IDC Predicts Digital Convergence Across Consumer Demographics in Asia/Pacific
60% of Silver-Generation Consumers who Used Digital During COVID-19 will Remain in Digital
SINGAPORE – 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% 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% 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. These are just two of IDC’s predictions unveiled in its latest report, IDC FutureScape: Worldwide Future Consumer 2022 Predictions – APeJ Implications.
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% 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, behaviors, and expectations will evolve in the coming years ahead:
#1: Micromobility Soars: In 2022, micro mobility continues to soar as more APeJ consumers embrace electric scooters and bikes for short trips, with sales of private ebikes continuing to climb after volumes dramatically increased in 2020.
#2: Robo Advisors Grow: In 2022, 35% of new Gen Z investors in APeJ will turn to robo advisors—algorithm-based services that eschew traditional brokerage practices and fees—further disrupting the financial services sector.
#3: Silver Generation Reverts: By 2022, 40% 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.
#4: VR Renaissance: By 2023, APeJ consumers will spend more than $2.5B per year on virtual reality headsets and games, driving the medium toward the mainstream and causing content creators to reevaluate its potential.
#5: Online Fitness Accelerates: By 2023, 35% 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.
#6: Purposeful Lifestyle: By 2024, 40% 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.
#7: eSports Betting: Total legal consumer betting on esports contests will more than double between 2020 and 2024 to more than $5.7 billion in APeJ, with much of that spend occurring on self-wagered games of skill.
#8: eWaste Reckoning: By 2025, the tech industry faces a reckoning as discarded devices, batteries, and packaging pile up, with 15% of APeJ Millennials and Gen Z refusing to consider brands with poor environmental impact.
#9: OTT Grows: In 2026, OTT will capture 40% 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.
#10: 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.
These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape: Worldwide Future Consumer 2022 Predictions – APeJ Implications (IDC #AP47382321). Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. To learn more about the upcoming IDC FutureScape reports, please click HERE.