Preferred LetterEmergence of aFinding Growth:               Alternate LetterBrochure Title Technology ParadigmNew Consumer...
ContentsExecutive Summary                                                            3About the Research                  ...
Executive SummaryAround the world, today’s consumers view            choice, consumer technology companies musttechnology ...
A widening enthusiasm gap                     appetite for electronics, but like             next upgrade cycle for TVs (3...
Multi-device application use                Innovation and                               In summary, in the fast-changingo...
Abou                                                                                                    ReseaAbout the Res...
Figure 1Figure 1. Respondent demographics                                    15%                   20%                    ...
Hot—an                                                                                                   Technol"Hot and N...
As the giant of consumer electronics,       Digital cameras hold the #3 spot in           preferences about other devices ...
Figure 2. 2011 Consumer Technology Power Rankings  Rank           Consumer Technology                 Power Trend  1      ...
Figure 3   Figure 3. Country breakdown of device ownership                                                                ...
Figure 4   Figure 4. Generational differences in device ownership                                                         ...
What was purchased in 2010                  in emerging markets. In particular,           What is being discarded         ...
Figure 5   Figure 5. Devices purchased in 2010   Mobile phone                                                             ...
Figure 6Figure 6   Figure 6. Intentions to purchase in 2011   Mobile phone   Mobile phone   Smartphone   Smartphone   High...
Figure 14Our study shows that BRIC markets have         Figure 8. Most frequently used technologiesfar greater enthusiasm ...
Where’s the Opportunity?The Importance of Consumer Technologiesand Spending PatternsHigh-level findings:• Respondents cons...
For the first time, in this year’s study we           Despite the fact that consumers of                        difference...
Figure 10      Figure 11. Amount spent on consumer electronics in 2010                                                    ...
US                                                                                                                        ...
Figure 13   Figure 14. Sources of influence on purchase decisions                                                         ...
An Activity-Based View:What are Technology Users Doing?High-level findings:• The top technology-based activities          ...
To better understand how consumers                        What activities are consumers                               Othe...
Overall, about half of survey                increasingly using multiple devices for       And among those not already doi...
Figure 15   Figure 16. Top activities conducted in an average week   Searching for/reading                                ...
Figure 16   Figure 17. Interest in TV for accessing Web content, photos, apps   Total   Mature markets   Emerging markets ...
A Look at the US MarketAccenture has now researched consumer           certain devices obsolete. For instance, mobiletechn...
Total most-purchased   The                   consumer               Among the newer technology-based   electronics in 2010...
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
Accenture Global Consumer Tech Research 2011
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Accenture Global Consumer Tech Research 2011

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Accenture Global Consumer Tech Research 2011

  1. 1. Preferred LetterEmergence of aFinding Growth: Alternate LetterBrochure Title Technology ParadigmNew Consumer Brochure TitleThe 2011 Accenture Consumer Electronics Products andServices Usage Report Enter
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. 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

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