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Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
Global pc electronics
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Global pc electronics

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  • 1. Global Consumer Electronics:Trends, Developments and Insights June 2009
  • 2. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 2
  • 3. Scope Consumer Electronics-Trends © Euromonitor International >Scope This presentation on the world market for consumer electronics covers the following products: 2008 Global Consumer Electronics 2.7 billion units In-home Portable In-car Computers* 1.2 billion units 1.4 billion units 144 million units 192 million units Televisions and Cameras In-car media players Desktops Projectors Camcorders VCRs and DVD In-car speakers Laptops Players Portable Media players TV and VCR/DVD Navigation systems Mobile phones Combinations Other in-car Home Audio and Portable computers electronics Cinema Personal Computers *duplicate (desktops and laptops under computers are also included within personal computers and portable computers, respectively) Disclaimer Much of the information in this presentation is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors Figures in tables and analyses are calculated from unrounded data and may not sum 3
  • 4. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 4
  • 5. Global Performance Consumer Electronics-Trends © Euromonitor International >Volume Performance Volume sales for in-home consumer electronics were CE Market in Volume (2003-2008) highest in the Asia-Pacific region. At the end of the 3.0 50 review period, the region accounted for more than 45 44% of overall global volume sales. 2.5 Year-on-Year growth 40 Global volume sales of in-car consumer electronics 35 reached more than 144 million units in 2008, billion units 2.0 30 reflecting robust demand in China (28% of total 1.5 25 sales), USA (17.4%), Japan (8.4%) and Germany 20 (6%). 1.0 15 Global volume sales for computers grew to nearly 0.5 10 193 million units in 2008, with heaviest sales (32%) 5 coming from the Asia-Pacific region. 0.0 0 2008 Volume Share by Sector 2003 2004 2005 2006 2007 2008 In-home consumer Total Volume Volume Growth 6.6% 41.6% electronics 4.9% Portable consumer Volume sales of consumer electronics products grew at electronics a CAGR of 11.3% between 2003 and 2008, reaching 2.7 billion units in 2008. Over the same period, value In-car consumer sales increased at a CAGR of nearly 14%, reaching electronics more than US$739 billion in 2008. (aftermarket) Overall CE volume sales were boosted by strong sales Computers of portable consumer electronics and the increasing 46.8% popularity of miniaturization. 5
  • 6. Global Performance Consumer Electronics-Trends © Euromonitor International >Value Performance Regions with strong contributions to value sales CE Market in Value(2003-2008) performance included Eastern Europe, Latin America, Asia Pacific and Australasia. Growth sectors like mobile 800 25 phones, multimedia players and in-car consumer 700 Year-on-Year growth electronics bolstered market performances in those 20 600 $ USD billion areas. 500 15 In-home consumer electronics was the best performer 400 with nearly 48% of global value sales in 2008. This 10 300 performance, however, represented a sales decrease from prior year due mainly to declining unit prices of 200 5 major in-home consumer electronic products. 100 Countries with strong value sales growth during the 0 0 review period included Argentina (47% CAGR) for in- 2003 2004 2005 2006 2007 2008 home products, Poland (28% CAGR) for portable products and South Africa (64% CAGR) for in-car Total Value Value Growth products. Consumer Electronics CAGR Value While the global financial crisis did not affect overall value Performance performance in the sector in 2008, future performance is 20 uncertain as, inevitably, product distributors will be forced to reduce unit prices in order to continue attracting 17.5 17.7 customers. CAGR % 15 10 13.3 Consumer demand for sophisticated, compact and well- 10.3 designed products always drove sales in the global CE 5 market. Due to market setbacks, however, many households are showing a degree of cautiousness and 0 many consumers are beginning to seek out the best In-home Portable In-car Computers value for their money. 6
  • 7. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 7
  • 8. Regional Trends Consumer Electronics-Trends © Euromonitor International >Western Europe Volume sales in Western Europe grew at a CAGR of 7.2% over Western Europe Volume Share the review period, reaching 530 million units in 2008. (2008) United Kingdom made the biggest contribution to the region‟s Others Austria 2% Belgium volume sales in 2008 with nearly 20% of the total. This was 10% 2% followed closely by Germany with 18.3%. Portable consumer electronics turned out to be the most United significant sector in the regional CE market. In 2008, volume Kingdom France 20% 14% sales reached more than 280 million units, accounting for nearly 53% of overall volume sales in Western Europe. There is increased demand 2008 Highest Performing among Western European Electronic Products in consumers for portable Germany Western Europe (volume) consumer electronics products 18% such as portable computers, % Share Turkey media players and mobile 4% Mobile phones 29.3 phones. Mobile phones emerged as the best- Sweden 2% Greece Personal computers 15.6 performing product in terms of 2% volume sales with more than Spain Televisions and 155 million units sold in 2008. 10% Nether- Italy Portugal 12.7 lands 10% projectors 2% Value sales in the Western 4% European consumer Computer peripherals 12.4 France recorded the highest value sales with electronics market reached US$37.4 billion, representing growth of more more than US$200 billion in than 25% over prior year. The impressive Portable media 2008, reflecting a CAGR of 9.5 performance was due in large part to sales of players nearly 13% over the review high-priced televisions and projectors. period. 8
  • 9. Regional Trends Consumer Electronics-Trends © Euromonitor International >Eastern Europe 2008 Eastern European Countries Volume sales of consumer electronics in Eastern Europe (volume share) reached nearly 170 million units in 2008, representing a CAGR of 16.2% during the review period. Romania 8% Russia contributed the most to volume sales with nearly 82 million units sold in 2008. Russia was followed by Poland, Romania and Hungary. Poland Russia 48% More than 55% of overall volume sales of consumer electronics 19% products in Eastern Europe came from the portable consumer electronics sector in 2008. Value sales in Eastern Europe reached more than US$46 billion Hungary in 2008. Between 2003 and 2008, value sales grew at a CAGR 6% of nearly 25%. Others 19% 2008 Top 10 Electronic Products in E Europe Mobile phones was the most significant consumer % volume share electronics subsector in Eastern Europe in 2008. Mobile 1 Mobile Phones 26.2 phones represented 70% of overall volume sales of 2 Laptops 13.5 portable electronics and nearly 50% of total portable value sales. 3 Desktops 12.3 Value sales for laptops reached more than US$6.2 billion 4 Digital TVs 9.9 in Eastern Europe in 2008, followed closely by value sales 5 HDTV (High Definition TV) 7.6 for desktops which came in at nearly US$5.7billion. 6 Computer peripherals 7.1 One factor influencing purchasing behaviour in Eastern 7 Digital cameras 5.7 Europe is that CE products are regularly on sale not only 8 Monitors 4.9 in specialist shops but also in consumer electronics 9 Digital camcorders 3.0 supermarkets. Overall declining unit prices also play an important role in driving volume sales. . 10 Portable media players 3.0 9
  • 10. Regional Trends Consumer Electronics-Trends © Euromonitor International >North America Volume sales of CE products in North America reached 2008 North America Volume Shares more than 515 million units in 2008, representing a CAGR of just over 7% during the review period. Of that 600 1.8 2008 total, nearly 474 million units (92%) were sold in 1.6 Year-on-Year growth 500 In million units the United States. 1.4 400 1.2 Value sales grew at a CAGR of 8.2% between 2003 1.0 and 2008, reaching US$147.3 billion in 2008. In the 300 0.8 US, value sales reached US$135 billion in 2008, a 200 0.6 slight decline over prior year. 0.4 Sales of digital electronics continued to dominate the 100 0.2 North American flat-panel market in 2008. Lower prices 0 0.0 and the wider range of screen sizes were among the 2003 2004 2005 2006 2007 2008 key factors spurring consumer demand for HDTVs. Canada Volume USA Volume 2008 Top 10 Electronic Products in North America Canada growth rate USA growth rate % volume share Increased demand among busy consumers for portability drove 1 HDTV (High Definition TV) 20.6 sales of mobile phones and laptops, positioning them as the 2 Mobile phones 18.5 second and third hottest products (in terms of value sales) in 3 Laptops 15.6 the North American consumer electronics market. 4 Computer peripherals 9.2 Depending on the severity of the recession and the possibility 5 Desktops 6.2 of unexpected oil price spikes, the consumer electronics sector 6 Digital cameras 5.3 in the region could face a bumpy road in the short term. At the 7 Monitors 5.0 same time, the long-term economic outlook for the region is 8 Portable multimedia players 3.6 risky due to high trade and budget deficits, historically low 9 Printers 3.1 household savings rates and mounting consumer debt, all of 10 Navigation systems 2.8 which are expected to begin to affect performance in the sector. 10
