Reflections on 10 hot consumer trends 2016, Ericsson ConsumerLab

May 2016
A collection of posts from the
Ericsson Networked Society Blog
Reflections on
10 hot consumer
trends 2016
ERICSSON
CONSUMERLAB

CONTENTS PAGE PAGE
1. THE LIFESTYLE NETWORK EFFECT 4
Consumers drive global dominance –
or new ecosystems?
Michael Björn
2. STREAMING NATIVES 6
Born to stream – growing up in the YouTube age
Rebecka Cedering Ångström
3. AI ENDS THE SCREEN AGE 8
The smartphone is dead.
Long live the smartphone!
Michael Björn
4. VIRTUAL GETS REAL 9
The killer app for virtual reality: shopping!
Michael Björn
5. SENSING HOMES 10
Today, my home dumbed down
Michael Björn
6. SMART COMMUTERS 11
I am the smart commuter
7. EMERGENCY CHAT 12
Is society ready to be networked
for emergencies?
Michael Björn
8. INTERNABLES 14
Internalizing wearables
Michael Björn
9. EVERYTHING GETS HACKED 15
Everything didn’t actually get hacked – yet
Michael Björn
10. NETIZEN JOURNALISTS 16
Avoid or engage?
AUTHOR
MICHAEL BJÖRN
Head of Research at
Ericsson ConsumerLab
Adjunct professor
at the Lund University
School of Economics
and Business
Management
Ph.D. in data modeling
from the University
of Tsukuba in Japan
As part of his work in studying global consumer trends
and the process of assimilation of ICT into everyday
life, Michael has been driving Ericsson ConsumerLab’s
annual 10 Hot Consumer Trends reports since 2011.
Throughout his career, Michael has also maintained a
focus on writing which, among other things, has resulted
in academic papers, a book on situational marketing
and two novels. He is currently a regular contributor to
Tokyo-based monthly music magazine Strange Days
as well as Ericsson’s Networked Society Blog.
AUTHOR
REBECKA CEDERING ÅNGSTRÖM
Senior Advisor
at Ericsson
ConsumerLab
MSc Industrial Design,
Luleå University
of Technology
Rebecka is responsible for conducting international
consumer research, and has worked extensively
with increasingly important topics such as privacy
and security. She has been working with 10 Hot
Consumer Trends since 2013.
Coming from a background in product development,
it has always been natural for Rebecka to work from a
consumer perspective and investigate how emerging
behaviors influence societies.
She is the author of several ConsumerLab reports
and a writer for the Ericsson Networked Society Blog.
She has been an invited speaker in multiple forums
such as global media events, industry conferences
and numerous customer meetings.
Introduction
CLICK HERE TO READ MORE2 REFLECTIONS ON 10 HOT CONSUMER TRENDS 2016

Voice of the consumer
Ericsson ConsumerLab has more than 20 years’
experience studying people’s behaviors and values,
including the way they act and think about ICT products
and services. Ericsson ConsumerLab provides unique
insights on market and consumer trends.
Ericsson ConsumerLab gains its knowledge through a
global consumer research program based on interviews
with 100,000 individuals each year, in more than
40 countries – statistically representing the views
of 1.1 billion people.
Both quantitative and qualitative methods are used,
and hundreds of hours are spent with consumers
from different cultures. To be close to the market and
consumers, Ericsson ConsumerLab has representatives
in all regions where Ericsson is present, developing a
thorough global understanding of the ICT market and
business models.
All our reports can be found at:
www.ericsson.com/consumerlab
Can consumer research predict
the future as well as monkeys?
The common view is that consumers have
no idea what the future holds, and for this
reason, future-focused consumer research
is meaningless. The average consumer has
no insight into these matters – so the story
goes. But in reality, none of us has a clue
about the future; in fact, experts are often
more clueless than anybody else.
The most well-known example of course, is the reference
to monkeys vs. stock market experts, which proves that
monkeys have a tendency to come out as winners on a
regular basis.
So, maybe you should be listening to consumer research
– it may pinpoint some uncomfortable truths that experts in
your industry fail to see!
Our report, 10 Hot Consumer Trends 2016 makes some
rather bold statements, and despite our confidence in their
validity, we have been taken aback by the speed at which
some of these trends have already manifested.
Excitingly, the predictions made in our consumer trends
research have a track record for becoming true. As an
example, we introduced the Lifestyle Network Effect, where
consumers seek out the most used services in order to utilize
the intelligence of large crowds. Today, there is much debate
about some platforms having more than a billion users.
We focused on the consumer readiness for smartphone
evolution with the AI Ends The Screen Age trend, which
has turned into quite a news piece in its own right.
In addition, we also talked about Sensing Homes, since we
noticed that many consumers do not necessarily perceive
smart home solutions as accessible or easy to use. Now,
we already see news about consumers losing interest in
the traditional approach to smart homes.
However, trends are not really about predictions, as such.
Whether they are proven right or wrong may not even be
particularly fundamental. What is crucial is that they focus
on important discussions currently taking place that could
contribute to shaping our future.
In a similar vein to those last year, we have blogged about
what we saw on the Ericsson Networked Society Blog. Here,
we have collected some of those blogs in order for you to get
another perspective and our personal opinions about these
trends. We want to continue the discussion – and we hope
you do too!
REFLECTIONS ON 10 HOT CONSUMER TRENDS 2016 3CLICK HERE TO READ MORE

