Digitalization has profoundly transformed the consumer sector, reshaping operations, customer interactions, and industry trends evident in innovative patents, strategic deals, and hiring practices. Consumer companies are using advanced tech to improve, with patents spanning various areas like better demand prediction, improved wearable connectivity, immersive virtual experiences, and enhanced search and navigation capabilities. Despite fluctuations in patent applications and deal trends, the consumer industry continues to prioritize digitalization, with the US leading the way in adoption. The impact of digitalization extends beyond the consumer sector, influencing various industries. GlobalData’s Digitalization – Consumer TrendSights Analysis report highlights the market drivers, the relevance of trends by sector and provides strategic take-outs for new product development. Buy the report here.
This article presents a quarterly round-up of the latest trends in the consumer industry regarding digitalization. It provides an overview of recent developments in digitalization-related deals, talent acquisition, and patent filings within the consumer industry.
Diverse applications of digitalization in consumer industry
In the realm of digitalization, consumer companies are harnessing cutting-edge patents to advance their businesses. Daikin Industries Ltd has developed a pioneering method to estimate demand more accurately by segmenting actual demand values through data-set-based models. NIKE Inc introduced two patents: one enhancing wearable tech with multi-frequency wireless communication, improving connectivity via diverse communication modes, and another expanding virtual reality with a multi-layer digital asset architecture, creating immersive experiences through layered graphics. Adeia Inc's patent revolutionizes search and navigation on compact displays by dynamically organizing search results into concept clusters based on metadata, optimizing browsing experiences. These patents collectively represent groundbreaking strides in digitalization, promising enhanced functionalities and enriched consumer experiences across various technological fronts. They underscore a shift toward more advanced, interconnected, and immersive consumer technologies, shaping the landscape of digital innovation in the consumer sector.
By acquiring these patents, consumer companies can benefit from advancements in digitalization technologies and applications. These patents enable more accurate estimation of demand, improved connectivity and functionality in wearable articles, enhanced display and interaction in virtual and mixed reality environments, and improved search and navigation on display-constrained devices. Overall, these patents provide valuable tools for consumer companies to innovate and improve their digitalization efforts.
The industry experienced a 22% decline in the number of digitalization-related patent applications in Q3 2023 compared with the previous quarter. On an annual basis, the number of digitalization-related patent applications in the consumer industry witnessed a drop of 10% compared with Q3 2022.
Strategic deal trends in digitalization in consumer industry
Consumer companies are not only focusing on innovation to enhance their patent portfolios but are also making strategic investments in digitalization. These investments aim to secure lucrative deals with partners and position themselves at the forefront of industry advancements. Some of the recent deals underscore the importance of digitalization in the consumer industry.
In Q3 2023, the number of digitalization-related deals in the consumer industry declined by 40% compared with Q3 2022. On a quarterly basis, there was 18% drop in the number of deals in Q3 2023 compared with the previous quarter.
Impact on hiring
In terms of new job posting, in Q3 2023, the consumer industry experienced a 27% drop compared with the previous quarter. On an annual basis, job postings also declined by 24%. Notably, management occupations, with a share of 22%, emerged as the top digitalization-related job roles within the consumer industry in Q3 2023, with new job postings drop by 18% quarter-on-quarter. Computer and mathematical occupations came in second with a share of 8% in Q3 2023, with new job postings dropping by 14% over the previous quarter. The other prominent digitalization roles include business and financial operations occupations with an 8% share in Q3 2023, and sales and related occupations with a 5% share of new job postings.
Nestle, PepsiCo, LVMH Moet Hennessy Louis Vuitton, Unilever, and Pandora are among the top companies leading in digitalization hiring within the consumer industry.
Countries driving adoption of digitalization in consumer industry
The US is the leading country in digitalization adoption within the consumer industry, boasting the highest number of digitalization-related patents, jobs, and deals. Meanwhile, Japan, China, the UK and Germany also maintain significant positions in digitalization adoption within the consumer industry.
In summary, the consumer industry experiences fluctuations in digitalization-related patent applications and deal trends, with recent growth in deals but a decline in job postings. Key roles in management occupations remain prominent. Companies like VF, Grupa Zywiec, Compagnie Financiere Richemont, L'Oreal, and LVMH Moet Hennessy Louis Vuitton are actively hiring. The US leads in digitalization adoption, with the UK, India, China, and Australia also playing significant roles in advancing digitalization within the consumer sector.
To further understand GlobalData's analysis on digitalization in the consumer industry, buy the report here.