  • 11. Regional Trends Consumer Electronics-Trends © Euromonitor International >Latin America Volume sales for consumer electronics in Latin America reached 2008 Latin America Volume Share almost 202 million units in 2008, representing a CAGR of 14.8% CAGR during the review period. Brazil emerged as the dominant Others market, accounting for almost 47% of total Latin American 18% Argentina 13% volume sales. Value sales reached US$64.5 billion in 2008. Portable consumer electronics was the most dynamic CE sector, recording volume sales growth of 18% in 2008. Mobile Mexico phones dominated this sector, accounting for more than 78% 17% volume sales. Personal computers was the leader in the in-home CE sector in 2008, accounting for 55% of total volume sales. Televisions and projectors ranked second, accounting for nearly 21% of volume sales.. Chile 5% Almost 79% of the portable consumer electronics sold in Latin America were mobile phones, an indication of the popularity of communicating on-the-go. Brazil 47% 2008 Latin America Consumer Electronics Volume Sales In-car media players was the leading subsector in the 120 Latin American in-car consumer electronics Million units 100 95.1 100.3 subsector in 2008 with just over 59% of total volume 80 sales. In contrast to the dwindling popularity of in-car 60 CD players in markets like North America, in Latin 40 16.7 America these products continued to show 20 6.4 remarkable growth with volume sales increasing at a 0 CAGR of 18.4% during the review period. Demand In-home Portable In-car Computers for in-car CD players was particularly high in Brazil. (aftermarket) 11
  • 12. Regional Trends Consumer Electronics-Trends © Euromonitor International >Asia Pacific 2008 Asia Pacific Volume Share Volume sales of consumer electronics in Asia-Pacific Japan reached more than 1.13 billion units in 2008, India 17% 13% representing a CAGR of more than 14% during the Malaysia review period. China emerged as the biggest market in 1% volume terms with 49% of the region‟s total volume South sales in 2008. Korea 5% Value sales of consumer electronics products grew at a CAGR of nearly 15% during the review period, reaching Taiwan more than US$232 billion in 2008. 2% In-home consumer electronics was the largest sector accounting for 47% of total volume sales in 2008. Rest of However, it‟s expected that portable consumer Asia Pacific electronics will replace in-home CE in the top position by 13% the end of 2009. China 49% Asia Pacific CE Value Sales 250 High Definition TVs (HDTVs) were one of the most 200 dynamic products in the in-home CE market in the Asia- US$ million 150 Pacific region. Volume sales of HDTVs grew at a CAGR of more than 185% during the review period. 100 Portable media players showed robust sales 50 performance thanks to the popularity of mobile phones, 0 which raked in value sales of more than US$67 billion in 2008. 2003 2004 2005 2006 2007 2008 China Japan South Korea India Strong sales of laptops and digital cameras reflected Taiwan Malaysia Singapore the growing popularity of portability in the region. 12
  • 13. Regional Trends Consumer Electronics-Trends © Euromonitor International >Australasia 2008 Australasia Market Performance Portable CE products were the most popular among consumers in Australasia. Mobile phones, laptops and 50 50 digital cameras continued to show consistent growth. million units US$ million 40 40 Consumers are demanding devices that enable them to 30 30 access whatever content they want, when they want it. 20 20 Portable computers, portable media players and devices 10 10 like personal video recorders (PVR) and Internet Protocol TV (IPTV) are experiencing strong growth and 0 0 generating a great deal of consumer interest in 2003 2004 2005 2006 2007 2008 Australasia. Volume Value Consumers showed high interest in converged Volume sales for consumer electronics in Australasia electronics products as they address a number of reached more than 44 million units in 2008, household and professional needs. representing a CAGR of 10% between the 2003 and 2008. Portable consumer electronics emerged with the 2008 Top 10 Electronic Products in Australasia highest volume sales in the sector with 47% of the total % value share in 2008. Value sales reached over US$14 billion in 1 Mobile phones 25.2 2008. 2 Desktops 16.2 In terms of value sales, HDTV was the best performer in 3 Laptops 13.4 the in-home consumer electronics sector with sales of 4 Computer peripherals 10.9 nearly US$597 million in 2008. The demand for high 5 Digital cameras 6.8 definition television coincides with the need for consumers to replace their analogue TVs in preparation 6 Printers 4.8 for the shift to digital broadcasting in the region. 7 Monitors 4.3 8 HDTV (High Definition Television) 4.2 Sales of desktops continued to increase, reaching volume sales of more than 2.2 million units and nearly 9 Portable media players 3.4 US$2.3 billion in 2008. 10 Projectors 2.9 13
  • 14. Regional Trends Consumer Electronics-Trends © Euromonitor International >Middle East and Africa During the review period, value sales of consumer Top Performing Electronic Products in Middle East electronics products in Middle East and Africa market and Africa 2003-2008 (volume) grew at a CAGR of 13.6%, reaching more than US$34.8 2003-2008 billion in 2008. Sales of portable consumer electronics CAGR were the primary driver of growth, accounting for more 1 Projectors 32.5 than 50% of value sales in 2008. 2 Mobile phones 26.4 Over the same period, volume sales grew at a CAGR of 3 Digital TVs 25.2 15.5%, reaching nearly 130 million units in 2008. 4 Printers 24.9 Volume sales of portable consumer electronics products 5 Portable multimedia players 21.3 reached nearly 68 million units in 2008. 6 HDTV (High Definition Television) 21.2 7 Laptops 21.1 In the in-home consumer electronics sector, televisions 8 Hand-held televisions 20.8 and projectors were the best performers with volume 9 Converters, decoders and receivers 17.7 sales of nearly 14 million units in 2008. Demand for high 10 Digital cameras 15.0 definition television is slowly increasing among consumers who are seeking to replace their analogue Among portable consumer electronics products, mobile products with digital formats. phones were the market leaders with more than 54 million 2008 Middle East and Africa Market units sold in 2008. This represented a CAGR of 26.4% Performance between 2003 and 2008. Consumers in the Middle East In million units 150 50 and Africa are increasingly demanding fashionable mobile US$ million 40 phones with high mobile content capabilities. 100 30 Consumers in the Middle East and Africa bought more 50 20 desktops than laptops in 2008. Desktops accounted for 10 nearly 56% of overall computer volume sales. 0 0 Sales of in-car speakers led the in-car consumer 2003 2004 2005 2006 2007 2008 electronics sector. In 2008, in-car speakers generated Volume Value sales of US$142.5 million. 14
  • 15. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 15
  • 16. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Western Europe The 19% decline in the consumer confidence index in Consumer Confidence Index in Western Europe in 2008 was a response to the onset Europe January 2008 – January 2009 of the global economic downturn. Sales of expensive 0.0 products like in-home audio/video products and other -5.0 products related to entertainment will be the hardest hit over the forecast period as consumers begin to rein in -10.0 their spending on non-essential items. -15.0 In the wake of the current credit crisis, banks in the UK -20.0 have implemented stricter rules regarding the provision -25.0 of consumer credit, resulting in a decline in automobile -30.0 sales. In turn, sales performance in the in-car -35.0 consumer electronics subsectors will be affected. -40.0 High prices of in-home consumer electronics products, combined with the current high levels of personal debt, slowed sales growth in the subsector. In contrast, sales in the portable consumer electronics subsectors Germany France UK Eurozone remained relatively buoyant in Western Europe as consumers continued to demand products that Spaniards are increasingly moving to single-family informed and entertained them on-the-go. houses located on the outskirts of major cities. The With fewer children, Italians tend to have average commuting time spent going to and coming home from work (whether by public transport or by more disposable income to spend on private car) has increased considerably, driving consumer goods in general and on demand for portable media players and in-car media consumer electronics in particular, players. especially in-home products. 16
