10 Hot Consumer Trends 2019 - Ericsson

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10 Hot Consumer Trends 2019 - Ericsson
1                                            Ericsson | 10 Hot Consumer Trends 2019

    ericsson.com/
    consumerlab

    10 Hot Consumer
    Trends 2019

    An Ericsson ConsumerLab Insight Report
    December 2018
10 Hot Consumer Trends 2019 - Ericsson
2                                                                                       Ericsson | 10 Hot Consumer Trends 2019

Contents

                              Methodology                                      About Consumer & IndustryLab
06   Awareables
                              This report presents insights based              Ericsson Consumer & IndustryLab delivers
07   Smart quarrels           on Ericsson’s long-standing consumer             world-class research, design concepts and
                              trends program, now in its eighth year.          insights for innovation and sustainable
08	Spying apps
                              The insights in the report are mainly based      business development. We explore the
09   Enforced agreement       on an online survey carried out in October       future of consumers, industries and a
                              2018, of 5,097 advanced internet users           sustainable society in regard to connectivity
10   Internet of skills
                              in Johannesburg, London, Mexico City,            by using scientific methods to provide
11   Zero-touch consumption   Moscow, New York, San Francisco,                 unique insights on markets, industries
12   Mental obesity           São Paulo, Shanghai, Sydney and Tokyo.           and consumer trends.
                                  Respondents are advanced internet               Our knowledge is gained in global
13   Eco me                   users aged 15−69, who have an urban              consumer and industry research programs,
14   My digital twin          early adopter profile with high average          including collaborations with renowned
                              use of new digital technologies. Within the      industry organizations and world-leading
15   5G automates society     sample, 47 percent use virtual assistants        universities. Our research programs cover
                              (Apple’s Siri, Google Assistant, Amazon’s        interviews with over 100,000 individuals
                              Alexa, etc.) at least weekly, and 31 percent     each year, in more than 40 countries
                              use augmented or virtual reality (AR/VR)         – statistically representing the views
                              every week.                                      of 1.1 billion people.
                                  Correspondingly, they represent only
                              34 million citizens out of around 183 million
                              living in the metropolitan areas surveyed,
                                                                                  All reports can be found at:
                              and a small fraction of consumers globally.         www.ericsson.com/consumerlab
                              However, we believe their early adopter
                              profile makes them important to consider
                              when exploring future trends.
                                  Trend 10 also relies on 2017/2018
                              survey data from Ericsson ConsumerLab’s
                              analytical platform, consisting of
                              72,067 smartphone users aged
                              15–69 in 50 countries. With the much
                              greater reach of this survey, the trend report
                              ends by pointing toward the mass market.
10 Hot Consumer Trends 2019 - Ericsson
3                                                                                                        Ericsson | 10 Hot Consumer Trends 2019

Welcome to an
automated society

Automation will change the way we live and work

Technology is promising more advantages           technology, the speed and reach of            As digital technology spreads
than ever before. People want things to           automation is now increasing rapidly.         throughout society, all these hopes
be cheaper, faster, more convenient and           It may already be common in workplaces,       and fears simultaneously filter through
delivered to their doors at no extra cost.        but what will happen when all of              consumers’ minds. The perspectives
    Supermarkets without checkouts;               society is automated? Will a life made        are staggering – and consumer views
clothes shops that take your measurements         up of more automated processes still          on a near-future automated society are
in seconds and carry out custom tailoring         feel human? And what will our place           very much the theme of this report.
in minutes; schools with increasing               as individuals be when everything is
robotization of teachers and hospitals            smarter, more exact and logical?
with non-human doctors; autonomous                    Automation lends itself to
cars; restaurants with mechanized                 creating an orderly society, but
menus; galleries showing art made by              when conflicting yet autonomous
artificial intelligence (AI); and live music      processes happen simultaneously,
performances by algorithmic composers are         could it also become more chaotic?
just a few examples of future possibilities.          The Ericsson 10 Hot Consumer Trends
Many of these examples may seem like              2019 reveal that people are experiencing
science fiction – but they are nevertheless       mixed emotions. Almost half of the
already being realized in society.                respondents in the survey think that, for
    Automation refers to processes                better or worse, the internet has replaced
that are performed without human                  many of the simple pleasures of daily life.
intervention or assistance. With digital
4                                                                   Ericsson | 10 Hot Consumer Trends 2019

10 Hot Consumer                                                              Welcome home,
                                                                             did you have
                                                                             a good day?
Trends 2019
                                                                                               No!
                                                                             Is everything ok?

