Accenture Global Consumer Tech Research 2011

Preferred LetterEmergence of a
Finding Growth: Alternate Letter
Brochure Title Technology Paradigm
New Consumer Brochure Title
The 2011 Accenture Consumer Electronics Products and
Services Usage Report

Enter

Contents
Executive Summary 3
About the Research 6
"Hot and Not" Technologies:
Consumer Technology Ownership Patterns 8
Where’s the Opportunity?
The Importance of Consumer Technologies and Spending Patterns 17
An Activity-Based View:
What are Technology Users Doing? 22
A Look at the US Market 27
Implications for Consumer Technology Companies 30
Snapshots of Hot Technologies 33

Table of Contents | 2 Retweet Table of Contents Previous Next

Executive Summary
Around the world, today’s consumers view choice, consumer technology companies must
technology as an integral part of their have the same ability to adapt to consumer
lifestyle, 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 or
technology is ranked by the majority of H&M), for instance, consumer tech companies
consumers as a top-three priority (in Japan, must align research and development
it’s the top priority). But as with other capabilities with the ability to predict and
lifestyle categories, rapid shifts in consumer follow consumer preferences around the
technology and usage preferences are world, strengthen innovation capabilities, and
occurring. This year’s edition of Accenture’s create more agile and responsive operations.
Consumer Electronics Products and Services
Usage Report reveals high interest in new
technologies, greater turnover in device usage,
significant preference and usage differences
among generations and global regions, and
sustained spending levels despite an uncertain
economy. As a result, to win as a lifestyle

Executive Summary | 3 Retweet Table of Contents Previous Next

A widening enthusiasm gap appetite for electronics, but like next upgrade cycle for TVs (3-D TV)
The urban consumers in Brazil, Russia, millennials around the globe, they are is underway. And, Blu-ray players are
India and China (the BRIC markets) often harder to please, less loyal and continuing to displace DVD players
have 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 new
technology. They have a much greater A new consumer technology technology paradigm is that as new
appetite for consumer technology paradigm technologies emerge, consumers
from many measures, including the Computers and laptops are the quiet are increasingly quick to stop using
devices they own, their purchase plans giants among consumer electronics. particular devices if they feel they
and their use of applications. Counter Practically everyone has one. They are have the same functionality in another
to common misperceptions, a large owned by 93 percent of respondents device that performs the same function
segment 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 surveyed
innovative technologies than in the ownership percentage. Twenty-eight in the BRIC markets stopped using
lower price point technologies with less percent of respondents purchased a mobile phones in 2010 because they
functionality. BRIC market consumers computer or laptop in 2010. Yet this had another device with the same
have a higher rate of adoption of the year’s study shows that there may be functionality. This compares with only
newest technologies and a greater a chink in the giant’s armor. Only 17 five percent of consumers in mature
willingness to pay premiums for features percent of consumers we surveyed plan markets who jettisoned their mobile
and enhancements. For instance, a full to purchase a computer in 2011—a 39 phones. And, in both mature and
84 percent of Indian respondents say percent decline in the purchase rate in emerging markets, younger people
they will pay a premium for enhanced the next year. appear to be far more willing to let go
smartphone capabilities. That translates of duplicative devices.
into roughly 148 million consumers. In fact, the trends in ownership of
various devices indicate that some
In the BRIC markets, in particular, newer technologies may be rapidly Surprises in the ranks of the
prospects are bullish for spending on making others obsolete. For instance, most popular apps
consumer electronics in 2011. This is while the growth rate of computers is The most popular applications in 2010
especially true in China, where this year’s expected to decline, the growth rate included emailing and searching the
purchasing 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 in
are staggering. Assuming China has an shows that game consoles, digital photo popularity and is an activity conducted
estimated 167 million urban households cameras and portable music players are in a typical week by more survey
and an estimated urban population of all facing declining growth rates, the respondents than is texting or watching
434 million people in the consuming age, smartphone (which can do many of the videos. Social networking held steady
38 million high-definition TVs and 63 same activities) is expected to increase in popularity with 39 percent of
million smartphones will be purchased its growth rate by 26 percent. respondents using social networking
there 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 newer
conservative 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 devices
to purchase new devices in 2011, use China. India’s participation in social
obsolete? If measuring strength by
fewer applications overall, and are far networking has actually declined. In
unit sales, one finds the computer will
less 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, the
consumers 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 was
income (and therefore greater ability to This year’s data also shows consumers “managing my health,” which was
spend on technology), they more often are well into or nearing the end of selected by just over one-fourth of
wish to spend as little as possible to several technology upgrade cycles. respondents as an activity they conduct
keep 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 the


