retailer

    • Free delivery and previous experience with retailer influence choice
    • Brand loyalty is a powerful motivator of retailer choice
      • Figure 24: Factors that contribute to choice of technology retailer, 2021
  14. TURF Analysis – Researching and Buying Technology – August 2021

    • Methodology
    • TURF analysis shows that previous experience, range of products and locality of stores can be key factors in retailer choice
      • Figure 25: TURF analysis – researching and buying technology, June 2021
      • Figure 26: Table – TURF analysis – researching and buying technology, June 2021
  15. Attitudes towards Researching and Buying Technology Products

    • “Showrooming” continues to be a popular behaviour
    • Stores to focus more on experience
    • Consumer support for their local community will benefit smaller retailers
    • Refurbished lines of technology can cater to consumers’ concerns over environmental impact of technology purchases
      • Figure 27: Attitudes towards researching and buying technology products, 2021
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Brand/Company

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