Connected consumers in Asia Pacific
Technology insights in Asia
Gerard Tan
GfK Asia Pacific
1
Agenda
1
2
3
4
Asia Pacific tech spending
Asia Pacific’s exploding middle class
The connected consumer
Asia’s product developments and trends
2
Asia Pacific tech spending
3
Market by Category, Total APAC
Year to Date 2014 against 2013
30 Billion USD
158 Billion USD
Down 7%
Flat 0%
Slowdown due to
increasing saturation levels.
UHD sales seen picking up in
matured Asia.
Markets saturating as
matured markets slow
and emerging markets
face increasing price
erosions.
8 Billion USD
Consumer
Electronics
Telecommunication
Photo
IT & Office
80 Billion USD
Down 20%
Down 7%
Continued drop of fix lens due
to smartphones. Changeable
lens cameras driving value.
Impact of tablets on standard
form factor PCs. Market for
printing stabilizes through
laser printing.
Source: GfK Total Market Retail Data, Digital Devices, APAC, 2014 vs 2013, Sales Value USD
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So What Devices are Consumers Buying in APAC?
Mobile internet devices are dominating spending on consumer tech devices
Emerging Asia continue to be
driven by connectivity
Feature phones
Digital Still Photography
LCD TVs
Middle class consumers continue
to grow with increasing
expectations and needs
Desk PCs
Laptops
Media Tablets
Smartphones,
Tablets,and
LCD TVs
Being
online always
everywhere
and
Laptops accounted for >64%
Smartphones
2011
of APAC tech spending in 2014
2012
Price erosion in many Asian
2013
2014
countries push brands to be more
innovative in their strategy
2015-F
5
Increasing Number of Connected Devices Sold in APAC
People have gone beyond simply connecting with People only.
Million
1,000
800
39
56
49
566 Million
600
Additional
400
46
67
12
200
0
46
58
59
163
2010
2011
44
devices
64
28
37
50
53
WIRELESS PRINTER
LCD TV
DESKTOP COMPUTERS
sold
Or USD144B worth
OTHERS
LAPTOPS
MEDIATABLETS
625
SMARTPHONES
538
*OTHERS: Smart DVD, Smart AHS,
Network Music Systems, Smartwatch
323
2012
2013
2014
Source: GfK Total Market Retail Data, Connected Devices, APAC
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The Need for Mobility Continues to Evolve
Market Segmentation by Screen Size Unit % (>4 inches) – Y2010 vs Y2014.
Smart
Phones
2014
27
7”
Tablets
Phablets
10” Tablets
Ultra
Portable
Desktop
Replacement
Portable
45
25
21
4“
4.5“
5.5“
7“
8“
9“
10“
11“
12“
13“
14“
15“
16“
17“
18“
16
6
4
3
2010
63 million ► 657 million
Source: GfK Retail Panel , screen sizes above 4 inch, Volume, Total Asia Pacific
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The connected consumer
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What do people around the world use mobile devices for?
93%
Make/Receive Calls
45%
Listen to Music/Radio
57%
Access the Internet
Make/Receive
Calls
Listen Music
or Radio
Send/Receive
Photos
Send/Receive
SMS Messages
51%
Send/Receive Photos
87%
Send/Receive
SMS Messages
Access the
Internet
Source: 2013 Roper Reports® Worldwide – Consumer behavior and attitudes in 31 markets
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Most frequently used types of app in APAC
Social
networking
Photo
& video
Shopping
Education
News
Lifestyle
Fitness
Travel
navigation
Productivity
Music
Weather
Extending the reach to personal well-being. Both hardware
and applications expanding the eco-system to reach
medical & insurance.
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Apps are used to solve 5 main problems on a daily basis
across all markets
Users
Communication
Information
gathering
Killing
time
Convenience
Entertainment
Impact of Social media in
emerging Asia continue to push
up sales of mobile devices
Developing infrastructure in
emerging Asia justifying the
purchase
Camera apps becoming ‘the
hardware’ as technology
progresses
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Asia’s product developments and trends
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Asia Pacific markets are eroding price points, actual sales out however
showcases just where the opportunities are
33%
2010
2014
20%
<32“
32-33“
33-40“
40-46“
46-50“
50-55“
55-60“
>60“
14%
10%
7%
2%
11 Billion ► 10 Billion USD
Source: GfK Retail Audit: panel market in value USD, SEA, HTK, ANZ
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Chinese and Local Brands Penetrating Smartphone/Tablet Space
LCD TV and Laptops are mature markets, local brands unable to breakthrough.
International Brands
Chinese Brands
Taiwanese Brands
<Others>
Local Brands
2011 ► 2014
Smartphones
Tablets
Flat Screen TV
Mobile Computers
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Summary
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Summary
Consumer Electronics audio and new screen technology are
still growing across Asia Pacific
Mobile hardware and connectivity provide instant access to
the consumer. Instant viewing and sharing of photos, texts,
experiences, has taken over the mass market.
Average price points not necessarily declining in all product
segments.
In-store activities, every touch and feel of the product needs to
be measured. The social media impact has become a main
key area for consumer decisions
Asia is the playground for multiple brands
No lack of cheaper alternatives, increasing the need for connectivity
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Thank You and see you in Berlin
[email protected]
GfK, Asia Pacific
Consumer Choices | Digital World
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3RD GFK TECHNICAL INNOVATION
CONFERENCE AT IFA
“BEYOND SMART – RELEVANCE IS KEY“
3rd of September
Marshall House @ IFA 2015, Berlin
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