Multi-device application use Innovation and In summary, in the fast-changing
on the rise consumer electronics industry, exploiting
environmental responsibility
big growth opportunities is becoming
After years of applications and remain strong drivers of increasingly difficult. Our research
activities being tied to a specific type growth helps consumer tech companies with
of hardware, many activities are now So what will motivate consumers to this challenge by offering information
device agnostic. Some of the most make purchases in the coming year? on the hottest current and emerging
popular new consumer technologies Perhaps innovation will play a part. geographic, product and application
are able to perform many of the same Almost two-thirds of consumers said markets for consumer technology. For
activities as other well-established it was somewhat or very important to instance, the highest spending in 2011
devices in the marketplace. For example, them that the products they purchase (and we believe for years to come) is
smartphones 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 mobile
photos as portable music players and to be a far more important purchase applications such as banking continues
digital cameras. lever in emerging markets than on a strong growth trajectory. And new
So to better understand which devices mature ones: 76 percent of the former technologies (such as tablet PCs and
consumers choose for various activities, said the perception of having the e-book readers) and next-generation
we queried respondents about the most innovative of technologies was technologies (such as smartphones, 3-D
activities they do weekly on mobile or somewhat or very important to them and Internet-capable TVs) are projecting
smartphones, 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 that
cars. Overall, respondents indicated they
waiting for Wii game consoles just consumer technology companies
clearly 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 capitalize
email), television (watching shows), and
who respond to the market hype about on these growth opportunities and
e-book readers (reading). However, for
new technology. remain a relevant lifestyle choice
many of the activities most frequently
to consumers. For many consumer
done on a computer, a respondent is Environmental responsibility is also technology companies, keeping pace
also as likely to use a mobile phone, clearly important to consumers, so much will require a rethinking of their
tablet PC or netbook. Emailing, texting, so that it commands a premium price. innovation engines. Specifically, we
watching videos and connecting on Sixty-eight percent of respondents believe organizations must pay much
social networks are all increasingly said they would pay a premium for an more attention to the foundational
multi-device activities. For instance, in environmentally friendly product (e.g., elements of innovation—those things
India, emailing on a PC dropped from lower power consumption, easier to that form the basic capabilities of their
86 to 67 percent year-over-year while recycle, manufactured using sustainable R&D function. They need to distribute
emailing by phone grew from 19 to 34 practices). Again, this is a bigger growth their innovation around the world to
percent. Hence, while computers are driver in emerging markets than mature enable them to develop offerings that
the 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 level
activities 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.


Abou
Resea

About the Research
For four consecutive years, Accenture’s conducted a quantitative online consumer
Electronics & High Tech industry practice study comprising 8,002 interviews across
has conducted research to identify and track eight countries: the US, Japan, Germany,
preferences for consumer technologies and France, Brazil, Russia, India and China. The
services. The research is intended to help research, fielded in October and November
consumer technology executives better 2010, sought to cover a demographically
understand the purchase patterns and use of representative sample across all the
consumer technologies and to gain deeper geographies (Figure 1). In Brazil, China, India
insights into global differences. From this and Russia, the sample is representative of
research we are better able to project future the urban and semi-urban populations. (In
technology trends based on current behavior this research report, we reference aggregate
and identify trends emerging from behavioral data for these countries as findings on BRIC
changes in the use of technology. markets or emerging markets. We refer to
aggregate data for Japan, Germany, France
This annual research began as a US study
and the US as mature markets.)
in 2008 and grew to a global study in
2010. For the 2011 report, Accenture