Consumers drive global dominance – or new ecosystems?
Do you use crowd intelligence in everyday life? Maybe you have
not thought about your behavior in this way, but our research at
Ericsson ConsumerLab shows that in fact you probably do.
The sharing economy is booming and, of the people we
studied, one in three is already involved in some part of it.
A third is using multiple instant messaging platforms.
Almost half use multiple social networks. All of these are
examples of consumers actively using crowd intelligence.
A social network with many people means high potential for
good advice; the same goes for instant messaging. A sharing
economy with many participants means lots of offers and
even more user reviews. When many participate, you stand
to benefit from their experiences. A lot. Research for Ericsson
ConsumerLab’s 10 Hot Consumer Trends 2016 shows that
4 out of 5 now actively seek the most used services in order
to benefit from the intelligence of really big crowds, and we
call this trend the Lifestyle Network Effect.
But is it only a good thing?
Our research in this case covered 24 countries and was
representative of over 1 billion consumers. And that
number is relevant – 1 billion is the new baseline. As crowd
intelligence improves with more participants, consumers
increasingly flock to the most popular services. A handful
of brands have billions of users; others, rather fewer.
Google already has seven products with a billion users,
and Apple recently scrambled to show that 1 billion
people use Apple devices.
WhatsApp also has a billion users. And parent company
Facebook’s own billion is even more impressive, given that
this billion logs in every day. No other social network has a
billion user reach, not even Tencent’s QQ in China. In fact,
the only other member of the overall billion users club is
Microsoft (for both Windows and Microsoft Office). In that
light, Mark Zuckerberg wanting to have 5 billion users by
2030 almost seems logical. Never mind that it is far more
people than even have internet access today, or even
more than the current world population aged 15-64.
But what will this dominance mean in a world where
everything is becoming networked at an increasing pace,
and lifestyle network effects blow like tornadoes through all
industries? When cars get connected, passengers will want
to benefit from collective experiences in order to have safer
and more pleasant journeys. When using connected power
grids, who wouldn’t want some extra intelligence to save both
money and the environment? Wellness is crowd-optimizing
your habits via smartphones, fitness trackers and other
wearables; and although similar effects may be slower to
spread to healthcare, it is probably just a matter of time.
One extreme view of the future could be of the billion users
club members playing a global Monopoly board game.
1. The Lifestyle
Network Effect
When cars get connected, passengers
will want to benefit from collective
experiences in order to have safer and
more pleasant journeys
4 REFLECTIONS ON 10 HOT CONSUMER TRENDS 2016 CLICK HERE TO READ MORE

Winners, in effect, take over the users in any and all other
industries as soon as these industries become sufficiently
networked. We end up in a world where a small group of
companies cut across all industries on all continents.
An opposing future view could be one where consumers’ need
to control their personal information creates a new ecosystem
with independent intermediaries between consumers and the
big internet brands. In a 2015 Ericsson ConsumerLab report
about internet and wellness, consumers implicitly saw a new
ecosystem entailing cooperation between several parties.
However, they also wanted to retain control over the flow of
their personal information. Even though authorities were seen
as the second largest wellness service provider, as many as
66 percent wanted full control over the dissemination of their
information by authorities.
In this scenario, the idea of an internet access provider
takes on a whole new meaning – not just providing access to
connectivity but helping users manage access rights for all
the services they are using. Such an access provider stores
personal data, and when I as a consumer want to change
social network service for example, I just close the access
rights I had given to the previous social network brand.
Then, open the corresponding access rights to the new brand.
As a consumer, I can easily switch between service brands
that all compete on equal terms, and I get to keep my
personal data history intact while switching. The number
of users of any specific brand will still be important when
it comes to crowd intelligence, and probably also to
advertisers. But entry barriers will be very much lower
for companies who want to provide services.
A more realistic view on the future may lie between these
two extreme points. What do you think? Will consumers
drive global dominance, or new ecosystems?

