The year is 2033, and the field of medicine has changed significantly. Wearable med-tech devices are everywhere, providing real-time monitoring of patient health and enabling healthcare providers to detect potential issues before they become serious. Innovative technologies such as artificial intelligence and robotics are used to improve diagnosis, treatment, and patient outcomes. Welcome to the future of med-tech.

According to a recent report, the global medical technology market is expected to grow at a compound annual growth rate of 5.6% from 2021 to 2028, driven by the increasing prevalence of chronic diseases, technological advancements, and rising healthcare expenditures. As the med-tech industry continues to evolve, so do the challenges and opportunities for growth.

The Current State of the Med-Tech Industry

The med-tech industry has been undergoing a rapid transformation over the last few years, driven by technological advancements, changing patient needs, and increasing healthcare expenditures. 

One of the major trends in the med-tech industry is the increasing adoption of digital health solutions. With the rise of smartphones, wearables, and other connected devices, patients are more engaged in their health than ever before. This has created a growing demand for digital health solutions that allow patients to monitor their health, track their progress, and communicate with their healthcare providers.

Another trend in the med-tech industry is the increasing focus on patient outcomes. As healthcare shifts from a volume-based to a value-based model, providers increasingly seek solutions that can improve patient outcomes and reduce costs. This has created a growing demand for technologies that can improve diagnosis, enhance treatment options, and streamline operations.

Despite the many opportunities in the med-tech industry, there are also significant challenges that need addressing. One of the biggest challenges is regulatory compliance. Med-tech companies must comply with complex regulations, including the FDA’s Quality System Regulation and the European Medical Devices Regulation. This can make it difficult for companies to bring innovative products to market quickly and cost-effectively.

Another challenge in the med-tech industry is cybersecurity. With the increasing use of connected devices and digital health solutions, there is a growing risk of cyberattacks that can compromise patient data and disrupt operations. This has created a need for med-tech companies to invest in cybersecurity solutions that can protect their systems and data.

Despite these challenges, the med-tech industry is poised for continued growth in the years ahead. According to a report by Grand View Research, the global medical device market will reach $612.7 billion by 2025, driven by factors such as increasing healthcare expenditures, aging populations, and the growing prevalence of chronic diseases.

Med-tech Timeline

The term “med-tech” is believed to have been coined in the late 1990s, around the time when the med-tech industry was undergoing rapid transformation due to the rise of digital health solutions and other technological advancements. However, the roots of the med-tech industry can be traced back centuries, with the development of various medical devices and technologies that have revolutionized healthcare over the years.

  • 1895: The X-ray is invented, revolutionizing medical imaging and diagnosis.
  • 1928: The discovery of penicillin marks the beginning of the antibiotic era.
  • 1952: The first artificial heart valve is developed.
  • 1960: The development of implantable pacemakers leads to significant advances in the treatment of cardiac arrhythmias.
  • 1979: The first MRI machine is developed, providing non-invasive imaging of the body’s soft tissues.
  • 1980s: The development of laparoscopic surgery allows for minimally invasive surgery, reducing patient recovery times and complications.
  • 1998: The first wearable defibrillator is approved by the FDA for use outside of hospitals.
  • 2001: The first continuous glucose monitor is introduced for at-home monitoring of blood sugar levels in patients with diabetes.
  • 2004: The first remote patient monitoring systems were introduced, allowing patients to be monitored at home.
  • 2006: The first wireless fetal monitor is introduced, allowing expectant mothers to monitor their baby’s heartbeat at home.
  • 2010: The rise of digital health solutions and mobile health technologies leads to a new era of patient engagement and personalized healthcare. Wearable fitness trackers and smartwatches have gained popularity, allowing users to track their fitness and monitor their health data, including heart rate and sleep patterns.
  • 2014: The first at-home genetic testing kits are introduced, allowing consumers to analyze their DNA for ancestry and health information.
  • 2016: The FDA approves the first at-home artificial pancreas system for patients with type 1 diabetes, allowing for automated insulin delivery.
  • 2017: The FDA approves the first digital pill, which contains a sensor that can track when the medication is ingested.
  • 2020: During the COVID-19 pandemic, telemedicine and remote patient monitoring technologies increase dramatically, as patients seek to avoid in-person visits to healthcare providers.

The Role of Technology in Driving Growth

In recent years, technology has played a significant role in driving growth in the med-tech industry. From artificial intelligence (AI) to the internet of things (IoT), a wide range of innovative technologies are transforming the way healthcare is delivered. 

One of the most promising technologies driving growth in the med-tech industry is artificial intelligence (AI). With its ability to analyze vast amounts of data and identify patterns, AI is well-suited for a range of applications in healthcare. For example, AI-powered diagnostic tools can help healthcare providers to more accurately diagnose and treat a range of conditions, while AI-powered predictive analytics can help identify patients who are at risk of developing certain conditions before symptoms appear. AI is also being used to develop more personalized patient treatment plans based on their unique genetic and environmental factors.

Another technology driving growth in the med-tech industry is the internet of things (IoT). With the proliferation of connected devices, there is a growing opportunity to leverage the IoT to improve patient outcomes and reduce costs. For example, IoT-enabled medical devices can monitor patient health in real-time and alert healthcare providers if there are any concerning changes. This can help to prevent hospital readmissions and other costly complications. The IoT is also being used to optimize hospital operations by using real-time data to manage patient flow, reduce wait times, and improve patient satisfaction.

Other innovative technologies driving growth in the med-tech industry include machine learning, blockchain, and virtual reality. Machine learning, like AI, analyzes large data sets and improves healthcare outcomes. Meanwhile, blockchain is used to create more secure and efficient healthcare data exchanges, while virtual reality trains healthcare providers and provides patients with immersive therapy experiences.

As the med-tech industry continues to evolve, we will likely see even more exciting developments in the years ahead.

Examples of Innovative Med-tech products

Medtronic’s Micra Transcatheter Pacing System

This tiny pacemaker implanted directly into the heart eliminates the need for leads or a surgical pocket under the skin. The device is only 1/10th the size of a traditional pacemaker and has a battery life of up to 14 years. The Micra system has been shown to have a lower risk of complications compared to traditional pacemakers and has been used to treat over 100,000 patients worldwide.

Philips’ Lumify Ultrasound System

This portable ultrasound system can be used with a smartphone or tablet. The small and lightweight device makes it easy to transport to remote or rural areas. The Lumify system provides ultrasound imaging in emergency rooms, critical care units, and in the field during disaster response efforts.

Prosthetics by Open Bionics

This is a UK-based company that develops prosthetic limbs using 3D printing technology. Open Bionics’ prosthetics are lightweight, affordable, and can be customized to fit each individual patient. The company has developed a range of prosthetic limbs for adults and children, including arms and hands, and has received several awards for its innovative products.

Best Practices for Leveraging Innovative Technology

Leveraging innovative technology is essential for driving growth in the med-tech industry. However, it’s important to approach the selection and implementation of technology solutions strategically to ensure they are effective and aligned with business objectives. 

The first step in leveraging innovative technology is to assess the needs of your target audience. This requires a deep understanding of the challenges faced by healthcare providers and patients and the opportunities for improving patient outcomes and reducing costs. For example, suppose you are developing an AI-powered diagnostic tool. In that case, it’s essential to understand the specific diagnostic challenges healthcare providers face and ensure the device is user-friendly and easy to integrate into existing workflows.

Another important consideration is identifying key performance indicators (KPIs) for measuring the success of technology solutions. This requires a clear understanding of the business objectives that are driving the adoption of technology. For example, if your objective is to reduce hospital readmissions, your KPIs might include the number of readmissions per month or the average length of patient stay.

Building a solid technology infrastructure is also critical for leveraging innovative technology. This requires investing in the right hardware and software and developing a robust data management system that can support the collection, analysis, and storage of large amounts of data. It’s also important to have a team of experienced technology professionals who can manage the implementation and maintenance of technology solutions.

To ensure the effective implementation of innovative technology, it’s important to have a strong focus on user adoption. This requires engaging with healthcare providers and patients to understand their needs and preferences and designing technology solutions that are intuitive and user-friendly. This approach has been shown to be effective in increasing adoption rates and improving outcomes. For example, a study published in the Journal of the American Medical Association found that an AI-powered diagnostic tool was more effective when healthcare providers were engaged in the development process and provided with training and support.

Case Studies from Around the World

Innovative technology is transforming the med-tech industry worldwide, with companies using advanced solutions to improve patient outcomes, streamline operations, and drive revenue growth. In this section, we will showcase some case studies from around the world that illustrate how innovative technology is driving growth in the med-tech industry.

United Kingdom

Sensyne Health is a UK-based healthcare company founded in 2018 by Lord Paul Drayson. The company uses artificial intelligence (AI) to develop innovative healthcare solutions that improve patient outcomes and reduce costs. Sensyne’s clinical AI technology is used to create predictive algorithms to help healthcare providers identify patients at risk of developing certain conditions. By analyzing patient data in real-time, Sensyne’s technology can help clinicians to identify patients who may benefit from early intervention, ultimately leading to better health outcomes and reduced costs.

