After a record year in 2020, U.S. retail tech sales are projected to reach $461B in 2021 growing another 4.3% YoY due in large part to increased 5G rollout, new wearable and connected devices, and spending on in-home entertainment such as gaming and streaming. Enterprise technology and software are also seeing record growth, as the pandemic is forcing companies to rapidly upgrade their IT solutions and further shift to cloud-based infrastructure and a virtual workforce.
But with these tailwinds come challenges, as Big Tech brands face increased scrutiny around data privacy, cyber security, and their impact on society as a whole. Challenger and DTC brands face their own challenges, as they combat lagging consumer adoption of new technology and stiff competition from the well-established Big Tech brands. Regardless of the tech sector or maturity of their business, brands need to stay culturally relevant and win both the hearts and wallets of tech consumers whose values and needs have changed coming out of 2020.
If you have any questions, please reach out to Nicholas Youngman, VP, Client Strategy.