Measuring the difference between consumer spending habits at the turn of the millennium and consumer spending habits in the present day reveals some interesting trends. According to the Office for National Statistics, clothing and footwear items have dropped in price but consumer spending on these products has significantly increased; the same trend can be seen in spend on communication products, household goods and recreational ventures.
But why are we seeing an increase in consumer spend at a time when money is tighter than ever for most consumers?
Always on, always connected
It should come as no surprise that Apple, Samsung and Google has been and continue to be three of the biggest technology companies in the world. The mobile and telecommunications arms of these firms have molded society as we know it, with smartphones and tablets becoming must-have devices for consumers everywhere.
It is forecast that tablet sales could outsell desktops in the near future as millions trade in their desktop towers for slimline, mobile tablet devices. Furthermore, smartphone sales are expected to hit 1.5 billion units in 2017, highlighting the popularity of mobile technology.
Overall, these Wi-Fi and 3G/4G connected devices have completely changed the way society consumes information, makes purchasing decisions and revolutionised how we work in business and leisure.
Businesses embracing digital
As smartphones and tablets become commonplace, an increasing number of businesses across the globe are using this to boost their digital presence.
For instance, Wi-Fi connected devices enable consumers to come face-to-face with brands every single time they fire up a browser or swipe through their app menu. Therefore websites, mobile apps, social media and mobile advertising are snaring sizeable chunks of traditional marketing budgets as businesses take advantage of consumer habits shifting to convenience and usability.
In addition, an increase in the number of Wi-Fi hotspots means consumers can use their mobiles and tablets to connect their devices to the internet at home, on public transport, in public areas and in the workplace. Whether you’re strolling through a public garden, attempting to catch the London Underground or enjoying a flight abroad, there always appears to be a way to connect to Wi-Fi, such is the current demand for wireless connectivity.
Once consumers are connected, a simple tap of a button could be all that is required to purchase a product via these platforms, highlighting why businesses are so eager to take advantage of mobile and wireless technology.
Change in consumption
Looking back at the trends outlined by the ONS, it should come as no surprise that consumer spending is increasing when the number of electronic gadgets on the market, along with the variety of ways to connect to the internet, is skyrocketing.
Overall, there are clear reasons why user consumption and purchasing patterns are so wildly different in comparison with figures from 15 years ago. The rapid pace of mobile technology development combined with a rise in Wi-Fi access gives consumers huge opportunities to consume information regardless of their location. Furthermore, the convenience of using mobiles and tablets has delivered a massive opportunity to firms around the world – from small businesses just starting their digital adventure to large multinationals revamping their marketing department.