Sensyne has partnered with several UK-based hospitals and research organizations to develop and test its solutions. One notable partnership is with the University of Oxford’s Big Data Institute. Sensyne is working with researchers to create predictive models for conditions such as heart failure and sepsis. Using AI to analyze large datasets, Sensyne, and its partners can develop highly accurate predictive models to help clinicians make better decisions and improve patient outcomes.

In addition to its partnerships, Sensyne has also reported impressive financial results. In 2020, the company reported a 43% increase in revenue, driven by strong demand for its technology solutions. Sensyne has also secured several large contracts with UK-based healthcare providers, including a partnership with Chelsea and Westminster Hospital NHS Foundation Trust to develop a digital early warning system for patients with COVID-19. 

By developing predictive algorithms and using AI to analyze patient data, Sensyne is helping improve patient outcomes and reduce costs, securing impressive financial results, and establishing partnerships with leading healthcare providers and research organizations.

Europe

Ada Health is a Berlin-based company that has developed a mobile app that uses AI to help patients diagnose their symptoms. The app asks users questions to determine the possible causes of their symptoms and provides personalized health recommendations. Ada Health partners with several European health systems, including the UK’s National Health Service (NHS). It is helping to reduce the burden on healthcare providers by empowering patients to take a more active role in their healthcare.

USA

Atrius Health is a US-based healthcare organization that is at the forefront of using virtual care technology to improve patient outcomes and reduce costs. The organization was founded in 2004 and is headquartered in Newton, Massachusetts. Atrius Health provides a wide range of healthcare services to patients in the New England area, including primary care, specialty care, and behavioral health services.

By leveraging virtual care technology, Atrius Health can connect patients with healthcare providers remotely, reducing the need for in-person visits and improving patient access to care. In recent years, the organization has reported significant improvements in patient satisfaction, clinical outcomes, and cost savings.

One example of Atrius Health’s success is its implementation of virtual group visits, which allow patients with similar conditions to receive care together remotely. By connecting patients with each other and with healthcare providers, virtual group visits have been shown to improve patient engagement and satisfaction while also reducing the need for in-person visits and improving health outcomes. According to Atrius Health, patients who participated in virtual group visits for diabetes management had a 5.9% reduction in HbA1c levels, compared to a 2.4% reduction for patients who received usual care.

Atrius Health has also reported significant cost savings due to its virtual care initiatives. According to a recent report, the organization saved more than $15 million in 2019 using virtual care technology. In addition to cost savings, virtual care has allowed Atrius Health to expand its reach and provide care to patients in rural and underserved areas.

By implementing innovative solutions like virtual group visits and focusing on patient engagement, Atrius Health has established itself as a leader in the med-tech industry, with a strong track record of success and a commitment to improving patient outcomes.

India

Practo is an Indian healthcare company that has developed a mobile app that allows patients to book appointments with healthcare providers, access their medical records, and communicate with their healthcare team. The app allows patients to save time and improve their access to care. Practo has also developed a telemedicine solution that enables patients to consult with healthcare providers remotely, improving access to care for patients in rural areas.

Japan

Sony is a Japanese electronics company expanding its presence in the med-tech industry. One of Sony’s recent developments is a wearable device that can monitor vital signs, such as heart rate and blood pressure. The device uses advanced sensor technology to provide real-time patient health monitoring, allowing healthcare providers to detect potential issues before they become serious.

In 2018, Sony announced the release of its wearable device, the Wena Wrist Pro. The device has sensors that can detect heart rate, blood pressure, and other vital signs. It also has an NFC chip, allowing users to make payments and access public transportation. The device can connect to a smartphone app, allowing users to monitor their health data and share it with healthcare providers.

The Wena Wrist Pro has been used in several hospitals in Japan to improve patient outcomes and reduce costs. For example, in 2019, Sony partnered with Osaka University Hospital to conduct a pilot study using the Wena Wrist Pro to monitor patients with congestive heart failure. The study found that the device was effective in detecting changes in patient health, allowing healthcare providers to intervene before serious complications occurred.

Toshimoto Mitomo, Deputy Senior General Manager of Sony’s AI Robotics Business Group, says, “We see healthcare as a very important business domain for Sony. We are committed to developing technology that can help people lead healthier, more fulfilling lives.” In addition to the Wena Wrist Pro, Sony is also developing other healthcare technologies, such as a biometric sensor that can measure stress levels and a robotic pet that can provide companionship for elderly people.

Overall, Sony’s development of the Wena Wrist Pro is an example of how wearable technology can be used to improve patient outcomes and reduce costs in the med-tech industry. With its advanced sensor technology and smartphone connectivity, the Wena Wrist Pro has the potential to revolutionize the way patients and healthcare providers monitor and manage health.

China Ping An Good Doctor is a Chinese healthcare company that has developed a telemedicine platform that connects patients with healthcare providers remotely. The platform uses AI to provide diagnosis and treatment recommendations and has been used by millions of patients across China and Southeast Asia. The company has reported significant growth in recent years, driven by increasing demand for telemedicine solutions in the region.

Singapore 

Holmusk is a Singapore-based healthcare company at the forefront of using innovative technology to improve mental health services. The company was founded in 2015 by Nawal Roy and has since established itself as a leader in the med-tech industry, focusing on using AI to provide personalized therapy for patients.

Holmusk’s mental health platform, “Big White Wall,” uses AI to analyze patient data and provide customized treatment plans. The platform can identify potential risk factors for mental health issues, such as depression and anxiety, and provide early intervention to prevent serious complications. The platform also includes a community feature, allowing patients to connect and share experiences.

Holmusk has partnered with several healthcare providers in Singapore to improve access to mental health services. One notable partnership is with National University Hospital (NUH), where Holmusk provides its mental health platform to patients with chronic illnesses. According to NUH, the partnership has resulted in a 30% reduction in hospital admissions and a 60% reduction in emergency department visits among patients with chronic illnesses.

In addition to its partnerships in Singapore, Holmusk has expanded to other countries in the region, such as Malaysia, Indonesia, and the Philippines. The company reported impressive growth in recent years, with a 50% increase in revenue in 2020 and a valuation of over $100 million.

According to Nawal Roy, Founder and CEO of Holmusk, “Our mission is to improve mental health outcomes for millions of people around the world. By using AI to provide personalized therapy, we are helping to address the global mental health crisis and improve access to care for those who need it most.”

Canada 

MindBeacon is a Canadian mental health company that has developed an online platform that provides personalized therapy for patients with mild to moderate mental health concerns. The platform uses AI to match patients with licensed therapists and provides access to interactive exercises and guided meditations. MindBeacon has partnered with several Canadian employers and health plans to improve employee access to mental health services.

Thailand

OmiseGO is a Thai fintech company that has developed a blockchain-based payment system for healthcare transactions. The platform allows healthcare providers to securely and efficiently manage payment and insurance transactions, reducing administrative burdens and improving patient experiences. OmiseGO has partnered with several Thai health systems to implement its payment system.

Indonesia

Halodoc is an Indonesian healthcare company that has developed a mobile app allowing patients to consult remotely with healthcare providers. The app provides access to various healthcare services, including telemedicine, pharmacy delivery, and lab tests. Halodoc has partnered with several Indonesian health systems to improve access to care for patients in remote areas.

Vietnam

eDoctor is a Vietnamese healthcare company that has developed a telemedicine platform allowing patients to consult remotely with healthcare providers. The platform provides access to various healthcare services, including online consultations, prescription delivery, and lab tests. eDoctor has partnered with several Vietnamese health systems to improve access to care for patients in remote areas.

Philippines

HealthNow is a Philippine healthcare company that has developed a telemedicine platform that connects patients with healthcare providers remotely. The platform provides access to various healthcare services, including virtual consultations, e-prescriptions, and lab tests. HealthNow has partnered with several Philippine health systems to improve access to care for patients across the country.

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What does the future hold for med-tech?

Futurists predict that technological innovations will significantly impact the med-tech industry in the next decade, with several advancements expected to transform the way healthcare is delivered. Here are a few predictions:

  • Increased Use of Artificial Intelligence (AI): AI will play an increasingly important role in healthcare in the next decade, with the potential to improve diagnosis, treatment, and patient outcomes. AI-powered tools can analyze large amounts of data quickly and accurately, allowing healthcare providers to make more informed decisions.
  • More Personalized Medicine: Advances in genomics, wearables, and other technologies are expected to enable more personalized medicine. Healthcare providers can tailor treatments to each individual’s unique needs by analyzing a patient’s genetic makeup and other factors.
  • Greater Use of Robotics: Robotics will play an increasingly important role in healthcare, with the potential to improve surgical outcomes, assist with rehabilitation, and provide remote care. While robots are unlikely to replace doctors entirely, they will assist with certain tasks, such as surgery, and provide support for patients in areas such as physical therapy.
  • Telemedicine and Remote Care: The COVID-19 pandemic has accelerated the trend toward telemedicine and remote care, which will continue to grow and evolve. Telemedicine and remote care enable patients to access healthcare services from anywhere, reducing the need for in-person visits and improving access to care, especially in rural or underserved areas.

