Tag: Insights

FT NextGen: Consumer desire fuelling disruption

All disruptors put consumers at the core of their product. Those businesses that succeed in changing markets, altering customer perceptions, and re-imagining business models don’t set out to be disruptors.

They begin with the notion of catering to consumer desire and improving the lives of the end users.

For us at Prevayl®, everything we do is focused on helping people to live healthy lives; a core human desire and an intrinsic part of human nature. By enabling individuals to interact with their own health data they will have the insights to help them make healthier choices every single day.

Consumer desire fuels change for the better. This was central to the discussion at FT NextGen, where we were lucky to attend. These are some of the biggest consumer trends fuelling disruption now and into 2020.

Disrupting banks of the future

Digital banks are completely re-imagining the market in the UK. Where once the old establishment dominated the sector, now the number of people using digital banks is expected to exceed 35 million in 2020.

Nearly 30% of consumers in the UK are willing to use a digital-only bank. Digital banks promise real-time spending updates, instant payments to friends, tools to monitor personal finance, no charges for using cards abroad, and enhanced security through facial and voice recognition for account access and transfers.

Put simply, they focus on exactly what consumers desire and provide market-leading tech features to cater for their needs. These are the seeds of disruption coming to fruition.

The future of content

Define ‘content’. Gone are the days of content being purely limited to the websites we visit, the newspapers and magazines we read and the TV channels we tune into.

Today, we’re all content creators.

Our online lives are our personally curated content feeds. Social media platforms began this trend and their algorithms have fostered and fuelled this desire. Your feed is created in line with the content you like and engage with, while your own page is the outward extension of your personality you want the world to see.

This phenomenon of the last decade or so has been driven by the desire for an individual experience, based around a personal customer journey. It has completely re-imagined how we consume content and detrimentally impacted traditional media outlets that simply can’t cater to the desire for personalisation on such a granular level.

This desire for personal curation of our own lives is beginning to be taken a step further by brands with innovative concepts to enhance engagement and create a personal customer journey. This is the central concept behind Burberry’s commitment to bring social selling to their stores, beginning in China. It feels like just the start.

Fashion’s sustainability problem

Consumer desire isn’t just fuelling the revolution of the shopping experience. Consumers are ever-more clued up on sustainability and how various industries continue to impact the world we live in.

Growing numbers of people globally are beginning to turn away from fast-fashion due to the environmental impact it continues to have.

This has led to a step-change from the world’s leading luxury brands. In August this year prior to the G7 Summit, fashion companies reached a landmark Sustainability Accord with the aim to enlist at least 20% of the global fashion industry in an effort to reduce their environmental impact. Brands involved from the outset include Gucci, Kering and H&M.

Consumer desire might once have fed the fast-fashion industry, now the world’s consumers are beginning to turn their backs.

The pursuit of passion

It isn’t just sustainability that is changing in the fashion industry.

The entire retail model is beginning to shift, especially when it comes to those smaller businesses requiring a route to market away from the costly traditional brick-and-mortar model.

This notion of the retail model being broken as opposed to the fashion model led entrepreneur Ross Bailey to launch Appear Here; an online marketplace for short-term retail space. Since it began in 2013, Ross has now worked with over 200,000 brands and operates in a number of cities worldwide including London and New York.

It means more brands on the market and better options for consumers.

Our work at Prevayl

Consumer desire continues to frame our approach to everything we do at Prevayl, ensuring we help people to live healthier lives through market-leading solutions to wearable technology.

The combination of our connected-clothing and health-management platform enables consumers to curate their individual health dashboard, offering everyone that wears Prevayl-enabled garments a personal customer journey.

Our technology is responsible and our fashion solutions sustainable, while our ability to offer fashion brands Prevayl-enabled solutions ensures a diverse marketplace in the wearables sector.

We have innovation at our core. We know that everything in our lives can be improved.

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From Gaming to the Esports Revolution

Esports continues to grow. In both popularity and commercialisation.

Where the likes of Quake and Counter-Strike pioneered the early stages of the esports revolution, where we are now is a billion dollar industry.

Global revenues are set to hit $1.1 billion in 2019, reaching $1.8 billion in 2022. The figures for 2019 represent a 743% increase from global revenues in 2012 $130 million[1] and a 26.7% year-on-year (YoY) increase.

The USA has traditionally been the dominant market and is still just out in front with revenue estimates for 2019 of $36,869 million, closely followed by China $36,540 million and Japan $18,952 million[2].

Last year, globally there were 380 million esports viewers, which is expected to surge to 557 million by 2021[3]. Just a year later this is predicted to grow to 644 million esports viewers, with 297 million frequent viewers and enthusiasts worldwide[4].

What was once viewed as gaming is now well and truly established as a sport and specifically, a commercial entity.  

Esports sponsorship

These are big numbers for a revolution that feels very much still in its infancy.

Big brands aren’t just beginning to take note, esports sponsorship is a major strategic decision for global brands aiming to reach a very specific audience.

This has seen the likes of Red Bull, BMW, Nike and Unilever all getting in on the esports action. The sponsorship deals are also now for significant sums.

Where brand spend on esports sponsorship was around the $230 million mark in 2015, this is set to be $456.7 million in 2019 and will hit the billion mark in 2020, when it will soar to an expected $1.2 billion[1]

The two core reasons behind this esports sponsorship boom are reach and loyalty. The esports demographic sweet spot is males between the ages of 21 to 35. This core group is extremely difficult to reach via traditional advertising.

Being able to get in front of and reach this group is one thing, for the brands that do it right there is also the opportunity to generate loyalty in this notoriously difficult user group. Those brands that have garnered credibility in this space are also enjoying huge paybacks due to the loyalty shown by this core demographic.

Growth of the esports economy

As is the case with more traditional sports, the esports economy isn’t solely focussed on brand sponsorship, although it is the biggest revenue driver.

Media rights have enjoyed close to a 50% YoY revenue increase, hitting $234 million this year, while advertising revenues will be close to $257 million in 2019. Revenues secured from merchandising and tickets will surpass the 100 million mark with those from game publisher and fees hitting just shy of $100 million.  

Additionally, as esports grows in popularity and prominence, so does the opportunity for other associated industries to cash in. Esports betting is a huge market currently, growing from $315 million worth of bets placed on esports globally in 2015 to an expected $23.5 billion in 2020[1].

The unique challenges faced by esports athletes

The ascension of esports has been rapid from enthusiasts playing single player games amongst friends to the industry we know today.

What began organically with the capabilities of the internet, the evolution of the games themselves and the first online tournaments, has grown exponentially.

As is the case with all sports, with increased commercialisation comes increased demands felt by the athletes themselves. Esports can put unique pressure on players, affecting both their physical and mental health. It’s our aim at Prevayl™ to provide essential protection and insights to ensure both mental and physical health are not neglected.

[1] https://www.statista.com/statistics/490522/global-esports-market-revenue/
[2] https://newzoo.com/insights/rankings/top-10-countries-by-game-revenues/
[3] Newzoo.com
[4] https://www.statista.com/statistics/490480/global-esports-audience-size-viewer-type/
[5] https://www.statista.com/statistics/526224/brand-spend-esports-sponsor-and-ads-global/

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