60 per cent of Silver-Generation Consumers who Used Digital During COVID-19 will Remain in Digital.
The COVID-19 pandemic has narrowed the digital divide between age demographics. On the one hand, it forced the silver generation consumers (more than 55 years old) in APeJ to adopt technology as the primary means of accessing information, healthcare, and consumption. IDC predicts that 60 per cent of silver-generation who used digital during COVID-19 will continue to do so, thereby narrowing the digital divide in technology adoption across age demographics.
On the other hand, digital has further entrenched itself into millennials’ lives. These digital natives are connected, have greater collective awareness, and are more likely to act on this awareness. Consumer digital transformation (DX) will further empower millennials in living more purposeful lifestyles through the 4Cs in which they consume products and services — conscious about how their vote of wallet impacts their collective group, cherished values shift away from societal-defined yardsticks of success, curated consumption that reflects one’s identity, and careful, independent research before consumption. IDC predicts that by 2024, 40 per cent of younger millennials/older Gen Z in APeJ will emphasize 4Cs (conscious, cherished, curated, and careful) shifting towards a purposeful lifestyle, impacting how companies leverage technologies to sell to them.
Asia/Pacific is at the forefront of ushering into the digital-first economy. Such an economy expands the impact of digital technologies in the production and consumption of digital products, services, and experience to at least 65 per cent of its gross domestic product (GDP). IDC predicts that by the end of 2022, the Asia/Pacific region will become digital-first. In such an economy, Future Consumers participate through digitally enabled activities in entertainment, housing, lifelong learning, money, personal mobility, shopping, travel and dining, and well-being. With two other interconnected pillars, Future Societal Structures and Future Enterprises, Future Consumers is one of the three digital-first pillars which organizations and policyholders must consider in their digital-first strategies.
“We are fast approaching an economy where digital is the primary means to reach, connect, engage, and sell to digital consumers across all age demographics. Likewise, organizations must also become digital-first. They must redefine their mission to be more relevant to Future Consumers,” says Lawrence Cheok, Senior Research Manager for Future of Customer Experience, IDC Asia/Pacific. “In becoming digital-first, organizations will require concerted and strategic efforts within and across industries to enable more dynamic ecosystems where all parties can find future success by not only addressing current but future needs”.
IDC’s Future Consumer top 10 predictions provide guidance to business leaders on how consumer’s technology adoption, behaviours, and expectations will evolve in the coming years ahead:
Micro mobility Soars: In 2022, micro mobility continues to soar as more APeJ consumers embrace electric scooters and bikes for short trips, with sales of private e-bikes continuing to climb after volumes dramatically increased in 2020.
Robo Advisors Grow: In 2022, 35 per cent of new Gen Z investors in APeJ will turn to robot advisors—algorithm-based services that eschew traditional brokerage practices and fees—further disrupting the financial services sector.
Silver Generation Reverts: By 2022, 40 per cent of silver generation (>55 years old) consumers in APeJ who used digital during COVID-19 revert to old ways of consumption due to adoption challenges, creating opportunities for new CX journeys.
VR Renaissance: By 2023, APeJ consumers will spend more than $US2.5B per year on virtual reality headsets and games, driving the medium toward the mainstream and causing content creators to re-evaluate its potential.
Online Fitness Accelerates: By 2023, 35 per cent of APeJ households that once had a monthly gym membership will have shifted solely to an online fitness service that lets them work out at home leveraging wearable or connected gym equipment.
Purposeful Lifestyle: By 2024, 40 per cent of younger millennials/older Gen Z in APeJ will emphasize 4Cs (conscious, cherished, curated, and careful) shifting towards a purposeful lifestyle, impacting how companies leverage technologies to sell to them.
eSports Betting: Total legal consumer betting on esports contests will more than double between 2020 and 2024 to more than $US5.7 billion in APeJ, with much of that spend occurring on self-wagered games of skill.
E-waste Reckoning: By 2025, the tech industry faces a reckoning as discarded devices, batteries, and packaging pile up, with 15 per cent of APeJ Millennials and Gen Z refusing to consider brands with poor environmental impact.
OTT Grows: In 2026, OTT will capture 40 per cent of APeJ consumer subscription spending on video and TV, as major media companies’ commitment to direct-to-consumer drives the demise of legacy pay-tv.
Wearables Save Lives: By 2025, wearable devices will be directly credited with saving more than 75,000 lives per year in APeJ as more consumers adopt the technology to guide their fitness and health journeys.
