1© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Consumer electronics
today and tomorrow
IFA Global Press Conference
26th of April 2019, Huelva
Markus Kick | Global Strategic Insights
2© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Asia and Europe account for two thirds of the global turnover
Global retail market for smartphones, IT, TV & Audio: Regional split 2018
North America
€147bn +4% Asia-Pacific
€330bn +3%
Latin America
€55bn ±0% Middle East & Africa
€50bn +2%
Europe
€166bn +6%
Global
Turnover €749bn
Growth Rate +4%
Source: GfK Point of Sales Tracking and total market estimation incl. North America, based on a fixed currency exchange rate
3© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Global market for smartphones, IT, TV & Audio: Segment performance 2018
Source: GfK Point of Sales Tracking, based on a fixed currency exchange rate
+2% +1% +2%
+37%
+14%
-2%
+5%
Smartphones Computing TV HeadphonesBluetoothSpeakers
Audio HomeSystems
Loudspeakersand Soundbars
Smartphones as the largest segment but smaller segments steal the show
Turnover
Growth
Turnover
Share65% 16% 16% 2% 1% 1% 1%
Smartphones Computing TV HeadphonesBluetooth
Speakers
Audio Home
Systems
Loudspeakers &
Soundbars
4© GfK April 26, 2019 | Technical consumer goods today and tomorrow
5 key themes drive the technical consumer goods market
Simplification PremiumBorderless
Shopping
Simplify recurrent
tasks
Smart
Voice Assistants bring
next level connectivity
Aspirational Products
express Identity
Pamper the “Me”
Shopping 24/7
everywhere
Omnichannel
Mobile shopping on
the rise
Performance
Enablement of rich
experiences
Manifestation via
high-end features
Developing
economies
High impact
Risk: Fluctuation
Maturing economies
expand regionally
Rich experiences delivered through
Impactfulfrom production to innovation
5© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Rich experienced delivered through Performance
6© GfK April 26, 2019 | Technical consumer goods today and tomorrow
23%
24%
73%
TrueWireless
Multiroom
Soundbars
Performance as the enabler to deliver on the need for rich experience
53%
69%
74%
SSD
Full HDor better
PerformanceCPU
Value % 2018 vs 2016 (in grey)
24%
27%
31%
16MP+ Frontcamera
128+ GBStorage
6-7”displays
5%
46%
65%
OLED
55+ inch
4K
Performance
PC
TV
Audio
Source: GfK Point of Sales Tracking
7© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Superior and immersive
gaming experiences
Mobility, design and lifestyle
in ultra thin form factor
Why would the consumer care?
Performance as the enabler to deliver on the need for rich experience
More pleasure in superior
picture quality format
Size matters and bigger is
better, when it comes to TVs
Capturing and sharing high
quality moments in life and
having fun on-the-go
Having enough storage to
take my world with me
Enjoying cinema-like sound
experience
Flexibility without constraints
Performance
PC
TV
8© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Visual & sound as an ecosystem: TVs embedded in home sound system
and in smart home ecosystem
While the European TV market is stalling, sound solutions continue their upswing
Soundbars +23%
Multiroom
Speakers+76%
Sales Value
Growth 2015-18
Embedded in a Smart Home Ecosystem
TV sets +2%
17%
Attach Rate
with 40”+ TVs
9© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Gaming notebooks as the main device but the hype goes well beyond computers
Source: GfK Point of Sales Tracking
Gaming as an ecosystem: From a niche market to an industry
+24% +2%+11%
+45%
+44%
+8%Gaming
Notebook
Gaming
Desktop PC
Gaming
Monitor
10© GfK April 26, 2019 | Technical consumer goods today and tomorrow
“ I have played games on a
computer in the past 30 days.
Source: GfK Consumer Life Study 2018, GfK Point of Sales Tracking
Gaming as an ecosystem: From a niche market to an industry
51%global respondents agreeing
$0.8bn
$1.9bn
$4.2bn
APAC excl. China Western Europe China
+32%
+14%
+29%Gaming NotebooksSales value and growth rate 2018
11© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Rich experienced delivered through Borderless Shopping
12© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Delivering on the experience of
borderless shopping is an opportunity
I. Want. It. Now.
13© GfK April 26, 2019 | Technical consumer goods today and tomorrow
24 25 25 26
Germany
2018
2017
2016
2015
31 34 36 38
Great Britain
4 4 5 6
Japan
Smartphones, IT,
TV & Audio online Share of online sales value %
15 16 18 21
Russia
20 22 26 31
China
3 5 713
South Africa
21 20 22 23
Brazil
“ I really need the shops and services I use
to be available at all times.
Source: GfK Consumer Life Study 2018, GfK Point of Sales Tracking
Delivering on the experience of borderless shopping is an opportunity:
Online growth slowdown in some countries → Omni-channel strategy needed
38%global respondents agreeing
14© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Source: GfK Consumer Life Study 2018, GfK Point of Sales Tracking
Online promotional events set the sales peak agenda
Traditional
Christmas
Peak
Christmas
Peak
Black Friday
Peak
2013/14 2014/15 2015/16 2016/17 2018/192017/18
Black Friday
Peak
“Seasonal discounts trigger me to
make more online purchases.88%global respondents agreeing
Smartphones, IT, TV & AudioGermany, France, Italy, UK, Spain, Poland, Russia, Brazil
Sales Value
15© GfK April 26, 2019 | Technical consumer goods today and tomorrow
2015 2016 2017 2018
Black Friday growth mainly came from Click & Mortars, 70% offline share in 2018
Source: GfK Point of Sales Tracking
Black Friday year-on-year growth of retail channels:
Events born in the online sphere are becoming increasingly borderless
19%
69%
12%
Pure online player
Traditional retailer
online shop
Traditional retailer
+66%
+23%
+23%
Smartphones, IT, TV & AudioGermany, France, Italy, UK, Spain, Poland, Russia, Brazil
Sales Value
16© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Developing economies
17© GfK April 26, 2019 | Technical consumer goods today and tomorrow
25%
7%
5%
10%
53%
High impact of fluctuating demand
Developing economies and their influence on the global smartphone market
FluctuatingImpactful
China
Brazil
Rest of
world
Regional sales unit share % Regional sales unit growth %
-35
-25
-15
-5
5
15
25
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
China BrazilDeveloped Asia
Western Europe
Source: GfK Point of Sales Tracking
18© GfK April 26, 2019 | Technical consumer goods today and tomorrow
Pre-acquisition2017 (unit %)
Post-acquisition2018 (unit %)
WE 1.2% 7.4%
CEE 0.6% 13.1%
China as the home of an increasing number of global brands
Developing economies and their maturing role:
From production economy to a significant global player
Export Acquisitions
China’s smartphone makers increasingly tap into
the international markets (2016: 31%)
Chinese MDA brands strengthen their footprint via
acquisitions with significant impact in Europe
40%Smartphone
production is
exported
Chinese MDA footprint
Source: GfK Point of Sales Tracking
19© GfK April 26, 2019 | Technical consumer goods today and tomorrow
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