  • 17. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Eastern Europe Eastern European countries face the continuing prospect of declining populations, declining birth rates, increased death rates and negative net migration, all factors that are Population expected to contribute to a negative impact on demand for Decline consumer electronic products. FDI into Eastern Europe and CIS countries declined in 2008-2009, exacerbating unemployment rates in countries Decreasing like Bosnia, Ukraine and Kazakhstan, among others. This, Shrinking CE Increasing Foreign Direct Market in turn, has led to a further decline in consumer unemployment Investments Opportunities confidence, forcing many Eastern Europeans to focus on priority expenditures rather than on consumer electronic products. A number of financial institutions in countries like Estonia, Unstable Ukraine, Croatia and Latvia have been directly affected by financial the US sub-prime mortgage crisis. CE companies linked institutions to these banks have had to consolidate unprofitable channels and review existing product lines in order to sustain profitable economies of scale. “Grey” market activities are affecting the The consumer electronics market in Eastern manufacturing of consumer electronics in Eastern Europe has been characterised by mergers among European countries. Illegal market operators offer very major market players and the development of low prices that domestic producers cannot match. franchises, resulting in more diversified product Multinational companies that have built factories in ranges and in companies expanding into the Eastern Europe also feel the influence of the illegal Russian market to increase their market shares. market, particularly in sales of portable CE products. 17
  • 18. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >North America As a result of the credit crisis, access to consumer credit declined as banks tightened lending requirements. As a Sales of Exisiting Houses in the US consequence, the number of consumers who can borrow January 2008 – January 2009 Nov 4.5 to buy homes has decreased, and this has led to lower Oct 4.9 demand for in-home consumer electronics products. Sep 5.1 The slowdown in the US housing sector led to large Aug 4.8 increases in unemployment in 2008, and this is expected Jul 5.0 to continue into 2009. This situation has contributed greatly to the decline in consumer confidence and, in turn, Jun 4.9 it is expected to have a negative impact on consumer May 5.0 expenditure on durable goods and consumer electronic Apr 4.9 products. Mar 4.9 American Baby Boomers (those born between 1947 and Feb 5.0 1966), considered to be the wealthiest generation, are Jan 4.9 now approaching retirement. Their past interest in consumer electronics is likely to decline as they pursue 4 4.2 4.4 4.6 4.8 5 5.2 million other interests. The Generation Y demographic in North America The growth of private label products in North America (those now between the ages 13 and 31) has changed the relationship between the larger retailers emerged as an important driver of consumer and their supply base. When Best Buy and Wal-Mart expanded their private label offerings, their influence electronics sales. This group represents varying over suppliers increased. Power within the supply chain life stages, and thus they seek a diverse range of gradually shifted from traditional original equipment consumer electronics products. Regardless, as a manufacturers (OEM) to electronics manufacturing group their main focus has been on portable services (EMS) providers and original design electronics, such as mobile phones and MP3 manufacturers (ODM), who work directly with retailers to players. develop private labels. 18
  • 19. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Latin America Falling remittances from Latin American workers in the USA had an impact on consumer spending in their home countries. Remittances are a crucial source of funding for many in Latin America. In particular, they often bolster household purchases of consumer electronics products in the region. Overseas Consumer demographics in Latin America are changing. The remittances increase in female employment has contributed to income and FDI growth in many households, and this has resulted in more disposable income being used to buy luxury items. Women consumers are driving demand for portable laptops, mobile phones and MP3 players with stylish designs. Product export The recession and the global concern regarding the mounting (services difficulties in the world financial markets has affected Latin and raw American consumers. Many take more time to consider what materials) are now important spending decisions, and this puts many consumer sectors at risk. The consumer electronics sector, however, may avoid this, as most of the products they offer deliver entertainment, communication or information, services Strong growth in credit cards, particularly that often allow consumers to escape the discomfort of store credit cards, is shaping the Latin uncertain and difficult times. American retail market. The financial sector has government support in this Fashion and technology have combined to effort as using financial instruments helps become a powerful force in driving the reduce the need and expense of printing introduction of new consumer electronics money. products in Latin America. 19
  • 20. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Asia Pacific Economic growth in the Asia-Pacific region has turned Asia Pacific Equity Index Losses: lethargic as a result of the global economic slowdown. July 2007 - December 2008 Chinas stock exchange lost more than 47% of its value 60 in 2008 due to concerns about declining export demands and slower growth. This led to more caution 50 among consumer electronics manufacturers, many of Equity Index 40 which considered postponing research and development efforts (and costs) in order to focus on more pressing 30 business ventures. 20 An export-oriented economy, Japan has been particularly affected by the global economic slowdown, 10 resulting in a decline of 12.1% in annual real GDP 0 growth in the fourth quarter of 2008. This drop caused alarm among market players in Japan. Several companies with global market presences in the consumer electronics sector sought to redirect efforts towards reviewing existing marketing strategies to % decline sustain economies of scale.. Source: 2009 Euromonitor from Bloomberg Demand from „tween‟ (preteen) and teenage population groups in the Asia- Pacific region tend to influence the In most countries in the Asia-Pacific region, direction of marketing and product development efforts economies are primarily cash-based. This undertaken by major consumer electronics players. provides growth opportunities for mobile Demand from consumers in the region is polarized payment support structures which could, in between premium products, which provide an edge in computing and technology, and mass-based products turn, drive increased demand for more that cater to the lower end of market. sophisticated mobile phones. 20
  • 21. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Australasia Employment Population in Australasia Australasia is in a better position to weather (2003-2008) the global financial crisis than other 8 developed regions. Labour markets are 7 tighter there than in Europe and the USA, and the region‟s main trading partners, 6 countries in the Asia-Pacific region, still expect growth in 2009.This has bolstered confidence among major consumer million 5 electronics players operating in the region, all 4 of whom intend on continuing to provide consumers with more formidable products 3 borne out of more confident marketing, research and technology. 2 Many Australians perceive urban lifestyles to 1 be increasingly uncomfortable, and many have decided to move to more affordable and 0 less stressful locations. Large population 2003 2004 2005 2006 2007 2008 shifts like these often drive new purchases and replacement purchases of consumer Male Female electronic products. While overall expenditure has been softening, anticipated strong employment figures may support increased consumption. Labour markets in the region remain tight and job losses are still anticipated, but they are expected to be low compared to other regions, which bodes well for the consumer electronics sector over the forecast period. 21
  • 22. Regional Market Insights Consumer Electronics-Trends © Euromonitor International >Middle East and Africa Due to their relative insulation from the worlds Consumer Confidence in Selected financial system, countries in the Economies: 2006-2008 Middle East (except for UAE) and in Africa have 120 been among those least affected by current global Consumer Confidence Inex financial crisis. Because of this, major global 100 consumer electronics players are planning launches in the region to offset losses from underperforming 80 flagship products in other markets. Demographic features evident in most countries in 60 the region include rapid population growth and a 40 high proportion of young people in the total population. The Africa and Middle East region has 20 the youngest population among all of the worlds regions, and this is a sales opportunity, particularly 0 for portable CE products. Demand for laptops, 2006 1H 2006 2H 2007 1H 2007 2H 2008 1H 2008 2H mobile phones and portable multimedia players has increased. South Africa Saudi Arabia UAE Egypt Source: Mastercard Many parts of Africa lack political security, and this has scared off many major consumer electronics players from entering markets in the region. There are a number of “conflict situations” and domestic and cross-border disputes, with the situation in Darfur, Sudan being the best known. Political turmoil threatens economic progress in Chad, Côte dIvoire, Eritrea, Ethiopia, Guinea, Lesotho, the Seychelles, Somalia and Zimbabwe, and this has had an effect on the consumer electronics markets in these countries. 22