Born to stream – growing up
in the YouTube age
A few weeks ago, I walked past a room in my
house filled with giggling seven year olds in
front of a mirror. Nothing strange here, I am
quite used to having giggling kids in my home,
but the mirror thing was new. So when I got a
chance, I asked the kids what they were doing
and got the answer: “Oh, we just did our own
video blog.”
2. Streaming
natives
That caught me a little by surprise. I know the kids like to
stream a lot of content from different sources, but this was
the first time I heard them talking about producing their own.
Still it was only a pretend game, but isn’t that the way
it always starts? That you play around with the idea first?
Since then, I have explored YouTube together with the kids
on several occasions. To look at what they are watching:
bloggers, music videos, fan-made vids, and more. It is quite
fascinating to explore this world from their perspective
– I can highly recommend it. And I realize it is also very
different from my own YouTube behavior (mainly I watch
it for learning, news, reviews, movie and gaming trailers,
and of course, the occasional John Oliver show).
400+

There is no surprise that the experience of video is different
between generations. But over the past two years, we have
seen a shift in how teens stream video. In our Trends for
2016 we highlight this, describing how a new generation is
emerging. Almost half of all 16 to 19 year olds stream video
on YouTube for at least 1 hour per day. Around 20 percent do
it for 3 hours or more. Compared to the previous generation,
the Digital Natives, this is something new. One of the
explanations is that this new generation is the first to grow up
with video streaming services as a norm. Last year, YouTube
turned 10 years old. Meaning it has been around since the
teens in our survey were below the age of 10 themselves.
And YouTube continues to influence the young. Today, it
contains a silly amount of content. The latest number I’ve
got is that 400 hours of video are uploaded every minute.
But it is not only about the content; it is also about reach.
The kids and teens today are growing up with the idea that
their self-broadcasting YouTube stars can evolve beyond
their channels. An example is Felix Kjellberg, also known
as PewDiePie, who now has his own YouTube Red featured
series called Scare PewDiePie.
Oh, we just
did our own
video blog
Almost half of all 16 to
19 year olds stream video
on YouTube at least 1 hour
per day
Or, a much more relevant example in my household
comes from the major music contest in Sweden, called
“Melodifestivalen” (which, by the way, was broadcast in VR
mode). It’s a “must see” if you have seven year olds at home.
This year’s hosts, Gina Dirawi and William Spetz, both started
their careers by posting their personal videos on YouTube
back in 2009 – a fact clearly noted by the kids, as it was
presented during the show.
So there is no question in my mind that this generation will
bring this tool with them as they grow up. They will implement
the possibility to stream video in new and exciting ways,
at school, at work, you name it. But don’t expect it to stay
at streaming pre-uploaded content from a single source.
As many of the Streaming Natives use mobile devices as their
prime device, and due to services like Periscope, we will likely
see live streaming grow.
And beyond that, this generation will probably also be quick
to embrace VR streaming as it becomes cheaper too. Think
about it, immersive 360 videos shared in real time! It will be
a thrilling development, and perhaps one day you’ll also find
yourself in front of a mirror giggling about a broadcast idea.

Two days after the report was released, I was on the Aaron
Rand radio show in Canada. Aaron asked: “If someone
told you that smartphones would be dead in five years […]
wouldn’t you think they were crazy?”
I replied that I agree.
Still, there may be some substance to the hyperbole.
We have spent decades getting increasingly involved in
interaction with screens – buttons on TV remotes, keyboards,
then the mouse for the PC, and finally touch for smartphones
and tablets. However, with artificial intelligence (AI), there is
now an alternative that not only works reasonably well but
that consumers also show interest in.
Should we be scared of AI? Long-term ethical issues
certainly need to be carefully considered but, in the shorter
term, our research indicates that what really scares people
is still other people; whether they are withdrawing cash from
an ATM on a dark street corner, being stalked online, or,
as it turns out, confiding sensitive information. A third of our
respondents would already rather trust an AI interface than
a human for sensitive matters.
Rather than just helping us do things, screens are also about
to get in the way of some activities. The most futuristic
product right now may actually be the most unassuming
one: The Amazon Echo is an AI speaker that, ahem, speaks.
In the same vein, people believe they will be able to talk to
household appliances like they talk to people. Look mom,
no screens!
When half of the smartphone users we interviewed said that
the smartphone could be a thing of the past in five years,
3. AI ends the
screen age
they were most likely thinking about current generation
devices and felt ready for evolution.
Mobile screens are certainly not going away, as young
people watch much more streaming video than older people
– and smartphones are increasingly becoming a preferred
screen for that. This means that people want smartphone
screens so big it is almost ridiculous: almost a third want a
screen the size of a mini-tablet.
Will we insist on calling a device needing two hands
to hold between the ear and the mouth a “phone”
five years from now? I wonder!
In fact, I am willing to predict a much quicker death of the
smartphone: around 5pm on busy days. My phone just
doesn’t last a full day of action. And with 78 percent of those
in our survey wanting to worry less about the battery dying,
I am not alone.
Although video is a large part of what we do on the internet,
it is not everything. In such situations, it would make perfect
sense to directly interact with AI-equipped objects or use an
AI companion device, rather than a power-hogging screen.
In fact, 85 percent of smartphone users think wearable
electronic assistants will be commonplace within 5 years.
Not everyone was surprised at the talk of evolution of
devices. The contributor at Forbes, for example, said that
there is already a lack of innovation in the smartphone
space. In fact, the article goes as far as to say that
“The smartphone as we know it is dead.”
If the smartphone already is dead, then
long live the smartphone!
And may an AI be its wearable companion device!
The smartphone is dead. Long live the smartphone!
When Ericsson ConsumerLab released our 10 Hot Consumer Trends for
2016, the trend AI Ends The Screen Age, in particular, caught the
eye of media news sites such as CNBC, which interpreted it as if
Ericsson was predicting the death of the smartphone.
85 percent of smartphone
users think wearable
electronic assistants will be
commonplace within 5 years

