The technology industry is starting to see a glimmer of hope after a tough period. Generation X is driving consumption, while younger people are increasingly prioritizing sustainability. This trend is benefiting well-known brands, as highlighted at the IFA Innovation Media Briefing in Berlin. Norbert Herzog, an expert from GfK, predicted better times ahead for the technology industry. While there were initial setbacks due to the Covid-19 pandemic, the markets have gradually recovered. GfK surveys, focused on the EU and Great Britain, reveal that established brands are attracting more customers than new companies that are yet to earn trust.
Generation X, those born between the mid-1960s and mid-1980s, play a significant role in driving the technology market. This group has high purchasing power and specific expectations in terms of transparency, credibility, and quality. Sustainability is also a key consideration, particularly for younger consumers. GfK surveys indicate that 61 percent of Generation Z and 27 percent overall have purchased second-hand products. The “Glamour Greens,” as they are called, take pride in buying used products. Consequently, new products that are actually or perceived to be sustainable tend to perform better in the market.
This trend is evident in various countries, including Germany, France, Italy, and Great Britain. Smartphones with three or more eco-labels sell significantly better than those with no or only one label, and at higher prices. Manufacturers are increasingly highlighting eco-friendly features as a selling point. Additionally, factors such as higher product quality and customization for specific purposes influence purchasing behavior. For instance, smartphones with at least 256 GB of memory have experienced a ten percent increase in demand, while models with less memory have seen a ten percent decline. Narrower niches, such as content creation, also contribute to stronger sales. Notebooks, monitors, and cameras specifically designed for content creation outperform universal devices in terms of sales and pricing.
Overall, GfK believes that the technology market has weathered its low point and anticipates a positive development in the coming months. The market is stabilizing and is expected to experience growth in the second half of the year.