  • 23. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 23
  • 24. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Western Europe: Hi-tech and Green The introduction of flat-screen digital TV in Belgium drove increased sales of decoders that allowed consumers to adapt to digital TV at lower prices. Spain followed suit with the introduction of HDTV. As of March 2008, all manufacturers are required by the French government to offer only digital TVs. As an EU member, Greece is required to shift to digital broadcasting by 2012. Energy-saving and non-toxic products drove sales in Germany as concerns about global climate change heated up. “The Green Grid” initiative was introduced by processor company AMD and it clients HP, IBM and Sun. In Italy, mobile phones (3G handsets) drove sales the consumer electronics market, especially handsets with clamshell shapes, black design, high-resolution cameras, MP3 players and Bluetooth connectivity. In the UK, iPhones continued to see increased sales. 24
  • 25. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Eastern Europe: Go Digital Poland intends to produce approximately 38 million TVs for the European market by 2010 in factories in Nowa Sola, Wroclaw, and Kobierzyce. With a focus on LCD technology, industry analysts claim Poland can be the „the counterpart of China‟ in Europe. Left Inset: A Toshiba production plant in Kobierzyce Photo courtesy of Toshiba Corp Sales of in-car DVD players strengthened the overall in-car consumer electronics market in Romania. Home theatre in a box (HTiB) continues to drive sales in the overall home cinema and speaker systems sector in Russia. 25
  • 26. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >North America: Advancing Technology Private label brands in North America are expanding into portable consumer electronics. Wal-Mart offers multimedia players under its iLO and Siren brands while Best Buy offers its low-priced DVD and MP3 players under its Insignia brand. The availability of high-speed networks such as 3G (and potentially 4G) provides American consumers with the ability to stream video and access other advanced wireless features via their mobile phones. 4G Samsung P9000 Canadians increasingly replace their old CRT computer monitors with new LCD screens. 26
  • 27. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Latin America: Looking for Cheaper Alternatives Flash drive memory, considered a cheaper alternative to hard drive and micro hard drive units, emerged as the preferred storage format in Argentina. Brazil rallied behind the production and sale of low-cost 3G mobile phones that offered internet connectivity, email and video features. Distributors in Chile and Mexico saw declines in unit prices of consumer electronics products as imported brands entered the market. 27
  • 28. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Asia Pacific: Getting the Best in Technology Despite the introduction of several new competitive brands in the market, Chinese consumers still consider brand image (the combination of low price and high technology) as the fundamental reason to buy a product. India‟s multi-brand retail chains Croma, Vijay Sales and Vasanth & Co. gave consumers more options by providing a wider array of sophisticated electronic products. Having launched its Next-Generation Networks (NGN), Japan is now ready for the introduction of a long list of new electronic products. The government has developed a strategy that facilitates the entry of next-generation network-capable consumer electronics. NGN Process: Courtesy of Ericsson Corporation 28
  • 29. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Asia Pacific: Getting the Best in Technology Taiwanese consumers preferred large LCD TVs screens, usually 37-inches or more. Local manufacturers are able to develop advanced products at lower material costs thanks to the ready supplies of TFT LCD panels in the country. Demand for premium consumer electronics products in Singapore was bolstered by the launch of HD television channels, as well as by the aggressive promotion of HDTV content and services by the government and industry players. The Malaysian government encouraged the adoption of the Terrestrial Digital Video Broadcasting (DVB-T) standard for broadcasting transmissions and rolled out digital transmission in and around Kuala Lumpur in 2009. It‟s hoped that it will expand nationwide by 2013. A DVB-T receiver commonly used in Malaysia. Demand in South Korea is for slim, compact and colourful mobile phones, reflecting the attractiveness of these products among younger consumers. 29
  • 30. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Australasia : Balancing Technology and Environment The Australian government declared that all new TVs must comply with its 10-point energy ratings scheme that allows consumers to quickly see which television screens are best for energy consumption. Many environmentally conscious consumers are putting off purchasing new televisions until manufacturers demonstrate their environmental credentials. The entry of LG Electronics into the New Zealand market in 2007has allowed consumers there to enjoy fully the digital technology lifestyle. In 2009, the popular media device TiVo was launched in New Zealand. TiVo promises to turbocharge free-to- air digital TV and put viewers in control. Logo courtesy of Tivo Inc 30
  • 31. Global Consumer ElectronicsTrends Consumer Electronics-Trends © Euromonitor International >Middle East and Africa: New Opportunities Lenovo‟s first attempt to enter the Middle East market was with its Idea Pad „Netbook‟ in 2008. The initiative confirmed the region‟s appetite for sophisticated technology. Idea Pad „Netbook‟ Touch screen technology is catching on in the Middle Eastern market. Sony Ericsson introduced its Xperia X1 mobile phone which boasts a full QWERTY keyboard and a three-inch touch screen. Sony Ericsson Xperia X1 mobile phone In South Africa, infrastructure development projects are underway in preparation for the 2010 soccer World Cup. These projects may pave the way for increased demand for a wide range of consumer electronics products over the next years. 31
  • 32. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 32
  • 33. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Western Europe Despite the continued prevalence of durable goods retailers in the region, hypermarkets have emerged as key distribution channel. Western Europe is undergoing channel transition, away from traditional mixed retailers and durable goods retailers. Hypermarkets are able to cross-subsidize expansion into non-traditional segments. They also wield increased bargaining power over manufacturers, resulting in lower prices and increased pressure of manufacturers‟ profit margins. A hypermarket in Spain Photo courtesy: Mondragon Corporation Durable goods retailers remained popular in the higher end of the market, where many consumers require personalised service. Many customers remain loyal to their local suppliers, especially those that provide comprehensive after-sales service and offer free product delivery and home service installation. A durable good retailer outlet in Belgium Photo courtesy: ADEG Österreich Handels AG Grocery retailers have been focused on products positioned in the lower and middle tiers of the sector. However, they are slowly integrating premium products into the mix in order to satisfy demand from the higher end of the market. A Tesco outlet in the UK Photo courtesy: Tesco Corp 33
  • 34. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Eastern Europe Russian consumers increasingly preferred to buy CE products in specialist shops. This has encouraged the development of retail chains and has led to increased competition, which has resulted in lower prices and improved customer service. A computer electronics specialist store in Russia Hypermarkets and supermarkets are becoming the prevalent distribution channels in Eastern Europe. These retailers offer a wider range of electronic products, giving consumers more options and ensuring Rimi hypermarket in Latvia they get the best value for their money. Photo courtesy: Rimi Baltic Altex expanded its presence in Romania by increasing to 14 the number of stores it operates in the country. A retail chain store operated by Altex in Romania 34
  • 35. Channel Analyses Consumer Electronics-Trends © Euromonitor International >North America Best Buy, Circuit City and Wal-Mart are the big players Kiosks revolutionized retail in the in the North American CE retail sector, offering US. Manufacturers and distributors consumers the widest array of consumer electronics placed kiosks in high-traffic areas brands. and improved channel‟s image among consumers. Dell kiosk (above), Sony kiosk (below) 35
