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ADI Consumer Electronics Report

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This last quarter, defined by the holidays craze, saw voice assistant sales double and wireless chargers sales triple. Wireless headphones outsold wired ones for the first time. This last quarter's total revenue was 14.7% larger than Q4 last year for online retailers focused on Consumer Electronics.

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ADI Consumer Electronics Report

  1. 1. CONSUMER ELECTRONICS REPORT ADOBE DIGITAL INSIGHTS | Q4 2017
  2. 2. CONSUMER ELECTRONICS REPORT | Q4 2017 TABLE OF CONTENTS Overview 03 Methodology 04 Key Findings 20 Glossary Key Industry Metrics 05 Quarterly Revenue Trend 06 Visit Share by Device 07 Revenue Share by Device 08 Device Revenue Share by Segment (Q4 2017) 09 Revenue vs Visit Share by Device (Q4 2017) 10 Revenue Growth by Device 11 Conversion Trend by Device 12 Average Order Value Trend by Device 13 Revenue per Visit by Device (Q4 2017) Product Specific Trends 15 The Future of Electronics Listens to Your Voice 16 The State of Voice Recognition 17 No Strings Attached 18 No Strings Attached pt. 2 19 What About the Physical Stores?
  3. 3. CONSUMER ELECTRONICS REPORT | Q4 2017 METHODOLOGY Visit our website: adobe.ly/AdobeInsights Sign up for email alerts: http://www.cmo.com/adiregister.html Follow us: @adobeinsights • Adobe Analytics measures 80% of online transactions at the largest 100 U.S. web retailers** • Based on aggregate and anonymized consumer data comprised of over 55+ billion visits to over 250 retailers in the United States. • Companion research based on survey of 1,000+ U.S. consumers Data from different Adobe Experience Cloud Solutions: Adobe Analytics Cloud Adobe Analytics **Source: Internet Retailer 2017
  4. 4. CONSUMER ELECTRONICS REPORT | Q4 2017 KEY FINDINGS 1. Online retailers focused on Consumer Electronics grew 14.7% YoY in Q4 revenue. 2. Voice assistants saw twice as many sales in Q4 2017 compared to Q4 2016. In November wireless headphones outsold wired ones online for the first time. 3. Consumer Electronics baskets are ~100% bigger than the retail average, and, unlike the average retail basket, they have been getting steadily bigger over the past few years. 4. This segment is behind the retail industry average in terms of driving smartphone traffic and revenue, but it’s following the same trend.
  5. 5. CONSUMER ELECTRONICS REPORT | Q4 2017 Quarterly Revenue Trend • Consumer Electronics online retailers have been on par with the retail industry average in Q4 at 14.7% growth over Q4 2016. Note: The data for the graph is normalized by the Q1 2017 value.
  6. 6. CONSUMER ELECTRONICS REPORT | Q4 2017 Visit Share by Device • Consumer Electronics retailers are close to seeing mobile traffic overtake desktop. • We forecast this to happen by the end of 2019.
  7. 7. CONSUMER ELECTRONICS REPORT | Q4 2017 Revenue Share by Device • The vast majority of the revenue (77.3%) is still driven by desktop for Consumer Electronics retailers.
  8. 8. CONSUMER ELECTRONICS REPORT | Q4 2017 Device Revenue Share by Segment (Q4 2017) • Consumer Electronics retailers see a significantly lower (22.5%) mobile revenue share compared to the retail industry average. • This is likely due to the fact that Electronics purchases are more costly and research-driven than the average retail purchase.
  9. 9. CONSUMER ELECTRONICS REPORT | Q4 2017 Revenue vs Visit Share by Device (Q4 2017) • Consumer Electronics retailers struggle to convert smartphone traffic, and as you’ll see in the next few slides, orders on smartphones are smaller than on desktop. • This leads to the gap between revenue and visits driven by smartphones.
  10. 10. CONSUMER ELECTRONICS REPORT | Q4 2017 Revenue Growth By Device • Even though smartphones are still behind in share, they’re experiencing exponential growth in revenue driven. • Consumer Electronics retailers will need to create a strategy to capitalize on this traffic. Note: Each device is normalized by its own Q1 2015 value.
  11. 11. CONSUMER ELECTRONICS REPORT | Q4 2017 Conversion Trend by Device • Conversion has seen mild (< 8%) growth across all devices. • Additionally, because of a shift of traffic to smartphones, the total weighted conversion comes out flat.
  12. 12. CONSUMER ELECTRONICS REPORT | Q4 2017 Average Order Value Trend by Device • AOV has seen a steady increase across all devices for Consumer Electronics retailers. • In contrast, overall online retail average order value is flat YoY for this past holiday season at $130. • The Consumer Electronics segment is seeing baskets that are more expensive than the retail average and these are getting larger over time.
  13. 13. CONSUMER ELECTRONICS REPORT | Q4 2017 Revenue per Visit by Device (Q4 2017) • The lower conversion that this segment tends to have, is counteracted by the higher AOV. This brings the RPV to the same level as the retail average. • Every desktop visit is worth about 4x as much as a smartphone visit, which is similar to the overall retail industry average.
  14. 14. CONSUMER ELECTRONICS REPORT | Q4 2017 Product Specific Trends
  15. 15. CONSUMER ELECTRONICS REPORT | Q4 2017 The Future Of Electronics Listens to Your Voice • Voice assistance sales grew 103% YoY in Q4. • According to our survey more than half of the consumers who own a voice assistant use it at least once a day. • 22% of voice assistants owners reported that they shop using voice commands. • 79% of voice assistants sales for the year happened in Q4. SURVEY SAYS Only 16% of consumers still feel uncomfortable using voice commands in front of others. Note: The data for the graph is normalized by the Q1 2017 value.
  16. 16. CONSUMER ELECTRONICS REPORT | Q4 2017 The State of Voice Recognition • The vast majority of users think that the current voice recognition is good , with only 4% considering it poor. • The most popular uses for voice assistants are listening to music (61%), checking the weather forecast (60%), asking fun questions (54%), and researching questions (53%).
  17. 17. CONSUMER ELECTRONICS REPORT | Q4 2017 No Strings Attached: the Headphone Revolution • Wireless headphones have surpassed wired headphones for the first time this fall in terms of units sold. SURVEY SAYS 45% of consumers stated they disagree with the decision to remove the headphone jack.
  18. 18. CONSUMER ELECTRONICS REPORT | Q4 2017 Wire-free and Worry-free w/ Wireless Chargers • Wireless chargers sales have tripled in Q4 2017 over Q4 2016. • This is correlated with the release of more devices supporting the technology. • The trend of going wire-free is expanding within the industry. SURVEY SAYS Two thirds of consumers surveyed agreed that the push for consumer electronics without wires is positive. Note: The data for the graph is normalized by the Q1 2017 value.
  19. 19. CONSUMER ELECTRONICS REPORT | Q4 2017 What About the Physical Stores? • With the shift to online shopping, physical stores will need to reinvent themselves. This is particularly important for consumer electronics as the majority of consumers like to engage physically with their product before purchasing it digitally. • More than a third of consumers reported being influenced by in store support when deciding on a consumer electronics device purchase. • The role of physical stores is changing. This is creating a market for “customer experience hubs”; venues focused on consumer experiences instead of focusing purely on commerce.
  20. 20. CONSUMER ELECTRONICS REPORT | Q4 2017 GLOSSARY Metrics and Definitions • Average Order Value: the average dollar value of an online order. • Conversion: percentage of visits that turn into an order. Industries • Retail: sale of consumer products to consumers online. • Consumer Electronics: retailers whose revenue comes predominantly from consumer electronics sales.

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