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PR top 10 trends 2007

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Published on January 30, 2008

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Plunkett’s 10 Trends You Must Know About to Survive:  Plunkett’s 10 Trends You Must Know About to Survive Jack W. Plunkett CEO, Plunkett Research, Ltd. www.plunkettresearch.com 713.932.0000 Copyright © 2006-2007, Plunkett Research, Ltd. All rights reserved. Top 10 Trends:  Top 10 Trends LOHAS creates opportunities for new products & services Population shifts--Baby Boomers, Generation Y Growth of ethnic markets Health care costs soar Energy costs move to the forefront Offshoring & globalization create challenges and opportunities The “Third Screen” surges—Wireless transactions grow The Convergence Age is now—Mass market for broadband Advertising moves online, marketing takes more effort What’s Next? Think Nanotech and Miniaturization LOHAS – “Lifestyles of Health and Sustainability”:  LOHAS – “Lifestyles of Health and Sustainability” Significant Marketing & Positioning Opportunity Shifts in Consumer Tastes and Demands Shifts in Budget Priorities – Consumers will pay more for Green Opportunities for New Products and Services Evolving Design, Construction and Regulation Priorities Conservation of Energy, Water, Air Quality & Public Lands—Growing interest in Organic Products Population Shifts: Baby Boomers Retiring:  Population Shifts: Baby Boomers Retiring Major opportunities for marketing 78 Million Americans born from 1946 to 1964 Need Specialized Services and Infrastructure Ready to Travel, Buy Vacation Homes High Income, High Household Wealth Seeking New Careers/Continuing Education Increased Health Care Burden Population Shifts: Echo Boomers (Generation Y) :  Population Shifts: Echo Boomers (Generation Y) Well-educated, Growing Incomes, Eager to Spend 75 Million Americans born 1977 to 1997 (oldest are now 30) Ready to Buy 1st Homes and Furnish them Responsible for their Own Retirement Responsible for Much of their Own Health Care Living the Mobile, Digital Life Embrace New Technologies and Leading-Edge Products Lean Towards LOHAS Growing Population-U.S.:  Growing Population-U.S. 300 million Americans Today, it Took 39 Years to Add 100 Million (1967-2006) Next 100 Million Takes 37 Years: 400 Million by 2043 Hispanic Population Shows Biggest Growth Immigration Continues at Rapid Rate Rapid New Household Formation Where Will They All Live? Megapolitans? Smaller Cities? Ethnic Markets in U.S. Grow in Importance, Income:  Ethnic Markets in U.S. Grow in Importance, Income Immense Retail Opportunity as Incomes Grow Hispanic Population of U.S. in 2007 is 15% (45 Million People) Largely from Mexico By 2043, Hispanics will Make up 25% of Total U.S. Population (100 million) Global Population 2050 :  Global Population 2050 Aging/Shrinking Populations Create Unique Global Challenges, Shortage of Workers U.S. Population 2050 420 mil., +37% EU Population 450 mil, +0% Japan 110 mil, -12% Increased Offshoring & Outsourcing by EU, Japan and Other Aging Nations Population Shifts: Global:  Population Shifts: Global Global Population Today is 6.5 Billion In 2050: 9.1 Billion (60 million yearly growth) Growth is Not Universal--Only 9 Nations Account for 50% of the Increase (U.S., India, China, Pakistan, Bangladesh, Nigeria, Congo, Uganda & Ethiopia) Health Care Costs Soar, :  Health Care Costs Soar, Health Care Takes 16% of U.S. GDP today ($2.3 trillion total, $7,500 per capita), growing to 19% of GDP by 2015 ($4.0 trillion) Individuals, Employees Will Bear Greater Portion Personalized Medicine, Molecular Diagnostics Emphasis on Early Diagnosis and Intervention Care will Finally Go Digital Marketing Opportunity: Emphasis on Wellness, Education, Prevention Energy Costs Create a Sea Change:  Energy Costs Create a Sea Change Marketing Opportunity: Energy-Efficient Products Energy Technologies to the Fore Emphasis on Efficiency, Green Buildings, Smart Systems Consumer Preferences & Taste in Cars Change Solar, Wind, Safer Nuclear (Pebble Bed) Forge Ahead Synthetics, Ethanol, LNG Adopted Quickly Deep Sea, Tar Sands, Oil