  • 36. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Latin America In Latin America, consumers preferred durable goods retailers, shopping in chain stores directly operated by major market players. Right inset: One of the 200 Red Megatone retail stores in Argentina. Brand loyalty is an influential factor in the Latin American CE market. Gradiente, Brazil‟s flagship brand, maintains traditional distribution sites as well as online site that offers consumers a wide range of consumer electronic products. A Gradiente webpage. Many Mexican consumers are attracted by the less expensive options offered by discounters such as Bodega Aurrera, Tiendas ISSSTE, Bodega Comercial Mexicana and Bodega Gigante. Bodega Aurrera in Mexico 36
  • 37. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Asia Pacific Many major players in the Asia-Pacific market enthusiastically expanded their retail spaces in order to broaden their offerings of consumer electronics products. Gome and Suning became the biggest two specialist multiples in mainland China. Labi Akihabara: a five-story computer store in Akihabara, Tokyo Japan. Online retailing serve as an alternative distribution channel for most Asian consumer electronics retailers. The increasing popularity of using credit cards online allows retailers to improve sales in spite of intensifying market competition and global economic setbacks. 37
  • 38. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Australasia Durable good retailers remain the most significant distribution channel in the Australasian CE market. The ability to provide customers with expert advice has made Harvey Norman one of the region‟s most popular chains. Photo courtesy: Harvey Norman Dick Smith Electronics and Dick Smith Powerhouse provide consumers with budget electronics that are initially launched by major manufacturers in the Australian market. Chains like 100% YES (Your Electronics Store), which has 60 stores located all over New Zealand, remain popular. Smaller family- operated ventures are also popular among New Zealand consumers. FAV, a small in-car electronics shop in New Zealand. 38
  • 39. Channel Analyses Consumer Electronics-Trends © Euromonitor International >Middle East and Africa Durable good retailers continue to be the most popular distribution channel in the Middle East CE market. The entry of many big retail players contributed to the increase in the channel‟s distribution share over the review period. In 2008, the Landmark Group opened the Emax Big Box store, tagged as the largest multi-brand consumer electronics store in the Middle East. Emax Big Box channel store in Dubai. South African consumers have become more open to internet retailers and online shopping. Clemstone, e-dreams, Croma and i-mate are among the numerous popular online shops that offer varied consumer electronic products catering to all segments of the market. 39
  • 40. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 40
  • 41. Category Analysis Consumer Electronics-Trends © Euromonitor International >In Home-consumer Electronics: Televisions and Projectors There was strong demand for High TVs and Projectors Definition televisions (HDTVs), Global Volume Performance particularly those with LCD and plasma (2003-2008 CAGR) flat panel displays, HD and Bluetooth 80.0 technology. 70.0 74.8 Plasma and LCD displays became the 60.0 61.4 most prevalent formats. Analogue 50.0 televisions disappeared from retail store shelves. 40.0 39.6 30.0 The strong development of the LCD TV 20.0 panel market has resulted in massive 17.3 10.0 investments in new production facilities -4.9 8.8 by manufacturers, increasing the 0.0 availability and driving down the costs -10.0 and thus making the products more attractive to consumers. Brand-name sellers of consumer electronics and PCs entering the LCD-TV subsector intensified competition and helped drive down prices. 41
  • 42. Category Analysis Consumer Electronics-Trends © Euromonitor International >In Home-consumer Electronics: VCRs and DVD Players Global sales of VCR players dwindled while sales of VCR and DVD Players Global Volume DVD player peaked in 2008. Performance (2003-2008 CAGR) The growing popularity of digital broadcasting, cable VCR and DVD Video cassette TV services and the increased ability to download DVD players combinations recorders content from the internet drove global demand for 10.0 both VCRs and DVD players. 7.1 VCR/DVD combinations are disappearing from the 0.0 global market. Because of their "bridge" function 3.0 between VCR and DVD technologies, these -10.0 combinations have a slightly higher sales level than solely VCRs, but they are also an old technology -20.0 that is simply outdated and has little role to play in the modern digital age. -30.0 In 2008, Toshiba the primary company supporting HD DVD, announced that it would no longer -40.0 -45.3 develop, manufacture, or market HD DVD players and recorders. -50.0 Competition between Blu-ray DVD and HD DVD formats was intense, as the winner would determine the direction of future new product launches. Blu-ray had backing from Sony Pictures, Buena Vista, 20th Century Fox, Lions Gate, Warner Bros, New Line Cinema and Studio Canal. HD was supported by Universal Studios, Paramount, MTV Films, DreamWorks, The Weinstein Company, Image Entertainment, Magnolia Pictures, Brentwood Home Video, Ryko, Koch Entertainment and Goldhill Entertainment. 42
  • 43. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-home Consumer Electronics: TV and VCR/DVD Combo TV and VCR/DVD combinations are disappearing TV and VCR/DVD Combo Global Volume from the global market. Earlier launches tied VCR Performance (2003-2008) and DVD players to analogue televisions, 10,000 contributing to declining demand. 8,908.4 8,279.6 VCRs have become outdated, compelling 7,756.7 8,000 7,408.6 manufacturers to focus on other potential high- 6,430.2 growth areas. 5,868.0 „000 units 6,000 TV combination products did not spark consumers‟ interest, especially when such new products as 4,000 HDTVs were introduced into the market. Current demand for slim TV panels discourages 2,000 manufacturers from incorporating built-in players, except for an HD and USB slot. 0 2003 2004 2005 2006 2007 2008 TV and VCR/DVD combinations Leading manufacturers like Toshiba, Sharp, Westinghouse and Sylvania launched several sophisticated digital television and DVD combinations in the market in 2008, following the reasoning that some households continue to prefer these devices. In the final analysis, however, the only way to sell this these products in significant numbers is to Toshiba 22LV506 improve design and technology. 43
  • 44. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-home Consumer Electronics: Home Audio and Cinema Cinema and Home Speakers Value The introduction of HDTVs allows households to enjoy Sales (2003-2008) their LCD and plasma TVs in an almost cinematic experience. This has bolstered demand for home 120.00 cinema and speaker systems, which had sales of more than 22.2 million units in 2008. 100.00 The rise of home cinema complements DVD players. US$ billion Compact home cinema and speaker systems (Home 80.00 Theatre in a Box) allows consumers to maximize their living space and achieve total home entertainment. 60.00 Home cinema and speaker systems have become additions to modern-day interior, and manufacturers 40.00 are increasingly incorporating fashionable and attractive designs into their products to attract 20.00 customers. 0.00 Philips’ recently launched Ambisound 2003 2004 2005 2006 2007 2008 HTS8100 compact home cinema system does not require five speakers to allow users to The most important factor influencing enjoy the cinema experience, as it is performance in the home audio and cinema contained within a 15cm box, known as sector has been the development of “home cinema culture” in combination with advances Sound Bar. Onkyo TX-SR605 is the first AV other sectors like television and projectors and receiver to include HDMI 1.3 and to read DVD players, all of which can be integrated into new sound formats such as DTS-HD and home cinema systems. Dolby True HD. 44
  • 45. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-home Consumer Electronics: Personal Computers Global sales of personal computers have been affected by increased demand for replacements, Personal Computer Volume particularly new products with higher memory Performance 2003-2008 capacity, flat-panel monitors and a wider range of 750 hardware and software capabilities. Volume sales of personal computers grew at a CAGR of nearly 10% 650 million units between 2003 and 2008. 550 Gender and age became factors among consumers shopping for personal computers. Colourful 450 computers and peripherals attracted younger 350 consumers and women, while professionals and older consumers tended to prefer classic and more 250 compact designs. 150 Personal Computer Value Performance 50 (2003-2008) 160 2003 2004 2005 2006 2007 2008 140 Computer peripherals Desktops US$ million 120 100 80 60 Larger LCD monitors bolstered volume sales of 40 personal computer peripherals. During the review 20 period, computer users increasingly used their PCs 0 not only to work and surf the internet but also for 2003 2004 2005 2006 2007 2008 personal movie viewing. Desktops Computer peripherals 45