About the Research | 6 Retweet Table of Contents Previous Next

Figure 1

Figure 1. Respondent demographics

15%
20%
Age
18-24 years

50% 25-34 years
35-44 years
24%
45-54 years
19%
55 or older
50%

22%

Gender

50% 50% Female

Male

12.5% 12.5% Country
US
France
12.5% 12.5%
Germany
Japan
Brazil
12.5% 12.5% Russia
India
China
12.5% 12.5%

About the Research | 7 Retweet Table of Contents Previous Next

Hot—an
Technol

"Hot and Not" Technologies:
Consumer Technology Ownership Patterns
High-level findings:
• While the growth rate of computers is • Forty percent of respondents in mature
expected to decline in 2011, the growth rate markets don’t plan to purchase any consumer
of tablet PCs is estimated to increase by 160 electronics in 2011, compared with only 9
percent. 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 of
500 percent.
duplicative technologies than are mature
• Tablet PCs and e-book readers are owned markets, particularly mobile phones, regular
by nearly a quarter of Chinese respondents— TVs, DVD players and VCRs.
more than three times the ownership rates
of any other country except India, where 10
percent of respondents own a tablet PC.

"Hot and Not" Technologies | 8 Retweet Table of Contents Previous Next

As the giant of consumer electronics, Digital cameras hold the #3 spot in preferences about other devices (Figure
the computer is owned by 93 percent of the rankings, owned by 76 percent 3). For example, smartphones are
respondents. Yet the trends in ownership of respondents. But the camera is far more popular in some countries
of various devices indicate that some projected to decline in purchase rate by than others: 53 percent of Chinese
newer 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 their
traditional desktop/laptop computer. steepest purchasing rate decline of the Japanese counterparts and 33 percent
While the growth rate of computers is 19 consumer technologies evaluated of Americans. Tablet PCs and e-book
expected to decline, the growth rate of this year. High-definition TVs are owned readers are owned by nearly a quarter
tablet PCs is expected to be up by 160 by only 50 percent of respondents, of Chinese respondents—more than
percent. Bottom line, there’s an end in but it is the most pervasively owned three times the ownership rates of any
sight for the relevance of the personal technology in the Power Rankings that other country except India, where 10
computer 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 research
To better monitor this trend and help
this year, more consumers have high- recently released by market research
consumer electronics companies
definition TVs than regular TVs. firm Technology Business Research, Inc.
find growth opportunities, this year
(TBR). TBR finds that the tablet will
Accenture introduces its 2011 Consumer While some of the newest technology
displace many consumers' secondary PCs
Technology Power Rankings (Figure 2), innovations hold the lowest Power
but predicts the market will ultimately
in which we rank the top consumer Rankings this year, their growth rates
support all three device styles for
technologies based on their global are projected to be phenomenal. For
computing and connectivity, including
penetration 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 as
Given 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 gaming
in the 2011 Power Rankings. Mobile
e-book readers and Blu-ray players systems) are much more prevalent
phones rank second but face an even
round out the list for the technologies among younger generations than those
steeper rate of purchasing decline
expecting the most purchasing growth over 55. This generational difference
than computers, with 56 percent
this year. is most pronounced within mature
fewer consumers planning to purchase
markets, where there are significant
mobile phones this year than in 2010. As the global data foretells, the
differences in what younger generations
It is intuitive that mobile phone users computer is the technology owned by
(under 25) and older generations (over
are switching more aggressively to the most respondents in every country
55) own most frequently (Figure 4).
smartphones. Ranked 10th overall, the surveyed. But consumers country
purchase rate of smartphones is projected to country certainly have different
to increase by 26 percent in 2011.