Shale, Clean Coal for the Long-term Businesses and Consumers Must Budget for Higher Costs Offshoring & Globalization: Challenges & Opportunities:  Offshoring & Globalization: Challenges & Opportunities Enablers: Internet, Telecom, Transportation Advances Retail Opportunity: Growing Middle & Upper Class in India & China Emphasis on Collaboration, Research & Development Captive Offshoring Massive Tech Graduate Base in India & China Governments Target Specific Sectors: Biotech, IT America’s Evolving Role Consumers, Businesses Enjoy Lower Prices The Convergence Age is Now:  The Convergence Age is Now Falling Broadband Prices + Growing Use of Wireless Devices = Achievement of Critical Mass, Service Offerings Proliferate Creating The Convergence Age Broadband Access Accelerates:  Broadband Access Accelerates 60+ Million High-Speed Internet Subscribers (Homes and Businesses) in the U.S. (Mass-Market “Tipping Point” has been Achieved) 2007 Long-term 80 to 100 Million Homes by 2012 to 2015 (Always-On Becomes Accepted Standard) Broadband Opportunities:  Broadband Opportunities Create Seamless Synergies between Bricks Clicks Catalogs The Third Screen Surges/ Mobile Computing:  The Third Screen Surges/ Mobile Computing Wireless Expands Capabilities The 3rd Screen (TV 1st, Computer Monitor 2nd) Better Technology + More Content + Mobility--Fuel Convergence 802.11G Wi-Fi already widely available WiMax Will Boom, Range to 30 miles 1 billion Internet Users Worldwide Today–Many on Advanced Cell Phones Explosive Growth in Wireless:  Explosive Growth in Wireless More Cell Phones Sold Each Year than Any Other Type of Consumer Electronic 210 mil. Cell Phone Users in the U.S. (66% of population) Majority of New Cell Phones are Internet-Enabled 800 Mil. Cell Phones Sell Worldwide in 2007 Wireless Marketing Opportunities:  Wireless Marketing Opportunities Advertise on Cell Phone Screens Sponsor Mobile Video Active Text Messaging Location-based Advertising Convergence Creates Changes: Financial Services:  Convergence Creates Changes: Financial Services Cell Phone Becomes a Credit Card & Debit Card – Supplants the Wallet Cell Phone-Based Internet Access to Account Information will Become Standard Advertising Moves Online: Another Effect of Convergence:  Advertising Moves Online: Another Effect of Convergence Marketing Takes More Effort Exceptional Niche Ad Targeting Possibilities Online Ad Revenues $15 to $17 bil. in U.S. During 2007 Search Engines/Web Sites Morph into Powerful Advertising Engines For the Long-Term: Think Miniaturization & Nanotechnology:  For the Long-Term: Think Miniaturization & Nanotechnology Miniaturization, More Powerful Chips Enable Enhanced Devices at Bargain Prices Cost of Storage Has Plummeted--(a 250 Gig hard drive costs $86, iPods have up to 80 Gig) Convergence of Nanotech with InfoTech will Create Extremely Powerful Semiconductors with 500 Million Transistors Each What’s Next:  What’s Next Better Wireless Networks (WiMax, UWB) Enhanced Mobile and Personal Devices Embedded Computing Will Detect Presence of Personal, Portable Devices Devices Will Learn our Information Habits Intelligent Transportation Systems (ITS) Eventually--Widespread Use of RFID In Summary::  In Summary: LOHAS creates opportunities for new products & services Population shifts--Baby Boomers, Generation Y Growth of ethnic markets Health care costs soar Energy costs move to the forefront Offshoring & globalization create challenges and opportunities The “Third Screen” surges—Wireless transactions grow The Convergence Age is now—Mass market for broadband Advertising moves online, marketing takes more effort For the long-term, think Nanotech and Miniaturization On the Web:  On the Web To download this PowerPoint, visit www.plunkettresearch.com/AboutUs/News/tabid/316/default.aspx To see our list of Retail Industry Trends, visit www.plunkettresearch.com/Industries/Retailing/tabid/210/default.aspx Copyright 2006-2007, All Rights Reserved Contact: Permissions Dept., ATTN: John Peterson, Plunkett Research, Ltd., P. O. Drawer 541737, Houston, TX 77254 USA voice: 713.932.0000 info@plunkettresearch.com

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