Affinion International: The World of Gadgets

1
WBW:Workwear|June2013
©2013Conlumino
THE WORLD OF
GADGETS
CONLUMINO & AFFINION
OCTOBER 2013

THE WORLD OF
GADGETS
CONLUMINO AND AFFINION

© 2013 Conlumino
hello@conlumino.com | 020 7936 6654
Introduction
Gadget research
Prepared for Affinion | October 2013
Affinion International Ltd
50 Charter Court, Slough, Berkshire, SL1 2EJ
01753 753338
sales@affinioninternational.com
www.affinioninternational.co.uk
Conlumino
7 Carmelite Street, London EC4Y 0BS
020 7936 6654
hello@conlumino.com
www.conlumino.com
It is strange to think that not so long ago many of us did not own most of the gadgets we now
take for granted. This is all the more so given how much gadgets have become an embedded
part of our lives. This research takes a look at the impact gadgets have had on us, what we
spend on them and the issues and problems they can cause us. The statistics are fascinating
not only because they show how important gadgets are to the economy and society, but also
because they reveal the risks – and potential costs – we face by not having our gadgets
insured.
We hope you find the research interesting. If you have any comments or queries please do
feel free to get in touch.
About Affinion International
Affinion International, a division of Affinion Group, provides a wide range of protection and lifestyle products that
offer value to consumers whilst building additional revenue streams and increased customer-to-brand loyalty and
engagement for its partners. The division is made of more than 1,200 employees and offers services in 17 countries
throughout Europe, Africa and South America. Over the past 15 years, Affinion International has built an
impressive client base that includes 13 of the top 20 EU banks and many of Europe’s premier brands in travel and
retail. For more information, visit www.affinioninternational.co.uk
Foreword

© 2013 Conlumino
Introduction
Gadget research
•  The next time you are on public transport take a look around at
your fellow passengers. How many have those iconic white
wires stretching to their ears? How many are scanning
newspapers on tablet devices? How many are reading an e-
book? And how many are staring down checking their phones?
•  The answer is likely to be quite a few, often over half. However,
regardless of the numbers involved it is certain that there will
be many more gadget users today than there were just five years
ago.
•  Much of this, of course, is down to technological innovation. In
the scheme of things, smartphones, tablets and e-readers are all
relatively new inventions – products that consumers have
readily bought into and integrated into their everyday lives.
•  This integration is evidenced by the fact that we collectively
spend a huge proportion of our time using gadgets for personal
tasks – some 60 days a year on average. Of course, some of this
includes the time we spend working on things like laptops or
listening to music on our MP3 players; but we also spend almost
two hours a day using our smartphones.
•  It is interesting, however, that while gadgets do absorb a lot of
our time they have also allowed us to make more effective use
of our day. The portability of devices like tablets allows us to do
tasks, like grocery shopping, while travelling or waiting around
– time that may otherwise be underutilised. Equally, it must not
be forgotten that some gadgets, like e-readers, have simply
displaced the time we would have previously spent reading
physical books.
•  If the time figures are revealing so too is our spend on gadgets.
This year consumers will fork out some £9bn on various
products. That’s £1bn more than we were spending in 2008 and
some £2bn more than in 2003.
•  Our obsession with gadgets is so great that, thanks to the
spending we have made over the past ten years, UK households
now own £51.6bn worth of gadgets and devices – up from £43bn
five years ago and £38bn ten years ago.
•  That gadgets are now such a valuable part of the household
inventory is not without its problems. The portability of many
gadgets means that we collectively carry around products
worth an astonishing £22bn. And, as many people know to their
cost, things that are carried around are at risk of being stolen,
lost or broken. Indeed, it is particularly worrying that a quarter
of us are concerned about being mugged for our gadgets.
•  When it comes to gadget disasters, over the past twelve months
these cost consumers some £1.2bn. Most of these come from
breakages (£800m) but stolen items (£211m) and lost items
(£181m) are also significant contributors.
•  Worryingly, despite the high cost of gadget disasters, only a
minority of consumers have their devices insured with some
two-thirds having no insurance at all.
•  As technology evolves and as competition between device
manufacturers increases, the significance and usage of gadgets
looks set to rise still further; in turn this will push up the value
of gadgets as well as the annual losses.
Summary