The killer app for virtual
reality: shopping!
Virtual reality (VR) headsets seem to be
all the rage right now. There are dozens of
very cheap models that you can slip your
smartphone into – and a number of companies
are this year releasing high quality VR
headsets that do not rely on your smartphone.
4. Virtual
gets real
But this is not the first time such headsets have been on
the market: Nintendo released their Virtual Boy system
already in 1995 – and withdrew it less than a year later.
Will VR flop as badly this time round too?
Actually, our research at Ericsson ConsumerLab
indicates that VR now stands a good chance of becoming
widely accepted – if it goes beyond gaming applications
quickly enough.
Respondents in our surveys are interested in VR games,
but the most striking result is the range of VR services people
show interest in: everything from VR dating and virtual home
offices to immersive video experiences of different kinds.
And, most of all, people are interested in shopping.
People usually laugh at this. Shopping seems so trivial and
so far removed from high tech. But given that advertising
is one of the most pervasive applications of the internet,
shopping can be high tech too.
We published a report in 2012 showing that as many as
73 percent of consumers really disliked the fact that they
can’t see, touch, or try things when shopping online.
Using some high tech to solve that issue makes sense.
And in fact, 64 percent were interested in using VR to see
items in real size and form when shopping online in our 2015
survey. That was the most popular service of all we tested!
The majority of consumers think VR would be good
for online shopping.
But our research also shows that in-store and online
shopping are not separate activities – they are intertwined.
As a consequence, devices will have to be mobile, unobtrusive
and not geeky, in the sense that use should conform
reasonably well to current social norms. Whereas walking
down the corridors of the local grocery store with your nose
so deep into your mobile screen that you constantly bump into
other shoppers is socially accepted behavior, walking around
with your face covered in black VR headgear, with arms
stretched out in front like a zombie, is not.
Luckily, some manufacturers understand the importance
of building on current behaviors; the Glyph is, for example,
essentially a headphone set. But the headband hides a pair
of eyepieces and you can literally slide the headband in front
of your eyes and see video in 2D or 3D. It could potentially
be used to see the actual size and shape of products online.
Using a smartphone. In a store.
As shopping is about to go virtual, we at Ericsson
ConsumerLab believe that one of the most important trends
to watch is how virtual gets real. For example, half of the
smartphone users we surveyed also want a 3D selfie that can
be used as an avatar to try on clothes online.
But when virtual gets real, we may not even need to shop
for some things. We can instead print them in 3D – such as
spoons, toys, and spare parts for appliances. In fact,
44 percent said they even want to print their own food!