1"Oops, Steve Jobs Did it Again: Apple's iPad Will
Disrupt the PC Market by Creating a New Usage
Model", 2010 iPad Study, Technology Business
Research Inc, September 16, 2010.


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


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%


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
Game console
DVD player
Blu-ray player
VCR
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
Game console
DVD player
Blu-ray player
VCR
GPS

0% 20% 40% 60% 80% 100%


What was purchased in 2010 in emerging markets. In particular, What is being discarded
consumers in Brazil, China and India
Mobile phones and computers were the as obsolete
consumer electronics devices purchased purchased a number of electronics more
Perhaps a leading indicator of growth
by the most respondents in 2010. than respondents in other countries,
challenges for particular types of devices
Perhaps because these devices are the including mobile phones, smartphones,
is what consumers stopped using
most ubiquitous globally, the largest computers, netbooks and digital photo
because they feel they have the same
percentage of consumers continued cameras. With more stable economies
functionality in another device. The
to buy them in 2010. However, as the and growing wealth among the middle
devices that the greatest percentage of
Power Rankings indicate, the growth class in these countries, consumers’
survey respondents have stopped using
rate 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 the
The 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 2011
bought by 23 percent of respondents. Emerging markets are quicker to let go of
As the latest technologies to hit the The technologies that most respondents
duplicative technologies than are mature
market, 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. More
minorities of respondents (Figure 5). Yet smartphones and computers (Figure 6).
than 10 percent of respondents stopped
as the Power Rankings indicate, many In general, those devices with the largest
using these devices in BRIC countries last
more 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 stopped
the 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 any
respondents globally. And in both mature and emerging
consumer technologies in 2011. More
markets, younger people appear to be
There were significant differences than one-third (37 percent) of those
far more willing to let go of duplicative
between what mature-market 55 and older don’t plan any purchases,
devices. Seventy-three percent of those
respondents and emerging-market compared with only 15 percent of those
55 and older said they haven’t stopped
respondents purchased in 2010. Overall, between 18 and 24 years of age. And a
using anything because of duplicate
more respondents in emerging markets stark contrast in purchasing plans exists
functionality, compared with just 46
made 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 markets
market consumers made purchases don’t plan to purchase any consumer
electronics in 2011, compared with only 9 The most-used consumer
last year compared with 71 percent
of mature-market respondents. This percent of those in the BRIC markets. technologies
more conservative purchase behavior The top five consumer electronics in terms
One factor that could influence the
in Japan, the US and western Europe of those used most often include (in
purchase plans for smartphones and
is understandable, given the uncertain order of most frequent use): smartphone,
tablet PCs next year is the availability of
economies faced by each of these computer, mobile phone, high-definition
applications for these devices. Seventy
countries last year and the comparative TV and regular TV (Figure 8). Given that
percent of respondents said that the
lack of enthusiasm about technology smartphones are only 10th in the Power
availability of applications slightly or
because it has been affordable and Rankings (owned by 28 percent of the
greatly influenced their decision to
accessible 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 it
Electronics purchased much more greatly influenced their purchase decision. Interestingly, consumers in every country
frequently in emerging markets include rank the same technologies among their
mobile phones, computers, netbooks most often used, with slight variations
and 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.


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


Game console

DVD player



Blu-ray player

Regular TV

DVR


Tablet PC

E-book reader

3-D TV

VCR

None

0% 10% 20% 30% 40% 50% 60%


Figure 6
Figure 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
Game console
Game console
DVD player
DVD player
Blu-ray player
Blu-ray player
VCR
VCR
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
Game console
Game console
DVD player
DVD player
Blu-ray player
Blu-ray player
VCR
VCR
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 Next
Figure 7