Gadget nation
The nation and its gadgets

Gadget nation
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Gadget research
Summary
A £9bn market
This year British consumers will spend a whopping £9bn on all sorts of gadgets – that’s almost £370 for every
household in the country. Fuelled by an ever increasing array of new technologies and devices, our spending
has swelled dramatically and is up by almost a third compared to ten years ago. Indeed, we now spend a much
greater proportion of our discretionary spend on gadgets than ever before.
We own £51.6bn of gadgets
Our annual spend on gadgets pales in comparison to the total value of the gadgets we personally own. This
now stands at an estimated £51.6bn or just over £2,000 for every household. In the past ﬁve years, the value of
gadgets owned has increased by almost 20%; in the past ten years, the value has increased by over 37%. Both
of these rises are thanks, in large part, to an increased ownership of tablets and smartphones.
The majority buy at least one gadget a year
UK consumers are avid gadget shoppers with almost three-quarters buying them at least once per year – and
many doing so more frequently. The main driver for buying, it seems, is a desire to have the latest technology.
Upgrading is an important driver of the market which underscores the importance of regular product updates
and refreshes.
Tablets and smartphones
Tablets and smartphones have seen the sharpest rise in ownership over the past ten years and over half of
consumers now personally own a smartphone. Comparatively, just under a third of consumers personally
own a tablet device, showing there is signiﬁcant headroom here for future growth. However, of all gadgets,
digital cameras have the highest level of ownership with over three-quarters saying they have one.

Gadget nation
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Gadget research
Spending on gadgets
Total expenditure on gadgets
All figures are in £m
Chart shows the total expenditure made on gadgets by consumers in 2003, 2008 and a projected
value for 2013; all figures are shown in £m.
We spend over £9bn a year on gadgets
7,095
8,045
9,087
2003 2008 2013
Growth (2003-13)
+28.1%
•  Today UK consumers spend well over £9bn a year on all
sorts of technological gadgets; that’s over £370 for every
household.
•  Fuelled by an ever increasing array of new technologies
and devices, our spending has swelled dramatically and is
up by almost a third compared to ten years ago. Even
compared to five years ago, we now spend some 13% more
on gadgets.
•  As can be seen on the charts on the following two pages,
household ownership of many gadgets is high. This is
especially so for devices like tablets and smartphones
which where not around ten years ago.
Growth (2008-13)
+13.0%

Gadget nation
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© 2013 Conlumino
Gadget research
Ownership of gadgets
Household ownership of selected gadgets
All ﬁgures are percentages
77.1
69.2
64.6
52.1
46.4
43.0 42.4 41.9 41.0
37.4
32.3 31.1 30.5
25.4
22.4 22.0 21.9 19.3
15.4 15.4 13.7 12.5
6.1 4.7 4.7 3.8 3.3 1.6 0.9
Chart shows the percentage of households who own at least one of each
type of gadget in 2013
Ownership is high, but there is room for future growth

Gadget nation
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© 2013 Conlumino
Gadget research
Change in ownership
Change in household ownership of selected gadgets (2003-13)
All ﬁgures are percentage points
30.3
27.9
20.5
8.1
5.6 4.4 4.2 4.1 4.0 3.1 3.1 2.6 2.5 2.1 0.4
-0.3 -0.8 -0.8 -1.2 -2.0 -2.0 -2.1 -2.2 -2.5
-7.0
-9.2 -10.9
-13.2
-20.5
Chart shows the change in the percentage of households owning certain gadgets between 2003
and 2013.
Tablets & smartphones have grown from a standing start

Gadget nation
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© 2013 Conlumino
Gadget research
Total value of gadgets owned
Total value of gadgets owned by UK households
All figures are in pounds
Diagram shows the total value of all gadgets (as defined on the charts on the previous page)
owned by UK households; excludes devices which are owned by businesses.
Households own £51.6bn worth of gadgets
£37.5bn
£43.1bn
£51.6bn
•  In terms of total value, UK households currently
own gadgets worth £51.6bn; this excludes gadgets
which belong to businesses.
•  This is equivalent to over £2,000 per household,
meaning that gadgets are now one of the major
types of asset held by households.
•  In the past five years, the value of gadgets owned
has increased by almost 20%; in the past ten years,
the value has increased by over 37%.
2003 2008 2013