Today, my home dumbed down
Although it has 100-megabit internet
connectivity both up and down at flat rate,
most of the time that fabulous capacity is just
idly sitting there. We play movies and games
of course, but the home itself does nothing
with the connectivity, because it is dumb.
And it just got dumb beyond help.
I had signed up for a smart home solution from my electricity
provider. There was a lot of paperwork and when the smart
stuff finally arrived months later, it was just a reader for my
electricity meter and a smart plug for a wall electricity outlet.
The smart plug can monitor how much of my total electricity
is consumed by whatever I connect into that one plug.
After all the paperwork and the long wait, I wasn’t exactly
overwhelmed. This would leave the other 30 or so wall outlets
as dumb as ever before.
To complicate things, the reader seemed not to fit under
the old steel casing covering my electricity meter. But if I
didn’t install and activate by a certain date, I would no longer
be allowed entry to that hallowed group of people who live
in smart homes.
That fateful date is today, and here I am with boxes of smart
equipment still unopened; standing with a slightly dumb
frown on my face, in my now irrevocably dumb home.
I am almost expecting a market researcher to come knocking
and ask me to participate in Ericsson ConsumerLab’s
“Connected Homes” survey. The report concludes that the
main reason for not being interested in a smart home was
a perceived lack of benefits. In my case, that would be an
obvious reference to that one smart wall plug.
Had I resisted my urgently perceived lack of benefit and just
done the installation, I am sure other services would have
been offered to me over time, as a smart home covers many
areas. The Ericsson ConsumerLab report shows that among
those interested in multiple smart functionalities, two-thirds
would like to have just one supplier. Electricity companies
were indeed also among the top five suppliers of interest.
But are electricity companies really the best suppliers of
smart homes? I do not think so. In fact, I believe there should
be no supplier at all. Ideally, internet should be every bit as
intrinsic to the home as water pipes and electrical wiring.
For this reason, one of Ericsson ConsumerLab’s top
consumer trends for 2016 is instead about sensing homes.
Our research indicates that 55 percent of smartphone
users believe that within only 5 years, their homes will have
embedded sensors that look for construction errors,
mold buildup, water leaks and electricity issues.
We may have to fundamentally rethink the concept
of a smart home.
Although sensors are becoming part of the bricks and
mortar, this process will take some time. But old homes may
still become smart without the hurdle of an installation phase,
since a majority of smartphone owners also expect the
indoor environment to be controlled by connected sensors.
For example, since 64 percent believe that buildings will
mimic outdoor light conditions within the next five years,
light bulbs could be the perfect place for all things connected
in your home. The new generation of LED lights is starting to
incorporate sensor technology and may soon also use light
to provide high speed wireless connectivity.
If your LED light bulbs already come with an app to set color
tone, watch out, there may be a new version of the app that
also includes burglar alarm functionality!
Companies like Sony are even putting bluetooth speakers in
lightbulbs, so if you think entertainment is part of your smart
home that may be another area where installation is
no longer necessary!
5. Sensing
homes BLUETOOTH
SPEAKERS IN
LIGHTBULBS
SMART
PLUGS
EMBEDDED
SENSORS

I am the smart commuter
“Uhm, this is the train conductor. We will leave in a few minutes.
There is just a queue of trains we need to wait for. However, due
to the faulty signals we will only go as far as Solna.” My thoughts?
“Argh. Here we go again. Can’t believe it! I need to get off this train.”
I rush for the doors and the next thing I know, I’m standing
on a rainy platform, in the middle of nowhere. It is about
4 degrees Celsius and I’m freezing to bits. Naturally, I forgot
my mittens on the train, so my fingers feel like popsicles
when I text my colleagues that I will take all meetings from
home today. Still, I am happy that I listened to my gut feeling
and got off that train. Why? Because I know how this goes.
You get the information from the speaker system saying that
this will only take a few minutes. That is ok, but when they
change the final destination you know that something is up.
I have done this so many times I don’t care to count them.
That is also why I know that, had I continued with the train,
I probably would have made it to work using a mix of buses
and trains. But getting home on time would be a totally
different story. These things usually take a whole day to fix.
Painful? Yes, but I am not alone. In June 2015 we released
a study looking at the commuting situation in London,
New York, Sao Paulo and Shanghai. Unsurprisingly, many
commuters experience commuting as stressful, tiresome
and even frustrating.
What makes it so painful is not only the stress of catching
the bus or the overcrowded platforms. It is also about time
and being able to predict how long the commute will take.
Actually, commuters spend a lot of time in transit and daily
commuting. On average, it is 6.5 hours per week. In fact,
we spend more time commuting than we do socializing with
friends. And who wouldn’t rather spend time with their friends
than sitting idly on a crowded train (or standing on a cold,
rainy platform like in my case)? Time is precious and I am
not prepared to let faulty signals eat into mine.
But we are smart, my fellow commuters and I. We use
technology and all possible services to improve our situation,
as we highlight in this year’s set of hot consumer trends.
In my case, there is a good app working in my area that
can tell me if the train is on time or if a carriage is crowded.
I can also check the local news that covers the current
situation for all trains on that route. But none of these
services can give me all the information I need, especially
when I am already on the train.
Like today, I would have wanted the information that the
train wasn’t going to make it to Solna, as they announced on
the train’s speaker system – I learned that on the platform,
two minutes after the train had left. The poor people who
stayed onboard probably didn’t find out until it was too late;
in between stations, standing motionless waiting for the train
queue to move. It was my gut that told me to get off – my
app doesn’t provide that type of information.
Commuters want an improvement and are expecting
transport companies to offer more and better information
to help navigate their way. Of the people we talked to, 86
percent would use personalized services if they
were available.
Still, I like to take the train to work, and my reasons for that
are many. However, I am looking forward to when I can fully
enjoy the trip without risking surprises that leave me standing
on a cold and rainy platform. I would like smart information
when I need it. Thankfully, today I had my gut to guide me
and I now work from home instead of having to try to find
alternative route to get home (like my unfortunate neighbor
is doing right now).
6. Smart
commuters
Commuters spend a lot
of time in transit and daily
commuting. On average,
it is 6.5 hours per week