                                                01. Awareables
                                                    Six in ten virtual assistant users think
                                                    devices that understand our moods
                                                    will be mainstream in three years.

                                                Team Pizza                               Team Burgers

    03. Spying apps                             02. Smart quarrels
       Forty-seven percent of consumers             Thirty-one percent of virtual assistant
       think apps collect data about them           users believe different smart speakers
       even when the apps are not being used.       in their homes will argue like families do.

                    Allow

    04. Enforced agreement                     05. Internet of skills
       Always having to accept                      More than 50 percent of AR or VR users
       data collection cookies annoys               want apps, glasses and gloves that give
       51 percent of consumers.                     virtual guidance for practical, everyday tasks.
5   5                                                                   Ericsson
                                                                              Ericsson
                                                                                  | 10 Hot
                                                                                       | 10Consumer
                                                                                            Hot Consumer
                                                                                                    Trends
                                                                                                         Trends
                                                                                                           2019 2019

        06. Zero-touch consumption                       07. Mental obesity
           Around half of virtual assistant users want       One in three consumers soon expect to go to
           automated bills and subscriptions, as well        “mind gyms” to practice thinking, as everyday
           as self-restocking household supplies.            decision-making gets increasingly automated.

        09. My digital twin                               08. Eco me
           Forty-eight percent of AR or VR users             Thirty-nine percent of consumers
           want online avatars that mimic them exactly,      want an eco-smartwatch that
           so they can be in two places at once.             measures their carbon footprint.

        10. 5G automates society
           One in five smartphone users believe 5G
           will better connect IoT devices, such as
           household appliances and utility meters.
6                                                                                                                        Ericsson | 10 Hot Consumer Trends 2019

Awareables

Your devices will soon know you
better than you know your devices.

                                                                                              Welcome home,
                                                                                              did you have
                                                                                              a good day?

                                                                                          No!
                                                                                              Is everything ok?

Your smartphone is likely to contain more        Similarly, 52 percent want a smartwatch                   When devices know us this well, they will
sensors than anything else in your home.         that blocks notifications when it                         also know our secrets. But astoundingly,
Yet advanced technology such as face             understands you are busy.                                 twice as many trust an AI device more
recognition is only used for seemingly           Forty-seven percent even want an app                      than a human to keep their secrets.
simple things, such as unlocking your phone.     that fact-checks a social media post just
    But what about when your smartphone          by noticing a surprised look on your face.
becomes fully aware of you; not only of
what you do, but of who you are? Today,          Figure 1: Trust in humans and AI among virtual assistant users
AI can already understand your personality
                                                      Trust human         Trust AI
just by looking into your eyes,1 or by hearing
your voice.
                                                           As a keeper of your secrets
    Half of those currently using virtual
assistants (Google Now, Alexa or Siri, etc.),
in phones or smart speakers, think that                 As your insurance consultant
their smartphones will soon understand
their emotions. And 42 percent think                     As your clothes style advisor
smartphones will soon understand them
better than their friends do. In fact,
                                                                        As your lawyer
6 in 10 think devices that sense and react
to our moods will be mainstream in 3 years.
When this happens, devices will act                  As a doctor checking your health
on situations rather than commands.
                                                                                         0%   5%    10%   15%      20%   25%   30%   35%   40%   45%
Imagine that you told your smart speaker
a secret and wanted it to be discreet.           Base: Virtual assistant users in 10 cities globally
Fifty-six percent of virtual assistant           Source: Ericsson ConsumerLab 10 Hot Consumer Trends 2019
users want a smart speaker that lowers           1
                                                     www.frontiersin.org/articles/10.3389/fnhum.2018.00105/full
its voice in such a situation.
7                                                                                                          Ericsson | 10 Hot Consumer Trends 2019

Smart quarrels

Virtual assistants might argue
just like family members do.

                                                   What should I have for dinner?

                                     Pizza

                                                                                                 Burgers

                                     Fight!

                                                                                                  I win!

                                                         Burgers have been ordered, they will be
                                                           delivered to your door in 15 minutes.