Gadget nation
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Gadget research
Frequency of purchase
How frequently do you buy gadgets and why
Chart shows the percentage of consumers who say they buy gadgets at various frequencies; the
table shows reasons for buying gadgets.
Nearly three quarters buy gadgets at least once a year
•  UK consumers are avid gadget shoppers,
with almost three-quarters buying them at
least once per year – and many doing so
more frequently.
•  The main driver for buying, it seems, is a
desire to have the latest technology.
Upgrading is an important driver of the
market which underscores the importance
of regular product updates and refreshes.
•  The general importance of gadgets to
consumers is underlined by the fact that
almost a third buy them because they want
to treat themselves.
27.7
32.1
22.7
12.1
5.4
Every two years
Every year
Every 6 months
Every 3 months
Every month
What drivers purchasing %
Want latest technology 52.7
Want to upgrade 31.3
Felt like treating myself 30.2
Replace old item 22.6
Upgrade from provider 19.7
First time buyer 19.6
Replace broken item 17.6
Gift from/for others 14.1
To keep up with trends 13.4
Replace stolen item 4.2
Get a new style/design 3.7

Gadget lifestyles
The importance of gadgets and how people use them

Gadget lifestyles
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© 2013 Conlumino
Gadget research
Summary
We spend 60 days a year using gadgets for personal tasks
The average person spends over four hours a day using the various gadgets they own for personal, non-
business related tasks. This is an increase of an hour (or 31%) on a year ago and over two and a half hours on
ten years ago. On an annual basis, this means that people are spending an average of 60 days a year using
gadgets. Tablets are used for around an hour and fifty minutes per day.
We carry around £22.6bn of gadgets
Collectively, consumers regularly carry some £22.6bn of gadgets around with them; a dramatic increase on
just five years ago when this figure was £16.5bn. Part of the increase is down to the increased portability of
many gadgets, especially with devices like tablets replacing less portable items such as laptops and desktops.
8 out of 10 of us is never parted from our smartphone
Our reliance on our phones is evidenced by the fact that some 81.6% of consumers say that they carry their
smartphone with them wherever they go; the comparative figure for standard mobiles is 56%. By comparison
just 5.2% permanently carry around their tablet device and some 10.5% never take their tablet away from
home.
Tablets are more functional than phones
Although many consumers use their smartphones for a range of non-call related tasks – setting an alarm,
taking photos, recording videos, and of course sending texts – the small form factor of phones makes them
more unsuited to a variety of other tasks such as surfing the web. By comparison, tablets are more flexible and
are used for a wider range of tasks and activities.

Gadget lifestyles
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© 2013 Conlumino
Gadget research
Time spent using gadgets
Average number of minutes devices are used per day
All numbers are minutes and are averages for all consumers
People spend almost two hours a day using smartphones
197.4
138.5
112.3 109.8 108.3
79.2
68.3 68.2 61.8 57.6 53.7 52.0 49.9 46.5 42.6 40.0 35.0 29.1
Chart shows the average amount of time owners of various gadgets spend using those devices per
day. All figures are in minutes; only users of each device are included within the average time
spent.
•  If proof were needed that gadgets
have now become an entrenched
part of everyday life, the average
usage figures provide the evidence.
•  On average, consumers spend over 3
hours a day using their laptops, over
2 hours using their BlackBerry
devices, and just under 2 hours using
their smartphones.
•  Meanwhile, tablets are used for
around an hour and fifty minutes per
day.

Gadget lifestyles
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Gadget research
Time spent using gadgets
Total amount of time spent using technology gadgets for personal tasks
All ﬁgures are in minutes and refer only to technology gadgets like iPhones, tablets, computers, etc.
We spend over 4 hours a day using gadgets for personal tasks
103
197
258
2003 2008 2013
Chart shows the average amount of time owners of technology gadgets spend using all of their
devices per day. All ﬁgures are in minutes. Gadgets in this instance exclude things like hairdryers.
•  In total, consumer spend over four hours a day
using the various technology gadgets they own for
personal, non-business related tasks.
•  This is an increase of an hour (or 31%) on a year
ago and over two and a half hours on ten years
ago.
•  There are probably three main drivers of
increased usage. First, is the fact that gadgets now
are portable – this means that people can use them
on the go or while watching television. Second,
compared to the recent past gadgets like
smartphones now have multiple functions which
makes people use them more intensely. Third,
new devices like e-readers have created new
opportunities for gadget usage.

