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

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

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

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