Family life can often include bickering          But would disagreeing assistants really
and trivial quarrels over differing opinions,
and this could extend to the behavior
                                                 quarrel? In the same way that people tend
                                                 not to talk about strained relationships          47%
of virtual assistants.                           when in public, people may not want to talk
                                                                                                   47 percent of virtual assistant users
    What will happen when we let different       about the bickering that happens between          think different assistants will give
types of virtual assistants, such as Alexa,      their devices at home. It could even lead to      them different answers.
Google Assistant, Siri and others, into          tensions in the home and cause arguments
various devices in our homes?                    between family members themselves.
    It turns out 47 percent of virtual
assistant users surveyed think different
                                                    Although only 31 percent think virtual
                                                 assistants in their own household would
                                                                                                   41%
assistants will give them different answers.     start quarrelling with each other like family     41 percent think it will be
In fact, 41 percent think it will be important   members – 66 percent believe such family          important for couples to
                                                                                                   have compatible assistants.
for couples to have compatible assistants.       scenarios will be common 3 years from now.
8                                                                                                 Ericsson | 10 Hot Consumer Trends 2019

Spying apps

Many feel that the apps they use
are constantly spying on them.

                                                                                              $         $        $
                                                                                              $         $        $
                                                         $        $
                                                         $                                    $         $        $
                                                                                              $         $        $

It is not uncommon to hear people             Many people also feel that they are being
describe a situation where they have been
talking about a certain product only to be
                                              taken advantage of. As many as
                                              52 percent of consumers think popular         52%
confronted by related advertising. Although   apps collect more smartphone data than
                                                                                            52 percent of consumers think
there is little concrete evidence that apps   needed in order to make profits. This leads   popular apps collect more
listen in to your conversations, you may      to more than half of consumers trying to      smartphone data than needed
have experienced something similar.           avoid companies that misuse personal          in order to make profits.
    As a result, the feeling of having        data when they choose services and
someone constantly looking over your          products. But even so, more than half
shoulder is becoming almost impossible        still worry that apps sell their data to
to shake off. In fact, 47 percent of          companies without their permission.
respondents believe many popular apps             As a result, 59 percent say we need
use cameras, microphones and location         global personal data protection principles.
information to collect data about their       The question of individual integrity
everyday behaviors – even when the            will continue to rise with the increasing
apps are not being used.                      digitalization of society.
9                                                                                                         Ericsson | 10 Hot Consumer Trends 2019

Enforced agreement

Clicking yes to “allow cookies” has
become the new enforced pastime.

                                                                                                  Allow

                                              This app requires access to your:
                             Allow

                                                  Camera
                                                  Microphone
                                                  Location
                                                  Mood
                                                     Lorem ipsum

                                                  Dietary requirements
                                                  Sleeping habits
                                                  School report cards
                                                                                                  Consent
                                                  Bank records
                                                  Internet history
                                                  Darkest secrets

                                                                   Whatever

                                 Authorize

                                                                              Accept all          Accept some

With an increasing number of websites          cookies and data collection, whereas            In fact, 47 percent think the internet
wanting to collect our information,            51 percent are annoyed by it.                   needs a new business model beyond
browsing the internet has turned into              Trying to cajole consumers into agreement   advertising. And as many as 42 percent
a real chore. Although the EU initiative       might in fact be counter-productive. In         say the internet needs to be changed
to protect user data and integrity has         our survey, 46 percent of consumers say         fundamentally if it is going to be a
consumer benefit in mind, it has set           that having to agree to so much makes           force for good in society again.
off a global epidemic of companies             agreement enforced and worthless.
trying to get consumers to sign away           Instead, it only creates mistrust.
their rights to personal data.                     The major business model behind this
    The result of this is consumer fatigue.    is to serve up personalized adverts to the
More than half think there should be a         users. But that in itself becomes a problem
single standardized agreement that all         when 49 percent say they often have to
companies would have to use, allowing          wait for an ad to load before they can
a choice over which level of personal data     view a web page. This begs the question:
use consumers accept. Only 8 percent are       is the internet broken?
comfortable with always having to accept
10                                                                                                                 Ericsson | 10 Hot Consumer Trends 2019

Internet of skills

Using AR/VR to structure reality will
let us instantly master almost anything.

With increasing internet use, a
                                                Figure 2: Percentage of AR or VR users interested in services
gradually diminishing understanding
of physical things is affecting all of us.          A pair of glasses that help you repair almost
We don’t know what to do when there                        anything in your household by giving
is no app to start or screen to swipe.                                     on-screen instructions
Almost half of all respondents agree                   An app that gives hands-on help to cook
                                                  food by mapping onto your stove and kitchen
that those who spend too much time
                                                                                          utensils
on the internet seem to forget how to               An AR experience that maps onto your own
do even simple things in real life.                               body and teaches you to dance
    But now the internet is about to
literally step into the physical world, and             A smartphone app that digitally shows
                                                everything from tying shoes to pumping air into
help us fix that broken chair, even if we
                                                                                      a bike tire
have never used a hammer before. Or                    Gloves that can guide your fingers when
help us cook the best food imaginable                repairing things or even when sewing on a
even if we normally fail with                                               missing shirt button
instant noodles.
    Imagine a YouTube video that                                                                     0%      10%   20%   30%    40%    50%   60%      70%