Is society ready to be networked
for emergencies?
Big rocking movements woke me up.
Although it felt like being on an ocean-liner
in a storm, I was in fact on a futon on the
tatami floor in my house, and the alarm
clock showed ten minutes to six. I was
experiencing yet another earthquake, although
it was strangely slow moving this time.
As my room had no heating and the indoor temperature
was close to freezing, I eventually crawled back onto my
futon and fell asleep again. It wasn’t until several hours later
that I realized I had experienced the worst earthquake in
Japan since 1923.
Although the epicenter of this 1995 earthquake was in
the vicinity of Kobe, it had woken me up 260 miles away,
in the science city of Tsukuba, just northeast of Tokyo.
The woman who would eventually become my wife lived in
Kobe. That morning, I tried and tried to call but the lines were
all busy, and it took several hours until I managed to confirm
7. Emergency
chat
The Emergency Chat trend
concludes that 65 percent
of smartphone owners are
interested in an emergency
app, which would alert them
in a crisis or disaster,
and provide verified,
rumor-free information
65%

One man we interviewed in the Ericsson ConsumerLab
research project told us he tried to flee the tsunami.
He managed to get in touch with people nearby via a social
networking service – using the same phone that was just
giving him a busy signal when trying to call – who told him
they had found a multi-story building on higher ground.
With their instructions, he managed to locate the building
and although he had to swim part of the way, managed to
get there. He told us that the social networking service
saved his life.
In our research, one in two people believe emergency
centers will be contactable via social media in as little as
three years – and social networking service providers have
been quick to respond. When the terrorist attacks happened
in Paris last November, it was the first time that Facebook
enabled its Safety Check function in an emergency that
was not a natural disaster.
But are authorities networking emergency response?
What networked emergency services do they see as
mandatory? What laws will they need to change? Are they
considering the ramifications of a free-of-charge data service
corresponding to emergency numbers like 112 and 911?
Consumers are increasingly ready to be networked for
emergencies – but is society?
that she was alive. What she lost was instead normalcy
– and her job when her employer went bankrupt in the
subsequent economic crash that hit Kobe.
16 years later, we were living in Sweden. I had just initiated an
Ericsson ConsumerLab research project in Japan when the
Tohoku earthquake struck, this time with an epicenter outside
Fukushima northeast of Tsukuba. I immediately decided to
refocus our project on the effects of the earthquake.
Then I tried calling friends in Tokyo to convince them to
flee the area. Having lived roughly 100 miles from the
Fukushima nuclear power plant for many years, I had already
experienced misinformation during previous incidents, and
was not about to believe official statements this time round.
At first, lines were busy – but when I eventually got through,
my Japanese friends did not seem to heed my warnings.
Only later, I found out that some had actually listened and
left Tokyo. However, they had kept quiet about it, so as not
to contribute to the spreading of rumors and, in the process,
cause others to panic.
In Ericsson ConsumerLab’s 10 Hot Consumer Trends for
2016, the Emergency Chat trend concludes that 65 percent
of smartphone owners are interested in an emergency app,
which would alert them in a crisis or disaster, and provide
verified, rumor-free information. And in situations like the
ones I have just described, rumors spread incredibly
quickly: phones don’t work; TV news is not specific enough;
time is short.
Although many of us view social media as a major source
of rumors, it was in fact the need for rumor-free information
during the Tohoku earthquake that drove social media
services into the mainstream in Japan. As an example,
Twitter released data showing a 500 percent surge in Twitter
use immediately after the earthquake. Also, the video service
“Nico Nico Douga,” which allowed for social commentary on
top of the video feed, quickly rose in prominence.