  • 46. Category Analysis Consumer Electronics-Trends © Euromonitor International >Portable Electronics: Cameras Volume Demands of Cameras Digital single-lens reflex cameras (DSLR) were the (2003-2008) most dynamic products in the sector. In contrast, analogue cameras disappeared, although there is 105 still slight demand from traditional photographers. 85 Compact and lightweight cameras with higher million units memory capacities continue to drive digital camera 65 sales. Global volume sales of digital cameras 45 reached more than 124 million units in 2008. 25 The increased popularity of camera phones continues to challenge camera sales, particularly at 5 the low end of the market. 2003 2004 2005 2006 2007 2008 Analogue cameras Digital cameras There has been increasing demand for the new point-and-shoot cameras laden with advanced technological features, such as face detection, wireless IR technology, dust reduction, in-camera image stabilization and splash-proof technology. Manufacturers are also ramping up the competition in terms of megapixel sizes. Canon Power Shot E1 was Global Sales of Photo Printers (2003-2008) launched as a 20 more compact millions 10 digital camera 0 than preceding models. 2003 2004 2005 2006 2007 2008 46
  • 47. Category Analysis Consumer Electronics-Trends © Euromonitor International >Portable Electronics: Camcorders The camcorder market has evolved from tape-based Global Volume Sales of Digital analogue formats to DVD, hard disk drives and flash Camcorders (2003-2008) memory. 30 DVD camcorders were popular among consumers 25 given their ease-of-use with DVD players and their Million units advanced videographic features and editing options. 20 Prices for DVD camcorders declined markedly during the review period. Volume sales off 15 camcorders overall reached more than 26 million units in 2008. 10 The capacity of flash memory cards is increasing, 5 and the format is being recognized as ideal for storing hours of recorded video. Compared to other 0 formats, flash memory devices are more durable, 2003 2004 2005 2006 2007 2008 offer longer battery life, are typically smaller and offer faster read and write speeds. Integrating new technologies into digital camcorders to produce hybrid camcorders became the latest trend in product development. New hybrid camcorders by DXG include a five-megapixel still camera, VGA-resolution video recorder, digital music player, voice recorder and a video game device. Disposable camcorder pioneer Pure Digital Technologies introduced its next-generation flash-based video recorder that facilitates easy uploading of video to YouTube. Hitachi introduced the worlds first Blu-ray camcorder in 2007. 47
  • 48. Category Analysis Consumer Electronics-Trends © Euromonitor International >Portable Electronics: Portable Media Players The popularity of MP3, DVD and multimedia players drove Global Volume Sales of Portable the impressive sales performance in the global portable Multimedia Players (2003-2008) media players sector. Volume sales of portable multimedia 50 players reached more than 47 million units in 2008. 45 Hard drive-based multimedia players have become very popular among consumers. These products can read 40 digital audio files from hard drives, allowing users to store a In million units 35 greater number of songs (depending on storage capacity). 30 Portable multimedia players were the best-performing 25 product in the sector. Factor contributing to the product‟s success include declining prices, portability, fashionable 20 designs and the availability of a range of options such as 15 wireless connectivity. 10 Flash memory MP3 devices are becoming more popular 5 than HDD models. Flash memory devices are typically more compact and handy than their HDD counterparts. 0 2003 2004 2005 2006 2007 2008 In 2008, the first-generation Easier access to mobile content (movies, Zune was created by Microsoft music, photos and games) became the in close cooperation driving force among players seeking to gain with Toshiba, which took the design of the Gigabeat S and significant market share in the portable redeveloped it under the multimedia player subsector. name Toshiba 1089. (Right inset: The new iPod Touch. The new Ipod Touch 48
  • 49. Category Analysis Consumer Electronics-Trends © Euromonitor International >Portable Electronics: Mobile Phones Technological convergence became the key trend Demands for Mobile Phones influencing the mobile phone subsector, which saw the (2003-2008) introduction of many new models offering streaming 1,000 video, advanced camera features, MP3 capabilities and global positioning systems (GPS). Global volume 900 sales reached nearly 886 million units in 2008. 800 Consumers desire to listen to music, watch video, million units play games and communicate anywhere and anytime 700 is transforming the global mobile phone sector. All-in- 600 one portable communication/ entertainment systems complement to the growing consumer demand to be 500 connected and entertained on-the-go. 400 The heightened demand for mobile phones has been stimulated in part by the continuing roll-out of 300 advanced telecommunications infrastructure, such as 200 Wi-Fi and 3G mobile phone technology. 100 0 Mobile phones are now 2003 2004 2005 2006 2007 2008 turned into a handheld computer that can be used as The success of mobile phones continued to be a media player, TV, Internet determined by the availability and accessibility of browser, GPS navigator, online content, which in turn depends of the planner, digital camera sophistication of the underlying Nokia E75 telecommunications infrastructure. 49
  • 50. Category Analysis Consumer Electronics-Trends © Euromonitor International >Portable Electronics: Portable Computers Global Volume Sales of Laptops All-time low prices, the convenience of portability, (2003-2008) growing wireless capabilities and increasing 100 processing speeds drove an increasing number of 90 consumers to portable computers. Volume sales 80 grew at CAGR of 23.4% between 2003 and 2008. 70 Laptops with brighter colours, eye-catching structural features and artistic designs becamemillion units 60 commonplace as computer makers tried new tricks 50 to attract consumer attention. In 2008, nearly 94 40 million laptops were sold worldwide. The introduction of Netbooks in 2008 also contributed to strong 30 demand. 20 Laptops are used by young computer users not only 10 to complete school assignments but also as stereo 0 systems and DVD players. In response to this trend, 2003 2004 2005 2006 2007 2008 computer makers are launching new products with funky designs and bright colours to attract young Laptops consumers. Lighter, thinner and higher capacity were the key features stressed by manufacturers as they launched their new lines of portable computers. As well, advanced technological features, such as WiMAX, high- definition optical drives, flash-based hard drives, encrypted hard drives and high-end graphics cards, were integrated into laptops. HP iPAQ 4150 Pocket PC 50
  • 51. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-car Media Players (Aftermarket) Players in the in-car consumer electronics sector Comparative Volume Demands for face strong competition from original equipment In-car Media Players (2003-2008) manufacturers (OEM). Over the review period, 40 volume sales of in-car media players grew at a CAGR of 2.7%, reaching more than 45 million units 35 in 2008. In-car consumer electronics products provide auto 30 manufacturers with higher margins, and they are in million units 25 increasingly incorporating these products in new cars as either standard or optional equipment. 20 Due to the popularity of products like iPods, mobile phones and video games, there is a little interest 15 among younger consumers for in-car media players. 10 Aftermarket sales of in-dash CD players displayed a lethargic performance during the review period. 5 These are now considered to be standard equipment in new cars. 0 2003 2004 2005 2006 2007 2008 The concept of interconnectivity allows consumers In-car CD players to link one consumer electronics device to other devices through in-car navigation systems. In-car DVD players Bluetooth-enabled products are an example. Stereos In-car radio casette players can be linked to mobile phones and other devices, In-car radio players including portable music players. 51
  • 52. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-car Speakers (Aftermarket) Comparative Volume Sales of In-car Sales of in-car speakers were buoyant in the Asia Speakers by Region 2008 Pacific region, accounting for more than 61% of overall global sector volume sales in 2008. The 5% 2% 13% majority of sales, 18.5 million units, came from China. Despite competition from other in-car electronics products, demand for in-car speakers increased 9% significantly, sustained by younger consumers who want to be informed and entertained on-the-go. In the more developed regions, there is an ongoing challenge to players in the in-car aftermarket sector 6% from players in the OEM sector. This increased competition has led to declining demand for a number of aftermarket products, including speakers. 4% Most new cars today come with relatively high- quality speakers as standard equipment. Manufacturers in the in-car aftermarket sector are 61% continually seeking to improve the technology and the raw materials needed for the production of next- generation in-car speakers. Western Europe Eastern Europe “Consumers are always driven towards a North America Latin America high performance speaker system with Asia Pacific Australasia rich well-balanced sound.” – G Audio Middle East and Africa 52
