Consumer Insights about Technology: France, UK, and Germany

Part
01
of three
Part
01

Technology Consumer Behavior Trends: France

An increased shift to e-commerce and an influence of social media on consumer decision-making are trends in consumer behavior related to technology in France. The requested information on the trends is presented below.

Increased Shift to e-Commerce

  • The e-commerce space in France is the fifth-largest in the globe and the third in Europe. It has also grown significantly in the past few years with notable trends such as m-commerce, the click-and-collect, multichannel approach, and social commerce. As a result, it has prompted more French consumers to shift online and broaden their shopping habits.
  • France has 55.4 million active internet users, with 80% of the population shopping online. E-commerce in the country grew by 13.4% in 2018 and saw an 11.5% growth in 2019. Growth in the French e-commerce market has remained stable since 2014, staying consistently above Europe's average.
  • The click-and-collect option for grocery stores has particularly grown with more consumers adopting it. Consumers in France are also increasingly adopting premium delivery subscription.
  • The continued proliferation of e-commerce adoption in France is attributed to the use of technological gadgets such as smartphones and tablets. Consumers are also leveraging the convenience offered by e-commerce.
  • The trend is also motivated by high internet penetration, growing mobile services, and a modern delivery structure. Other drivers include reliable payment methods, higher purchasing power, and widespread use of the French language.
  • One of the companies leaning into this trend is Cdiscount. The company is worth $2.08 billion, and among the 15 most visited online stores around the globe. The other company is Veepee, worth about $1.89 billion.

Increased Influence of Social Media on Consumer Decision-making

  • Social media in France is playing an influential role in the consumer decision-making process, particularly in cooking, beauty, and fashion brands. French consumers are among the highest consumers of social media in Europe. In 2017, France had more than 40.8 million Facebook and 37.3 million YouTube users.
  • With a high penetration rate of 58%, consumers are relying on what they consume in the various platforms to make purchase decisions. Statistics show that French consumers aged 18 and above spend an average of 10 hours and 6 minutes per day with social media.
  • Advertisers in France are spending huge amounts of resources on digital advertising to take advantage of this trend. In 2019, the spending totaled $5.78 billion.
  • This trend is motivated by the high internet and social media penetration in France. Thus, consumers can conveniently use gadgets such as smartphones to access social media platforms.
  • Companies are also growing their social media presence as they try to reach more consumers. Overall, social media has provided a viable source of information for decision-making among consumers.
  • One of the companies leaning into this trend is Ricore. It uses creative ways to engage its consumers using Facebook Messenger.


Part
02
of three
Part
02

Technology Consumer Behavior Trends: Germany

Growing mobile data usage, growing concerns over privacy, and increased home automation are consumer behavior trends related to technology in Germany. The requested information about the trends is provided below.

Growing Mobile Data Usage

  • Consumption of mobile data is on a rapid increase among German consumers. According to recent reports, the average user now uses over 1GB of data every month, which represents a significant rise from only 52MB per month in 2010.
  • This trend is motivated by increased mobile phone usage as well as mobile internet connections. These have provided better and faster ways of connecting to the internet via mobile devices such as smartphones and iPads. Moreover, the demand for image and video-intensive mobile apps, such as YouTube, Netflix, and Instagram, are also driving the growth in mobile data usage.
  • Netflix and YouTube are among the companies leaning into this trend in Germany. The companies provide digital video content for free or through payment for consumers, hence becoming major drivers of the growing mobile data consumption.

Growing Concerns over Digital Privacy

  • There has been a noticeable increase in consumer interest and concerns over digital privacy in the technology sector in Germany. There is a growing fear of issues such as personal privacy violations, financial information breaches, sensitive information exposure, and data theft. Moreover, more people are using cybersecurity software, including antivirus and ad-blocking sites.
  • The trend is motivated by growing incidents of digital data breaches. Increased risk of digital privacy infringement is making more mobile data consumers in the country wary when using mobile data for personal, as well as other uses. For example, many users are against the gathering and sharing of personal data by advertisers and publishers.
  • Among the companies leaning into this trend include Avast and Avira. The two companies provide security services for mobile internet users in Germany as a preventive mechanism against potential breaches in digital privacy. With the growing consumer concerns and demand for digital privacy, these companies are benefiting by selling their security solutions to meet the growing demand.