interactively personalizes instructions to
                                                Base: AR or VR users in 10 cities globally
help you do something you have never tried      Source: Ericsson ConsumerLab 10 Hot Consumer Trends 2019
before. Eighty-two percent of AR/VR users
believe that this type of instruction will be
mainstream in only three years.                 help you repair almost anything,                          With instructions that adapt digitally to
    But AR and VR offer possibilities far       and 56 percent even want to learn                         any task at hand soon to be available
beyond that. Sixty percent would like           how to dance using an instructive                         on demand, we will likely see the
glasses with on-screen instructions that        AR experience.                                            creation of a whole internet of skills.
11                                                                                                    Ericsson | 10 Hot Consumer Trends 2019

Zero-touch consumption

Virtual assistant users would like to fully automate
many boring aspects of consumption.

                                                          Home assistant
                                                          “Utility bill has
                                                          automatically
                                                          been paid”

                                                           Home assistant
                                                           “Washing up
                                                           liquid low, I have
                                                           ordered more”

Shopping can be aspirational, social and           Maybe an assistant could actually be
fun. It can also be an everyday chore that
has to be done – or there won’t be anything
                                                   smart enough to fix itself if it breaks
                                                   down? Fifty-two percent want virtual         47%
in the fridge to cook for dinner.                  assistants to manage warranty repairs
                                                                                                47 percent would like a virtual assistant
     People are increasingly expecting             of household electronics.                    to handle all their finances, including
new technology to automate the boring                  Some of this household automation        tax declarations.
elements of life, and in the process,              might seem a bit alien, as one considers
hopefully allow us to spend more time              that humans are of course still the
on interesting things. For example, not            ultimate beneficiaries. But zero-touch
everyone finds going to the supermarket            consumption without human intervention
to buy groceries stimulating – 49 percent          might happen sooner than we think.
of virtual assistant users would like to           In fact, 7 in 10 current virtual assistant
automate household restocking of                   users think these types of automated
generic items.                                     consumption will be commonplace in
     Keeping track of bills for gas, electricity   only 3 years’ time.
and water and paying them when they are
due is another tedious task that 55 percent
would like to automate. Forty-seven percent
would in fact like a virtual assistant to handle
all their finances, including tax declarations.
12                                                                                                  Ericsson | 10 Hot Consumer Trends 2019

Mental obesity

Automation of decisions could make us mentally lazy.

Toast or cereal? What if you couldn’t         virtual assistant that decides when they

                                                                                               31%
even decide what to have for breakfast        should visit a doctor, dentist or hairdresser.
without asking a digital device                   Today’s screen age has made us lazy as
for advice?                                   we aren’t required to move. Anything we
                                                                                               31 percent of consumers believe
    This could become a reality, given that   want is just a click or a swipe away, and
                                                                                               that we will have to go to “mind
34 percent of virtual assistant users would   many of us exercise our bodies less than         gyms” to practice thinking.
trust an AI as their nutritionist, but only   we need. But we may be on the cusp of
25 percent would trust a human.               this laziness spreading to our minds too.
    Eating right makes you feel better,       With digital decision support in increasingly
but automating such decisions might           more areas of everyday life, one-third
also take you down a path where you           of consumers think virtual assistants
no longer know how you feel. In fact,         will make people forget how to make
57 percent say they want a smartphone         their own decisions.
that knows when they are becoming ill             In fact, 34 percent already believe
before they notice themselves, and            critical thinking will disappear due to
54 percent would like a smartwatch that       the overuse of virtual assistants. And
senses when they are getting stressed         31 percent of consumers also expect
before noticing it themselves.                that we will have to go to “mind
    Would this lead to people attending       gyms” to practice thinking.
medical appointments without knowing
why? Forty-three percent would like a
13                                                                                                         Ericsson | 10 Hot Consumer Trends 2019

Eco me

Self-knowledge now means minimizing
your environmental impact.

