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    Tablet marketing accenture global_consumertech_2011 Tablet marketing accenture global_consumertech_2011 Document Transcript

    • Preferred LetterEmergence of aFinding Growth: Alternate LetterBrochure Title Technology ParadigmNew Consumer Brochure TitleThe 2011 Accenture Consumer Electronics Products andServices Usage Report Enter
    • ContentsExecutive Summary 3About the Research 6"Hot and Not" Technologies:Consumer Technology Ownership Patterns 8Where’s the Opportunity?The Importance of Consumer Technologies and Spending Patterns 17An Activity-Based View:What are Technology Users Doing? 22A Look at the US Market 27Implications for Consumer Technology Companies 30Snapshots of Hot Technologies 33Table of Contents | 2 Retweet Table of Contents Previous Next
    • Executive SummaryAround the world, today’s consumers view choice, consumer technology companies musttechnology as an integral part of their have the same ability to adapt to consumerlifestyle, just like fashion and transportation. preferences as do other lifestyle companies.In fact, as a spending category consumer Just like fashion businesses (such as Zara ortechnology is ranked by the majority of H&M), for instance, consumer tech companiesconsumers as a top-three priority (in Japan, must align research and developmentit’s the top priority). But as with other capabilities with the ability to predict andlifestyle categories, rapid shifts in consumer follow consumer preferences around thetechnology and usage preferences are world, strengthen innovation capabilities, andoccurring. This year’s edition of Accenture’s create more agile and responsive operations.Consumer Electronics Products and ServicesUsage Report reveals high interest in newtechnologies, greater turnover in device usage,significant preference and usage differencesamong generations and global regions, andsustained spending levels despite an uncertaineconomy. As a result, to win as a lifestyleExecutive Summary | 3 Retweet Table of Contents Previous Next
    • A widening enthusiasm gap appetite for electronics, but like next upgrade cycle for TVs (3-D TV)The urban consumers in Brazil, Russia, millennials around the globe, they are is underway. And, Blu-ray players areIndia and China (the BRIC markets) often harder to please, less loyal and continuing to displace DVD playershave leapfrogged the average mature- have less disposable income to spend. (albeit at a slow pace) and VCRs.market consumer in their use of Another benchmark of the newtechnology. They have a much greater A new consumer technology technology paradigm is that as newappetite for consumer technology paradigm technologies emerge, consumersfrom many measures, including the Computers and laptops are the quiet are increasingly quick to stop usingdevices they own, their purchase plans giants among consumer electronics. particular devices if they feel theyand their use of applications. Counter Practically everyone has one. They are have the same functionality in anotherto common misperceptions, a large owned by 93 percent of respondents device that performs the same functionsegment of BRIC consumers are more in our global study, and therefore the better—especially in BRIC markets.interested in the newest and most top-ranked technology in terms of Twelve percent of consumers surveyedinnovative technologies than in the ownership percentage. Twenty-eight in the BRIC markets stopped usinglower price point technologies with less percent of respondents purchased a mobile phones in 2010 because theyfunctionality. BRIC market consumers computer or laptop in 2010. Yet this had another device with the samehave a higher rate of adoption of the year’s study shows that there may be functionality. This compares with onlynewest technologies and a greater a chink in the giant’s armor. Only 17 five percent of consumers in maturewillingness to pay premiums for features percent of consumers we surveyed plan markets who jettisoned their mobileand enhancements. For instance, a full to purchase a computer in 2011—a 39 phones. And, in both mature and84 percent of Indian respondents say percent decline in the purchase rate in emerging markets, younger peoplethey will pay a premium for enhanced the next year. appear to be far more willing to let gosmartphone capabilities. That translates of duplicative devices.into roughly 148 million consumers. In fact, the trends in ownership of various devices indicate that someIn the BRIC markets, in particular, newer technologies may be rapidly Surprises in the ranks of theprospects are bullish for spending on making others obsolete. For instance, most popular appsconsumer electronics in 2011. This is while the growth rate of computers is The most popular applications in 2010especially true in China, where this year’s expected to decline, the growth rate included emailing and searching thepurchasing plans for technologies such of tablet PCs is estimated to be up Web for information. But surprisingly,as smartphones and high-definition TVs by 160 percent. And while our study banking ranked number three inare staggering. Assuming China has an shows that game consoles, digital photo popularity and is an activity conductedestimated 167 million urban households cameras and portable music players are in a typical week by more surveyand an estimated urban population of all facing declining growth rates, the respondents than is texting or watching434 million people in the consuming age, smartphone (which can do many of the videos. Social networking held steady38 million high-definition TVs and 63 same activities) is expected to increase in popularity with 39 percent ofmillion smartphones will be purchased its growth rate by 26 percent. respondents using social networkingthere in 2011. apps in a typical week. In both the So can the giant remain strong? Or,In contrast, mature markets are more US and China, the percentage of in the long run, will a group of newerconservative and price sensitive. respondents doing social networking technology alternatives (the tablet PC,Consumers in the US, Japan, Germany in 2010 and 2011 held constant at 46 netbook, smartphone and e-book reader)and France have less ambitious plans percent in the US and 37 percent in make the computer and other devicesto purchase new devices in 2011, use China. India’s participation in social obsolete? If measuring strength byfewer applications overall, and are far networking has actually declined. In unit sales, one finds the computer willless willing to pay premiums for new 2010, 57 percent connected at least remain the strong giant for many years.features and enhancements. And, while weekly, and in 2011 that number had But if measuring by growth rate, theconsumers 55 years or older in mature fallen to 42 percent. And, new to the giant seems to be weakening.markets tend to have higher disposable ranks among popular applications wasincome (and therefore greater ability to This year’s data also shows consumers “managing my health,” which wasspend on technology), they more often are well into or nearing the end of selected by just over one-fourth ofwish to spend as little as possible to several technology upgrade cycles. respondents as an activity they conductkeep up on the technology adoption For instance, regular TVs are largely via technology in a typical week.curve. In contrast, younger consumers being replaced by high-definition TVs,in BRIC markets demonstrate a huge and there are emerging signs that theExecutive Summary | 4 Retweet Table of Contents Previous Next
    • Multi-device application use Innovation and In summary, in the fast-changingon the rise consumer electronics industry, exploiting environmental responsibility big growth opportunities is becomingAfter years of applications and remain strong drivers of increasingly difficult. Our researchactivities being tied to a specific type growth helps consumer tech companies withof hardware, many activities are now So what will motivate consumers to this challenge by offering informationdevice agnostic. Some of the most make purchases in the coming year? on the hottest current and emergingpopular new consumer technologies Perhaps innovation will play a part. geographic, product and applicationare able to perform many of the same Almost two-thirds of consumers said markets for consumer technology. Foractivities as other well-established it was somewhat or very important to instance, the highest spending in 2011devices in the marketplace. For example, them that the products they purchase (and we believe for years to come) issmartphones are just as able to hold all are perceived as the most innovative projected to be in urban and semi-of one’s music and take high-quality of technologies. Innovation appears urban BRIC markets. Demand for mobilephotos as portable music players and to be a far more important purchase applications such as banking continuesdigital cameras. lever in emerging markets than on a strong growth trajectory. And newSo to better understand which devices mature ones: 76 percent of the former technologies (such as tablet PCs andconsumers choose for various activities, said the perception of having the e-book readers) and next-generationwe queried respondents about the most innovative of technologies was technologies (such as smartphones, 3-Dactivities they do weekly on mobile or somewhat or very important to them and Internet-capable TVs) are projectingsmartphones, laptops, televisions, tablet versus 46 percent of the latter. However, substantial growth.PCs, netbooks, e-book readers and in as the recent lines of consumers waiting for new Apple iPhones and those The research also suggests thatcars. Overall, respondents indicated they waiting for Wii game consoles just consumer technology companiesclearly prefer to conduct some activities a few years ago illustrate, there will will require new—or, at minimum,on mobile or smartphones (texting and always be mature market consumers stronger—capabilities to capitalizeemail), television (watching shows), and who respond to the market hype about on these growth opportunities ande-book readers (reading). However, for new technology. remain a relevant lifestyle