  • 53. Category Analysis Consumer Electronics-Trends © Euromonitor International >In-car Navigation Systems (Aftermarket) The in-car navigation system subsector is one of the Global Volume Sales of In-car fastest-growing segments in in-car consumer Navigation Systems (2003-2008) electronics. Global volume sales grew at a CAGR of nearly 56% during the review period, reaching 36.5 40.0 million units in 2008. 35.0 million units Manufacturers are now introducing navigation 30.0 systems with hard drives. These products are key to growing sales in the sector as they accommodate 25.0 much larger volumes of information. 20.0 Declining prices have had an impact on sales of the 15.0 more expensive fixed navigation units, helping to attract new consumers to these products. 10.0 New integrated GPS navigation systems come with 5.0 several new features, such as city guides, restaurant 0.0 reviews and information for walkers and hikers, and 2003 2004 2005 2006 2007 2008 they now include location-specific advertising. In 2008, Pioneer launched a The entry of new players in the in-car navigation market resulted in hybrid portable GPS device increased competition, which led to that is a cross between a price reductions on a large scale. In personal navigation device turn, increased volume sales led to an and an in-dash navigational expansion in distribution networks in all regions. system. 53
  • 54. Category Analysis Consumer Electronics-Trends © Euromonitor International >Other in-car Consumer Electronics Global Volume Sales of Other In-car Growth in the “other” in-car consumer electronics Electronics (2003-2008) subsector came primarily from increased demand for 25.0 MP3 players, minidisc players, satellite digital radio modulators, equalizers, amplifiers, sound processors and car televisions. Overall, volume sales reached 20.0 more than 22 million units in 2008, representing a CAGR of nearly 19% during the review period. million units As in other in-car segments, Original Equipment 15.0 Manufacturers (OEM) present a growing threat to aftermarket players in this market, as car 10.0 manufactureres increasingly offer electronics in their new cars. Global sales of in-car multimedia players and in-car 5.0 DVD players complemented the increased demand for in-car television sets during the review period. Generally, this will be considered by many industry 0.0 players to be a growth opportunity. 2003 2004 2005 2006 2007 2008 A TomTom GO in-car MP3 The growing popularity of in-car MP3 player allows drivers to listen players has created a good to all of their favourite tunes opportunity for leading multimedia player manufacturers to establish a while on the move. The unit niche in this subsector. has a built-in 20 GB HD. Photo courtesy: TomTom 54
  • 55. Category Analysis Consumer Electronics-Trends © Euromonitor International >Computers: desktops and laptops Volume sales for computers grew at a CAGR of Global Volume Sales of Computers nearly 15% during the review period, reaching 192.5 (2003-2008) million units in 2008. 250 Volume sales of laptops grew at a dramatic pace during the review period, with a CAGR of nearly 200 29% compared to desktops with a CAGR of 7%. million units Portability was considered to be the laptop‟s competitive advantage. 150 It is expected that volume sales of laptops will surpass volume sales of desktops for the first time in 100 2009. Value sales of laptops passed those of desktops in 2007. 50 0 2003 2004 2005 2006 2007 2008 Increased consumer demand for design, capability and convergence technology drove new sales in the sector. Distributors intend to maintain profitability in the midst of the global financial crisis by generating the research resources necessary to launch new products. “TheBookshelf”, the next-generation of Companies will also buy the expertise needed to offer computers. Photo courtesy: Purdue University. customers complete computer solutions. 55
  • 56. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 56
  • 57. Competitive Landscape Consumer Electronics-Trends © Euromonitor International >In-home Consumer Electronics In-home Consumer Electronics: Top In 2008, Hewlett-Packard continued to be the global Global Brands by Volume Share 2008 market leader in the distribution of in-home consumer electronics products, specifically personal computers, printers and computer peripherals. The Others HP company‟s contract manufacturing (CM) and original 45% 12% design manufacturing (ODM) strategies paid off, providing cost-efficient and delivery-efficient products. In 2008, HP reported net revenue of US$118.3 billion. Sony Sony closely followed HP‟s lead in the consumer 11% electronics sector, selling more than 70 million units worldwide. In addition to successfully launching Blu- ray as the new industry standard DVD format, the Samsung company‟s Bravia television brand reported a 7% remarkable global sales performance. In 2008, Sony Epson reported consolidated net sales of more than 2% US$88.4 billion. Logitech Dell South Korea-based Samsung reported volume sales JVC 5% 3% LG 2% Microsoft Panasonic of nearly 45 million units in 2008. These included 5% 3% 5% televisions and projectors, home cinema and speaker systems, personal computers and Other top brands include Sharp, Toshiba, peripherals and printers. Lenovo, Canon, Pioneer, Acer, Lexmark, Fujitsu, Apple, Hitachi, Bose and Daewoo. 57
  • 58. Competitive Landscape Consumer Electronics-Trends © Euromonitor International >Portable Consumer Electronics Top 10 Global Brands 2008 Approaching volume sales of more than 156 million units in 2008, Nokia was the market leader in the global portable consumer (Portable electronics volume share) electronics sector. The biggest sales came from the Indian market, Brand % Share where Nokia recorded a market share of more than 21% in 2008. In the same year, Nokia posted total revenues of US$66.6 billion. 1 Nokia 14.6 Motorola ranked second in the worldwide list thanks to 2 Motorola 10.7 considerable sales of mobile phones in the US market. The 3 company maintained a volume share in the US market of more Samsung 9.2 than 42% in 2008. In the same year, Motorola reported revenue 4 Sony 6.3 sales of more than US$30 billion. 5 LG 4.9 Samsung focused its efforts on developing smartphones, devices with open operating systems that allows users to run a wide range 6 Apple 4.3 of applications. In 2008, Samsung reported nearly 100 million 7 Panasonic 2.8 portable units in worldwide distribution. Sony maintained its edge over other global players in the portable 8 Hewlett-Packard 2.7 CE sector in 2008 with volume sales of nearly 67 million units 9 Canon 2.0 worldwide. Its distribution channels in China, which focused on cameras, camcorders, portable media players, laptops and palm 10 Sony Ericsson 1.9 and pocket PCs, accounted for 34% of the company‟s worldwide sales. In 2008, LG reported volume sales of portable consumer electronics products of Global demand for mobile phones, laptops, MP3 more than 52 million units. The largest players and portable multimedia players drove proportion of sales (14%) came from the increased sales in the portable consumer electronics Indian market, consisting mostly of sales of sector. mobile phones. 58
  • 59. Competitive Landscape Consumer Electronics-Trends © Euromonitor International >In-car Consumer Electronics Pioneer Corp was the global market leader in the in-car Top 10 Global Brands 2008 In-car electronics consumer electronics sector in 2008, due to increased sales in China, Russia and South Korea. The company reported (aftermarket) volume share worldwide volume sales of more than 26 million units in Brand %Share 2008. Sony ranked second worldwide in volume sales in 2008, 1 Pioneer 14.6 with sales in the Chinese and US markets accounting for 2 Sony 13.6 more than 60% of the company‟s worldwide total. In 2008, the company reported volume sales of nearly 25 million 3 Alpine 5.7 units. 4 Panasonic 4.9 Japan-based Alpine Electronics found itself in third place in 2008 by distributing more than 10 million units worldwide. 5 Kenwood 4.4 Most sales came from the Chinese and US markets. 6 JVC 4.4 In-car Consumer Electronics: Global Brands by Volume Share 2008 7 Garmin 3.2 15% Pioneer 8 Clarion 3.1 41% Sony 9 TomTom 2.8 Alpine 10 Navigon 2.2 14% Panasonic Kenwood JVC Panasonic ranked fourth among top global brands 6% Garmin by registering volume sales of nearly nine million Clarion units in 2008. In the same year, both Kenwood and 5% TomTom JVC registered volume sales of nearly eight million 2% 4% Navigon units. 3% 3% 3% 4% Others 59
  • 60. Competitive Landscape Consumer Electronics-Trends © Euromonitor International >Computers Netbooks began to flood the market in 2008 Top 10 Global 2008 Top 10 Global Netbook 2008, paving the way for ultra-slim and Computer Brands, Brands, Volume share portable computers at affordable prices. Volume share Brand % Share Hewlett-Packard was the market leader in Brand % Share 1 Acer 38.3 both the desktop and laptop subsectors in 1 HP 9.4 2008, with combined volume sales of more 2 ASUSTeK 30.3 than 18 million units. Maintaining the HP 3 HP 5.8 2 Dell 8.9 4 MSI 5.7 umbrella brand, in 2008 the company 3 Lenovo 3.3 5 Dell 2.8 launched a number of new brands, 4 Toshiba 2.5 OLPC (One including HP Pavilion, Compaq Presario, Laptop Per 5 Apple 1.8 HP Pavilion Elite desktops, HP HPDX 6 Child) 2.3 6 Sony 1.6 Premium and Touchsmart PCs. 7 Medion 2.3 7 Fujitsu 1.6 Dell successfully invigorated its brand 8 Kohjinsha 1.0 image in 2008, producing a wide range of Intel (Classmate 8 Compaq 1.3 new sophisticated computers. As a result, reference 9 Samsung 1.0 9 design) 1.0 the company ranked second globally, 10 ASUSTeK 0.9 10 Lenovo 0.7 selling more than 17 million units in 2008, up from 15 million in 2007. Toshiba ranked fourth in Lenovo sold more than six million global volume sales in 2008 computers in 2008, ranking it third in global with sales of nearly five distribution. Most of the company‟s sales million units. Apple followed (US$3.6 billion or 44.2% of overall value with sales of four million sales) came from the Chinese market in units while Sony ranked sixth 2008. with three million units. Acer Aspire One Netbook 60
