International Consumer Electronics Ownership

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(No Transcript)
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International Consumer Electronics Ownership
Market Potential
The world is flatwell, yes and no
Tim Herbert Sr. Director, Market
Research Consumer Electronics Association
Antony Rode Digital Convergence Director GfK
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Agenda About Methodology
About CEA Market Research
Providing Context Sizing the Market Shopping for
CE Media Consumption the Consumer Mindset
- Sales Data Program (MARA) and 5-yr
forecasting - Consumer Research (300
studies) - Economic analysis
Consumer Research
Global CE Sales Report

• Quantitative online studies of 9,000 adults
  (18)
• Brazil, Russia, India, China, Japan, Turkey,
  Mexico
• Conducted during August and September 2007
• Overall margin of errors / 3.1

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GfK Ranked 5th in the World in Market Research

• In USDm
• Adjusted so as not to include revenue gains or
  losses from acquisitions or divestitures. Rate of
  growth is based on home country currency and
  includes currency exchange effects.
• Source Honomichl Global Top 25 2007

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Sales Out Tracking for
Consumer Technology Products
GfK collects monthly data from 140,000 outlets
Worldwide (30,000 Retail Partners)
Points of sales
Final Consumers
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Thank You to Our Sponsors
Who, What, How and Where?
providing context
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The World Market Divided Into 3 Regions
AMERICAS North America United States of America,
Canada South America Mexico, Brazil, Chile,
Argentina Rest of South America
EMEA (Europe, Middle East, Africa) Western
Europe Germany, UK, France, Italy, Spain,
Belgium, Netherlands, Portugal, Finland, Norway,
Sweden, Denmark, Ireland, Switzerland, Luxemburg,
Lichtenstein. Eastern Europe Poland, Czechia,
Slovakia, Hungary, Austria, Russia, Ukraine,
Albania, Bosnia, Herzegovina, Bulgaria, Croatia,
Estonia, Latvia, Lithuania, Macedonia, Romania,
Serbia, Montenegro, Slovenia. Middle East United
Arab Emirates, Saudi Arabia (KSA), Iran, Egypt,
Greece, Israel, Cyprus, Turkey, Afghanistan,
Lebanon, Sudan and other Middle Eastern
countries. Africa Morocco, Algeria, Tunisia,
South Africa, Nigeria, Libya, Angola, Kenya,
Cameroon, Ghana and Other African countries.
ASIA AND OCEANIA China, Japan, India, Thailand,
Australia, Hong-Kong, Singapore, Taiwan, Vietnam,
New Zealand, Malaysia, South Korea, Indonesia,
Pakistan and Other Asian countries.
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6.6 Billion People and Counting
POPULATION 6.6 billion
GDP 2006 65 trillion USD
Asia (less China Japan)
S. America
S. America
Asia (less China Japan)
N. America
Americas
N. America
Africa
Americas
Asia Oceania
China
Asia Oceania
EMEA
Middle East
Africa
E. Europe
EMEA
W. Europe
Middle East
Japan
Japan
E. Europe
W. Europe
China
CIA The World Factbook
Wikipedia