choicemany of the activities most frequently to consumers. For many consumerdone on a computer, a respondent is Environmental responsibility is also technology companies, keeping pacealso as likely to use a mobile phone, clearly important to consumers, so much will require a rethinking of theirtablet PC or netbook. Emailing, texting, so that it commands a premium price. innovation engines. Specifically, wewatching videos and connecting on Sixty-eight percent of respondents believe organizations must pay muchsocial networks are all increasingly said they would pay a premium for an more attention to the foundationalmulti-device activities. For instance, in environmentally friendly product (e.g., elements of innovation—those thingsIndia, emailing on a PC dropped from lower power consumption, easier to that form the basic capabilities of their86 to 67 percent year-over-year while recycle, manufactured using sustainable R&D function. They need to distributeemailing by phone grew from 19 to 34 practices). Again, this is a bigger growth their innovation around the world topercent. Hence, while computers are driver in emerging markets than mature enable them to develop offerings thatthe most frequently turned-to devices, ones, at least if measured by price are more attractive to local markets.consumers are more often conducting elasticity. A full 82 percent of emerging- They also need to achieve a greater levelactivities with a multi-device approach. market respondents said they would pay of innovation process discipline so they a premium for environmentally friendly can reduce time to market and increase products compared with just over half return on innovation investment. Finally, of mature-market respondents. all consumer tech companies should be paying close attention to ensuring that they have the capabilities that will help them consistently execute their innovation process over time to sustain their success.Executive Summary | 5 Retweet Table of Contents Previous Next
    • Abou ReseaAbout the ResearchFor four consecutive years, Accenture’s conducted a quantitative online consumerElectronics & High Tech industry practice study comprising 8,002 interviews acrosshas conducted research to identify and track eight countries: the US, Japan, Germany,preferences for consumer technologies and France, Brazil, Russia, India and China. Theservices. The research is intended to help research, fielded in October and Novemberconsumer technology executives better 2010, sought to cover a demographicallyunderstand the purchase patterns and use of representative sample across all theconsumer technologies and to gain deeper geographies (Figure 1). In Brazil, China, Indiainsights into global differences. From this and Russia, the sample is representative ofresearch we are better able to project future the urban and semi-urban populations. (Intechnology trends based on current behavior this research report, we reference aggregateand identify trends emerging from behavioral data for these countries as findings on BRICchanges in the use of technology. markets or emerging markets. We refer to aggregate data for Japan, Germany, FranceThis annual research began as a US study and the US as mature markets.)in 2008 and grew to a global study in2010. For the 2011 report, AccentureAbout the Research | 6 Retweet Table of Contents Previous Next
    • Figure 1Figure 1. Respondent demographics 15% 20% Age 18-24 years 50% 25-34 years 35-44 years 24% 45-54 years 19% 55 or older 50% 22% Gender 50% 50% Female Male 12.5% 12.5% Country US France 12.5% 12.5% Germany Japan Brazil 12.5% 12.5% Russia India China 12.5% 12.5%About the Research | 7 Retweet Table of Contents Previous Next
    • Hot—an Technol"Hot and Not" Technologies:Consumer Technology Ownership PatternsHigh-level findings:• While the growth rate of computers is • Forty percent of respondents in matureexpected to decline in 2011, the growth rate markets don’t plan to purchase any consumerof tablet PCs is estimated to increase by 160 electronics in 2011, compared with only 9percent. The purchasing growth rate for 3-D percent of those in the BRIC markets.TV in 2011 is projected to be a staggering • Emerging markets are quicker to let go of500 percent. duplicative technologies than are mature• Tablet PCs and e-book readers are owned markets, particularly mobile phones, regularby nearly a quarter of Chinese respondents— TVs, DVD players and VCRs.more than three times the ownership ratesof any other country except India, where 10percent of respondents own a tablet PC."Hot and Not" Technologies | 8 Retweet Table of Contents Previous Next
    • As the giant of consumer electronics, Digital cameras hold the #3 spot in preferences about other devices (Figurethe computer is owned by 93 percent of the rankings, owned by 76 percent 3). For example, smartphones arerespondents. Yet the trends in ownership of respondents. But the camera is far more popular in some countriesof various devices indicate that some projected to decline in purchase rate by than others: 53 percent of Chinesenewer technologies may be rapidly 45 percent next year. And while DVD consumers own a smartphone,making others obsolete, including the players hold the #4 rank, they face the compared with only 10 percent of theirtraditional desktop/laptop computer. steepest purchasing rate decline of the Japanese counterparts and 33 percentWhile the growth rate of computers is 19 consumer technologies evaluated of Americans. Tablet PCs and e-bookexpected to decline, the growth rate of this year. High-definition TVs are owned readers are owned by nearly a quartertablet PCs is expected to be up by 160 by only 50 percent of respondents, of Chinese respondents—more thanpercent. Bottom line, there’s an end in but it is the most pervasively owned three times the ownership rates of anysight for the relevance of the personal technology in the Power Rankings that other country except India, where 10computer as we know it today. is showing projected purchase-rate percent of respondents own a tablet growth next year. In France and Japan PC. This data is not unlike researchTo better monitor this trend and help this year, more consumers have high- recently released by market researchconsumer electronics companies definition TVs than regular TVs. firm Technology Business Research, Inc.find growth opportunities, this year (TBR). TBR finds that the tablet willAccenture introduces its 2011 Consumer While some of the newest technology displace many consumers secondary PCsTechnology Power Rankings (Figure 2), innovations hold the lowest Power but predicts the market will ultimatelyin which we rank the top consumer Rankings this year, their growth rates support all three device styles fortechnologies based on their global are projected to be phenomenal. For computing and connectivity, includingpenetration and changes in their instance, 3-D TV is the technology 1 the laptop, tablet and smartphone.projected rates of growth year over year. owned by the smallest percentage of respondents, but its purchasing Globally, some devices (such asGiven the ubiquitous ownership of growth rate in 2011 is projected to be smartphones, portable music players,the computer, it holds the top spot a staggering 500 percent. Tablet PCs, game consoles and portable gamingin the 2011 Power Rankings. Mobile e-book readers and Blu-ray players systems) are much more prevalentphones rank second but face an even round out the list for the technologies among younger generations than thosesteeper rate of purchasing decline expecting the most purchasing growth over 55. This generational differencethan computers, with 56 percent this year. is most pronounced within maturefewer consumers planning to purchase markets, where there are significantmobile phones this year than in 2010. As the global data foretells, the differences in what younger generationsIt is intuitive that mobile phone users computer is the technology owned by (under 25) and older generations (overare switching more aggressively to the most respondents in every country 55) own most frequently (Figure 4).smartphones. Ranked 10th overall, the surveyed. But consumers countrypurchase rate of smartphones is projected to country certainly have differentto increase by 26 percent in 2011. 1"Oops, Steve Jobs Did it Again: Apples iPad Will Disrupt the PC Market by Creating a New Usage Model", 2010 iPad Study, Technology Business Research Inc, September 16, 2010."Hot and Not" Technologies | 9 Retweet Table of Contents Previous Next
    • Figure 2. 2011 Consumer Technology Power Rankings Rank Consumer Technology Power Trend 1 Computer -39% 2 Mobile Phone -56% 3 Digital Photo Camera -45% 4 DVD Player -57% 5 Regular TV -50% 6 High-Definition TV 9% 7 Portable Music Player -37% 8 Game Console -25% 9 VCR 0% 10 Smartphone 26% 11 GPS 11% 12 Digital Video Camera 50% 13 Portable Gaming Device -25% 14 DVR 0% 15 Netbook 22% 16 Blu-ray Player 120% 17 Tablet PC 160% 18 E-book Reader 133% 19 3-D TV 500%Power trend calculated as (% intending to purchase next year - % purchased last year)/% purchased last year"Hot and Not" Technologies | 10 Retweet Table of Contents Previous Next
    • Figure 3 Figure 3. Country breakdown of device ownership Total Computer US France Mobile phone Germany Japan Brazil Digital photo camera Russia India DVD player China Regular TV High-definition TV Portable music player Game console VCR Smartphone GPS Health and fitness device Digital video camera Portable gaming device DVR Netbook Blu-ray player Tablet PC E-book reader 3-D TV 0% 20% 40% 60% 80% 100% "Hot and Not" Technologies | 11 Retweet Table of Contents Previous Next
    • Figure 4 Figure 4. Generational differences in device ownership Mature markets Mobile phone 18-24 years Smartphone 25-34 years High-definition TV 35-44 years Regular TV 45-54 years 3-D TV 55 or older DVR Computer (desktop or laptop) Tablet PC Netbook E-book reader Portable music player Game console Portable gaming device Digital photo camera Digital video camera DVD player Blu-ray player VCR Health and fitness device GPS 0% 20% 40% 60% 80% 100% Mobile phone Emerging markets Smartphone 18-24 years High-definition TV 25-34 years Regular TV 35-44 years 3-D TV 45-54 years 55 or older DVR Computer (desktop or laptop) Tablet PC Netbook E-book reader Portable music player Game console Portable gaming device Digital photo camera Digital video camera DVD player Blu-ray player VCR Health and fitness device GPS 0% 20% 40% 60% 80% 100% "Hot and Not" Technologies | 12 Retweet Table of Contents Previous Next