Gadget lifestyles
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© 2013 Conlumino
Gadget research
Functions of gadgets
What consumers use their technology gadgets for
Tablets are used for multiple functions
0.7 0.5 1.6 0.9 1.9 3.5 2.6
88.7
2.6
21.8
3.5
20.4
0.2 0.9 1.2
96.1
2.0
6.7 5.9 6.3 4.3
0.4 0.8 2.7 2.0 0.0 0.4 1.6 0.0
2.4
31.6
28.3
79.8
39.1
49.2
26.7
17.6
11.4
38.4
28.3
9.8
5.9
9.8
24.8 26.4
7.8
26.5
88.6
71.9
32.7
26.6
38.0
11.1
44.5
5.6 3.6 2.4
8.8
29.9
38.6
To read
books
To watch
television,
ﬁlm or other
media
To surf the
web
The shop
online
To play
games
To listen to
music
To do work To phone or
call friends
To use social
media like
Facebook or
Twitter
To take
photos
To take
videos
As an alarm
clock
To educate
children
To navigate
or look at
maps
Reading the
news
Smartphone
E-reader
Tablet
Laptop
Chart shows the percentage of owners of each device saying they use it regularly for various
functions.

Gadget lifestyles
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© 2013 Conlumino
Gadget research
Where gadgets are used
Where do consumers use devices?
82% carry their smartphone wherever they go
0.8 5.4 4.9 8.5 9.8
96.3
55.3 60.5 63.1
52.9
31.3 33.5 28.9
3.5 8.0
63.6
85.6
32.9
10.5 8.6
55.6 54.2
1.6 2.1
49.8
39.2
58.6
38.6 35.3
1.3
5.4 4.9
6.4
18.9
0.2
21.5
23.7 14.4
13.8
12.5
24.5
25.3
8.6
17.8
15.2
5.6
26.9
16.7
10.2
11.1 17.4
3.2 4.3
20.9
25.3
21.8
20.9
19.6
5.4
10.8 11.5
21.3
35.8
2.0
17.4 5.3 17.3
23.2
31.3
32.9
32.0
42.3
42.7
15.2
5.6
24.9
40.5
36.9
11.1
20.0
30.2
21.3
20.9
24.1
16.4
27.4
28.0
10.9
22.4
11.5
31.9
27.2
0.7 4.6
7.9
3.8 8.7
12.5
7.7 12.4
40.7
28.0
3.0 1.6
12.9
27.1
35.7
11.1
5.8
49.2
40.4
7.4 10.5
2.3
10.0 13.6
81.6
56.0
67.2
31.9
8.4
0.7 1.4 2.6 1.3 1.4
12.5
1.3 1.5 4.9 3.6 3.0 1.6 2.5 5.2 8.6 11.1
2.6
15.8
31.9
0.9 0.9 0.9 3.0 3.4
Never take from home
Rarely take from home
Sometimes take from home
Chart shows the percentage of consumers who take various devices outside of the home and the
frequency with which they do.
Often take from home
Carry wherever I go

Gadget lifestyles
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Gadget research
Diagram shows the total value of all gadgets that consumers regularly carry around with them for
2003, 2008 and 2013.
Bag value of gadgets
Total value of gadgets that consumers carry around with them
All ﬁgures are in pounds
Consumers carry £22.6bn of gadgets around with them
£11.6bn
£16.5bn
£22.6bn
2003 2008 2013
•  Consumers regularly carry some £22.6bn of
gadgets around with them; a dramatic increase on
previous years.
•  Part of the increase is down to the greater
portability of many gadgets, especially with
devices like tablets replacing less portable items
such as laptops and desktops.
•  The higher value of many portable gadgets, such as
expensive smartphones, has also played a part in
pushing up the value.

