Adapting in order to tap into the growing demand for connected services in China<br />Telematics Japan 2010<br />Andrew Ha...
Good news<br />Demand for connected navigation & infotainment is growing rapidly…<br />Bad news<br />…But you may not be i...
A Chinese dilemma<br />Challenges<br />Risks<br />Solutions<br />
Vehicle manufacturers are being squeezed<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone naviga...
Aftermarket pressure<br />Market for look-alike systems may reach 7 million by 2015<br />Optimistic<br />Pessimistic<br />
Aftermarket pressure<br />Look-alike systems are significantly cheaper compared to OE systems…<br />~ $600<br />~ $1600<br...
Aftermarket pressure<br />Dealerships offering both aftermarket and OE navigation solutions<br />Dealers offered:<br />
Aftermarket pressure<br />Aftermarket navigation is evolving<br />3rd Generation<br />Telematics services<br />2nd Generat...
Aftermarket pressure<br />Aftermarket suppliers collaborating towards a joint service<br />10 aftermarket suppliers<br />C...
Aftermarket pressure<br />   telematics<br />Unique Selling Point <br />Using                    as a <br />may be short-l...
Smartphone pressure<br />Smartphone sales expected to surpass 150 millionby 2014<br />
Smartphone pressure<br />The‘Nokia-effect’<br />
Vehicle manufacturers are being squeezed<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone naviga...
OEMs face short and long-term risks<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<...
Risks<br />Vehicle manufacturers could be losing out on as much as <br />$1.12 billion by 2015<br />
Risks<br />Loss of control over <br />in-car experience<br />could be even more costly<br />
China requires China-specific strategies<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone naviga...
Local partnerships<br />Partnerships with domestic companies help to…<br />Overcome regulatoryhurdles<br />Reduce costs<br...
Local partnerships<br />‘My GPS always guides me to the wrong destination!’<br />?<br />Vehicle manufacturers losing the b...
Consumer voice<br />Adapt to consumer expectation… <br />…currently defined by Smartphones<br />SBD survey of smartphone u...
Are you interested in in-car Apps?
What types of Apps would you like?
How much would you be willing to pay?</li></li></ul><li>Consumer voice<br />50% of smartphone owners regularly download Ap...
Consumer voice<br />Almost 50% are interested in accessing Apps through the car<br />“For accessing Apps in car I am…”<br />
Consumer voice<br />68% rank Maps & Navigation as an important in-car App<br />“For accessing Maps & navi I am…”<br />
Consumer voice<br />30% would be willing to pay more than 1,000 RMB<br />“I would be willing to pay…”<br />
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Adapting in order to tap into the growing demand for connected services in china

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Transcript of "Adapting in order to tap into the growing demand for connected services in china"

  1. 1. Adapting in order to tap into the growing demand for connected services in China<br />Telematics Japan 2010<br />Andrew Hart<br />Senior Telematics & ITS Specialist<br />
  2. 2. Good news<br />Demand for connected navigation & infotainment is growing rapidly…<br />Bad news<br />…But you may not be in a position to benefit from this.<br />
  3. 3. A Chinese dilemma<br />Challenges<br />Risks<br />Solutions<br />
  4. 4. Vehicle manufacturers are being squeezed<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<br />Risks<br />Solutions<br />
  5. 5. Aftermarket pressure<br />Market for look-alike systems may reach 7 million by 2015<br />Optimistic<br />Pessimistic<br />
  6. 6. Aftermarket pressure<br />Look-alike systems are significantly cheaper compared to OE systems…<br />~ $600<br />~ $1600<br />…but there are other factors to consider too<br />
  7. 7. Aftermarket pressure<br />Dealerships offering both aftermarket and OE navigation solutions<br />Dealers offered:<br />
  8. 8. Aftermarket pressure<br />Aftermarket navigation is evolving<br />3rd Generation<br />Telematics services<br />2nd Generation<br />Innovation<br />1st Generation<br />Imitation<br />
  9. 9. Aftermarket pressure<br />Aftermarket suppliers collaborating towards a joint service<br />10 aftermarket suppliers<br />CTMS<br />Single data centre & Single call centre<br />Collaboration<br />
  10. 10. Aftermarket pressure<br /> telematics<br />Unique Selling Point <br />Using as a <br />may be short-lived<br />
  11. 11. Smartphone pressure<br />Smartphone sales expected to surpass 150 millionby 2014<br />
  12. 12. Smartphone pressure<br />The‘Nokia-effect’<br />
  13. 13. Vehicle manufacturers are being squeezed<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<br />Risks<br />Solutions<br />
  14. 14. OEMs face short and long-term risks<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<br />Short-term<br />Long-term<br />Risks<br />Loss of revenue<br />Loss of control<br />Solutions<br />
  15. 15. Risks<br />Vehicle manufacturers could be losing out on as much as <br />$1.12 billion by 2015<br />
  16. 16. Risks<br />Loss of control over <br />in-car experience<br />could be even more costly<br />
  17. 17. China requires China-specific strategies<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<br />Short-term<br />Long-term<br />Risks<br />Loss of revenue<br />Loss of control<br />Requirements for China-specific solutions<br />Solutions<br />Local partnerships<br />Listen to consumers<br />
  18. 18. Local partnerships<br />Partnerships with domestic companies help to…<br />Overcome regulatoryhurdles<br />Reduce costs<br />But what about Quality?<br />
  19. 19. Local partnerships<br />‘My GPS always guides me to the wrong destination!’<br />?<br />Vehicle manufacturers losing the battle of ‘quality perception’<br />
  20. 20. Consumer voice<br />Adapt to consumer expectation… <br />…currently defined by Smartphones<br />SBD survey of smartphone users in China<br /><ul><li>How often do you download Apps?
  21. 21. Are you interested in in-car Apps?
  22. 22. What types of Apps would you like?
  23. 23. How much would you be willing to pay?</li></li></ul><li>Consumer voice<br />50% of smartphone owners regularly download Apps<br />“I download Apps…”<br />
  24. 24. Consumer voice<br />Almost 50% are interested in accessing Apps through the car<br />“For accessing Apps in car I am…”<br />
  25. 25. Consumer voice<br />68% rank Maps & Navigation as an important in-car App<br />“For accessing Maps & navi I am…”<br />
  26. 26. Consumer voice<br />30% would be willing to pay more than 1,000 RMB<br />“I would be willing to pay…”<br />
  27. 27. Summary<br />Challenges<br />Squeeze<br />Aftermarket ‘look-alike’<br />Smartphone navigation<br />Short-term<br />Long-term<br />Risks<br />Loss of revenue<br />Loss of control<br />Solutions<br />Local partnerships<br />Listen to consumers<br />
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