    • What was purchased in 2010 in emerging markets. In particular, What is being discarded consumers in Brazil, China and IndiaMobile phones and computers were the as obsoleteconsumer electronics devices purchased purchased a number of electronics more Perhaps a leading indicator of growthby the most respondents in 2010. than respondents in other countries, challenges for particular types of devicesPerhaps because these devices are the including mobile phones, smartphones, is what consumers stopped usingmost ubiquitous globally, the largest computers, netbooks and digital photo because they feel they have the samepercentage of consumers continued cameras. With more stable economies functionality in another device. Theto buy them in 2010. However, as the and growing wealth among the middle devices that the greatest percentage ofPower Rankings indicate, the growth class in these countries, consumers’ survey respondents have stopped usingrate in mobile phone and computer appetites for technology (especially are the VCR and regular TV (Figure 7).purchases is showing decline. mobile technology) are insatiable. Perhaps that helps to explain why theThe third-most purchased consumer purchase rate for regular TVs is expected What consumers plan to to decline by 50 percent next year.technology was high-definition TVs, purchase in 2011bought by 23 percent of respondents. Emerging markets are quicker to let go ofAs the latest technologies to hit the The technologies that most respondents duplicative technologies than are maturemarket, tablet PCs, 3-D TVs and e-book intend to purchase within the next 12 markets, particularly mobile phones,readers were purchased by small months include high-definition TVs, regular TVs, DVD players and VCRs. Moreminorities of respondents (Figure 5). Yet smartphones and computers (Figure 6). than 10 percent of respondents stoppedas the Power Rankings indicate, many In general, those devices with the largest using these devices in BRIC countries lastmore consumers anticipate purchasing ownership base are also those continuing year. This is in contrast to mature markets,these technologies in 2011. VCRs were to be purchased. where no more than 9 percent stoppedthe least purchased technology in Interestingly, one-quarter of respondents using any device.2010, purchased by only 1 percent of globally don’t plan to purchase anyrespondents globally. And in both mature and emerging consumer technologies in 2011. More markets, younger people appear to beThere were significant differences than one-third (37 percent) of those far more willing to let go of duplicativebetween what mature-market 55 and older don’t plan any purchases, devices. Seventy-three percent of thoserespondents and emerging-market compared with only 15 percent of those 55 and older said they haven’t stoppedrespondents purchased in 2010. Overall, between 18 and 24 years of age. And a using anything because of duplicatemore respondents in emerging markets stark contrast in purchasing plans exists functionality, compared with just 46made purchases than in mature between mature and BRIC markets: 40 percent of those under 25.markets: 87 percent of emerging- percent of respondents in mature marketsmarket consumers made purchases don’t plan to purchase any consumer electronics in 2011, compared with only 9 The most-used consumerlast year compared with 71 percentof mature-market respondents. This percent of those in the BRIC markets. technologiesmore conservative purchase behavior The top five consumer electronics in terms One factor that could influence thein Japan, the US and western Europe of those used most often include (in purchase plans for smartphones andis understandable, given the uncertain order of most frequent use): smartphone, tablet PCs next year is the availability ofeconomies faced by each of these computer, mobile phone, high-definition applications for these devices. Seventycountries last year and the comparative TV and regular TV (Figure 8). Given that percent of respondents said that thelack of enthusiasm about technology smartphones are only 10th in the Power availability of applications slightly orbecause it has been affordable and Rankings (owned by 28 percent of the greatly influenced their decision toaccessible to many of these consumers respondents), it’s clear that those who purchase a smartphone or tablet PC.for years. own them use them heavily. Almost one-third (31 percent) said itElectronics purchased much more greatly influenced their purchase decision. Interestingly, consumers in every countryfrequently in emerging markets include rank the same technologies among theirmobile phones, computers, netbooks most often used, with slight variationsand digital cameras—largely driven by within their order in the top four ranks.younger generations of the population For instance, BRIC markets have a higher use of mobile phones than do other countries. Televisions and computers are used less often in emerging markets than in mature ones."Hot and Not" Technologies | 13 Retweet Table of Contents Previous Next
    • Figure 5 Figure 5. Devices purchased in 2010 Mobile phone Total US France Computer Germany Japan High-definition TV Brazil Russia Digital photo camera India China Smartphone Netbook GPS Portable music player Game console DVD player Health and fitness device Digital video camera Blu-ray player Regular TV DVR Portable gaming device Tablet PC E-book reader 3-D TV VCR None 0% 10% 20% 30% 40% 50% 60% "Hot and Not" Technologies | 14 Retweet Table of Contents Previous Next
    • Figure 6Figure 6 Figure 6. Intentions to purchase in 2011 Mobile phone Mobile phone Smartphone Smartphone High-definition TV High-definition TV Regular TV Regular TV 3-D TV 3-D TV DVR DVR Computer Computer Tablet PC Tablet PC Netbook Netbook E-book reader E-book reader Portable music player Portable music player Game console Game console Portable gaming device Portable gaming device Digital photo camera Digital photo camera Digital video camera Digital video camera DVD player DVD player Blu-ray player Blu-ray player VCR VCR Health and fitness device Health and fitness device GPS GPS None of the above None of the above 0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25% Percent of Respondents Intending to Purchase Percent of Respondents Intending to Purchase Figure 7. Percentage of consumers who have stopped using the device this year Mobile phone Globally Mobile phone Globally Smartphone Mature markets Smartphone Mature markets High-definition TV Emerging markets High-definition TV Emerging markets Regular TV Regular TV 3-D TV 3-D TV DVR DVR Computer Computer Tablet PC Tablet PC Netbook Netbook E-book reader E-book reader Portable music player Portable music player Game console Game console Portable gaming device Portable gaming device Digital photo camera Digital photo camera Digital video camera Digital video camera DVD player DVD player Blu-ray player Blu-ray player VCR VCR Health and fitness device Health and fitness device GPS GPS None of the above None of the above 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80%Figure 7 and Not" Technologies | 15 "Hot Retweet Table of Contents Previous NextFigure 7
    • Figure 14Our study shows that BRIC markets have Figure 8. Most frequently used technologiesfar greater enthusiasm for technologiesand appetite for purchasing them than Computernon-BRIC countries, especially the latest Mobile phonedevices such as tablet PCs. One could High-definition TVinfer that the lower use of computers in Regular TVBRIC countries is an indication that these Smartphoneconsumers are finding alternate devices Digital photo camerato do those activities formerly done on DVD playerthe computer—and may, in fact, havesimply leapfrogged the step of owning a Portable music playercomputer that those in mature markets Netbookhad to take because at the time there DVRwere no other options. Game console Health and fitness deviceThe least-frequently used consumerelectronics are (in order, beginning GPSwith least frequent use): digital video Portable gaming devicecameras, GPS, VCRs, portable gaming Tablet PCdevices and DVD players. Despite their Digital video cameraless frequent use, video cameras and GPS VCRare projected to grow in purchases next Blu-ray playeryear. For these devices, while they don’t E-book readerget used as often, they remain important 3-D TVto consumers when they are needed. 0% 20% 40% 60% 80% 100%The most-used technology Figure 8services Percent of respondents ranking within the top 3 most frequently usedAmong technology services used by Figure 9. Most frequently used technology servicesconsumers, home Internet service isthe most pervasive across the countries Home Internet accesswe surveyed—cited by 89 percent ofrespondents as one of the top-threeservices they use regularly (Figure 9).Mobile phone service was the next-most Mobile phone serviceused service, cited by two-thirds ofrespondents as a top-three service. After Pay TV service (e.g., Cable service,those two services that are consistently IPTV service, Satellite service,used by the majority of respondents, the Video on Demand, pay-per-view)next-most regularly used service variesgreatly. Pay TV service (34 percent) Mobile data service for my mobileand mobile data service for mobile phone (e.g., email on mobile phone)phone (26 percent) were the next-mostfrequently cited as a top-three service. Mobile data service for my laptop VoIP phone service (e.g., Vonage, Skype) Satellite radio (e.g., XM/Sirius, Worldspace) Base size = 7,677 0% 20% 40% 60% 80% 100% Percent of respondents ranking within the top 3 most frequently used"Hot and Not" Technologies | 16 Retweet Table of Contents Previous Next