The med-tech industry is undergoing a period of rapid transformation driven by the power of innovative technology. From AI and machine learning to wearables and telemedicine, technology solutions are improving patient outcomes, streamlining operations, and driving revenue growth. 

As the med-tech industry evolves, companies must stay up-to-date with the latest trends and best practices. By assessing the needs of their target audience, identifying key performance indicators, building a solid technology infrastructure, and focusing on user adoption, brands in the med-tech space can position themselves for success in the years ahead.

Want more insight into the world of med-tech? Download our comprehensive trend report “Feeling Good: Powering the Next Gen of Fitness and MedTech” here.

According to a report by MarketsandMarkets, the wearable technology market is expected to reach $54 billion by 2023. Understanding consumer behavior related to wearable technology is more important than ever. Analyzing consumer behavior can provide valuable insights for product marketing managers and research executives, enabling them to design products that meet different consumer segments’ needs and preferences and develop effective marketing and pricing strategies. 

This blog will examine the various facets of consumer behavior related to wearable technology, including purchasing habits, usage patterns, and perceptions of the technology. Through this analysis, we can better understand the needs and preferences of different consumer segments and how companies can cater to these needs to stay competitive in this growing industry.

Wearable technology refers to electronic devices worn on the body, typically as accessories or clothing items. These devices are designed to track or collect data related to the wearer’s health, fitness, and daily activities, among other things. Examples of wearable technology products include smartwatches, fitness trackers, and augmented reality glasses.

The benefits of wearable technology from a consumer perspective are numerous. Wearable devices can help individuals track their fitness goals, monitor their health metrics, and stay connected to their digital lives on the go. A recent study by Grand View Research estimated that the global wearable technology market size is expected to reach $104.39 billion by 2027, with the health and fitness segment being the largest market.

However, there are also drawbacks to wearable technology that should be considered. One concern is the potential invasion of privacy, as these devices collect and transmit data about the wearer’s personal life. Another drawback is the potential for distraction and over-reliance on technology, as wearers may become too focused on their devices instead of their surroundings.

As wearable technology continues to evolve, so do its benefits and drawbacks. The late fashion designer Karl Lagerfeld once said, “Technology has to be invisible. Wearable technology must be beautiful.” This sentiment reflects the desire of consumers for devices that not only function well but also look good and feel comfortable to wear.

Despite the potential drawbacks, wearable technology is poised to continue its growth in popularity as more consumers seek to integrate technology into their daily lives. As the benefits of these devices become more widely recognized and as technology continues to advance, wearable technology is likely to play an increasingly important role in the future of consumer technology.

Wearable Technology Timeline

  • 1975: The first wearable computer, the “Wearable Computer for Computerized Conference Control,” is created by Edward Thorp and Claude Shannon.
  • 1994: Seiko releases the first smartwatch, called the Seiko MessageWatch.
  • 1999: The first Bluetooth headset, developed by Ericsson, is released.
  • 2008: Fitbit releases its first fitness tracker, the Fitbit Classic.
  • 2010: The first generation of the Apple Watch is released, marking Apple’s entry into the wearable technology market.
  • 2012: Google releases Google Glass, a pair of smart glasses that use augmented reality technology.
  • 2014: The first Android Wear smartwatches, including the LG G Watch and the Samsung Gear Live, are released.
  • 2015: The Apple Watch Series 1 is released, which includes features such as heart rate monitoring and fitness tracking.
  • 2016: Pokemon Go, an augmented reality mobile game, becomes a worldwide sensation and brings attention to the potential of augmented reality technology in wearable devices.
  • 2017: Fitbit acquires Pebble, a popular smartwatch brand.
  • 2018: Apple releases the Apple Watch Series 4, which includes advanced health features such as an ECG monitor and fall detection.
  • 2019: The global wearable technology market is valued at $32.63 billion, according to a report by Grand View Research.
  • 2020: The COVID-19 pandemic increases demand for wearable technology that can monitor health metrics, such as temperature and oxygen levels.
  • 2021: Wearable devices continue to gain popularity, with features such as sleep tracking, stress monitoring, and more advanced fitness tracking capabilities.

Wearable Tech Consumer Purchasing Habits 

Consumer purchasing habits play a crucial role in the wearable technology industry, directly influencing product design, marketing, and pricing strategies. 

Here are some of the main factors that influence consumers’ decisions to purchase wearable technology:

  • Health and Fitness Goals: Consumers who prioritize health and fitness are more likely to purchase wearable technology devices, such as fitness trackers and smartwatches, that can help them monitor their activity levels, sleep patterns, and overall health metrics. According to a 2021 survey by Statista, 53% of wearable technology users in the United States use their devices to track fitness and health.
  • Fashion and Style: Wearable technology designed to be stylish and aesthetically pleasing can appeal to fashion-conscious consumers. For example, luxury watch brands such as TAG Heuer and Fossil have introduced smartwatches that combine fashion and technology to cater to this market.
  • Compatibility with Other Devices: Consumers who already own other devices, such as smartphones or laptops, may be more likely to purchase wearable technology compatible with their existing technology. This can include devices that use the same operating system, such as Apple’s ecosystem of products, or devices that integrate with popular apps and services.
  • Price: The cost of wearable technology devices is important for many consumers. According to a 2021 report by PwC, price was the most important consideration for 60% of respondents considering purchasing a wearable device.

Consumer purchasing habits also vary depending on the demographic and psychographic characteristics of different consumer segments. For example, younger consumers may be more likely to purchase wearable technology as they are more likely to be early adopters of new technology. Similarly, consumers with higher incomes may be more likely to buy luxury wearable devices, while consumers who prioritize environmental sustainability may be more likely to purchase eco-friendly wearable technology.

According to a 2020 report by IDC, the top five wearable technology vendors in market share are Apple, Xiaomi, Samsung, Huawei, and Fitbit. These companies cater to different market segments and offer a range of products at different price points. For example, Apple’s high-end smartwatches and earbuds appeal to consumers who prioritize technology and style, while Fitbit’s fitness trackers cater to consumers who prioritize health and fitness.

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Wearable Technology Usage Patterns

Wearable technology has a wide range of applications and features that make it appealing to consumers. Here are some of the ways that consumers use wearable technology and the features and functionalities that are most important to them:

  • Fitness Tracking: Wearable technology is popular for fitness tracking, with features like step tracking, heart rate monitoring, and calorie tracking. According to a 2021 survey by Statista, 57% of wearable technology users in the United States use their devices for fitness and exercise.
  • Health Monitoring: Wearable technology can also be used for health monitoring, with features like blood pressure monitoring, sleep tracking, and medication reminders. This is especially important for aging populations or individuals with chronic health conditions.
  • Communication and Connectivity: Wearable technology can be used for communication and connectivity, with features like phone calls, messaging, and social media integration. This is particularly useful for busy professionals or individuals always on the go.
  • Entertainment and Gaming: Wearable technology can be used for entertainment and gaming, with features like music streaming, video playback, and augmented reality games. This is popular among younger consumers who prioritize entertainment and technology.
  • Workplace Applications: Wearable technology can be used in workplace applications, such as industrial settings where workers need to be hands-free or in retail environments where workers need to access inventory and customer data quickly.

The features and functionalities that are most important to consumers vary depending on the device’s intended use. For fitness trackers and smartwatches, consumers prioritize features such as battery life, accuracy, and ease of use. For workplace wearables, consumers prioritize durability, connectivity, and compatibility with existing systems.

Usage patterns also vary among different consumer segments. For example, according to a 2021 survey by YouGov, men are more likely than women to use wearable technology for fitness and exercise purposes, while women are more likely to use wearables for health monitoring. Similarly, younger consumers are more likely to use wearable technology for entertainment and gaming, while older consumers prioritize health and fitness tracking.

Brands that have successfully tapped into different usage patterns and consumer segments include Fitbit, Apple, and Samsung. Fitbit’s range of fitness trackers and smartwatches cater to consumers who prioritize health and fitness, while Apple’s high-end smartwatches appeal to consumers who prioritize technology and style. Samsung offers a range of smartwatches with features such as cellular connectivity and long battery life, which appeal to consumers who prioritize connectivity and convenience.

Overall, wearable technology is a versatile and multi-functional technology that appeals to a wide range of consumers. Understanding the different usage patterns and preferences of different consumer segments will be critical for companies in this industry to continue innovating and meeting the evolving needs of consumers.

Perceptions of Wearable Technology

Consumer perceptions of wearable technology play a significant role in the success of these devices in the market. Here are some of the attitudes and beliefs that consumers may have about wearable technology:

  • Convenience: Many consumers perceive wearable technology as convenient, allowing them to access information and stay connected without pulling out their smartphones.
  • Health and Fitness Benefits: Consumers who prioritize health and fitness perceive wearable technology as a tool for improving their overall health and fitness goals by tracking their activity levels, sleep patterns, and other health metrics.
  • Fashion and Style: Consumers who prioritize fashion and style may perceive wearable technology as an accessory that complements their personal style and reflects their personality.
  • Privacy and Security Concerns: Some consumers are concerned about wearable technology’s privacy and security implications, as these devices can collect and transmit sensitive data about the wearer’s personal life.
  • Stigma and Social Acceptance: Some consumers may perceive wearable technology as stigmatized or socially unacceptable, especially if the devices are bulky, unattractive, or otherwise conspicuous.
  • Limited Battery Life: Many wearable devices have limited battery life, which can be a source of frustration for consumers who need to use them throughout the day.