Internalizing wearables
You may not be aware of it, but I bet that at some point you have suffered from a bit of tachophobia
– the abnormal fear of doing something too fast. Don’t worry, you are in good company. When
trains started to appear in the late 1820s in England, prospective passengers worried that the
human body was simply not built to withstand movement at such incredible speeds – around
15 miles per hour at that time. In fact, some even thought it would not be possible to breathe.
But, with time and familiarity (not to mention the complete
lack of respiratory disruption), people internalized the notion
of train transport and quickly stopped being tachophobic
about the whole thing.
However, technology is now affecting our bodies at speeds
where I can feel a bit of tachophobia myself, although our
research consistently indicates that many are less worried.
Three years ago, our Ericsson ConsumerLab trend report
highlighted the Quantified Self and how consumers
increasingly use technology to track their activities. Last
year, we concluded that consumers expect significant health
benefits and longer life from wearables. When visitors to the
Ericsson hall at the Mobile World Congress (MWC) picked
this as the most interesting trend, you could still get away
with a joke about some maybe having passed their prime.
But it felt like that joke was on me when, at this year’s MWC,
the Internables trend was selected as most interesting
among the well over 2,000 who voted on our 10 Hot
Consumer Trends for 2016.
People clearly demonstrated widespread interest in internal
sensors and in technology to enhance abilities such as vision
and hearing.
So maybe consumers are just now passing another speed
bump, like the passengers on those first train rides did when
they realized that breathing was in fact no issue at all.
Examples of products merging hardware and wetware
(your body!) abound. We have long been able to buy a variety
of functional foods, but having functional microchip implants
to open doors, ride the city’s public transport network or
even start your own vehicle is taking functional tech a big
step further.
Last year, an Ericsson colleague took the leap himself and
had an NFC chip implanted in his hand. At the time he found
its utility limited by a lack of understanding and readiness in
other systems. I wonder how much different his experience
might be if tried again now, less than 12 months later.
Already last year, the US Food and Drug Administration
approved the first ingestible smart pill, and while not truly
internables, there are now smart band-aids that actively
interact with your skin.
Technology is also quickly being repurposed from curing
illness to improving wellness. Thus, Zeiss’ smart glasses
are for people who already have good eyesight and the
Bragi Dash earphones similarly use technology from hearing
aids to improve hearing for those who have good ears.
Spring Loaded’s bionic knees even enhance strength and
performance both for play and work.
Hmm… maybe I could get an internal tachophobia chip to
alert me when internables technology moves too fast for me!
8. Internables
An Ericsson colleague took the leap himself
and had an NFC chip implanted in his hand

9. Everything
gets hacked
Everything didn’t actually
get hacked – yet
When we released our Ericsson ConsumerLab
10 Hot Consumer Trends for 2016 I honestly
thought that the trend, called Everything
Gets Hacked, stating that a majority of
smartphone users believe hacking and
viruses will continue to be an issue, would
be heavily debated. But although there has
been a considerable amount of discussion
about some of our trends, it seems that
everyone silently accepted this one.
Maybe the statement that half of all smartphone users think
hacking and virus problems will become part of everyday life
within three years was wrong – in the sense that this is more
a description of the current situation than a prediction for the
near future. Maybe we are already learning to live with this
situation and losing interest in the discussion.
Well, maybe we shouldn’t. Because chances are
that it is going to get worse before it gets better.
It is interesting to note that highest on the list of things
consumers predict will get hacked are those already
exposed to such threats. For example, 69 percent believe
that the personal computer – the device where all of this
started – will continue to be exposed. Smartphones and
then social networks closely follow this on second and third
place respectively. People base their answers on previous
experiences, so maybe answers like these are obvious.
It also means that organizations best equipped to handle
attacks are believed to be the ones primarily facing them in
the near term future. For example, Facebook’s core internal
mantra is “The Hacker Way” and there are other companies
who also try to learn from hackers. Microsoft co-sponsors
the Internet Bug Bounty that rewards hackers who
contribute to a more secure internet; Cisco contributes to the
EC-Council that certifies hackers; and Google has a specific
Vulnerability Reward Program. Since 2007, there is also
the annual Pwn2Own event where anyone who successfully
hacks a phone or web browser takes home a $15,000 cash
prize, as well as the device they used to perform the hack.
But what happens when other organizations who are lacking
this hard-earned experience increasingly rely on the internet
for their services? In our research, 55 percent thought social
security registers would get hacked or virus infested again in
the near future. And indeed, over 100,000 PIN numbers for
tax returns were recently hacked in the USA. Maybe those
taxpayers are less complacent – particularly if their refunds
are delayed, or even disappear.
There were also things relatively few consumers saw risks
for, and they were omitted from our report. For example, only
one in five saw any risk of intrusion in kitchen appliances in
the near future. This is may be an indication that the idea
of smart homes is still not common. But, surprisingly, the
smart home may not even need to become mainstream for
it to get hacked. In fact, if you have something as mundane
as an air conditioner, hackers could already use it to cause
your electricity to go out. In our trend research, less than a
quarter of the respondents thought heating systems or air
conditioners would be liable to attack.
So everything didn’t get hacked. Not just yet.