    • Where’s the Opportunity?The Importance of Consumer Technologiesand Spending PatternsHigh-level findings:• Respondents consider consumer technology • Sixty-one percent of respondents said it wasto be integral to their lifestyle, ranking it just somewhat or very important to them that thebehind clothing and personal transportation products they purchase are perceived as thein importance as a spending category. most innovative of technologies.• US consumers surveyed were the most • Sixty-eight percent of respondentsconservative spenders on consumer globally said they would pay a premium fortechnologies in 2010, while Chinese environmentally friendly products.consumers spent the most. Fifty-sevenpercent of Chinese survey respondentsspent $1500 or more. Globally, consumers’planned budgets for technology in 2011mirror their purchasing patterns from 2010,with emerging-market spending plans beingsubstantially more ambitious than maturemarkets.Wheres the Opportunity? | 17 Retweet Table of Contents Previous Next
    • For the first time, in this year’s study we Despite the fact that consumers of difference across age groups in China Home Internet access investigated how important consumer all ages and geographies consider in terms of spending patterns, while in electronics are to consumers relative technology as integral to their lifestyles, Brazil consumers 55 or older represented to other categories competing for consumer electronics companies must the highest share of big spenders. Mobile phone service learned that of seven their wallets. We compete extensively—and differently Globally, consumers’ spending plans categories of purchases, consumer among consumer segments—with other for 2011 mirror consumer electronics electronics ranked in the top three in consumer priorities to convert that Pay TV service (e.g., Cable service, purchasing patterns from last year, with importance, along with clothing and fascination into sales. IPTV service, Satellite service, emerging-market spending plans being shoes, and personal transportation Video on Demand, pay-per-view) substantially more ambitious (especially (car, motorcycle, scooter). Consumer Past and predicted spending in China and Brazil), than those in electronics are considered more Mobile data service for my mobile on consumer electronics mature markets (Figure 12). Economic phone (e.g., email people between the ages of important to on mobile phone) It appears from the above category uncertainty in mature markets may be 25 and 34 than to other age groups. To preferences that spending on consumer motivating a “wait and see” approach, these individuals, consumer electronics Mobile second behind clothing and shoes. electronics is quite discretionary. Perhaps, while enthusiasm for technology—and rank data service for my laptop then, it’s not surprising that while 11 better economic conditions—in emerging The youngest adults (people aged 18 percent of respondents globally did markets is driving aggressive spending to 24) rank consumer electronics less VoIP phone service entertainment and not spend any money on consumer plans there. important than (e.g., Vonage, Skype) electronics in the past 12 months, an recreation services as well as clothing equal number (9 percent) spent at least and transportation. Surprisingly, across $3,000 or more. The US was the most Satellite radio consumer electronics are the globe, (e.g., XM/Sirius,more important to consumers conservative in spending on consumer considered Worldspace) technologies in 2010, while China was than healthcare and well-being products. Base size = 7,677 Figure 10 shows the different levels0% 20% 40%the biggest spender (Figure 11). Brazil 60% 80% 100% and Russia were also reasonably big of importance consumers in variousrespondents ranking within the top 3 most frequently used Percent of spenders. There was no significant countries place on consumer electronics. Figure 10. Importance of consumer electronics relative to other categories of spending Total Clothing and shoes US France Germany Personal transportation Japan Brazil Russia Consumer electronics India China Furniture and household appliances Entertainment and recreation services Healthcare and well-being products Travel 0% 10% 20% 30% 40% 50% 60% 70% 80% Represents percentage of respondents ranking the category in the top three in importanceFigure 9 Wheres the Opportunity? | 18 Retweet Table of Contents Previous Next
    • Figure 10 Figure 11. Amount spent on consumer electronics in 2010 Total Less than $500 US France Germany Japan $500 to less than $1,500 Brazil Russia India China $1,500 to less than $3,000 $3,000 or more I have not spent any money on consumer electronics in the past year 0% 10% 20% 30% 40% 50%Figure 11 Figure 12. Consumers’ intentions to spend on consumer technologies in 2011 US France Less than $500 Germany Japan Brazil Russia $500 to less than $1,500 India China $1,500 to less than $3,000 $3,000 or more I do not plan to spend any money on consumer electronics next year 0% 10% 20% 30% 40% 50% 60% Wheres the Opportunity? | 19 Retweet Table of Contents Previous Next
    • US France Less than $500 Drivers of purchase Similarly, sustainability also appears to As consumers consider technology Germany behavior: The importance affect consumers’ technology spending purchases, the most important source Japan plans, so much so that it commands a of influence on purchase decisions is of innovation, sustainability premium price. Sixty-eight percent of Brazil personal research (cited by 36 percent). and personal research respondents globally said they would Thus, for consumer tech companies, Russia $500 to less than $1,500 So what will motivate consumers pay a premium for environmentally India providing consumers with easy access to follow through on their spending friendly products (e.g., one with lower China to product information can be critical plans, spend more or change the minds power consumption, that’s easier to to shaping their opinions of products. of those currently not planning any recycle, or that’s manufactured using A secondary influence, but far less purchases? Perhaps innovation will play sustainable practices). From a country important, is recommendations from $1,500 to less than $3,000 a part. Almost two-thirds (61 percent) perspective, consumers in emerging friends and other trusted individuals of respondents said it was somewhat markets are far more likely than those (Figure 14). China stands out here, or very important to them that the in mature markets to say they would putting recommendations from friends products they purchase are perceived pay a premium for environmentally and consumer rankings ahead of personal $3,000 or more innovative of technologies. as the most friendly products. One example of the research in sources of importance. Once again, emerging-market stark contrast: 89 percent of Chinese Advertising campaigns, manufacturer consumers led the way, as they were respondents, versus just 47 percent of websites and in-store salespeople much more likely than their mature- those in the US, indicated they would were all ranked very low as sources of Imarket counterparts to believe that do not plan to spend pay more for such devices. influence on purchase decisions. any money on is important (Figure 13). innovation consumer electronics next year 0% 10% 20% 30% 40% 50% 60% Figure 13. Willingness to pay a premium for environmentally friendly products Total US France Yes Germany Japan Brazil Russia India China No 0% 20% 40% 60% 80% 100%Figure 12 Wheres the Opportunity? | 20 Retweet Table of Contents Previous Next
    • Figure 13 Figure 14. Sources of influence on purchase decisions Total US Personal research France Germany Japan Brazil Russia India Recommendations of friends and others I trust China Consumer rankings/ratings Community websites that provide consumer product/service reviews The salesperson in the store where I shop Manufacturer’s website Ad campaign None of these 0% 10% 20% 30% 40% 50% Wheres the Opportunity? | 21 Retweet Table of Contents Previous Next
    • An Activity-Based View:What are Technology Users Doing?High-level findings:• The top technology-based activities • Thirty-nine percent of respondents connectconducted in a typical week include emailing, to a social network in a typical week, and 20searching for and reading general news, percent spend at least five hours a week at it.banking, watching shows and videos, and They do so from multiple devices (computers,texting. netbooks and tablet PCs, in particular).• Just over half of respondents bank online at • Thirty-seven percent of respondents saidleast weekly. they were interested in using their TV to access Web content, view personal content• Half of survey respondents text at least like photos and download applications.weekly, and 14 percent spend more than fivehours a week doing so.Activity-Based View | 22 Retweet Table of Contents Previous Next