Factors influencing consumers’ perceptions of wearable technology include product design, marketing messaging, and media coverage. For example, Apple’s sleek and stylish smartwatches have helped to rebrand wearable technology as a fashion accessory. In contrast, Fitbit’s focus on health and fitness has helped to position wearable technology as a tool for self-improvement.

In terms of concerns and misconceptions, wearable technology companies have worked to address issues such as privacy and security by implementing data encryption and user consent measures. For example, Fitbit’s privacy policy states that user data is encrypted and anonymous and that users can choose whether or not to share their data with third-party apps and services.

Media coverage and public perception also play a role in shaping consumer attitudes toward wearable technology. For example, the Google Glass project was ultimately discontinued in 2015 due to negative media coverage and privacy concerns. However, other products, such as smartwatches and fitness trackers, have continued to gain popularity as consumers become more comfortable with the technology and its benefits.

Overall, understanding consumer attitudes and perceptions towards wearable technology is crucial for companies in this industry to design products that meet consumers’ needs and preferences and address concerns and misconceptions that may impact adoption rates. As wearable technology continues to evolve and become more integrated into daily life, consumer perceptions and attitudes will be key factors in its success.

Understanding consumer behavior related to wearable technology can provide valuable insights for product marketing managers and marketing executives. Here are some recommendations and implications for these professionals based on the analysis of consumer behavior:

  • Design products that meet the needs and preferences of different consumer segments: Consumer behavior analysis can help brands identify the segments of consumers likely to purchase wearable technology, as well as the features and functionalities that are most important to them. This information can be used to design products that meet these segments’ specific needs and preferences.
  • Address privacy and security concerns: Privacy and security concerns are among consumers’ top concerns about wearable technology. Brands should address these concerns, such as implementing data encryption and user consent measures and communicating these measures clearly to consumers.
  • Emphasize the benefits of wearable technology: Consumers are more likely to purchase when they understand its benefits. Brands should emphasize the convenience, health, and fitness benefits, and other features that make wearable technology a valuable addition to consumers’ lives.
  • Innovate with new features and functionality: As wearable technology continues to evolve, brands should look for new features and functionality that can enhance the value and appeal of these devices. For example, advances in biometric technology and augmented reality has the potential to open up new possibilities for wearable technology.
  • Use pricing strategies that cater to different consumer segments: Consumer behavior analysis can also help product marketing managers and executives to identify the different pricing strategies that are most effective for different consumer segments. For example, luxury smartwatch brands may be able to charge higher prices for their products, while budget fitness tracker brands may need to compete on price to attract price-sensitive consumers.

According to a report by MarketsandMarkets, the wearable technology market is expected to grow at a CAGR of 15.5% from 2021 to 2026, highlighting the importance of developing effective strategies to stay competitive in this growing industry. By considering these recommendations, companies can develop effective product design, marketing, and pricing strategies that cater to the needs and preferences of different consumer segments. 

As technology continues to evolve, so will the world of wearable technology. As Steve Mann, a pioneer in wearable computing, once said: “Wearable computing is the next stage in the digital revolution. Combining technology with fashion can make our devices more personalized and integrated into our lives.”

Understanding consumer behavior towards wearable technology is crucial for brands  to design products that meet the needs and preferences of different consumer segments and to develop effective marketing and pricing strategies. 

As the wearable technology market continues to grow, companies in this industry will need to stay vigilant and continue to innovate to meet the evolving needs of consumers.

By analyzing consumer behavior, addressing concerns and misconceptions, and emphasizing the benefits of wearable technology, companies can position themselves for success in this dynamic and rapidly-growing industry. As wearable technology becomes more integrated into daily life, the potential for innovation and growth in this field is limitless.

Learn more about the wearable technology industry in our comprehensive trend report Feeling Good: Powering the Next Gen of Fitness and Medtech. Download here.

2022 may be in the rearview mirror, but we wanted to look back at our most visited posts and articles for the year. Researchers are naturally curious people, so here are the pages you sort out the most in the past year.

The benefits of market segmentation

When you know, you grow! Segmentations can guide everything from marketing to product development to identifying new market opportunities. In this article, we outline the key benefits of market segmentation.

READ THE FULL ARTICLE HERE: https://kadence.com/the-benefits-of-market-segmentation/

What is market entry strategy?

Entering a new market can be a complex process. Having a robust strategy maximizes your chance of success. In this article, we explore what makes a sound market entry strategy and the differences between entering a new domestic market or an international one.

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What are the four market entry strategies?

When entering a new market there are many routes you can take. This article explores four of the main type of market entry strategies and the pros and cons of each.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-are-the-four-market-entry-strategies/

Biggest risks and benefits to market entry

Launching your product or brand into a new market can be littered with many potential pitfalls, but often the benefits outweigh any risk. In this article, we take a deep look at both the risks and benefits of entering a fresh new market, so you are armed with the information to help you succeed.

READ THE FULL ARTICLE HERE: https://kadence.com/biggest-risks-and-barriers-to-market-entry/

What is market size, and why is it important?

In this article, we not explore what market size is and why it is important but also look at the best ways to calculate market size and is there such a thing as too small when it comes to your brand or product’s serviceable obtainable market.

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5 major challenges of market segmentation and how to mitigate them

Market segmentation can be riddled with challenges. In this article, we explore some of the main obstacles to market segmentation and equip you with the knowledge and tools to segment your market correctly.

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What is quantitative research?

What is quantitative research? How is it different from qual? Why is it important? and what are the best collection methods? All these questions are answered in one of our more popular articles for 2022.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-is-quantitative-research/

What is top-down market sizing?

Top-down market sizing is one of the two main methods researchers can use to calculate the serviceable obtainable market. This article looks at what top-down market sizing involves, how you can use it in your business, and the strengths and weaknesses of this approach.

READ THE FULL ARTICLE HERE:  https://kadence.com/what-is-top-down-market-sizing/

The top 5 challenges in international market research

Researching a new market in another country can be a challenge to get right. This article explores the top five challenges in international marketing research and our top tips for overcoming these.

READ THE FULL ARTICLE HERE:  https://kadence.com/the-top-five-challenges-in-international-marketing-research/

What is concept testing in new product development?

Ideation is often seen as the easiest part of product development. But how do you know that your great idea is actually what the market wants? This article looks at concept testing and the different approaches to testing new products. 

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-concept-testing-in-new-product-development/

Now that 2022 is a wrap, we can’t wait to share more insight and information to help you with your research goals. Sign up below to receive our monthly newsletter Connecting the Dots, to get the latest news from Kadence and our team.

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If you want a crocheted sweater or a bespoke engraved cutting board but need help finding an artisan, you might turn to platforms like Etsy that connect buyers with artisans on their eCommerce platforms. 

The last decade has brought a massive consumer shift in mindset. Consumers today care about where their products come from, who produced them, and under what conditions they were made. They care about the impact of everything they purchase —on the workers and the environment. 

Many trends are responsible for the maturation of the artisan economy around the globe, such as the rise of e-commerce, a growing interest in the environment and sustainability, the demand for rare, unique, personalized items, and a desire to support the local economy and small businesses. 

Consumers care about sustainability, ethical consumption, and small-batch production and are looking for unique pieces with a story to add to their lives. 

There has been a massive demand for handmade products globally. Handmade or artisanal products are high quality and unique, making them desirable for people looking for one-of-a-kind products with a strong narrative. 

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The need for personalization and the recent movements supporting local businesses and artisans have also helped promote bespoke brands or handmade products.

Unlike mass-produced goods, handmade products have certain deviations, and no two products will be the same, adding to the uniqueness consumers seek in the products they purchase.

When consumers purchase a handmade product, they are also buying into the story and history behind it and building a deep connection with the artisan making the product while supporting craftsmanship and local businesses. Consumers are avoiding off-the-shelf pieces, and artisan goods are becoming a staple. 

According to a U.K. Crafts Council report, 73 percent of U.K. adults had bought a craft in 2019 —which amounts to almost 25 million handmade items. About 32 percent of today’s buyers are under 35 years of age, making the younger populations of Millennials and Gen Z the biggest craft shoppers today. There are 11,620 craft businesses in the U.K., with over 43,000 employees. 

Consumers often save crafts and techniques that face extinction and erasure by purchasing artisanal goods. And now, many big brands want to add a piece of the traditional method to their products. For instance, independent watchmaker Daizoh Makihara decided to use the traditional Japanese glass-cutting technique called Edo-kiriko for the dial of his first watch. He found eight companies that specialized in the method, but only one agreed to do it. This was Kyosuke Hayashi, the president of Mitsuwa Glass Kogei. 