Gadget obsession
The importance of gadgets to consumers

Gadget obsession
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Gadget research
Living without gadgets
22% say they could not live without their smartphone
The fact that gadgets have become such an embedded part of daily live is demonstrated by the fact that so
many of us can’t bear to be parted from them. Overall, just shy of 87% say they would not like to live without
their smartphone, with 22% saying it’s something they simply could not live without. This is far higher than
for clothing where only 25% say they’d would be fine to live without the latest fashions.
Smartphones are most important
In terms of ranking the devices they own in order of importance, smartphones come out firmly on top with
29% of people ranking them as number one. Tablets come in second place, mentioned by almost 16% of
people. E-readers and digital cameras come in third and fourth place, respectively. Older technology, like
MiniDisc players are ranked the lowest.
65% would rather lose £100 than their phone
The importance we attach to our mobiles is evident from the fact that a majority of us would rather lose our
wallets, £100 in cash, our credit cards, watches or jewellery rather than losing our phones. Passports and car
keys are both seen as being more important; a majority of people would rather lose their phones than these
items.
25% of us worry about being mugged
With people carrying around some £23bn of gadgets, it is hardly surprising that large numbers are concerned
about being mugged whilst carrying various devices. Around 40% are also concerned about losing their
gadgets. Both of these figures are also influenced by the fact that, over time, gadgets have become more
expensive with many having a high second-hand resale value.

Gadget obsession
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Gadget research
Living without gadgets
How people would feel about living without gadgets (and other items)
Smartphones are the gadget most would least like to live without
19.2
32.4
21.9 19.5
37.5
16.4
9.1 13.8 17.4
23.6
7.3 3.8
10.4
3.6
11.1
2.2 6.8
32.8
34.1
34.7 41.8
24.9
27.9
24.8
26.0 22.8
23.9
18.4
14.8
12.0
8.3
11.1
5.9
6.6
36.4
21.2
30.3 19.5 14.4
31.1
38.2 26.5 24.9
17.3
33.3
36.0
18.6
28.0 11.1
17.0 10.9
7.7 7.0 9.8
15.2
4.6 11.5 18.9
17.2
13.2 9.8 21.0 28.2
13.7
28.5
0.0 21.3
9.5
3.9 4.7 3.1 1.6
3.0
11.5
9.1
11.9
12.4
6.8
19.6 16.9
23.7
31.1
55.6 34.0
18.1
Chart shows how people feel about living without various gadgets; please note that
where values do not sum to 100%, the balance is made up of people saying not sure
or don’t know.
I could not live without this
Hard to live without this
Could live without, but would not be happy
Could live without and would be neutral about it
Happily live without
88.4 87.6 86.9 80.8 76.8 75.4 72.0 66.3 65.1 64.8 59.0 54.7 41.0 39.9 33.3 25.2 24.0
Percentage who don’t
want to live without

Gadget obsession
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Gadget research
What would you rather lose?
Percentage of people who would prefer to lose various items
All ﬁgures are percentages and numbers are pairs – i.e. what would you prefer to lose your mobile or your wallet/purse
People would rather lose other items than mobiles
My mobile
34.2%
£100 in cash
65.0%
My mobile
72.9%
My car keys
26.3%
My mobile
36.8%
My credit card
62.4%
My mobile
33.3%
My watch
65.9%
My mobile
78.5%
My passport
20.7%
My mobile
25.8%
Expensive piece jewellery
73.4
My mobile
19.4%
My wallet/purse
79.8%
•  The importance we attach to our mobiles is
evident from the fact that a majority of us would
rather lose our wallets, £100 in cash, our credit
cards, watches or jewellery rather than losing our
phones.
•  Passports and car keys are both seen as being
important; a majority of people would rather lose
their phones than these items.

Gadget obsession
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Gadget research
Relative importance of gadgets
Consumers ranking each gadget as being the most important to them
Smartphones and tablets are most important
29.8
15.8
9.9
8.9
6.7 5.9
4.3 4.3
3.2 3.2
1.9 1.7 0.9 0.8 0.8 0.5 0.5 0.5 0.3 0.1
Chart shows the percentage of consumers who say that each gadget is the most
important to them from all gadgets that they own.

Gadget obsession
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Gadget research
Gadget worries
What gadget worries do consumers have?
A quarter of us worry about being mugged for our gadgets
54.4
48.8
40.9 40.8
25.6
22.5
Loss of important data or
information
Sensitive or personal
information falling into
the wrong hands
Losing the device Breaking or damaging the
device
Being mugged while
carrying expensive
devices
Becoming too dependent
on the gadget/device
Chart shows the percentage of all gadget owners who say they worry about particular
issues related to their devices.