Figure 14

Our study shows that BRIC markets have Figure 8. Most frequently used technologies
far greater enthusiasm for technologies
and appetite for purchasing them than Computer
non-BRIC countries, especially the latest Mobile phone
devices such as tablet PCs. One could High-definition TV
infer that the lower use of computers in Regular TV
BRIC countries is an indication that these
Smartphone
consumers are finding alternate devices
to do those activities formerly done on
DVD player
the computer—and may, in fact, have
simply leapfrogged the step of owning a Portable music player
computer that those in mature markets Netbook
had to take because at the time there DVR
were no other options. Game console
The least-frequently used consumer
electronics are (in order, beginning GPS

with least frequent use): digital video Portable gaming device
cameras, GPS, VCRs, portable gaming Tablet PC
devices and DVD players. Despite their Digital video camera
less frequent use, video cameras and GPS VCR
are projected to grow in purchases next Blu-ray player
year. For these devices, while they don’t E-book reader
get used as often, they remain important
3-D TV
to consumers when they are needed.

0% 20% 40% 60% 80% 100%
The most-used technology Figure 8
services Percent of respondents ranking within the top 3 most frequently used

Among technology services used by Figure 9. Most frequently used technology services
consumers, home Internet service is
the most pervasive across the countries
Home Internet access
we surveyed—cited by 89 percent of
respondents as one of the top-three
services they use regularly (Figure 9).
Mobile phone service was the next-most Mobile phone service
used service, cited by two-thirds of
respondents 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 varies
greatly. Pay TV service (34 percent) Mobile data service for my mobile
and mobile data service for mobile phone (e.g., email on mobile phone)
phone (26 percent) were the next-most
frequently 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


Where’s the Opportunity?
The Importance of Consumer Technologies
and Spending Patterns
• Respondents consider consumer technology • Sixty-one percent of respondents said it was
to be integral to their lifestyle, ranking it just somewhat or very important to them that the
behind clothing and personal transportation products they purchase are perceived as the
in importance as a spending category. most innovative of technologies.

• US consumers surveyed were the most • Sixty-eight percent of respondents
conservative spenders on consumer globally said they would pay a premium for
technologies in 2010, while Chinese environmentally friendly products.
consumers spent the most. Fifty-seven
percent of Chinese survey respondents
spent $1500 or more. Globally, consumers’
planned budgets for technology in 2011
mirror their purchasing patterns from 2010,
with emerging-market spending plans being
substantially more ambitious than mature
markets.

Where's the Opportunity? | 17 Retweet Table of Contents Previous Next

For the first time, in this year’s study we Despite the fact that consumers of difference across age groups in China
Home Internet access
investigated how important consumer all ages and geographies consider in terms of spending patterns, while in
electronics are to consumers relative technology as integral to their lifestyles, Brazil consumers 55 or older represented
to other categories competing for consumer electronics companies must the highest share of big spenders.
Mobile phone service learned that of seven
their wallets. We compete extensively—and differently
Globally, consumers’ spending plans
categories of purchases, consumer among consumer segments—with other
for 2011 mirror consumer electronics
electronics ranked in the top three in consumer priorities to convert that
Pay TV service (e.g., Cable service, purchasing patterns from last year, with
importance, along with clothing and fascination into sales.
IPTV service, Satellite service, emerging-market spending plans being
shoes, and personal transportation
Video on Demand, pay-per-view) substantially more ambitious (especially
(car, motorcycle, scooter). Consumer Past and predicted spending in China and Brazil), than those in
electronics are considered more
Mobile data service for my mobile on consumer electronics mature markets (Figure 12). Economic
phone (e.g., email people between the ages of
important to on mobile phone)
It appears from the above category uncertainty in mature markets may be
25 and 34 than to other age groups. To
preferences that spending on consumer motivating a “wait and see” approach,
these individuals, consumer electronics
Mobile second behind clothing and shoes.
electronics is quite discretionary. Perhaps, while enthusiasm for technology—and
rank data service for my laptop
then, it’s not surprising that while 11 better economic conditions—in emerging
The youngest adults (people aged 18
percent of respondents globally did markets is driving aggressive spending
to 24) rank consumer electronics less
VoIP phone service entertainment and not spend any money on consumer plans there.
important than
(e.g., Vonage, Skype) electronics in the past 12 months, an
recreation services as well as clothing
equal number (9 percent) spent at least
and transportation. Surprisingly, across
$3,000 or more. The US was the most
Satellite radio consumer electronics are
the globe,
(e.g., XM/Sirius,more important to consumers conservative in spending on consumer
considered Worldspace)
technologies in 2010, while China was
than healthcare and well-being products. Base size = 7,677
Figure 10 shows the different levels0% 20% 40%the biggest spender (Figure 11). Brazil
60% 80% 100%
and Russia were also reasonably big
of importance consumers in variousrespondents ranking within the top 3 most frequently used
Percent of
spenders. There was no significant
countries place on consumer electronics.