In English, Edo-kiriko means “cut glass from Edo”: Edo is an old name for Tokyo, and kiriko is the name of the cutting technique. This partnership gave birth to the first edo-kiriko watch in the world in 2018. 

The weavers and artisans work hard to keep the rich Indian arts and crafts heritage alive. According to IBEF, the total handicraft exports from India reached $3.5 billion in FY20. With over 200 million artisans, India’s handicraft sector is the second largest employer after agriculture. 

While fast fashion is pressuring the environment with its heavy carbon emissions, water waste, and poor working conditions and treatment of workers, consumers are hungry for a better model that offers trendy essentials and accessories without harmful environmental and socio-economic impact.

eCommerce has enabled many skilled artisans and hobbyists to profit from their passion and talent. 

Consumer obsession and interest in handmade products have also seeped into reality T.V., and craft reality T.V. shows have become quite the rage. 

British reality show Handmade: Britain’s Best Woodworker is a furniture-making competition similar to a cooking contest that has captured the hearts of audiences worldwide. Every major network and various streaming platforms are in on the trend. Other similar shows include BBC’s All that Glitters, Netflix’s Blown Away, NBC’s Making It, HBO Max’s Craftopia, ITV’s Bling, and Channel 4’s The Great Pottery Throwdown.  

The pandemic spurred the demand for handmade goods. Online platforms have fuelled much of this growth: in December 2018, Etsy, a U.S.-based online platform for artisans to buy and sell handmade goods, reported that there were 220,000 active sellers in the U.K. with a further 9,000 makers on Folksy, a U.K.-based online platform to purchase handcrafted gifts and original artwork, sold directly by the artists and designers who have created them.

Top handmade product categories on Etsy 

According to a report, the top handmade product category on Etsy in 2020 was home and living, with a 25 percent seller share, followed by art and collectibles (21 percent), jewelry (15 percent), clothing (11 percent), accessories (8 percent), bath and beauty (6 percent), toys and games (4 percent), bags and purses (3 percent), weddings (2 percent), and books, movies and music (2 percent).

Etsy has three main sections in its online marketplace: Handmade, Vintage, and Supplies. Handmade represents 85 percent of sellers, Vintage represents 6 percent, and Supplies represent 12 percent of sellers.

Etsy, founded in 2005, now has more than 1.4 million sellers and 19.8 million buyers. Etsy focuses on handmade and vintage items and features over 5.4 million craft supply items.

Handmade gifts provide a personal touch and make the gift unique and personalized. This unique factor has driven platforms and brands that offer handmade products as popular choices during the Holidays. 

There has been an 80 percent jump in searches on the creator-driven platform Etsy for Holiday gifts in the past three months compared to last year. In 2020, CNBC reported that Etsy saw a 156 percent increase in search traffic during three months compared to the year prior for custom gifts.

Case Study: How Etsy carved a niche for the handmade sector using an e-commerce platform

The Overview

Based in Brooklyn, New York, Etsy is the largest online marketplace globally, connecting buyers to sellers of handmade and vintage goods and craft supplies. Etsy is built on a smart revenue model: it charges sellers a listing fee and a commission and upsells advertising services to push a seller’s products to boost reach. The company expanded through acquisitions, including Blackbird Tech for USD 32.5 million, Reverb in 2019 for USD 275 million, and the fashion resell marketplace Depop in 2021 for USD 1.63 billion.

The company has competitors like Amazon Handmade, Big Cartel, Folksy, iCraft, and eBay. 

The Approach

Etsy took the value creation approach and narrowed its product offering to handmade or artisan-made products. While it has created a community of buyers and sellers, it moved its focus to buyers as the core market when eBay vet Josh Silverman took over Etsy’s reins. A year after hitting an all-time low in 2017, Etsy’s stock rebounded and grew; today, it stands at USD 119.74 a share. Defining and focusing on its key audience helped the brand grow. 

Once the brand identified its core audience, the buyers, it hiked the fees it charged its sellers from 5 percent to 6.5 percent. Even though 20,000 of its sellers went on strike, the company did not budge, and the results showed in the most recent third-quarter earnings in 2022, reporting a revenue bump of 11\.7 percent over the same quarter of 2021, to USD 594.5 million. 

Etsy is also attracting more buyers to its platform via the mobile app. In 2021 alone, the brand reported a 45 percent increase in app downloads bringing 5.7 million new shoppers to download the app. The brand also leverages targeted, compelling email offers based on items favorited or shops browsed. The brand funded discounts and sent them to 18 million shoppers in 2021, and also provided discount technology allowing shoppers to discount goods from their shops. The brand also encourages buyers to follow more shops through sweepstakes and contests. 

The brand also offers multiple additional services to facilitate communication with sellers, on-platform transactions, and access to ratings and reviews. 

Etsy provides its sellers a collective to voice their concerns with congress members and local and federal governments. And lastly, the brand continuously invests in retail technologies like machine learning via acquisitions. The brand has designed convenient distribution channels, upgraded buying and selling software and merchant services, and improved its social media presence to boost brand awareness. This month, Etsy rolled out a new image search feature to allow shoppers to find an object faster than with a keyword search. Users on iOS can now tap the camera icon and search for images by uploading a picture. Etsy then scours its platform to find products visually similar to the ones the user is searching for. Etsy plans to expand image search to Android app users soon.

The Results

Etsy’s impact on the artisan economy is robust. The most recent quarterly earnings report disclosed revenues had risen to USD 198 million, a 31.64 percent increase year over year. Etsy currently holds a market cap of just under USD 5.5 billion – quite a climb from its USD 1.1 billion market cap back in March 2017. The brand attracted 6.3 million shoppers in the third quarter of 2022, ending with 88.3 million active buyers on the Etsy marketplace.

In most developing nations, the handicraft industry is fragmented, lacking legal Intellectual Property laws surrounding its products, and artisans not getting fair compensation for their craft. 

In most countries, handcrafts are highly valued because of the high skill level and talent required and are sold in luxury stores at premium prices. However, although India has a rich culture and many categories of handicrafts, they still need to be given their deserved value and place. Ramesh Menon founded Save the Loom, a nonprofit community group to revive, restore, and restructure the handloom industry in India.

Many other such organizations are helping artisans overcome the many challenges they face. However, online platforms and eCommerce websites like Etsy, Folksy, Amazon Handmade, and others have helped create a viable worldwide path forward for the handmade industry. 

While not every product fits the artisan-made model, the lessons from this growing trend apply to all categories. Consumers want to feel connected to the story behind the product, how a product is made, and the feel-good impact on the environment and people after purchase.

For more insights into the shifting trends in online shopping and consumer behavior around the globe, download our complete report, “The Future of Online Shopping.” 

Digitization has reset the online shopping game board, and the pandemic has accelerated technology adoption by both brands and consumers. Today, the most successful retailers have adopted technology at warp speeds. With breakthrough technology complementing every step of the retail process, where are we headed? 

Download our complete report, “The Future of Online Shopping,” to find out.

Here’s a summary of the most significant trends shaping the future of online shopping worldwide. 

Trend 1: The Future is ‘Phygital’ — Reinventing the retail experience. 

At the intersection of physical and digital is a connected retail environment where consumers are placed at the center. In this consumer-centric, channel-agnostic, connected environment, consumers can buy online and pick up from stores.

They can try clothes and accessories virtually, in-store or online, browse large touchscreens for product information, dispense products from vending machines, and even scan an aisle in a grocery store to view an overlay of information about products. 

The future of retail is omnichannel, an approach providing customers with a unified shopping experience. This approach connects experiences across multiple touchpoints, including brick-and-mortar, web, and mobile apps. 
Discover how Singapore’s NTUC grocery chain increased retention and repeat business using an omnichannel approach.

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Online Financing Options – “Buy-Now-Pay-Later.”

Retail brands are removing barriers to make the shopping experience as frictionless as possible, including easy financing terms. 

Apps Making Online Shopping Seamless.

Mobile apps offer retailers an engaged audience they can easily connect with to sweeten their shopping experience, building loyalty and driving in-store sales. 

Download the complete report to discover how Shopee, the leading eCommerce online shopping platform in the Philippines, Taiwan, Thailand, Singapore, Malaysia, Indonesia, and Vietnam, and Sephora, a multi-brand beauty retail store, leading the way in making the shopping experience seamless. 

Trend 2: DTC brands are booming worldwide.

Direct-to-Consumer (DTC) has disrupted the eCommerce industry. As more brands manufacture, design, market, sell and ship their products directly to customers, they are more agile than traditional brick-and-mortar retailers. 

Download the complete report to learn how Nike tapped into the DTC space along with other legacy brands.

Social media advertising significantly contributes to DTC sales; however, rising ad prices damper many of these brands. 

Download our report to discover how DTC brands target users in a cookieless world. 

Also, learn how a home-grown Vietnamese DTC start-up raised USD 2.3 million in the middle of V.C. winter in the country. 