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World Population to Top 7B by 2012
Source CIA Factbook
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Wealth Gap Closes
Sources CIA Factbook World Values Survey
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World Internet User Base Tops 1 Billion
Sources CIA Factbook, United Nations
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Thank You to Our Sponsors
Sizing the Global CE Market
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Global CE Expenditures Top 600 Billion
Sales through consumer retail channels Retail
Dollars USD
194 Countries World GDP 65 Trillion
(2006) World Population 6.6 Billion
548.2 Billion
482.6 Billion
16.3 over 2005
Source GfK/CEA
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Global CE Revenue Growth by Region 2008
South America
Asia (less China Japan)
Revenue Weight
11.1 Growth
5.8 Growth
China
Asia Oceania
North America
Americas
Japan
EMEA
Africa
8.1 Growth
Middle East
Western Europe
Eastern Europe
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New Revenue Contributions by Region
2008 Forecast 49 Billion in New Revenue
Billions of USD
Source GfK/CEA
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China Japan Geographically Close But Diverse
Market Structures (2008)
JAPAN
CHINA
TCE Market Portfolio Structure (2007)
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New Revenue Contributions by Region
2008 Forecast 49 Billion in New Revenue
Billions of USD
Source GfK/CEA
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Understanding the Evolving Product Mix
Source GfK/CEA
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49 Billion Additional Revenue for 2008 from
Year-over-year comparison 2007 to 2008 USD
billions
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A Closer Look at Mobile Phones
Worldwide Sales Forecast Over 1 billion Mobile
Phones
One person One Mobile Phone?
15.7
18.3
2008
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Mobile Phone Potential The Populous Countries
World Mobile Phones Sales Share by Region in
Volume (2008 forecast)
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Mobile Phone Differences By Region
With Photo Function
Without Photo Function
Japan
China
India
France
AT
IR
CZ
IT
AE
FI
ZA
BE
ID
TH
EG
PK
DZ
IN
GR
SK
LB
CH
PL
TW
ES
DE
RU
FR
JO
NL
SA
SY
PT
QA
UA
CN
BG
CL
VN
YE
BR
RO
BH
TR
TN
MA
KW
MY
OM
Q4 2006
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More TVs in Living Rooms
2008 Worldwide Sales Forecast 200 million TVs
Presently, 1 out of 2 TVs sold is flat
2.6
4.8
2008
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Higher Concentration of Flat Displays
1 out of 2 TVs sold in the world is flat screen
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LCD TV
3
53
Plasma TV
LCD SHARE 2008 China 32 USA 71 JAPAN 83
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Other TV (CRT, projection, etc.)
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Laptops to Eclipse Desktops
In 2008, 1 in 2 PCs sold will be a laptop PC
119.1
102.3
90.8
Total PC units
Desktop
10.1
16.4
12.6
Laptop
2008
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Thank You to Our Sponsors
Understanding the Global Consumer
A look at 7 key countries
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Product Adoption Curves Vary
Self reported product adoption status
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Other People Come to Me for CE/Tech Advice
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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High Product Ownership Rates Among Online
Populations of Each Country
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But Low Rates as a of Total Population
INDIA
MEXICO
RUSSIA
TURKEY
BRAZIL
CHINA
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The World Wants Mobility
Intent to buy over next 12 months
Intent to buy over next three years
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Intent to buy over next three years
BRAZIL
CHINA
INDIA
RUSSIA
MEXICO
JAPAN
USA
TURKEY
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Intent to buy over next three years
BRAZIL
CHINA
INDIA
RUSSIA
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Intent to buy over next three years
JAPAN
MEXICO
TURKEY
USA
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Reasons for Not Expecting to Buy
Products listed rated highest for the reason
Lack of Need
Cost
- Video Game system - Portable MP3 player - GPS
device - Computer printer - In-dash car stereo -
Web/Internet enabled mobile ph - Home security
system
- HDTV - Home theater system - Digital Camera -
Laptop/notebook PC
Have a Substitute
- Desktop Computer - DVD Player or Recorder
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Thank You to Our Sponsors
Shopping and Buying CE
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Word of Mouth Advertising Drives Sales
Aggregate usage across all countries
Recommendations from friends and family
Manufacturer websites
Advertisements
Displays in stores
Product reviews in magazines or newspapers
Retailer websites
Information on packaging
Store sales staff
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Most Influential Information Sources
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Big Emerging Markets Use Many Info Sources
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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CE Buying Decisions Involve Many People
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Evolving Retail Channels
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Emergence of Online Retailers
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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CE Elicits a Range of Feelings
BRAZIL
CHINA
RUSSIA
INDIA
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CE Elicits a Range of Feelings Continued
USA
JAPAN
MEXICO
TURKEY
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What Defines a Brand?
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Thank You to Our Sponsors
Media Consumption Communication
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Cable the Primary Source for Television
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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USA Leads in Television Viewing Hours
Self reported viewing hours per week
TV intent to buy rank 1
TV intent to buy rank 1
TV intent to buy rank 2
TV intent to buy rank 6
TV intent to buy rank 6
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Mobile Phone Power Users Club has Many Members
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Mobile Phones The Life Blood of Many
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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A Diverse Array of Music Sources
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Watching Movies at Home DVD
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Internet Usage Deep Wide
Aggregate usage across all countries
E-mail
News
IM, VOIP, webcam
Research (e.g. job ops.)
Online banking
Social networking site
Watch streaming video
Downloaded music or video
Streaming music
Internet radio
Online games
Purchased item from someone
Almost half of online consumers have purchased a
CE product via the Internet.
Read/wrote blog
Watched TV programming
Registered for school/classes
Sold item to someone
Took an online class
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Entertainment/Communication Commerce
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Online Financial Transactions Are Not Safe
BRAZIL
USA
CHINA
JAPAN
RUSSIA
CANADA
INDIA
MEXICO
TURKEY
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Thank You to Our Sponsors
Wrap-up
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Summary Points
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Thank You to Our Sponsors
Questions or Comments?
Tim Herbert therbert_at_ce.org Sr. Director, Market
Research Consumer Electronics Association
Antony Rode antonyrode_at_gfk.fr Digital Convergence
Director GfK