  • 61. Consumer Electronics-Trends © Euromonitor International >ScopeGlobal PerformanceRegional TrendsRegional Market InsightsGlobal Consumer Electronics TrendsChannel AnalysisCategory AnalysisCompetitive LandscapeFuture Trends and Developments 61
  • 62. Future Trends and Developments Consumer Electronics-Trends © Euromonitor International >In-home Consumer Electronics It‟s expected that the global financial crisis will force From Digital to 3D Broadcasting: the next market players to revise prospects and review existing major leap in home entertainment. Future in- conditions necessary to sustain profitable economies of home consumer electronics products will scale. capture 3D-generated content, convert Future trends in the industry will include a further captured content via broadcast and transmit expansion in the number of high-definition televisions that real 3D images to viewers. support full HD 1080p resolution and as well as thinner flat-panel screens. Technology advances will include self- luminous organic light-emitting diode (OLED) televisions, Consumers will continue to demand thinner which offer brighter images and wider viewing angles. television panels and higher screen resolution Manufacturers are expected to continue to integrate Blu- capabilities. Next-generation televisions will ray DVD technology into their new products over the also provide embedded content that will allow forecast period. consumers to connect directly online or connect to other electronics devices via their The shift by consumers to accessing music from online units. sources, whether it be through downloading songs or by listening to internet radio stations, will continue to have a Sales of home cinema and speaker systems significant impact on the home audio industry. will grow based on integrated Wi-Fi and Bluetooth capabilities. Environmental stewardship is increasingly held up as a In addition to introducing new technologies, competitive marker among computer manufacturers. new product launches over the forecast Leading players like Hewlett-Packard and Dell have period will be based on consumer demand for realized that there are significant public relations benefits products that are energy-efficient , in endorsing a green policy. This has also led companies to environmentally friendly and hazard-free. promote computer recycling programs and to introduce product modifications that facilitate recycling efforts. 62
  • 63. Future Trends and Developments Consumer Electronics-Trends © Euromonitor International >Portable Consumer Electronics Miniaturised portable electronics products will continue to Salient Features of Portable attract more consumers over the forecast period. This trend Electronics Products will affect future formats of video cameras and printers. Ultra-portable consumer electronics are expected to become significant products in the sector. Seamless content / Newly launched smartphones will continue to accommodate connectivity a wide range of content applications and offer seamless connectivity. By packing wireless internet connectivity, a Convergent camera, a gaming platform and a navigation system into a Affordability technology single device, the iPhone will continue to offer consumers an attractive value proposition in spite of its hefty price tag and bundled mobile telephony network contract. While consumers go for slimmer and sleeker flat-panel screens, players will continue to explore the introduction of Portable embedded content and connectivity via 3G networks in electronic future product launches. Hard times are likely to make the synergies provided by combining different technologies into a single, miniaturised unit even more compelling to consumers. Sales of ZUNE are expected to increase Devices like the Flip (dubbed the iPhone of over the forecast period, but Microsoft camcorders) and the Kodak Zi6 Pocket Video must do more than just simply compete Camera will continue to be prevalent products with other multimedia players. It must in the market over the forecast period as video work to redefine its market to sustain tape and optical disks with solid state memory long-term demand. Netbooks will are phased out, allowing new products to be continue to sell well due to their design substantially smaller than their predecessors. Flip camcorder and low-power consumption. 63
  • 64. Future Trends and Developments Consumer Electronics-Trends © Euromonitor International >In-car Consumer Electronics Market players are expected to introduce navigation systems with hard drives, as they are keys to expanding the sectors sales since they accommodate larger volumes of information. In-car consumer electronics remain a likely area for technological convergence, combining such features as satellite radio, Bluetooth-ready car-stereo head units and receivers, video and audio connections through MP3 players, MP3-compatible head units and HD. In the future, manufacturers are expected to introduce hybrid in-car consumer electronics, such as GPS navigation devices that are a cross between personal navigation devices and in-dash navigational systems. Design courtesy: Motortrend Streaming video to cars is considered the next big feature in in-car entertainment, although widespread adoption is still “Infotainment” will continue to shape future demand several years away. Nevertheless, for in-car consumer electronics. In addition to digital manufacturers are currently debating video, radio and music , new products will also provide drivers with information about their vehicle‟s which medium will offer consumers the performance as well as GPS navigation. best in-car viewing. 64
  • 65. Future Trends and Developments Consumer Electronics-Trends © Euromonitor International >Computers Netbook launches will continue over the forecast Projected Computers period, paving the way for more ultra-portable and Market Value Sales powerful high-end computers. It‟s projected that value sales of netbooks will reach US$ 34.7 billion in 300 2013. 250 A wide range of consumer electronics market players, including Dell and Sony, are expected to 200 US$ billion jump on the netbook bandwagon over the forecast period. 150 Affordability, portability and convenience are the features that will continue to drive computer sales 100 over the forecast period. In the laptop subsector, customisation and personalisation are expected to 50 play roles in the purchasing decision, as well. 0 2009 2010 2011 2012 2013 Aside from being more compact and slimmer, newly launched computers in In the current global financial crisis, the R&D coming years will also accommodate digital budgets of leading multinational computer broadcasting technology and enhanced manufacturers could be squeezed, affecting the connectivity with other consumer rate of their new product launches and the electronics devices, including mobile development of new technologies. This could level the playing field in the market a bit and be phones, digital cameras, camcorders and an advantage for lesser-known brands, which portable multimedia players. never had large R&D budgets to begin with. 65
  • 66. Consumer Electronics-Trends © Euromonitor International >Experience more...This research from Euromonitor International is part of a global strategic intelligencesystem which offers a complete picture of the commercial environment . Also availablefrom Euromonitor International: Global Briefings Global Company Profiles Country Market Insight Reports The state of the market globally The competitive positioning and The key drivers influencing the and regionally, emerging trends strategic direction of the leading industry in each country; and pressing industry issues: companies including uniquely comprehensive coverage of timely, relevant insight published sector-specific sales and share supply-side and demand trends every month. data. and how they shape the future outlook. Interactive Statistical Database Strategy Briefings Learn More Market sizes, market shares, Executive debate on the global To find out more about Euromonitor distribution channels and trends changing the consumer Internationals complete range of forecasts; the complete market markets of the future. business intelligence on industries, analysed at levels of category countries and consumers please visit detail beyond any other source. www.euromonitor.com or contact your local Euromonitor International office: London + 44 (0)20 7251 8024 Chicago +1 312 922 1115 Singapore +65 6429 0590 Shanghai +86 21 63726288 Vilnius +370 5 243 1577 Dubai +971 4 609 1340 66

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