Market-redefining improvements happen solely each 5 to 10 years in tech and durables. Within the meantime, progress should be pushed by capitalizing on pure product substitute cycles and successfully speaking the worth of incremental enhancements.
Our shopper survey data¹ exhibits that fifty% of customers substitute defective merchandise, almost 1 / 4 improve still-functional gadgets, and solely 13% are first-time patrons. With the typical product age round 5 years— coinciding with the timeline since lockdown purchases, a major improve cycle might happen in 2025 for sure product segments. For example, Microsoft’s finish of Home windows 10 assist in October 2025 is prone to immediate PC upgrades.
To unlock substitute demand, manufacturers want a nuanced understanding of regional substitute cycles, influenced by elements corresponding to cultural attitudes, disposable earnings, and openness to innovation. Whereas disruptive improvements drive market enlargement, these are few and much between. Incremental upgrades, nonetheless, maintain immense potential and needs to be marketed successfully, emphasizing how they improve on a regular basis use and elevate the buyer expertise.
¹ Supply: gfknewron shopper. International protection. Timeframe: July 23-Jun 24.
