Gen Z, Millennials Looks For Tech That Knows Them

The 5G smart phone market volumes are expected to be over 40% of the sales this year, GfK estimates

MUMBAI, Mar 07 (The CONNECT) – The 5G smart phone market volumes are expected to be over 40% of the sales this year, GfK (Growth from Knowledge) estimates.

The millennials and Gen Z, are looking for technology which “knows them”, said GfK, the AI-powered intelligence platform and consulting service for the consumer products industry, globally. It is this trend which is driving consumers to buy new smartphones that are not just faster or powerful but also easier to use and is part of their daily hustle.

Kartik Vasudevan, Strategic Accounts Director – India, GfK said “we forecast revenue led growth in 2022 to be driven by shift to higher price bands and premiumization. 5G enabled handsets will play a key role as India gets ready to rollout 5G services in near future.”   

Buying new tech products is one of the most important ways of pampering self for millennials and Gen Z and this will be one of the key factors to drive premiumization. “The interesting part is that while the contribution of +30K handsets grew at a total level in both channels, within the offline market, premiumization is no longer a big city phenomenon. In 2021, the contribution of Tier 2 and below cities stood at 60% by volume which indicates that more premium handsets sell in Tier2 and below in offline market,” Kartik Vasudevan, Strategic Accounts Director – India, GfK, said.    

With 5G services expected to start sometime in near future, consumers will future proof their purchases with 5G enabled handsets. This is also expected to drive up the average selling price. While the average selling price for smartphones was INR 14,806/- in 2021, prices for 5G handsets were 117% more. In 2021, the contribution of 5G handsets was 12% by volume, it is slated to cross 40% in 2022.

The rapid expansion of 5G handsets is expected to drive the premiumization of the market. Although 5G is an important factor influencing the market, its potential has not yet been fully exploited. 5G will be very important to drive some of the latest technologies of voice and camera applications which would be AI driven, GfK said