Figure 10. Importance of consumer electronics relative to other categories of spending

Total
Clothing and shoes US
France
Germany
Personal transportation Japan
Brazil
Russia
Consumer electronics
India
China

Furniture and household
appliances

Entertainment and
recreation services

Healthcare and
well-being products

Travel

0% 10% 20% 30% 40% 50% 60% 70% 80%
Represents percentage of respondents ranking the category in the top three in importance

Figure 9

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%


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


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%


An Activity-Based View:
What are Technology Users Doing?
• The top technology-based activities • Thirty-nine percent of respondents connect
conducted in a typical week include emailing, to a social network in a typical week, and 20
searching 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 said
least 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 five
hours a week doing so.

Activity-Based View | 22 Retweet Table of Contents Previous Next

To better understand how consumers What activities are consumers Other popular activities include banking,
are using the myriad consumer watching shows and videos, and texting.
spending time doing?
technologies available to them, we Just over half of respondents bank
Emailing is the main activity conducted
asked them a number of questions about online at least weekly. While less than
weekly by survey respondents. It is also
the technology-based activities they half (44 percent) of respondents watch
the activity that most consumers spend
perform, how frequently they use various shows, movies or videos each week,
substantial amounts of time doing (Figure
applications and which devices they use those who do spend considerable time
15). In fact, 39 percent of respondents
for different activities. After years of at it: 31 percent do this at least five
spend at least five hours per week
operating in an environment where a hours per week, ranking it third among
emailing—more often older generations
specific device was required for a specific the activities consumers spend the most
than younger ones. The second most
activity (such as needing a computer time on each week.
frequent activity is searching for and
to email or a camera to take photos),
reading general news and information on Connecting with people on social
many consumers now do activities across
the Web, although it has slowed over the networks has remained steady year over
numerous technologies, making it far
past two years. In China, the percentage year, with 39 percent of respondents
more complex when determining how
of respondents who search for content doing this in a typical week and 20
to predict the growth of a particular
on the Web during an average week has percent spending at least five hours a
consumer technology or application.
dropped from 84 percent to 61 percent. week at it in our 2011 report. In the
And, in India, searching the Web for US, interest is higher than average:
information has dropped from 61 percent 46 percent connected at least weekly
of consumers doing it weekly to 47 in both 2009 and 2010. India’s
percent. participation in social networking has
declined. In 2010, 57 percent connected
at least weekly, and for our 2011 study
that number has fallen to 42 percent.
Figure new slide

Figure 15. Which of the following activities do you do in a typical week? How much time do you spend?

