To identify investments of the future, it is essential to be able to extrapolate current trends. A recent report by IDC cast a fascinating light on consumer behaviour concerning the purchase of technological devices such as smartphones and how they are being used. Even in these challenging times, the technological revolution is rolling forward but not at full speed!
Spending patterns over the next six months
The report looked at groceries, consumer electronics, household appliances, and consumer intentions over the next six months. Unsurprisingly, consumers expect to spend more on groceries over the next six months due to inflation and the global situation. The broader consumer purchase intentions were as follows:-
· Groceries, 40% expected to spend more, 52%, about the same, 8% expected to spend less
· Consumer electronics, 24% expected to spend more, 48% around the same, and 28% expected to spend less
· Household appliances, 20% expected to spend more, 49% about the same with 31% forecast to spend less
While demand for technology continues to grow, consumers are refocusing some of their finances towards everyday items such as groceries in the short term.
Device purchasing intentions
On the flip side, the report also found surprisingly strong purchase intentions concerning electronic devices:-
· 53% expected to purchase a smartphone within the next six months
· 23% expected to buy a smartwatch
· 22% expected to acquire a tablet
Looking at the wider market, there is a strong move towards working/studying from home, which is driving the purchase of PC-related items. The percentage of those purchasing such items to work/study from home was as follows:-
· 65% notebook PC
· 59% desktop PC
· 57% PC monitor
While entertainment was still the main reason for buying tablets, the mix is a little more interesting today:-
· 29% entertainment
· 28% study from home
· 23% work from home
There is certainly a move towards working/studying from home, driving the deeply ingrained technological revolution across the APAC region. This plays into the hands of the growing number of APAC technology companies offering apps and services in these areas.
Smartphones and working/studying from home
The survey identified an exciting switch to smartphones, with 31% of respondents across the whole region buying a smartphone for work/study from home purposes. However, the uptake in developing countries was markedly higher:-
· 53% Vietnam
· 49% India
· 47% Philippines
· 45% Thailand
· 45% Indonesia
It is no surprise to see Vietnam relatively high on this list because it is a country which has developed a focused and highly advanced digital economy. This has been reflected in growing local and global interest in the Vietnam stock market.
Summary
The availability of detailed research and the strong views of many investment experts can influence the direction of investors. Therefore, it is helpful to look at the basics, which in this instance relates to electronic equipment and the ongoing technology revolution. We can see maintained demand for consumer electronics and, more interestingly, a move towards working/studying from home.
From this data, technology is becoming even more ingrained in the working, studying and personal lives of individuals across the APAC region.