Shein, another DTC brand based in China, adopted and perfected its business model and developed a massive, vibrant, international community around Shein with a customer-centric approach. 

Download our report for the complete case study and discover how Shein has tapped into a massive international market of online fast fashion shoppers in the U.S., Europe, the Middle East, and other big consumer markets. 

Trend 3: Influencers are the new sales associates.

In a crowded digital space, where media consumption is highly democratized, brands seek attention by creating entertaining content that moves the audience. 

Consumers are now in charge — and rather than listening to brands, they listen to peer-to-peer advice on products and services. Consumers are increasingly filtering content, ads, and posts that reek of brand promotions in favor of posts and promotions from people they trust, a.k.a. Influencers. 

So who are the top Instagram influencers right now? 

Download our report to find out who owns the top spot for earnings per paid promotion, and learn how Kim Kardashian sold 150,000 bottles of perfume within minutes on a live stream in China. 

Trend 4: Personalizing the online shopping experience. 

Customers have spoken. They don’t just want personalization; they expect it from brands. 

Research shows that when brands provide personalized experiences, 80 percent of customers are more likely to purchase. When brands personalize a customer’s experience, they anticipate what they want and deliver it to them, increasing engagement, improving conversions, boosting customer loyalty, enhancing the experience, and gaining a competitive advantage. 

Download our report to find out how U.S.-based grocery chain Kroger is delighting shoppers with next-level personalization strategies in our brand case study. 

The future belongs to retail brands that master the omnichannel experience.

Consumers are tightening their purse strings due to inflation and the fear of an impending recession.

High prices of fuel and food are impacting consumer spending. It’s time for brands to get more creative, and eCommerce sellers are in a favorable position to weather the economic downturn using competitive pricing software and data-rich touchpoints. 

Download our free report to find out how top retail brands are globally navigating the new online retail playing field during these uncertain times. 

Consumer behavior is shifting more rapidly and drastically than ever before. Brands are trying to keep up with massive changes in consumer behavior and preferences in virtually every sector, from groceries and fitness to banking and finance. Consumers continue to pivot their preferences and priorities with uncertainty, inflation, and an economic downturn. 

In the early days of the pandemic, an uncertain and dismal picture caused anxiety and depression, which led to panic buying globally. Those were short-term behaviors and did not last. However, many massive shifts due to the pandemic have stuck, including online shopping and the need for speed, efficiency, and convenience. 

The pandemic has changed certain habits for the long haul, with many consumers going to stores less frequently than before. Buyers are now more comfortable shopping online, and most consumers prefer a hybrid shopping experience combining the physical and digital worlds as convenience becomes paramount.

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With the growth of online shopping and technological advancements making online shopping as personalized as a store visit, consumers are exploring options beyond traditional brick-and-mortar stores and looking for a complete experience, be it physical, online, or hybrid. Businesses must adapt quickly to these changes and shifts in consumer preferences to remain competitive in a dynamic and ever-changing market. These changes have been taking place for some time, but the pandemic accelerated the rate of change unexpectedly. 

Some of the consumer behaviors that have drastically shifted post-pandemic are food and grocery delivery services. In the U.S., consumers did not regularly use grocery delivery services. According to some reports, about 15 percent of U.S. consumers tried grocery delivery services for the first time due to the pandemic, about 80 percent of those first-timers liked the service, and 40 percent said they would continue using it post-pandemic. 

While convenience and safety were the two reasons delivery services skyrocketed during the pandemic, the price will likely supersede convenience as we enter a time of out-of-control inflation. Consumers will try to make their money stretch further because savvy consumers know the premium they pay for using delivery services like Instacart. 

In this new economy, will they still be comfortable paying a premium and missing out on discounts for fuel when they don’t shop in person? 

Food delivery services also became more popular worldwide, and the takeout and delivery trend was rising. However, as people returned to in-person dining, food delivery apps took a hit. These apps will also follow the same path as grocery delivery services because when consumers buy from DoorDash, the prices are higher, and they cannot use vouchers. 

Many big retailers like Walmart are following shifts in consumer behavior by offering pick-up and delivery with no markup on prices. Other delivery apps are double-dipping on price, and the consumer pays more than they would in the store. 

Brands need to understand that just as convenience and safety were top priorities during the pandemic, consumers prioritize value and price over everything else, given the current economic environment. 

The fitness market is also seeing massive shifts, and consumers now want an omnichannel approach to fitness, where they use at-home gym equipment and online classes and apps in combination with in-person classes. 

Many e-commerce brands capitalized on creating connections with their consumers by using hand-written-style notes to add to the unboxing experience.

Beauty and fashion brands made it easier for consumers to shop online by using machine learning and artificial intelligence to offer personalized suggestions, experiences, and Virtual try-on sessions using Virtual Reality to mirror an in-store experience. 

Brands need access to high-quality consumer data, insights, and business Intelligence to stay in the game, meet customers’ demands, and outpace the competition.  

In any business environment, enterprises need to clearly understand the psychology behind why consumers behave the way they do. Consumer behavior is the study of consumers and analyzes how consumers decide what to buy, when, and how to buy. It seeks to understand the psychology behind consumers’ needs, wants, and desires and how they purchase, use and dispose of products and services. 

This study is critical because it helps brands understand the motivations and influences behind their purchases. It allows brands and marketers to develop the right products for the right audiences and market the product with the right messaging to convert prospects into buyers and retain them over time. 

Several factors come into play during the purchase decision stage, and these may include personal (age, culture, values, beliefs), psychological (brand perception), or social (friends, family, influencers, social media).

There are four types of consumer behavior:

  1. Complex buying behavior

This type of buying behavior is associated with big-ticket purchases, like buying a home or a car, where consumers invest a lot of time and energy. 

2. Dissonance-reducing buying behavior

This type of consumer behavior is often seen when a consumer is highly involved in the buying process but takes longer than usual because they do not want to regret the decision. This happens when multiple brands are very similar, and choosing one is tricky.

3. Variety-seeking behavior

This behavior is exhibited by consumers who opt for a different brand, even if they were happy with their previous purchases because they value variety.

4. Habitual buying behavior

Consumers that purchase the same brand because of habit rather than brand loyalty are in this category. 

A grasp of the type of consumers your brand attracts will allow you to segment your market based on consumer characteristics.  

Marketers also need to understand buying roles and who is the decision maker regarding their specific product. In a family, for instance, the parents make major buying decisions; however, in some cases, young children are highly influential in the decision. In fact, unlike in the past, the younger cohorts, Generation Alpha (those born after 2010) and Gen Zs (those born between 1995-2010), make many important buying decisions regarding what they wear, eat, or travel. 

There are six major buying roles brands need to take into consideration:

  1. Influencer(s): Several people may be involved in the purchase decision in many cases, but they may not all be consumers. Influencers are those who can exert influence in the final decision. These could be bloggers in today’s world or friends and family whose advice commands weightage in the purchase decision. 
  2. Gatekeepers are usually family members who control the information flow regarding a product within a household. 
  3. Initiator: This is the person who first initiates the purchase idea. 
  4. Decider: This person has the final say in the purchase decision and decides whether or not to buy the product. He also may determine how and where to buy it. 
  5. Buyer: This is the person who ends up buying the product.
  6. User: This is the person who consumes or uses the product purchased. 

Consumer behavior helps with market segmentation, as it goes beyond the essential demographic elements like age, gender, and location to explore the behavior patterns customers exhibit when interacting with a particular product, brand, or website. This concept is instrumental in e-commerce and online shopping environments. 

Here’s how e-commerce brands use consumer behavior to segment customers and users based on their level of engagement with the website, app, or product page. 

They segment or group their customers by their attitude toward their brand, level of brand recognition, usage, frequency and timing of purchase, and purchasing patterns or tendencies, like special occasion buying behavior. 

This allows them to tailor their marketing messages and create compelling campaigns to achieve their goals. 

By utilizing behavioral segmentation, brands can get a complete picture of their customers and filter them by the highest levels of engagement. For instance, brands can track those who regularly open their emails or visit their product pages. Marketers can also target ads with the most appealing messaging to customers based on their needs. For instance, an online shoe store can show those interested in athletic wear more running shoes and sneaker ads, and at the same time, serve ads with formal shoes for those interested in evening shoes. 

Another significant shift in consumer behavior is related to a demand for personalized and customized products, especially amongst the younger cohort of Gen Zs. Using behavioral segmentation, brands can provide more refined personalized experiences to win business. Brands can gain deep insights into their consumers’ needs, wants, desires, challenges, preferences, and concerns to gain a competitive advantage. Upselling and showing complementary products and replenishment reminders based on customer history and interests can reduce cart abandonment and boost brand loyalty. 

The use of behavior segmentation beyond the purchase also helps provide a high level of customer service to cement the relationship with the customer, leading to higher retention rates, more repeat business, referrals, and brand loyalty. 

Using behavioral segmentation, brands can unearth invaluable data and insights that may otherwise never have been discovered.

