Consumer tech purchases for school, work, and entertainment were high during the pandemic. Tech items also have a long lifecycle, with replacements occurring on average every four years. The net result is a sluggish consumer tech industry in 2023. Circana’s Mike Crosby, executive director, industry advisor for commercial and consumer technology, and Paul Gagnon, vice president, industry advisor, consumer technology, share their outlook on the consumer tech market for the remainder of 2023 and into 2024.
- Most tech sales take place at the end of the year, from back-to-school season through the winter holidays. Retailers and manufacturers should use digital platforms to encourage consumers to shop in store, an easier place to showcase wares and adjacent products.
- Innovation in consumer tech took a back seat to production during the pandemic. Look for the innovation pipeline to fill again at the close of 2023 and into 2024. There’s excitement around AR/VR as Meta ups its game and Apple enters the arena.
- Consumers might be ready for tech upgrades and replacements, but budgets are tight. Many consumers will look for ways to extend the life of products they already own. Retailers and manufacturers should be prepared for the upcoming holiday season with optimal innovation or promotions — or both.