    • To better understand how consumers What activities are consumers Other popular activities include banking, are using the myriad consumer watching shows and videos, and texting. spending time doing? technologies available to them, we Just over half of respondents bank Emailing is the main activity conducted asked them a number of questions about online at least weekly. While less than weekly by survey respondents. It is also the technology-based activities they half (44 percent) of respondents watch the activity that most consumers spend perform, how frequently they use various shows, movies or videos each week, substantial amounts of time doing (Figure applications and which devices they use those who do spend considerable time 15). In fact, 39 percent of respondents for different activities. After years of at it: 31 percent do this at least five spend at least five hours per week operating in an environment where a hours per week, ranking it third among emailing—more often older generations specific device was required for a specific the activities consumers spend the most than younger ones. The second most activity (such as needing a computer time on each week. frequent activity is searching for and to email or a camera to take photos), reading general news and information on Connecting with people on social many consumers now do activities across the Web, although it has slowed over the networks has remained steady year over numerous technologies, making it far past two years. In China, the percentage year, with 39 percent of respondents more complex when determining how of respondents who search for content doing this in a typical week and 20 to predict the growth of a particular on the Web during an average week has percent spending at least five hours a consumer technology or application. dropped from 84 percent to 61 percent. week at it in our 2011 report. In the And, in India, searching the Web for US, interest is higher than average: information has dropped from 61 percent 46 percent connected at least weekly of consumers doing it weekly to 47 in both 2009 and 2010. India’s percent. participation in social networking has declined. In 2010, 57 percent connected at least weekly, and for our 2011 study that number has fallen to 42 percent.Figure new slide Figure 15. Which of the following activities do you do in a typical week? How much time do you spend? Time spent on activity: 5+ hours Rank order: time consumed Emailing 15+ hrs 1 Searching for/reading general news and 5-14 hrs information on the Internet 2 Banking Texting/SMS 8 Watching shows/movies/videos 3 Working from home 4 (e.g., checking emails, conference calls) Playing games 6 Connecting with people on social networking sites (e.g., Facebook, Myspace) 5 Listening to music stored on a device 7 Managing personal digital photos and videos Watching/posting videos on the Internet 10 Listening to streamed music on the Internet 9 Downloading and using apps Using maps and global positioning; getting directions from the Web Managing my health Reading blogs or listening to podcasts Participating in communities of interest on the Internet (e.g., Yahoo groups) Base size = 8,002 Base size = 8,002 Reading electronic books Writing blogs or contributing to online references such as Wikipedia Microblogging (e.g., Twitter) 0% 20% 40% 60% 80% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% Activity-Based View | 23 Retweet Table of Contents Previous Next
    • Overall, about half of survey increasingly using multiple devices for And among those not already doingrespondents text at least weekly, and activities that used to be PC-based: 44 so, 37 percent of respondents said14 percent spend more than five hours percent of netbook owners email from it they were interested in using their TVa week doing so (especially, as one at least weekly, 40 percent email from to access Web content, view personalwould expect, those 18 to 24 years their tablet PC and 40 percent email content like photos and downloadold). In fact, it is in the “new” and from a mobile or smartphone. applications (Figure 17). Using themobile-centric activity categories such TV as a more utilitarian device is The data also shows a downward trendas connecting with people on social more interesting to emerging market in the use of the PC for some activities.networks and texting that millennials respondents than mature market For example, in our 2010 report, 80(those in our survey 18 to 24 years old) respondents. And younger generations percent of US survey respondentsare really similar globally. On activities are more interested in the TV as a emailed from their PC weekly. This yearthat have been available longer, there is multi-purpose technology than older ones. that percentage dropped to 75 percent.more region-specific behavior. During the same period, checking email The primary activity done on an e-book by phone rose from 14 percent to 24 reader is, as one would expect, readingThe big question: What percent. A similar downward PC usage e-books (33 percent of e-book readerdevice for what activity? trend is evident in the email activity in owners do this weekly on the device).Some of the hottest new consumer India and China. But not as intuitive is that the next-technologies, such as tablet PCs and most popular activities done weeklysmartphones, are able to perform many For activities from microblogging to on this device are emailing (21 percentof the same activities as other well- social networking to managing photos, do this) and searching the Internet (19established devices in the marketplace. posting videos, downloading apps or percent). Of those who don’t own anSo to better understand which devices banking, the next-most used devices after e-book reader, more than half said thatconsumers choose for various activities, a computer are tablet PCs and netbooks. it is because they prefer paper books.we queried respondents about the Overall, these three devices have very But 20 percent said they preferred otheractivities they do weekly on mobile or similar patterns in terms of the activities electronic devices than an e-book readersmartphones, laptops, televisions, tablet done on them weekly. For instance, for reading books, such as a phone, PCPCs, netbooks, e-book readers and in 37 percent connect to social networks or tablet PC. In emerging markets, thecars. The primary lesson from this query from their computer at least weekly, 27 percentage of respondents who preferis that there are clearly some activities percent connect to social networks via other electronic media for e-bookthat, in aggregate, survey respondents their netbooks each week and 23 percent reading is much higher: 34 percentprefer to conduct on a specific device. do so from their tablet PC. in BRIC markets versus 7 percent forFor instance, respondents most When reviewing information on "heavy mature-market countries.frequently do texting on their mobile users" of activities—those who door smartphone. They more frequently Looking across the activities done the activity at least five hours perwatch shows and movies on TV. They weekly on various devices, a few week—interesting patterns emerge.listen to music stored on a device more patterns become clear. Overall, For instance, among millennials in theoften in the car. And they read e-books respondents indicated they clearly BRIC markets who are heavy watchersmore often on an e-book reader, tablet prefer to do some activities on mobile of shows and videos, a larger share (44PC or netbook (Figure 16). or smartphones (texting and email), percent) watch them on a PC or laptop television (watching shows), and e-bookPerhaps because 93 percent of than on a television (chosen by 30 readers (reading). However, for manyrespondents own computers, the percent). A significant number of these activities most frequently done on acomputer or laptop remains the device young adults also watch videos on their computer, if a computer is not easilyused by the most respondents for mobile or smartphones. accessible, a respondent is likely to useconducting the majority of the 20 In addition to watching shows a mobile phone, tablet PC or netbook.different activities we queried about. and videos, a significant number As activities become more and moreAcross the countries we surveyed, 79 of consumers reported doing multi-device, and people more quicklypercent of computer owners email from “nontraditional” activities from their jettison duplicative technologies, thetheir computer at least weekly. But television: 21 percent search the Consumer Technology Power Rankingsthere is evidence that respondents are Internet via their television, and 14 are likely to show significant shifts in percent report emailing from the device. years to come.Activity-Based View | 24 Retweet Table of Contents Previous Next
    • Figure 15 Figure 16. Top activities conducted in an average week Searching for/reading Done on Any Device general news and information on the Internet Done on a Mobile/smartphone Done on a Laptop Using maps and global positioning; getting directions Done on a Tablet PC from the Web Done on a Netbook Reading blogs or Done on an E-book listening to podcasts Done on a TV Writing blogs or contributing Done in a Car to online references such as Wikipedia Microblogging (e.g., Twitter) Participating in communities of interest on the Internet (e.g., Yahoo groups) Connecting with people on social networking sites (e.g., Facebook, Myspace) Texting/SMS Working from home (e.g., checking emails, conference calls) Managing personal digital photos and videos Playing games Listening to music stored on a device Listening to streamed music on the Internet Emailing Watching show/movies/videos Watching/posting videos on the Internet Reading electronic books Downloading and using apps Managing my health Banking 0% 20% 40% 60% 80% 100% Activity-Based View | 25 Retweet Table of Contents Previous Next
    • Figure 16 Figure 17. Interest in TV for accessing Web content, photos, apps Total Mature markets Emerging markets 18-24 25-34 35-44 45-54 55 or older 0% 10% 20% 30% 40% 50%Figure 17 Computer 2011 (desktop or laptop) Mobile phone 2010 Web-enabled mobile 2009 phone/smartphone 2008 Digital photo camera DVD player Regular (CRT or tube) TV High-definition plasma or LCD TV Portable music player Game console VCR Digital video camera Portable gaming device Digital video recorder for TV GPS device Netbook Blu-ray player E-book 3-D TV Health and Fitness device Tablet PC 0% 20% 40% 60% 80% 100% Activity-Based View | 26 Retweet Table of Contents Previous Next
    • A Look at the US MarketAccenture has now researched consumer certain devices obsolete. For instance, mobiletechnology adoption among US consumers phone ownership has dropped from 79 percentfor four consecutive years. While some of in our 2008 report to 65 percent in thisthe research areas have changed to stay year’s report, while smartphone ownershipconsistent with the most contemporary issues has quadrupled from 8 percent to 32 percentand technologies, many have remained, which in the same period (Figure 18). These sameenables us to present some of the most trends are apparent when comparing DVDinteresting trends since our research began. player decline versus Blu-ray player growth, regular TV decline versus high-definition TVThe trends in ownership of various devices growth and VCR decline versus DVR growth.in the US support Accenture’s global This power shift has occurred while theobservation that newer technologies and computer has remained ubiquitous but intechnology upgrades are rapidly making slight ownership decline.US Market | 27 Retweet Table of Contents Previous Next
