Digital Trends - Fall: Incl Impact of COVID-19 - US - October 2020

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Market overview
Figure 1: Market size and forecast of technology and communications, at current prices, 2015-25
Top takeaways
Impact of COVID-19 on Digital Trends
Figure 2: Short-, medium- and long-term impact of COVID-19 on technology hardware and digital services, September 2020
Brands need to reckon with the remote transition
Figure 3: Work commute before and since Covid-19, August 2020
Parents prep for more digital schooling
Figure 4: Devices purchased due to COVID-19, by parental status of school-aged children, August 2020
Surplus funds and remote activity drive tech purchases
Figure 5: Reasons for COVID-19 tech purchase, August 2020
Pandemic is leading to greater tech integration
Figure 6: Changes in digital activities since COVID-19, August 2020
What’s next
THE MARKET – KEY TAKEAWAYS
Tech will endure 2020 headwinds and return to growth after
“K” shaped recovery tells a tale of two consumers
Remote work here to stay
Amazon thriving in pandemic ecosystem
MARKET SIZE AND FORECAST
COVID-19 dampens spending but elevates connectivity
Figure 7: Market size and forecast of technology and communications, at current prices, 2015-25
Figure 8: Total US sales and forecast of technology and communications – table, at current prices, 2015-25
Technology and communications expected to outperform the economy, overall 
Figure 9: US technology and communications spending growth and US real GDP growth (annual percent change), 2007-21
Impact of COVID-19 on Digital Trends
Figure 10: Short-, medium- and long-term impact of COVID-19 on technology hardware and digital services, September 2020
Lockdown
Re-emergence
Recovery
COVID-19: US context
Learnings from the last recession
MARKET FACTORS 
A tale of two economies – “K” shaped recovery gains traction
Figure 11: Weekly US initial unemployment claims, January 2007 – August 2020
Figure 12: Monthly US unemployment rate, August 2000 – August 2020
Figure 13: Value of Dow Jones Industrial Average and S&P 500 Index, January 2007-September 2020
Supplementary unemployment benefits run out
Remote work and schooling are part of the “next normal”
Importance of home internet elevated during social distancing
MARKET OPPORTUNITIES 
Time to shine for video conferencing apps and hardware
Remote educational aids will draw parents
Wearable tech set to reposition itself as top of the line health devices
MARKET MOVERS 
Amazon reaping the benefits of a more digital world
Google Chromebooks outpace overall laptop segment
Facebook devices ideal for pandemic – not ideal for supply chains
THE CONSUMER – KEY TAKEAWAYS 
Remote work has doubled among those still working
Remote schooling the leading option among parents of school children
Changes in work commute drive tech purchases
Half of parents with kids 6-11 made a video game related purchase
Most tech purchases due to the result of extra money or to improve productivity
Majority of video chat users started or increased video chatting since COVID-19
THE CONSUMER: TRENDS DRIVERS 
Consumer motivations shift amid pandemic
Figure 14: Mintel Trends Drivers
Tech to play a bigger role in sanitation and personal health
REMOTE WORK AND SCHOOL SINCE COVID-19
More than half of employees are working remotely since COVID-19
Figure 15: Work commute before and after COVID-19
Figure 16: Change in commute since COVID-19, by commute before COVID-19, August 2020
Remote schooling favored before 2020 school year
Figure 17: Schooling options considered for the 2020-21 school year, August 2020
Younger consumers more likely to mix remote work and a commute
Figure 18: Breakout of commute since COVID-19, by age, August 2020
Remote workers tend to be higher earners
Figure 19: Breakout of household income, by commute since COVID-19, August 2020
DEVICES PURCHASED DUE TO COVID-19
Half of consumers made an electronic device purchase as a response to COVID-19
Figure 20: Devices purchased due to COVID-19, August 2020
Changes in work commute drive purchases
Figure 21: Devices purchased due to COVID-19, by work commute since COVID-19, August 2020
Figure 22: Index of devices purchased due to COVID-19, by changes in commute since COVID-19, August 2020
Parents with school children prepping for uncertain school year
Figure 23: Devices purchased due to COVID-19, by parental status of school-aged children, August 2020
Half of parents with kids 6-11 made a video game related purchase
Figure 24: Devices purchased due to COVID-19 – video games, by parental status and presence of child by age in the household, August 2020
Only one in five 25-34 year olds did not make a tech purchase
Figure 25: Devices purchased due to COVID-19 – none of the above, by age, August 2020
Home schooling a prime target for electronics retailers
Figure 26: Devices purchased due to COVID-19, by schooling options considered for the 2020-21 school year, August 2020
REASONS FOR COVID-19 TECH PURCHASES
More than half of buyers used savings or stimulus for a tech purchase
Figure 27: Reasons for COVID-19 tech purchase, August 2020
Figure 28: Reasons for COVID-19 tech purchase, by work commute since COVID-19, August 2020
Both young children and teenagers driving education related purchases
Figure 29: Reasons for COVID-19 tech purchases – child’s education, August 2020
DIGITAL ACTIVITIES IN THE PAST THREE MONTHS
Nearly seven in 10 consumers are using video calling
Figure 30: Digital activities in the past three months, August 2020
Remote work increases video call usage
Figure 31: Digital activities in the past three months, by work commute since COVID-19, August 2020
Video calling widely used by younger consumers, especially women
: Figure 32: Digital activities in the past three months, by gender and age, August 2020
Increased tech usage a direct response to social distancing
Figure 33: Changes in digital activities since COVID-19, August 2020
Figure 34: Breakout of changes to digital activities in the past three months, August 2020
TECH COST-CUTTING MEASURES
More consumers would hold off upgrading devices than cancel Netflix
Figure 35: Tech cost-cutting measures, August 2020
Wealthier households will cut future spending over current services
Figure 36: Tech cost-cutting measures, August 2020
ATTITUDES TOWARD DIGITAL TRENDS
Technology is a valuable tool to keep people connected 
While COVID-19 forced many to use video calls, most consumers agree they’re now more comfortable using video calling since then, and that comfort will likely spur additional usage moving forward. 
Figure 37: Attitudes toward digital trends – connecting and socializing, August 2020
Consumers are prepared for another lockdown
Figure 38: Attitudes toward digital trends – home electronics, August 2020
Figure 39: Attitudes toward digital trends – home electronics, by attitudes toward digital trends, August 2020
Home internet has been widely satisfactory for users during the pandemic
Figure 40: Attitudes toward digital trends – home internet, August 2020
CONSUMER SEGMENTS – ATTITUDES TOWARD DIGITAL TRENDS
Four segments of consumers identified based on attitudes toward digital trends
Figure 41: Consumer segments of attitudes toward digital trends, August 2020
Tech Avoiders (22%)
Characteristics
Figure 42: Profile of Tech Avoiders, August 2020
Opportunities
Simple Tech Seniors (26%)
Characteristics
Figure 43: Profile of Simple Tech Seniors, August 2020
Opportunities
Modern Tech Users (33%)
Characteristics
Figure 44: Profile of Modern Tech Users, August 2020
Opportunities
Emerging Tech Users (19%)
Characteristics
Figure 45: Profile of Emerging Tech Users, August 2020
Opportunities
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 46: Total US sales and forecast of technology and communications – table, at inflation-adjusted prices, 2015-25