Understanding consumer behavior comprehensively helps brands improve performance across channels to diversify their marketing efforts. Brands can use these insights to adjust brand messaging, packaging, design, features, pricing, and more to stay ahead of the competition and boost brand equity. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

Just like reaching an unknown destination without a map is difficult, so is building a business strategy without competitive intelligence. 

Competitive intelligence helps brands shape their product development, distribution channels, pricing, messaging, positioning, brand promotions, and features. It allows brands to identify their challenges and opportunities in the market in relation to their competition, so they can see what their competitors are doing and differentiate themselves from them. 

What is competitive intelligence (CI)?

Competitive intelligence refers to any intentional research where brands collect, analyze, and utilize data and information gathered on their competitors, customers, and other external factors, potentially providing brands with a competitive advantage.

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When brands ethically and legally collect competitive intelligence, it can help boost the organization’s decision-making capabilities. The goal of any competitive intelligence study is to create a business plan and strategy so organizations can make well-informed decisions based on market considerations.

Competitive intelligence goes beyond knowing the competition; the process is designed to take a deep dive to unravel the finer points of the competitor’s target markets and business strategy. 

The Japanese auto industry carried out a compelling competitive intelligence study in the 1970s. The Japanese automobile industry analyzed the U.S. automobile market to discover a need for smaller, more fuel-efficient cars in a country where gasoline prices were rising. Using competitive intelligence across its borders, Japanese automakers identified a critical trend to beat their competition in the U.S. 

Competitive intelligence plays a vital role in all major departments of an organization and can take on a different meaning for each department or function. For instance, for a product development team, competitive intelligence may mean new features being added to products. For a sales executive, it may be helpful to know how to create a winning proposal. For leadership, it may be understanding the competitor’s marketing strategies so they can craft a plan to gain more foothold in the market.

Competitive Intelligence studies and exercises can be tactical (shorter-term) or strategic (longer-term). The goal of tactical competitive intelligence studies, for instance, can be to obtain insights into increasing revenues or gaining market share. At the same time, strategic or longer-term reporting focuses on significant risks, threats, and opportunities, present or emerging. 

A competitive intelligence study typically includes a wealth of information and insights from various sources, like government records, online mentions, social media, trade shows and journals, customer data and interviews, and traditional news media, to name a few. These sources are easily accessible and form the starting point for the studies. More in-depth information from distributors, suppliers, competitors, and customers is needed to make truly informed decisions. 

What are the key benefits of competitive intelligence?

There is no substitute for Competitive intelligence research when it is undertaken with care and diligence. It is a powerful tool for brands to gain market share, boost revenue, and continue to build the right products at competitive prices.

Here are some key benefits of using competitive intelligence for brands:

#1. Ability to predict patterns and emerging trends

As brands excavate an enormous amount of data and insights related to their competitor’s activities, they begin to identify and foresee emerging trends in the industry. This allows brands to gain deep foresight to make informed decisions and strategic business plans. 

#2. Aids in brand positioning

As brands gather insights and data about the competitive landscape, they also gain clarity on their activities and messaging. It helps them understand what works and doesn’t and cement their marketing. 

#3. Helps make more informed decisions.

When brands unearth information, they gain critical insights into how the customers feel about their brand and the competing brands. This gives brands a better view of their customers’ wants and how their competitors are meeting the needs of the target markets. 

#4. Boosts returns and profits

When you have a good understanding of the strategies and tactics employed by your competition and how they are performing, you will be better able to invest in areas that bring the highest returns, reducing risks and boosting profits.

Going back to the definition of Competitive Intelligence, we can see three necessary steps: “collect, analyze, and use competitor and market information to make informed decisions.”

Collecting data

There are many ways of unearthing relevant competitor data legally and ethically. Searching for information online may seem rudimentary, but it can provide invaluable information about the competitors and their activities. This information is readily available and accessible on the internet and is considered low-hanging fruit. With a few simple web searches, you can find great information on what the competitor is doing and what it has done in the past. You can also learn about product features, pricing, innovations, leadership, and important news and announcements relevant to your competition. There are tools that provide insight into the competitor’s search engine optimization activities and their online advertising efforts. 

From here, brands often go deeper and beyond the internet to analyze target markets and customer segments. Brands use quantitative and qualitative market research to gain more market insight. 

Brands use data to analyze their competition beyond the simple search process. This entails going through endless data and making sense of it all can become cumbersome. This is where data mining comes into play. Besides gathering data from third-party sources, brands also gather human intelligence by interviewing relevant people, including customers and past suppliers. This is a time-consuming process and must be undertaken by experts in market research to ensure it is done ethically and legally.  

Analyzing data

Analysis of data is a crucial step in the competitive intelligence process. Once brands collect data, it needs to be analyzed carefully to provide actionable insights. This allows brands to understand the patterns and separate them from the outliers. 

The analysis aims to uncover strengths, weaknesses, opportunities, and threats as they relate to the competitive landscape. Therefore, collecting and analyzing information from disparate sources is essential in verifying their authenticity and validity. This helps us move away from making assumptions and gaining real insights from more accurate pieces of data. 

Crafting a strategy 

Once a brand has enough verified data and information on its competitors and strategies, it can utilize it to differentiate itself and make informed decisions regarding product, price, messaging, and other essential aspects. It allows brands to weigh the competitor’s strengths, weaknesses, and opportunities in relation to their own to gain a competitive advantage.

For instance, pricing is an important area for differentiation but can only be done right if everything is studied and taken into account to find the right price that is profitable and aligns with the customer’s perceived value of a brand or product offering. Therefore, a successful price is not about pricing your product at the same or lower price than your competitor but positioning your brand as the choice that provides the greatest value. And to make that happen, you need to know the price of competing products and their perceived value in the buyer’s mind. This calls for a thorough study and analysis of the competing products, markets, and consumers. 

Today, e-commerce companies use sophisticated software for competitive pricing due to the market’s highly competitive and dynamic nature. Read more on how e-commerce brands utilize price monitoring software technology to track competitor pricing here.

To get the complete picture, brands may conduct competitive intelligence surveys. They can define their target audience and use various demographic and psychographic questions to identify consumer behavior. These also include questions about competing products and services. You may also use ranking and rating type questions and identify any unmet needs or gaps in the marketplace or use open-ended questions to get a more in-depth view of the consumer’s mind. Brand recall and recognition surveys are also helpful in gaining consumer perception of various brands. For instance, a sparkling water brand may ask: “When you think of bottled sparkling water, what brand comes to mind first?” This can help brands discover how frequently their brand is mentioned compared to competing brands in the category.

When armed with the powerful insights gained through competitive intelligence, brands can be more strategic in all aspects of business, from product development to pricing and distribution. By differentiating themselves from competitors, they can gain valuable market share, grow brand value, and brand equity, and boost their return on investment (ROI).

Doing good doesn’t have to be at odds with profit. Organizations focused on their triple line in today’s marketplace will outperform their less socially conscious competitors. 

So what is the triple line? And what does Corporate Social Responsibility (CSR) entail?

In economics, the triple bottom line (TBL) explains how organizations should commit to focusing on social and environmental welfare as much as they do on profits. 

The triple bottom line theory asserts there should be three bottom lines: profit, people, and the planet. A TBL measures a corporation’s commitment to Corporate Social Responsibility (CSR), a self-regulating business model aimed at helping a brand become socially accountable to itself, its stakeholders, the public, and its environmental impact over time.

Reducing carbon footprints to avert the climate crisis, improving labor policies, adding employee welfare programs, embracing fair trade, and incorporating charitable giving are examples of ways brands can support CSR initiatives.

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Why is CSR important in your brand strategy?

The idea behind social responsibility is based on the concept of businesses doing good and balancing their profit goals with initiatives that benefit society and the environment. 

Social responsibility is also good for business. Many brands focus on local, national, and even global philanthropic initiatives to attract consumers, making social responsibility a means of growing the brand. 

Customers like to do business with socially responsible organizations and enhance brand equity by boosting their sales, profits, and goodwill. CSR activities allow companies to improve their reputation, positively impacting brand equity and value.

CSR also helps an organization internally. Research led by Verizon and the Campbell Soup Company quantified the advantages of being socially responsible. The study showed how CSR lowers turnover by up to 50 percent, boosts team productivity by up to 13 percent, and enhances employee satisfaction by up to 7.5 percent. 

Millennials and Gen Zers demand social responsibility from the brands they interact with

A survey of 30,000 consumers in 60 countries found that 66 percent of consumers were willing to pay more for brands with CSR initiatives that resonated with them or aligned with their values and beliefs. 

Another study revealed that 87 percent of Americans would purchase a product based on the advocacy of an issue that resonates with them. 

This is especially true of the younger generations, including millennials and Gen Z. In our recent report on Gen Z —the definitive guide, there are several examples of brands demonstrating social responsibility to attract this cohort of consumers who demand social and environmental responsibility from brands. 

Why does this matter?

In 2020, there were 1.8 billion millennials worldwide, making them the largest generation cohort in recent times. Furthermore, with most of them employed, their spending power has dramatically increased over the past few years. 