The idea of monitoring your vitals has been       However, awareness is one thing and             This might also entail digital holiday
in the public eye ever since smartphones          acting on it is something else. This is         souvenirs and a rise in status of digital
went mainstream. But when the first               where automation comes in. For example,         items compared to physical.
generation of wearables did not live up           4 in 10 would like a virtual assistant             Our shopping habits also need to
to high consumer expectations, the interest       that environmentally optimizes indoor           change and change fast. As many as
in self-quantification also took a hit.           temperature and water use.                      68 percent think virtual assistants will help
Now wearable technology has matured                   In other cases, abstaining from action is   almost everyone avoid products with big
and interest is returning, albeit with a twist.   more important. Hence, 75 percent think that    environmental impact within the next
Wellbeing today is as much about CO2              digital commuting, as opposed to physical       3 years. And almost half would support a
as it is about calories.                          commuting, will be mainstream in 5 years –      digital eco-currency that gives them extra
    People are increasingly connecting            to lessen its environmental impact. Changes     money when they shop and commute in
their own health to a healthy environment.        will also apply similarly to private life;      environmentally friendly ways.
As a result, 39 percent of respondents would      78 percent believe that in the same 5-year
now like an eco-smartwatch that measures          time frame, VR holidays as a replacement
their daily carbon footprint.                     for physical holidays will become
                                                  mainstream for environmental reasons.
14                                                                                                      Ericsson | 10 Hot Consumer Trends 2019

My digital twin

Avatars will let us be in two places at the same time.

Being in two places simultaneously                 know when politicians and celebrities        as 49 percent believe customer service
might sound like magic, but in reality, we         are real and when a digital avatar just      and support functions will eventually
already are – often on a daily basis. Even         acts like them.                              use only avatars instead of people
when making a simple phone call, we are                This blurring of what is real and what   – an area that today is already highly
physically in one place and yet are mentally       is digital will have some merits. Around     focused on automation.
engaged in a conversation taking place             half would like avatars that can represent      And AR/VR users believe lifelike avatars
somewhere in the ether. This also goes for         them in different places at the same time,   are coming soon. More than half think
many situations on the internet, such as in        such as at work or school, as well as at     avatars will be commonly used in online
a chat or game.                                    social gatherings.                           meetings in only a year, and as many already
    But with avatars becoming increasingly             But 46 percent also worry that they      want to use avatars in this way.
realistic, it may become difficult for others      will be held responsible if their avatar
to judge if we are in a certain place or not. In   does something illegal – which could be
fact, 48 percent of AR/VR users think avatars      dangerous since as many also believe fake
will mimic their face so well that it will be      avatars could steal their identity.
no different to looking in a mirror. This              It might be a long time until avatars
won’t only apply to ordinary people. Thus,         become our true digital twins. But it is a
47 percent predict that it will be difficult to    direction we might end up going in,
15                                                                                                                Ericsson | 10 Hot Consumer Trends 2019

5G automates society

Smartphone users globally expect 5G to have
a big impact on societal internet infrastructures.

Smartphone users across 50 countries            Figure 3: Share of consumers who think the following services will benefit the most from 5G
have high expectations of 5G to mobilize
and automate many areas of everyday life.                                Home security alarms
While they see communication benefitting
                                                                           VR online shopping
most from upgraded mobile networks, they
also believe that 5G will support automation                                  Self-driving cars
in a variety of ways.
    Not only do 37 percent predict 5G will      Electricity, gas and water meters that connect
                                                                                 to the internet
better enable home alarms but 23 percent
                                                 Refrigerators, stoves and washing machines
believe it will benefit self-driving cars                           that connect to the internet
too. One in five also see a long list of IoT           Household robots that do laundry, etc.
devices made more useful by 5G including
electricity, gas and water meters, as well as
                                                                                                   0%          10%         20%         30%         40%
refrigerators, stoves and washing machines.
    Smartphone users globally also think        Base: 72,067 smartphone users aged 15–69 in 50 countries
AR/VR applications will be improved.            Source: Ericsson ConsumerLab analytical platform 2017/2018
Specifically, 32 percent see VR shopping
benefitting from 5G, and 21 percent             automation by becoming an intelligent hub               and smart glasses fourth, all of which are
also expect mobile use of AR/VR                 for IoT devices. In fact, respondents in our            devices that point toward an increasingly
headsets in general.                            urban early adopter study ranked the AI                 automated future.
    In order for such services to reach the     phone as the No. 1 tech device that people                  Still, iconic products are typically the first
mass market, 5G will need an iconic device      everywhere will buy, in a list of                       of their kind, so the 5G device that actually
that resonates with consumers. While the        12 future-oriented devices.                             defines the next era may yet surprise us all.
iPhone defined the mobile internet, it              Furthermore, respondents ranked
might take an AI phone to define mass           self-driving cars second, AR phones third
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