Netizen journalists and online
complaints – Avoid or engage?
If you were to undergo surgery, would you
Google the name of the surgeon first? And
if you found a bad review or a complaint from
a previous patient, would that be enough for
you to have second thoughts? Perhaps you
would start looking for other options to
switch surgeon or even clinic?
In the 10 hot consumer trends for 2016 we highlight the
Netizen Journalist, which builds on a report we released in
2015 called Sharing information. The trend we highlight is
for smartphone users to share more information online than
ever before, from observations to opinions. By doing so, they
perceive themselves to have increased influence on society.
One way smartphone users see themselves driving change
is through criticism; by writing reviews, posting complaints
or protesting online. We live in a time where people can
easily raise their voices and have an impact on society, from
companies, politicians, public services and even individuals.
But with new tools come new challenges, and when it
comes to criticism, there are two challenges I’d especially
like to highlight.
The first is how we, as readers, validate what we encounter
online. For instance, when reading a complaint, we should
try to understand the author’s bias and perspective.
Does this person have enough knowledge about the topic?
Is he or she motivated by factors like emotions or money?
What is the author trying to achieve? But honestly, how often
do you think people ask these questions? Or is, in fact,
10. Netizen
journalists

one complaint enough to make you wonder, just like the
example with the surgeon above?
The second challenge is turning some of this criticism into a
constructive dialog. In some cases, a complaint or protest is
directed towards a broader audience rather than the specific
target of the criticism. This makes it hard for the targeted
person or organization to respond. Or the complaint is
formulated in such a way that it simply does not invite
dialog (getting awfully close to net hate here).
I have an example from a friend, a doctor who regularly
meets with new patients. He has a great calling for his work
and enjoys helping people. Still, he knows that in some
cases his patient might not agree with the treatment he is
suggesting. That is fine. You can always discuss such things
with your doctor. But if my friend discovers that the new
patient he is about to meet is heavily active online,
he actually prefers to pass that patient on to his colleagues.
He fears that if he gets into an argument with that patient,
he or she might share the disagreement online.
The way my friend sees it is that it does not matter if
the patient is wrong or right, it will only take one complaint
to rattle his reputation. And he doesn’t feel it is his place
to respond to complaints online. In all, it is just not worth
the risk.
Helping people to decide what is true or false is important.
We saw in our studies that 46 percent of smartphone users
would like a verification service that lets them check the
authenticity of an online posting or news clip. This could
help my friend and anyone interested in his services to
avoid misinformation.
With the internet, our work roles have grown far beyond
the places where we work. Although we all could benefit
from support in managing the online discussion, most
employers only offer codes of conduct or simple guidelines.
In my friend’s case, the hospital could be proactively inviting
dialog and moderating the discussion with both satisfied and
unsatisfied patients. The benefit would be double, as it would
also strengthen my friend’s role as an expert.
Sharing opinions and observations is an important part
of both democracies and market-driven economies.
And today, citizens and consumers can make their voices
heard in an unprecedented way. This is fantastic, but far from
as powerful as it has the potential to be. Our tools need to
evolve from easily letting us share our information to just as
easily involving us in a constructive dialog – from sharing
criticisms to being part of creating solutions.
Citizens and consumers can make their
voices heard in an unprecedented way
Our studies show that
46 percent of smartphone
users would like a verification
service that lets them check
the authenticity of an online
posting or news clip
46%

EAB-16:007756 Uen
© Ericsson AB 2016
Leading transformation through mobility
We are a world leader in the rapidly changing environment of communications technology
– providing equipment, software and services to enable transformation through mobility.
Some 40 percent of global mobile traffic runs through networks we have supplied.
More than 1 billion subscribers around the world rely every day on networks that we
manage. With more than 39,000 granted patents, we have one of the industry’s
strongest intellectual property rights portfolios.
Our leadership in technology and services has been a driving force behind the expansion
and improvement of connectivity worldwide. We believe that through mobility, our society
can be transformed for the better. New innovations and forms of expression are finding a
greater audience, industries and hierarchies are being revolutionized, and we are seeing a
fundamental change in the way we communicate, socialize and make decisions together.
These exciting changes represent the realization of our vision: a Networked Society,
where every person and every industry is empowered to reach their full potential.
Ericsson
SE-126 25 Stockholm, Sweden
Telephone +46 10 719 0000
www.ericsson.com

Reflections on 10 hot consumer trends 2016, Ericsson ConsumerLab

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