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 4 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 6 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 7 The connected consumer 8 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 9 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. 10 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 11 Asia’s product developments and trends 12 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 13 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 14 Summary 15 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 16 Thank You and see you in Berlin [email protected] GfK, Asia Pacific Consumer Choices | Digital World 17 3RD GFK TECHNICAL INNOVATION CONFERENCE AT IFA “BEYOND SMART – RELEVANCE IS KEY“ 3rd of September Marshall House @ IFA 2015, Berlin 18
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