    • Total most-purchased The consumer Among the newer technology-based electronics in 2010 in the US include activities across our four-year history is the computer, smartphone and high- connecting on social networks. One of Mature markets definition TV. However, while about the most interesting findings here this the same percent of consumers year are the reasons for using social Emerging markets surveyed purchased a computer and networks: The top two choices increased high-definition TV in 2010 as in 2009, significantly in the past year, and they 18-24 smartphones showed a significant jump both involve strengthening existing in those purchasing one in 2010 versus relationships instead of creating new 25-34 (from 14 percent buying in 2009 2009 ones (Figure 20). As older individuals to 22 percent buying in 2010). tend to be much less focused on making 35-44 new friends than on keeping in touch The US data reflects flat to declining with current ones, the increase in older spending on consumer electronics amid 45-54 generations’ use of social media may the recession years. In fact, 2010’s be influencing how these networks are spending virtually mirrored 2009, with being used. slightly more consumers spending 55 or older slightly lesser amounts in 2010 than in 0% 10% 20% 30% 40% 50% the prior year (Figure 19).Figure 17 Figure 18. US trends in consumer electronics ownership Computer 2011 (desktop or laptop) Mobile phone 2010 Web-enabled mobile 2009 phone/smartphone 2008 Digital photo camera DVD player Regular (CRT or tube) TV High-definition plasma or LCD TV Portable music player Game console VCR Digital video camera Portable gaming device Digital video recorder for TV GPS device Netbook Blu-ray player E-book 3-D TV Health and Fitness device Tablet PC 0% 20% 40% 60% 80% 100% US Market | 28 Retweet Table of Contents Previous Next
    • Figure 18Figure 18 Figure 19. US spending on consumer electronics 2010 Have not spent any money 2010 on consumer electronics Have not spent any money 2009 in the past year on consumer electronics 2009 in the past year 2008 2008 2007 Less than $500 2007 Less than $500 $500 to less than $1,500 $500 to less than $1,500 $1,500 to less than $3,000 $1,500 to less than $3,000 $3,000 or more $3,000 or more Don’t know Don’t know 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% Figure 20. US consumers reasons for connecting on social networks Reconnect with old friends 2011 Reconnect with old friends 2011 Stay in touch with friends 2010 Stay in touch with friends 2010 Make new friends Make new friends Network with current and former colleagues Network with current and former colleagues To let others know what Im doing To let others know what Im doing To inform others of personal news To inform others of personal news To connect with people who share common bonds who To connect with people share common bonds To let others know my opinions To let others know my opinions To find out about products and services To find out about products and services To plan social activities To plan social activities To look for jobs To look for jobs To write about and review products To write about and review products To be engaged in local community To be engaged in local community To sell things To sell things To further issues that are important to me To further issues that are important to me To play games To play games 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%Figure 19 US Market | 29Figure 19 Retweet Table of Contents Previous Next
    • Implications for the ConsumerTechnology IndustryWith so many activities becoming device While many questions regarding the growthagnostic, and people more willing (at least of consumer electronics cannot be answered,in emerging markets) to jettison what they one thing is clear: Not only is it becomingperceive to be duplicative technologies, what more difficult to predict the winners and losersdoes that mean for the growth of certain in consumer technology, but it also is gettingtechnologies? Will we begin to see a gradual tougher to develop products that can appeal“culling of the herd” where technologies to an increasingly diverse global customer baseconsidered obsolete or unnecessary will be with unique local needs and requirements.disposed of altogether? Are single-purpose To win in such a world, consumer technologytechnologies (such as photo and video companies must engage with consumers atcameras) differentiated enough in purpose the onset of, and throughout, the innovationand quality to maintain their lifeline? Is the process. Achieving high levels of engagementinsatiable appetite for technology among requires consumer technology companies toemerging markets enough for all players in rethink how they manage innovation on athe consumer electronics industry to thrive? global basis.Consumer Technology Companies | 30 Retweet Table of Contents Previous Next
    • Minding the foundation Distributing innovation Maintaining productFor example, consumer technology Innovation is no longer the exclusive pipeline disciplinecompanies must pay particular attention province of developed markets. A For consumer technology companies,to what Accenture considers the combination of investment, education having a consistent end-to-end“foundational” elements of a robust and a strategic policy focus on innovation process with clear stageinnovation capability: innovation new technologies has spurred the gates and milestones is absolutelystrategy, innovation leadership, customer development of new clusters of critical. Organizations need a good idea-understanding and idea sourcing. innovation in emerging economies. generation process that leads to asking In recent years, for example, we have the right questions that can lead to theInnovation strategy: Successful witnessed the rise of nanotechnologies highest-quality, most refined ideas, soinnovation requires a commitment to and biotech in Beijing, digital media and the company can decide on which ideas itthe company’s innovation strategy, genomics in Seoul, biofuels in Brazil, will focus its scarce resources on and how.which includes investing a substantial and automotive technologies in Poland.percentage of revenue in innovation For instance, at the start of an innovationactivities and maintaining the Excelling at innovation requires a process, a company could have 10 ideas.investment level and commitment even focus not only on input factors (such But it needs to quickly understand theduring challenging economic cycles. as investment in R&D and education) risks and opportunities of each so that but also on measuring output (such it can narrow the pool to the threeInnovation leadership: A significant as the ability to produce valuable ideas, or even one idea, in which it willcontributor to innovation success is new products, services and business invest money to create a new product.executives who are committed to processes). For a business, unpacking In Accenture’s experience, this is notinnovation and who instill within innovation in this way is essential when common: Most consumer technologytheir employees and throughout the making decisions about where to locate companies typically only loosely adhereorganization a similar self-confidence innovation functions. to a consistent process and, even then,and willingness to never stop innovating. only for incremental innovations. Indeed, high-performance businesses areCustomer understanding: In today’s clearly aware that there are now many When it comes to the innovation process,dynamic world, superior innovation more innovation hubs and untapped high performers adhere to stage gatesrequires conducting a considerable sources of expertise outside their home and actively attempt to optimize theiramount of research on consumer markets. In fact, these companies end-to-end process to cut developmentbehavior—not only traditional market typically source innovation from more cycle times. High performers have maderesearch studies, but observational and than one country, which enables huge leaps in their development cycleethnographic research as well. them to be “authentically local” while times by streamlining their innovationIdea sourcing: As markets continue to operating globally. In other words, when processes and, consequently, have beenget more competitive and the cost of it comes to operating in local markets, able to increase the number of newdeveloping new products continues to high performers don’t just “switch product launches.rise, consumer technology companies the label on the can.” Instead, theyare challenged to look far beyond their immerse themselves in the markets to High performers also tend to buildresearch and development group for other become part of the local business and a balanced portfolio of strategicsources of innovation—especially those social fabric, adapting their strategies, short- and long-term incremental andoutside the company, including ecosystem operations and products to meet local groundbreaking innovation initiatives. Inpartners, academia and customers. conditions and tastes. For consumer other words, while they know they must technology companies, such “distributed continue to develop products that “keep innovation” has become increasingly the lights on” today, they also recognize critical to creating products that reflect that they need to mix in some larger the disparity in preferences and needs in “big-bet” initiatives that, if successful, consumers from country to country. could completely change the game.Consumer Technology Companies | 31 Retweet Table of Contents Previous Next