Time spent on activity: 5+ hours Rank order:
time consumed
Emailing 15+ hrs 1
Searching for/reading general news and 5-14 hrs
information on the Internet 2
Banking

Texting/SMS 8
Watching shows/movies/videos 3
Working from home 4
(e.g., checking emails, conference calls)
Playing games 6
Connecting with people on social
networking sites (e.g., Facebook, Myspace) 5

Listening to music stored on a device 7
Managing personal digital photos and videos

Watching/posting videos on the Internet 10
Listening to streamed music on the Internet 9
Downloading and using apps
Using maps and global positioning;
getting directions from the Web
Managing my health
Reading blogs or listening to podcasts
Participating in communities of interest
on the Internet (e.g., Yahoo groups)
Base size = 8,002

Base size = 8,002

Reading electronic books
Writing blogs or contributing to online
references such as Wikipedia
Microblogging (e.g., Twitter)
0% 20% 40% 60% 80% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40%


Overall, about half of survey increasingly using multiple devices for And among those not already doing
respondents text at least weekly, and activities that used to be PC-based: 44 so, 37 percent of respondents said
14 percent spend more than five hours percent of netbook owners email from it they were interested in using their TV
a week doing so (especially, as one at least weekly, 40 percent email from to access Web content, view personal
would expect, those 18 to 24 years their tablet PC and 40 percent email content like photos and download
old). In fact, it is in the “new” and from a mobile or smartphone. applications (Figure 17). Using the
mobile-centric activity categories such TV as a more utilitarian device is
The data also shows a downward trend
as 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 respondents
are really similar globally. On activities are more interested in the TV as a
emailed from their PC weekly. This year
that 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, reading
The big question: What percent. A similar downward PC usage e-books (33 percent of e-book reader
device 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 weekly
smartphones, are able to perform many For activities from microblogging to
on this device are emailing (21 percent
of the same activities as other well- social networking to managing photos,
do this) and searching the Internet (19
established devices in the marketplace. posting videos, downloading apps or
percent). Of those who don’t own an
So to better understand which devices banking, the next-most used devices after
e-book reader, more than half said that
consumers 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 other
activities they do weekly on mobile or similar patterns in terms of the activities
electronic devices than an e-book reader
smartphones, laptops, televisions, tablet done on them weekly. For instance,
for reading books, such as a phone, PC
PCs, netbooks, e-book readers and in 37 percent connect to social networks
or tablet PC. In emerging markets, the
cars. The primary lesson from this query from their computer at least weekly, 27
percentage of respondents who prefer
is that there are clearly some activities percent connect to social networks via
other electronic media for e-book
that, in aggregate, survey respondents their netbooks each week and 23 percent
reading is much higher: 34 percent
prefer to conduct on a specific device. do so from their tablet PC.
in BRIC markets versus 7 percent for
For instance, respondents most When reviewing information on "heavy mature-market countries.
frequently do texting on their mobile users" of activities—those who do
or smartphone. They more frequently Looking across the activities done
the activity at least five hours per
watch 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 the
often in the car. And they read e-books respondents indicated they clearly
BRIC markets who are heavy watchers
more often on an e-book reader, tablet prefer to do some activities on mobile
of shows and videos, a larger share (44
PC or netbook (Figure 16). or smartphones (texting and email),
percent) watch them on a PC or laptop
television (watching shows), and e-book
Perhaps because 93 percent of than on a television (chosen by 30
readers (reading). However, for many
respondents own computers, the percent). A significant number of these
activities most frequently done on a
computer or laptop remains the device young adults also watch videos on their
computer, if a computer is not easily
used by the most respondents for mobile or smartphones.
accessible, a respondent is likely to use
conducting 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 more
Across the countries we surveyed, 79 of consumers reported doing multi-device, and people more quickly
percent of computer owners email from “nontraditional” activities from their jettison duplicative technologies, the
their computer at least weekly. But television: 21 percent search the Consumer Technology Power Rankings
there 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.