Gadget disasters
When gadgets get broken, stolen or lost

The hot issues
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Gadget research
Summary
Gadget disasters cost £1.2bn
Over the past twelve months the total cost of various gadget disasters amounts to just over £1.2bn. Breaking
gadgets is by far the largest contributor to this total, costing consumers just over £800m in a year.
Comparatively the losses from gadgets being stolen or lost are less; however, in cash terms they remain sizable
at £211m and £181m respectively.
17% of people have broken a gadget in the past year
Over the past year, 17% of gadget owners have broken at least one of their devices. Smartphones are the most
commonly broken device with just over 4% of owners breaking them in some way over the past twelve
months. Such a high breakage rate underlines the fact that smarphones are used intensively and are often
taken away from home.
Almost two thirds have no insurance
Overall, some 64% of consumers have none of their gadgets insured. The most commonly cited reason for a
lack of insurance is the expense of the payments. Among those that do have insurance, a smartphone is the
most insured item with a third of owners having some sort of policy in place; a quarter of tablet owners have
their device insured.

The hot issues
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Gadget research
Summary of disasters
Percentage of consumers who have lost, broken or had gadgets stolen
All ﬁgures are percentages and refer to the past 12 months
Almost 17% of consumers broke a gadget in the past year
Chart shows the percentage of all consumers who have lost or broken a gadget or had one stolen
over the past twelve months.
Lost
3.8%
Stolen
4.2%
Broken
16.7%
•  Over the past twelve months
relatively few consumers have lost
gadgets, with slightly more having
had them stolen.
•  However, a relatively high
percentage – well over one in ten –
have broken at least one of their
gadgets in some way.

The hot issues
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Gadget research
Loss of gadgets
Percentage of people who have lost certain gadgets
1.51
0.92
0.44 0.43 0.41
0.32 0.29 0.27
0.22 0.22 0.21 0.21 0.20 0.20 0.18 0.17 0.15 0.14 0.13 0.11 0.10
0.05 0.04 0.04 0.03 0.03 0.02 0.02 0.01
Overall 3.8% of people have lost gadgets in the past year
Chart shows the percentage of all consumers who have lost certain gadgets over the past twelve
months.

The hot issues
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Gadget research
Stolen gadgets
Percentage of people who have had certain gadgets stolen
1.93
1.70
0.82
0.61
0.44 0.42 0.41 0.38 0.36 0.33 0.31
0.24 0.23 0.23 0.22 0.21 0.20 0.20 0.20 0.19 0.18 0.18 0.17 0.16 0.11 0.09 0.04 0.02 0.01
4.2% of people have had a gadget stolen over the past year
Chart shows the percentage of all consumers who have had certain gadgets stolen over the past
twelve months.

The hot issues
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30
© 2013 Conlumino
Gadget research
Broken gadgets
Percentage of people who have broken certain gadgets
4.14
3.21 3.10
2.31
1.31 1.30
1.03 0.92
0.73
0.53 0.46 0.44 0.44
0.32 0.31 0.28 0.22 0.21 0.20 0.20 0.18 0.14 0.13 0.11 0.06 0.04 0.03 0.01 0.01
16.7% of people have broken a gadget over the past year
Chart shows the percentage of all consumers who have broken certain gadgets over the past
twelve months.

The hot issues
Page
31
© 2013 Conlumino
Gadget research
Cost of disasters
The cost of various gadget disasters
All ﬁgures are pounds and refer to the past twelve months
Gadget disasters cost consumers £1.2bn a year
Chart shows the percentage of all consumers who have broken certain gadgets over the past
twelve months.
Lost
£181m
Stolen
£211m
Broken
£800.7m
Total:
£1,192.9m
+ + =
•  Over the past twelve months, the total cost of various gadget
disasters amounts to just over £1.2bn.
•  Breaking gadgets is by far the largest contributor to this total, costing
consumers just over £800m in a year.
•  Comparatively the losses from gadgets being stolen or lost are less;
however, in cash terms they remain sizable at £211m and £181m
respectively.

The hot issues
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32
© 2013 Conlumino
Gadget research
In their own words
Consumers describe their gadget disasters
Comments taken from open questions on the consumer survey.
My friend slammed shut
my suitcase and
crushed my new phone.
The screen was broken
beyond repair.
I dropped my phone
in the toilet. I dried it
out and it worked but
after I disinfected it, it
suddenly stopped
working.
I cut through my
expensive new
headphone leads
when I was pruning
the garden.
My son trod on my
tablet and shattered
the screen; I now have
a very expensive
kaleidoscope.
Sand got into
the charging
socket
I left my phone in my
pocket and my Mum
washed my jeans, and
my phone!
It just got old
and stopped
working one
day.
I charged my
phone with
the wrong
charger.