    • Executing consistently overtimeThe consumer technology space islittered with “one-hit wonders”:companies that came up with acompelling product but were unable tosustain innovation to keep churning outnew, desirable products over the longerterm. In many instances, such lack ofstaying power was due to shortcomingsin how the companies’ innovationfunctions were structured, measuredand rewarded.Accenture has found in its researchas well as client work that one of thebiggest keys to sustained innovation isa culture that tolerates risk, rewardsfailure and encourages continuousimprovement. Without such a culture,breakthrough ideas are impossibleto consistently and fully identify andcapitalize upon. Furthermore, withoutthe ability to measure past successesand estimate the future market impactof new products, companies willcontinue to “fly blind” and approachinnovation as an ad hoc exercise.For many consumer technologycompanies, succeeding as an integralpart of the consumer lifestyle willrequire substantive rethinking oftheir innovation engines. By payingattention to the foundational elements,distributing innovation, remainingdisciplined in the product developmentprocess and executing consistentlyover time, consumer technologycompanies can engage with consumersthroughout the innovation process andappeal to the increasingly diverse andrapidly changing consumer needs andpreferences highlighted in this report.Consumer Technology Companies | 32 Retweet Table of Contents Previous Next
    • Snapshots of Hot TechnologiesSnapshots of Hot Technologies | 33 Retweet Table of Contents Previous Next
    • Figure 21 The tablet PC: The hot consumer electronic To stay in touch with friends Total US The tablet PC is gaining market momentum. One need only look at the millions Reconnect with old friends France of sales of iPads and Galaxy Tab tablet computers since they were each launched Germany To network withknow that this device is rapidly becoming popular among consumers. in 2010 to current and former colleagues Japan To make new friends, meet According to Accenture’s research, 8 percent of consumers surveyed now own a Brazil new people Russia tablet PC and aboutshare To connect with people who one-third of those individuals (3 percent total) purchased India their tablet PC in 2010 (Figure 21). Eight percent of respondents globally plan common bonds (e.g., music, new moms) To let others know about my opinions 2011—a purchase rate that would double tablet PC China to purchase a tablet PC in (political, social, etc.) ownership globally in just one year. To find out about products and services I plan to purchase BRIC market consumers are more enthusiastic purchasers of tablet PCs than To play games are mature-market consumers. More than double the percentage of BRIC consumers currently own one, and double the consumers plan to buy one in To plan social activities 2011, than consumers in mature markets. But what is most astounding about To further issues that are important to me (i.e., political, environmental) is that nearly one-quarter of Chinese respondents (across tablet PC consumption To be engaged in urban community ages within my local areas) currently own one. That is nearly three times the global average. The purchase rate in China was more than double the global average in To write about and review products 2010. And looking forward, China is potentially the strongest market for tablet PCs this year, with 18 percent of Chinese respondents planning to purchase To look for jobs one in 2011. If one does the math, tablet PC ownership would reach almost 40 To sell things the urban adult population of China by 2012. percent of 0% 20% 40% 60% 80% 100% Figure 21. Tablet PC own, bought, plan to buy Total Own a tablet PC Purchased a tablet PC in the past 12 months Plan to buy a tablet PC within the next 12 months Mature markets Emerging markets France Germany Japan US Brazil China India Russia 0% 5% 10% 15% 20% 25%Figure 22 Retweet Table of Contents Previous Snapshots of Hot Technologies | 34 Next
    • Although far behind China in consumption, India has the second-highest penetration of tablet PCs globally, with 10 percent of consumers owning one. Future growth for tablet PCs in India also looks strong: 10 percent of Indian respondents plan to purchase a tablet PC in 2011. Interestingly, Indian consumers seem less committed to the new technology than other countries. Five percent of those owning a tablet PC quit using it last year because they had the same functionality in another device (globally, the defection rate for tablet PCs was 2 percent). The activities most often conducted on a tablet PC mirror those conducted on a laptop or desktop computer and include checking email, browsing the Web, watching videos, and reading books, newspapers and magazines (Figure 22). Emerging-market countries use their tablet PCs for a wider variety of activities than do mature-market countries. The largest differences are in tweeting and microblogging: 43 percent of emerging-market respondents use a tablet PC for microblogging, versus only 26 percent of tablet PC owners in mature- market countries. People between 18 and 24 years of age conduct a greater number of activities on the tablet PC, including such things as email, games, banking, blogging, watching videos, listening to music and managing photos. Other generations lean more toward using the tablet PC for just a few applications, namely email, browsing the Web, watching videos and reading.Figure 23 Figure 22. Activities conducted on a tablet PC Total Browsing the Web Mature markets Checking email BRIC markets Watching videos Reading books, newspapers, magazines Listening to music Taking and/or managing photos Banking Using the applications that came already installed on my tablet PC Playing games Updating and checking my social network sites Services based on my location Using custom or self-purchased applications Tweeting or microblogging 0% 10% 20% 30% 40% 50% 60% 70% 80% Snapshots of Hot Technologies | 35 Retweet Table of Contents Previous Next
    • 3-D TV: What’s the real story?Figure 23 The 3-D TV sits dead last among the consumer technologies in Accenture’s 2011 Power Rankings because only 3 percent of the survey population currently owns one (Figure 23). However, the 3-D TV also is predicted to have the highest change in purchase rate—a staggering 500 percent increase—in the next 12 Total Browsing the Web months. So what’s the real scoop on the 3-D TV? Mature markets Checking email BRIC markets China once again stands out as the most enthusiastic consumer of new technologies. While 2 to 3 percent of consumers in most countries own a 3-D Watching videos TV, double that amount own one in China. And growth plans for 3-D TVs in Reading books, newspapers, the BRIC markets are promising. During 2011, one-fifth of consumers in Brazil magazines and India, 16 percent in Russia, and 14 percent in China plan to purchase a Listening to music 3-D TV. This is in stark contrast to just 2 percent of consumers in Japan, 6 percent in managing photosGermany, and 8 percent in the United States. Taking and/or France and Of those who don’t currently own a 3-D TV, overall interest in 3-D TV Banking is split:applications that came Using the 49 percent globally say they are interested in owning a 3-D TV already installed on my tablet PC and 51 percent say they aren’t. Interest is far greater among the younger generations: 63 percent of those 55 or older said they were not interested Playing games in 3-D TV ownership, versus 45 percent of those under 25 and 46 percent Updating and checking my of those aged 25-34. social network sites Services based on my location In addition, there is much more interest in 3-D TV among emerging-market consumersor self-purchased Using custom than mature-market consumers. Two-thirds of emerging-market applications respondents said they’d like to have a 3-D TV versus only 31 percent of mature- market or microblogging This interest within emerging markets holds steady across Tweeting respondents. generations. Digging deeper into these market differences, it’s clear that 0% 10% 20% 30% 40% 50% 60% 70% 80% countries differ significantly in consumer interest in this device. For example, 69 percent of Chinese and 68 percent of Russians want or plan to own a 3-D TV, versus only one-fourth of US consumers and one-fifth of consumers in Japan. Figure 23. Ownership of 3-D TV; plans to purchase 3-D TV Total Own a 3-D TV Purchased a 3-D TV in the past 12 months France Plan to buy a 3-D TV within the next 12 months Germany Japan US Brazil China India Russia 0% 5% 10% 15% 20% Snapshots of Hot Technologies | 36 Retweet Table of Contents Previous Next
    • As consumer electronics companies consider ways to increase demand for 3-D TVs, it appears price is the biggest lever that would drive more interest in this new device (Figure 24). Fifty-seven percent of respondents globally said they would be more inclined to purchase a 3-D TV if the price was within their budget. Finding a price within their budget was more significant among people under 24 years old than older people (64 percent versus 50 percent, respectively). And finding a price within budget is a bigger driver of 3-D TV purchase interest in emerging countries than in mature ones. Other (but lesser) factors that would make consumers more inclined to purchase a 3-D TV include having greater availability of 3-D content and not having to wear 3-D glasses. Almost half (45 percent) of respondents in China and Germany said they’d be more inclined to buy a 3-D TV if they didn’t have to wear glasses. And also, in China, 63 percent said they’d be more interested in 3-D TV if there were more content available.Figure 25 Figure 24. Factors that would make consumers more inclined to purchase a 3-D TV Total If the price were within Mature markets my budget Emerging markets 18-24 25-34 If 3-D televisions were available in my market 35-44 45-54 55 or older If they were easier to use If there were more 3-D content available If I did not have to wear 3-D glasses I have no interest in 3-D television 0% 10% 20% 30% 40% 50% 60% 70% 80% Snapshots of Hot Technologies | 37 Retweet Table of Contents Previous Next
    • Social networking: A hot pastime In a typical week, 39 percent of consumers surveyed across geographies and age groups connect with friends using social media (Figure 25). Despite the rise of well-known US-based brand Facebook, the US is not where social networking is most extensive. Russia and Brazil lead other countries in their social media use. In fact, 54 percent of Russian respondents connect to social networks in an average week and half of those in Brazil do as well. In the US, just less than half of respondents (46 percent) connect on social media sites in an average week. While more younger-generation consumers are using social media, it’s not purely a younger-generation activity. One-third of those 45 to 54 years of age connect on social media weekly and more than one-quarter of those 55 years or older do so. The age gap in social media activity is significantly smaller in BRIC markets than in the US, Japan, Germany or France. In the BRIC markets, 51 percent of those 18-24 connect, but 42 percent of those over 55 do so as well.20 Figure 25. Percentage of respondents connecting to social media in a typical week Total France Germany Japan US Brazil China India Russia 0% 10% 20% 30% 40% 50% 60% Snapshots of Hot Technologies | 38 Retweet Table of Contents Previous Next