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%


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

DVD player
Regular (CRT or tube) TV
High-definition plasma
or LCD TV

Game console
VCR

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%


A Look at the US Market
Accenture has now researched consumer certain devices obsolete. For instance, mobile
technology adoption among US consumers phone ownership has dropped from 79 percent
for four consecutive years. While some of in our 2008 report to 65 percent in this
the research areas have changed to stay year’s report, while smartphone ownership
consistent with the most contemporary issues has quadrupled from 8 percent to 32 percent
and technologies, many have remained, which in the same period (Figure 18). These same
enables us to present some of the most trends are apparent when comparing DVD
interesting trends since our research began. player decline versus Blu-ray player growth,
regular TV decline versus high-definition TV
The 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 the
observation that newer technologies and
computer has remained ubiquitous but in
technology upgrades are rapidly making
slight ownership decline.

US Market | 27 Retweet Table of Contents Previous Next

Total most-purchased
The consumer Among the newer technology-based
electronics in 2010 in the US include activities across our four-year history is
the computer, smartphone and high- connecting on social networks. One of
Mature markets
definition TV. However, while about the most interesting findings here this
the same percent of consumers year are the reasons for using social
Emerging markets
surveyed purchased a computer and networks: The top two choices increased
high-definition TV in 2010 as in 2009, significantly in the past year, and they
18-24
smartphones showed a significant jump both involve strengthening existing
in those purchasing one in 2010 versus relationships instead of creating new
25-34 (from 14 percent buying in 2009
2009 ones (Figure 20). As older individuals
to 22 percent buying in 2010). tend to be much less focused on making
35-44 new friends than on keeping in touch
The US data reflects flat to declining
with current ones, the increase in older
spending on consumer electronics amid
45-54 generations’ use of social media may
the recession years. In fact, 2010’s
be influencing how these networks are
spending virtually mirrored 2009, with
being used.
slightly more consumers spending
55 or older
slightly lesser amounts in 2010 than in
0% 10% 20% 30% 40% 50%
the prior year (Figure 19).

Figure 17
Figure 18. US trends in consumer electronics ownership

Computer 2011
(desktop or laptop)
Mobile phone 2010

Web-enabled mobile 2009
phone/smartphone
2008

DVD player
Regular (CRT or tube) TV
High-definition plasma
or LCD TV

Game console
VCR

Digital video recorder for TV
GPS device
Netbook

Blu-ray player
E-book
3-D TV
Health and Fitness device
Tablet PC

0% 20% 40% 60% 80% 100%

US Market | 28 Retweet Table of Contents Previous Next

Figure 18
Figure 18

Figure 19. US spending on consumer electronics

2010
Have not spent any money 2010
on consumer electronics
Have not spent any money 2009
in the past year
on consumer electronics 2009
in the past year 2008
2008
2007
Less than $500 2007
Less than $500


$1,500 to less than $3,000
$1,500 to less than $3,000

$3,000 or more
$3,000 or more

Don’t know
Don’t know

0% 10% 20% 30% 40% 50%
0% 10% 20% 30% 40% 50%

Figure 20. US consumers' reasons for connecting on social networks

Reconnect with old friends 2011
Reconnect with old friends 2011
Stay in touch with friends 2010
Stay in touch with friends 2010
Make new friends
Make new friends
Network with current and
former colleagues
Network with current and
former colleagues
To let others know what I'm doing
To let others know what I'm doing
To inform others of personal news
To inform others of personal news
To connect with people who
share common bonds who
To connect with people
share common bonds
To let others know my opinions
To let others know my opinions
To find out about products and services
To find out about products and services
To plan social activities
To plan social activities
To look for jobs
To look for jobs
To write about and review products
To write about and review products
To be engaged in local community
To be engaged in local community
To sell things
To sell things
To further issues that are important to me
To further issues that are important to me
To play games
To play games
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%

Figure 19
US Market | 29
Figure 19
Retweet Table of Contents Previous Next

Accenture Global Consumer Tech Research 2011

Accenture Global Consumer Tech Research 2011

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (12)

Semelhante a Accenture Global Consumer Tech Research 2011

Semelhante a Accenture Global Consumer Tech Research 2011 (20)

Mais de Lars Kamp

Mais de Lars Kamp (14)

Accenture Global Consumer Tech Research 2011