The hot issues
Page
33
© 2013 Conlumino
Gadget research
Percentage who have gadgets insured
64% of consumers have no gadget insurance
Percentage of consumers who do and don’t have insurance
Figures are percentages of all gadget owners
Chart shows the percentage of all consumers owning gadgets who have or have not insured
them.



64%
No insurance
36%
No insurance
•  Notably, almost two-thirds of consumers say that they have no
insurance for their gadgets.
•  Some 36% of consumers do have cover and, of these, around 64% say
that they are covered by their home insurance policy and 20% say
that the gadget itself came with an insurance policy.

The hot issues
Page
34
© 2013 Conlumino
Gadget research
Percentage who have gadgets insured
Just under a third of consumers have insured their phone
31.3
27.9
26.9
25.0 24.8
22.8
21.7 21.3 20.6
17.0 16.5 16.0 15.9
14.5
12.2
10.9 10.8
4.8
Items consumers have insured
All ﬁgures are the percentage of people owning each gadget who have insured it
Chart shows the percentage of all consumers owning each gadget who have insured that
particular item.

The hot issues
Page
35
© 2013 Conlumino
Gadget research
Views on insurance
The expense of insurance payments is a barrier to uptake
Reasons people do and don’t take out gadget insurance
All figures in the tables are the percentage of people mentioning that factor
Tables show the reasons why people do and don’t take out gadget insurance; consumers were able
to pick as many factors as were relevant to them.
Reasons why people take out insurance for gadgets
The insurance is part of my home insurance policy 63.8
It came with insurance 19.9
I am cautious and tend to insure everything I can 8.7
No particular reason 8.7
I can’t afford to replace my gadgets so I need to be covered by insurance 8.4
The insurance is part of a policy my business has 4.1
I have the latest gadgets so it’s worthwhile insuring them 3.8
The kids use my gadgets so they’re more likely to get damaged 2.2
I am prone to damage things so it seems like a good investment 1.6
I was talked into it by a salesperson 1.6
I am prone to lose things so it seems like a good investment 1.4
Reasons why people don’t take out insurance for gadgets
The insurance payments are too expensive 40.1
I am very careful with my gadgets so unlikely to lose or damage them 28.5
The value of the gadgets is just too low to justify insurance 24.6
The insurance just seems unnecessary 22.3
No particular reason 21.2
I can easily afford to replace my gadgets so don’t need insurance 15.0
My gadgets are quite old so I don’t need insurance 10.2
I did not like the insurance sales process 5.3
Don’t take gadgets out of the home so they’re unlikely to get damaged 4.7
The process of insuring gadgets is too complex 4.1
I am constantly upgrading my gadgets so don’t need insurance 2.7

Methodology
About the research

Methodology
Page
37
© 2013 Conlumino
Gadget research
Methodologies and sources
•  A combination of consumer research, secondary research and market
forecasting were used to compile this report.
•  Consumer research in this report is based on a survey conducted with a UK
nationally representative poll of consumers. 2,010 consumers were
interviewed during August 2013 and questioned about the gadgets they
owned and how they used them.
•  All numbers relating to expenditure and forecast expenditure of gadgets are
taken from Conlumino’s own retail model. This is updated on an ongoing
basis with inputs from oﬃcial sources (such as the BRC and ONS), retailers’
results and trading updates, other secondary sources and industry surveys,
Conlumino’s ongoing programme of research into consumer spending and
habits, and underlying economic drivers and trends. Conlumino analysts
both model and interpret this information to provide guidance on the likely
future direction of retail expenditure at an overall, sector and category level.
•  Unless otherwise stated, all sources of information are derived from
Conlumino’s own research and should be referenced to Conlumino/Aﬃnion.

38
WBW:Workwear|June2013
©2013Conlumino
Conlumino
020 7936 6654
hello@conlumino.com
7 Carmelite Street, London EC4Y 0BS
Aﬃnion International Ltd
01753 753338
sales@aﬃnioninternational.com
50 Charter Court, Slough, Berkshire, SL1 2EJ

Affinion International: The World of Gadgets

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