Rising Home Automation

  • A growing Internet of Things (IoT) sector has inspired a rising demand for home automation technologies among German consumers. More Germans are using IoT devices, including wireless speakers, fitness trackers, smartwatches, surveillance security systems, smart lighting systems, connected home appliances, and connected cars, among others. This trend has resulted in behavior change among German technology consumers who want to automate their homes.
  • This trend is motivated by several factors. On the one hand, it is motivated by the increasing availability of B2C home automation technologies. Some of these technologies include smartwatches, wireless speakers, surveillance security systems, fitness trackers, and smart lighting systems, among others.
  • Since the technologies are readily available, more German consumers are motivated to buy and use them. On the other hand, the trend is driven by the greater convenience that home automation technologies provide. With home automation, consumers enjoy enhanced efficiencies and convenience in managing their homes and utilities such as energy, security, and entertainment.
  • Among the companies leaning into this trend are Google Home and Amazon Alexa. According to recent reports, the two companies have become facilitators for the growing demand by providing convenience in controlling the connected home systems.
Part
03
of three
Part
03

Technology Consumer Behavior Trends: UK

Transient brand loyalty and endorsement-driven purchase are consumer behavior related to technology in the UK. The requested information on the trends is presented below.

Transient Brand Loyalty

  • Although UK consumers identify themselves as loyal shoppers who prefer to shop with retailers they are already familiar with, the price-dependent loyalty is weakening due to digital disruptions. Thus, companies aiming to retain their customers through brand loyalty alone are facing a difficult challenge.
  • Modern UK customers have access to a broad spectrum of digital tools and online databases that they are using to promptly and conveniently compare prices, check availability, and read real product reviews. Thus, customers are shifting from big brands to try new and more authentic experiences.
  • The trend is motivated by the availability of appropriate technologies and digital differentiators that customers can use to access market information. For example, social media platforms such as Facebook and Instagram provide a wide array of alternative brands and their merits for comparison. UK brands are also fueling the trend by providing digital platforms such as accessible websites as they compete for customer loyalty.
  • Companies such as Deliveroo and Uber Eats in the UK are leveraging the trend by offering new and authentic experiences such as personalized offers and fast delivery time. UK spirits manufacturers are also leaning into this trend because most spirit drinkers are actively seeking new brands, a move that underscores the transient brand loyalty.

Endorsement-driven Purchase

  • UK consumers are increasingly relying on online peer and expert recommendations to make purchase decisions. Unlike during the print age, the internet technology has provided customers with readily accessible user-generated reviews and expert opinions. Online review platforms such as TripAdvisor have become so influential recently as customers can share information regarding their experiences with certain brands.
  • Customers are also increasingly relying on endorsements made by social media personalities and influencers in platforms such as Instagram. Statistics shows that over half of consumers trust influencers with 50,000 followers or less the most. 17% of internet users in UK observe that they were inspired to make a purchase by an influencer's post on social media in the past month.
  • This trend is more pronounced among Generation Z audience who are actively engaged in social media such as YouTube. They have a fundamental need for visually engaging, video-led content.
  • This trend is motivated by the evolution of digital space that has prompted brands to find ways of reaching consumers differently. Consumers in the UK are also considered relatively social media savvy and big mobile apps users. The county has 45 million active social media users equivalent to 67% of the entire population.
  • An example of a company leaning into this trend is Boohoo. The low-cost own-brand clothing seller is aggressively investing in celebrity endorsements as it continues to target the Instagram generation to boost sales. As a result, the fashion brand has experienced rapid financial growth as sales soar.
Sources
Sources