In 2021, overall spending by Millenials had also considerably increased because most wanted to make up for the time lost during the pandemic. This cohort is a self-indulgent group that also cares deeply about society and the environment. 

According to a Deloitte survey in 2020, 60 percent of Millennials said they would be willing to support a business that takes care of its employees and positively impacts society. 

It’s not just societal impact but also an organization’s impact on the environment that matters to the younger Millennial and Gen Z cohorts.

Another critical factor is how brands lead diversity and inclusion. As detailed in our exhaustive Gen Z report on emerging beauty trends, today’s consumers, especially younger generations, demand brands to be diverse and inclusive. 

It is worth noting that brands cannot mislead consumers and send out a social message that is not executed because these discerning consumers also expect authenticity. 

Greenwashing, for instance, is a term that has gained prominence in recent times. The term refers to brands and organizations that say they are environmentally friendly, but in practice, they do nothing to protect the environment or actually harm the environment. 

Marrying profits with purpose

Gone are the days when profit and doing good were mutually exclusive. Today, corporations are increasingly incorporating purpose into their brand strategy. Having a cause attached to an organization is not just nice to have but a necessity. Governments worldwide have established mandates to ensure that big corporations are socially responsible. 

In Asia, CSR-related investment is conspicuous in the major economies. While we see a global trend with businesses taking a more significant share of responsibility for social and environmental good, different nations approach CSR with varying levels of vigor and pace.

Let’s look at the American, European, and Asia Pacific countries where we have a presence to see how they approach CSR and corporate citizenship. 

CSR initiatives are part of company law in China

A worldwide survey on millennials revealed that 83 percent wanted businesses to address social issues. In China, this percentage was higher at 92 percent. 

Typically, CSR is considered a voluntary initiative; yet in the past few decades, we have seen the rise of CSR mandates worldwide that explicitly target corporations to include CSR programs. 

One such country is China, where CSR initiatives are in Article 5 of the 2006 Chinese Company Law and explicitly require all Chinese companies to be socially responsible. 

The Chinese government incentivizes companies to incorporate social responsibility into their business practices. 

In 2014, Coca-Cola launched a socially conscious bottled water brand called Ice Dew “Chun Yue,” or Pure Joy in China. This was the company’s first socially conscious brand. Although priced slightly higher than competing brands, this bottled water targeted Millennials who care about social issues and are more likely to pay more for an environmentally conscious brand.

With the fitting tagline, “Drink Good, Do Good, Feel Good,” the brand claimed it would set aside funds to develop safe drinking water sources for schoolchildren in rural provinces such as Yunnan and Sichuan.

Japanese brands face pressure to get involved in CSR activities.

Japanese culture is all about relationships, and giving money to unknown people or charity has never been common practice. Until recent years, the Japanese considered social responsibility mainly the government’s job.

However, this has changed recently as issues such as the climate crisis, human rights, women’s equality, and poverty have come into the forefront of mass consciousness. 

The Japanese understand the adverse impact of poverty, social injustice, well-being, and the environment on society and realize the extent to which individual companies and people can help promote a better community. 

As a result, Japanese corporations face pressure to do more “good” and be responsible for their actions.

CSR in a net zero U.K.

One of the world’s largest automotive companies, Japanese automaker Toyota now faces increased international scrutiny as its growth continues.

In 1989, the company set up its Corporate Citizenship Activity Committee, and in 1995 it established the Basic Principles of Social Contribution Activities. In 2006, the company launched the Corporate Citizenship Division to consolidate all its social responsibility functions globally and become more strategic. In 2009, it opened the Toyomori Institute of Sustainable Living. 

Balancing the amount of greenhouse gases we put into the atmosphere with the amount we remove to tackle the climate crisis is called ‘net zero.’

The U.K. government has urged more businesses to pledge to this net zero target by 2050. In an industrialized world, reaching this goal is challenging and requires massive efforts from governments, corporations, and societies worldwide. 

Various countries and organizations have now adopted the target of ‘net-zero emissions by 2050,’ and about one-third of the largest U.K. businesses, representing a £650 billion market capital, have pledged to eliminate their carbon emissions by 2050. 

One such brand is luxury automaker Rolls-Royce, which is committed to net zero greenhouse gas emissions associated with its operations and facilities by 2030. 

U.K. pharmaceutical brand AstraZeneca has also committed to achieving zero carbon emissions by 2025 and becoming carbon negative across its value chain by 2030. 

Not mandatory in The U.S., but consumers expect brands to incorporate CSR.

From how we grow our food and how we deal with the climate crisis to how we treat our labor force, consumers in the U.S. are increasingly demanding accountability from corporations and organizations.

While CSR is not required by U.S. statute or regulations, it is somewhat soft law as consumers demand social responsibility from the brands they use.

In recent years, there has been a growth in CSR initiatives in the U.S., and major corporations have made massive strides in improving their environmental disclosure through annual sustainability reports.

Driven by its mission, Tom shoes is top-of-the-mind for social responsibility in the U.S. 

Toms shoes are likely the first brand that comes to mind when discussing corporate social responsibility. And for good reason —the brand’s CSR initiative is intertwined with its mission statement. 

In 2006, TOMS launched with the mission “to match every pair of shoes purchased with a pair of new shoes for a child in need.” During its first year, TOMS sold 10,000 pairs of shoes, and today, it has partnered with social organizations in more than 50 countries worldwide. 

The company’s social efforts focus on improving environmental and social issues and are seen globally in every aspect of its operations. The brand is an excellent example of authentic social responsibility.

CSR focuses on labor welfare and environmental consciousness in Indonesia.

Indonesian company law states that “companies with an impact on natural resources must implement CSR, and the same must be budgeted as a cost.” 

Recently, issues concerning worker abuse, severe climate, and environmental concerns have heightened interest in CSR. 

For example, Indonesia Eximbank’s Corporate Social Responsibility (CSR) encompasses four areas: environmental responsibility, responsibility towards social and community development, labor and workplace health and safety responsibilities, and responsibility to their customers. 

CSR is a complementary approach to doing business in Singapore

Singapore is among the world’s fastest-growing economies and is in tune with the sustainability trend. 

The climate crisis and societal issues have propelled social responsibility and sustainable business practices to the forefront. A growing population demanding brand corporate responsibility has turned “doing good” into a winning business strategy. 

In Singapore, most CSR initiatives are handled by the state in partnership with employers and labor unions, making the government a key driver of CSR in the island state. 

The Singaporean code of governance urges domestic companies to follow high standards, and while the code is not mandatory, listed companies are required to disclose their corporate governance practices and explain any deviations from the code in their annual reports.  

In Singapore, Yakult, a probiotic beverage brand, stopped using plastic straws in its efforts to be environmentally conscious. 

Additionally, Yakult has partnered with many non-profit organizations in the health arena, sponsoring public projects and health-related events in Singapore. 

CSR is part and parcel of doing business in Thailand

The fundamental concepts of the Thai way of life and religious beliefs are centered around doing good deeds for others without any selfish motives. This thought process has seeped into business life, and Thai businesses accept their social responsibility.

During the 1997-1998 financial crisis in Thailand, His Majesty King Bhumiphol Adulyadej recommended the “Sufficiency Economy” philosophy to guide the Thai people towards a balanced way of life. 

Wonderland products, a manufacturer of wooden toys in Thailand, enforces CSR initiatives internally by ensuring the quality of life and humane labor practices and externally by supporting environmental protection. Its plants reuse and recycle waste for environmental reasons. 

What the world can learn from India about CSR implementation

Corporate social responsibility is a practice in which businesses voluntarily contribute positively to social and environmental projects. However, in the Indian context, the phrase takes on a different meaning. 

While organizations voluntarily participate in CSR in the rest of the world, it is not the case in India. As the world’s fastest-growing economy, India requires companies to have a CSR policy. 

In 2014, with the implementation of the new company law on April 1, India became the only country in the world with legislated corporate social responsibility (CSR) and a spending threshold of up to INR 15,000 crore (USD 2.5 billion). 

The new law mandates that “all companies, including foreign firms, with a minimum net worth of Rs 500 crore, turnover of Rs. 1,000 crores, and net profit of at least Rs 5 crore, spend at least two percent of their profit on CSR.”

In India, CSR is approached with a stringency not found anywhere else in the world. 

The law requires three Board directors to form a CSR committee to enforce the organization’s CSR policy. The law also dictates that the CSR policy be elaborate and the money spent audited. Organizations must also detail their CSR policy in their annual reports and websites. 

For example, Coca-Cola’s 2015 “Support My School” campaign was one of India’s most extensive CSR campaigns ever undertaken. The viral campaign earned Coca-Cola media exposure to an extent even the most planned marketing campaigns cannot replicate.

It is well established worldwide that businesses cannot progress at the cost of society or the environment. Most nations are on board with Corporate Social Responsibility initiatives that are good for the employees, consumers, businesses, and society. Brands are integrating societal and environmental goals into their operations to help reduce waste, enhance reputation and identity, attract top talent, and increase their bottom line. 

For international brands entering new markets, CSR provides a remarkable branding opportunity and helps them build their reputation locally as socially responsible brands.