    • At an aggregate level, the reasons respondents cited for using social media are largely social versus commercial: to stay in touch with friends (82 percent) and to reconnect with old friends (71 percent). Across our global sample, few respondents indicated that they used social media for commercial reasons such as to sell things or look for a job, or as a platform to further their opinions and causes. In fact, only 20 percent use social networking to write about and review products and 22 percent use it to further issues important to them (Figure 26). However, BRIC countries have a broader number of uses for social networking than mature-market countries. In addition to connecting with friends, consumers in China and Brazil, in particular, more frequently use social networking to sell things, look for jobs, further issues important to them and write about and review products.Figure 21 Figure 26. Activities done on social media Total To stay in touch with friends US France Reconnect with old friends Germany Japan To network with current and former colleagues Brazil Russia To make new friends, India meet new people China To connect with people who share common bonds (e.g., music, new moms) To let others know about my opinions (political, social, etc.) To find out about products and services I plan to purchase To play games To plan social activities To further issues that are important to me (e.g., political, environmental) To be engaged in my local community To write about and review products To look for jobs To sell things 0% 20% 40% 60% 80% 100% Snapshots of Hot Technologies | 39 Retweet Table of Contents Previous Next
    • Smartphones: The strong utility player on the device team At number 10 in the Power Rankings, the smartphone is expected to remain strong in both purchase and use in 2011. Globally, more than one-fourth of the survey population owns a smartphone (Figure 27). China, again, is the geography with the most enthusiastic consumption: More than one-half of Chinese respondents in our survey currently own a smartphone, compared with one-third of US respondents. Chinese enthusiasm is fairly new as well. Thirty- seven percent of Chinese respondents purchased their smartphones in 2010 (representing more than half of those who now own one). And smartphones are predicted to be the most-purchased device in China in 2011, with 38 percent planning to buy one. Smartphones are expected to have the second-highest purchase rate among consumer electronics in 2011. About one-quarter of respondents plan to purchase one in 2011 (Figure 28). In addition to China, the smartphone is predicted to be the most-purchased device in India and Russia and the second- most purchased device in Brazil, Germany, the US and France. Besides making phone calls, the smartphone applications rated most valuable to consumers are texting, taking photos, checking email and browsing the Web (Figure 29). These activities are all more important to younger generations than older ones. In addition, consumers of different economies also have different interestsFigure 26 in smartphone applications. Listening to music was a more popular smartphone activity in emerging markets (led by younger generations). Figure 27. Smartphone ownership Total France Germany Japan US Brazil China India Russia 0% 10% 20% 30% 40% 50% 60% Snapshots of Hot Technologies | 40 Retweet Table of Contents Previous Next
    • Reading books, magazines and newspapers was a top smartphone application for 13 percent of emerging-market respondents, compared with just 3 percent of those in mature markets. Mature-market countries exhibit big differences in application preferences between younger and older generations. In these countries, more than half of adult consumers under 25 years old ranked texting as a top-three smartphone application, while only 21 percent of those over 55 did so. While consumer interest in smartphones is high, competition among various smartphone alternatives is extensive as well. So how can consumer electronics companies recoup innovation investments, protect margins and capture growth in this fiercely competitive, rapidly growing market? Accenture’s data indicates that commanding a premium for ever-faster and smarter smartphones could be tough. Just over one-third of respondents said they would not be willing to pay a premium for any of the five enhanced capabilities we queried about (Figure 30). In fact, respondents were evenly divided about what, if anything, warranted a premium price. Older generations were far less interested in paying a premium for enhanced smartphone capabilities. And consumers in mature markets are far less willing to pay for various enhancements to smartphones than emerging markets. Fifty-nine percent of mature-market respondents said they would not pay a premium for enhanced Web browsing, thousands more applications, enhanced location awareness, faster downloading or enhanced touchscreen. This compares with only 17 percent of those in emerging markets.Figure 27 Figure 28. Smartphone purchasing trends Total France Germany Japan US Purchased a smartphone Brazil in 2010 China India Russia Plan to purchase a smartphone in 2011 0% 5% 10% 15% 20% 25% 30% 35% 40% Snapshots of Hot Technologies | 41 Retweet Table of Contents Previous Next
    • Figure 28 Figure 29. Top 3 most valuable smartphone applications Checking email Checking email Texting/text messaging Browsing on messaging Texting/text the Web Mature markets Mature markets Total Banking on the Web Browsing 18-24 Total years Banking Watching videos 25-34 years 18-24 years Tweeting videos Watching 35-44 25-34 years 45-54 years 35-44 Tweeting Updating and checking your social network sites 55 or years 45-54older Updating and checking your social network sites Shooting videos 55 or older Listening videos Shooting to music Listening to music Reading books, newspapers, magazines Playing games newspapers, magazines Reading books, Playing games Taking photos Taking photos Using custom or self-purchased applications (e.g., applications that did not come as standard on your device, but rather were Using custom or self-purchased applications (e.g., applications downloaded or purchased separately) Services not come my standard (e.g., GPS or maps/directions, that did based on as location on your device, but rather were restaurant suggestions) separately) downloaded or purchased I just usebased on my location (e.g., GPS to make phone calls Services my mobile phone/smartphone or maps/directions, restaurant suggestions) I do not own mobile phone/smartphone to make phone calls I just use my a mobile phone/smartphone Other own a mobile phone/smartphone I do not Other 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Checking email Checking email Texting/text messaging Texting/text messaging Browsing on the Web Emerging markets Browsing on the Web Emerging markets 18-24 years Banking 25-34 years 18-24 years Banking videos Watching 35-44 25-34 years Watching videos Tweeting 45-54 years 35-44 55 or years 45-54older Tweeting and checking your social network sites Updating 55 or older Updating videos Shooting and checking your social network sites Shooting videos Listening to music Listeningbooks, newspapers, magazines Reading to music Readinggames newspapers, magazines Playing books, Playingphotos Taking games Takingcustom or self-purchased applications (e.g., applications Using photos that did not come as standard on your device, but rather were Using custom or self-purchased applications (e.g., applications downloaded or purchased separately) that did not come as standard on your device, but rather were Services based on my location (e.g., GPS or maps/directions, downloaded or purchased separately) restaurant suggestions) Services based on my location (e.g., GPS or maps/directions, I just use my mobile phone/smartphone to make phone calls restaurant suggestions) I just use my mobile phone/smartphone to make phone calls do not own a mobile phone/smartphone I do not own a mobile phone/smartphone Other Other 0 10 20 30 40 50 60 Snapshots of Hot Technologies | 42 0 10 Retweet 20 Table of Contents 30 40 Previous 50 60 Next
    • Figure 29 Figure 30. Willingness to pay a premium for smartphone enhancements Total Mature markets Thousands more applications Emerging markets 18-24 25-34 A more enhanced Web browsing 35-44 experience 45-54 55 or older Higher-resolution touch screen Enhanced location awareness (e.g., your smartphone would know where you are and can provide local information on your current surroundings) Faster downloading and data access None of the above 0% 10% 20% 30% 40% 50% 60% Snapshots of Hot Technologies | 43Figure 24 Retweet Table of Contents Previous Next
    • Copyright © 2011 Accenture About AccentureAll rights reserved. Accenture is a global managementAccenture, its logo, and consulting, technology services andHigh Performance Delivered outsourcing company, with approximatelyare trademarks of Accenture 211,000 people serving clients in more than 120 countries. CombiningThis document is produced by unparalleled experience, comprehensiveconsultants at Accenture as general capabilities across all industries andguidance. It is not intended to provide business functions, and extensivespecific advice on your circumstances. research on the world’s most successfulIf you require advice or further details companies, Accenture collaborateson any matters referred to, please with clients to help them becomecontact your Accenture representative. high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com. Retweet Exit