Trend: Our digital lives

A trend indicates a direction of change in values and needs which is driven by forces and manifests itself already in various ways within certain groups in society.

Our hyper-connected world has been rewiring for the digital age for some time, through phones, laptops, the internet and social media. The COVID-19 pandemic has accelerated this digitalisation of our societies, including consumer behaviour. As stores closed and quarantines were imposed, the ‘digital first’ approach opened the virtual space for experimenting and creating online shopping experiences.

Extended reality technologies include real-and-virtual combined environments and interactions generated by computer technology. It includes Augmented Reality (AR), Mixed Reality (MR) and Virtual Reality (VR). The increased amount of time spent in online spaces is allowing businesses to offer personalised shopping experiences easily, and allowing consumers to customise their own virtual world through the design of space and avatars etc. These possibilities are created by an increasing amount of data collected about the consumers, which in turn, is raising concerns about privacy.

This Trend is part of the Megatrend Growing consumption

Manifestations

Developments happening in certain groups in society that indicate examples of change related to the trend.

 'Phygital' world

The blending of physical and virtual worlds through augmented reality (AR) and virtual reality (VR) is changing how we are experiencing the digital world, as virtual processes are integrated into physical spaces. The technology is allowing businesses to create exclusive immersive experiences around their products and services, from virtual tours of factories or farms, to virtual events, or by altering reality around us through projections which can be offered to the masses. It also offers new ways of interacting 'in-store' and even new products (VR travel experience). Following the pandemic, consumers have heightened needs for meaningful encounters and companies are tapping into this trend. New types of online spaces that are more social, interactive, and engaging are proliferating.

Signals of change: Euronews, roadtovr.com, Newsweek, Retail design blog

Digital ownership

As we spend more time in the digital world – in online videoconferences, computer games and on social media – the need to personalise our digital selves is increasing. Many are already increasingly willing to spend time and money on specific avatars and 'skins', as they seek to improve their online experience, and more importantly, for self-presentation in virtual communities. The virtual goods market is growing significantly in recent years with fashion brands and designers creating virtual accessories with new direct-to-avatar sales.  In parallel, blockchain allows the unique identification of digital assets (digital art, videos) as so-called 'non-fungible tokens' (NFT) which can be owned and traded. (A NFT is a unique and non-interchangeable unit of data that can be used to provide a public proof of ownership).

Signals of change: Forbes, Dezeen, Variety

Data and privacy 

Many of the features of the digital world are facilitated and enhanced by the analysis of the data that has become available. However, there are increasing concerns about security and the privacy of that data and the devices. We increasingly recognise the perils of 'free', but ad-supported digital business models, and alternatives are starting to appear which give users more control of that data. At the same time consumers are demanding a better experience through big data analysis and machine learning algorithms (which offer a more individualised and deeper understanding of consumer needs) and control over data.   

Signals of change: World Economic Forum, The Irish Times, Entrepreneur

Interesting questions

What might this trend imply, what should we be aware of, what could we study in more depth? Some ideas:

• What is the role of policy in the consumer digital space? What new methods and instruments can it bring? 

More information and links