Asia in an international comparison - GfK Global€¦ · Global sales of wearable devices have...

1 © GfK 2015 | Macroeconomic Landscape & Technology World | June 2015

MACRO ECONOMIC LANDSCAPE & TECHNOLOGY WORLD Asia in an international comparison

Matthias Hartmann, CEO GfK SE June 2015


World Economy & Growth Challenges


Global economy Eurozone USA UK

ASEAN 5 Japan China India

Change in gross domestic product vs. previous year (in %) – Global comparison

Slight acceleration in global economic growth: Asian markets

still leading growth overall

2015f 2016f

3.5 3.8

2015f 2016f

7.5 7.5

2015f 2016f

1.5 1.6

2015f 2016f

3.1 3.1

2015f 2016f

2.7 2.3

2015f 2016f

5.2 5.3

2015f 2016f

1.0 1.2

2015f 2016f

6.8 6.3

Source: IMP Outlook April 2015


Source: WEF Global Outlook Report 2015

Top Ten challenges facing the world today

1 2 3 4 5 6 7 8 9 10

Deepening income inequality

Lack of leadership

Weakening of representative democracy

Increasing occurrence of severe weather events

Increasing water stress

Persistent jobless growth

Rising geostrategic competition

Growing importance of healthcare in the economy

Rising pollution in the developing world

Intensifying nationalism

"In developed and developing countries alike,

the poorest half of the population often controls

less than 10% of its wealth"

"Air pollution in China contributed to 1.2 million

premature deaths in 2010, representing a loss

of 25 million years of healthy life"


Forces likely to shape the world

Source: WEF Global Outlook Report 2015

Key Challenges facing each region

From systematic

corruption to the

development of skills and

education, from

geopolitical shifts to youth

unemployment, each

region faces a unique set

of challenges.

Even when two regions

share similar problems,

these issues demand

specific solutions to meet

unique, localized needs.

North America Europe

Asia

Middle East &

North Africa

Sub-Saharan Africa

Latin America

Increasing inequality 1

Geopolitical shifts 2

Adapting to climate

change

3

Fostering economic

growth and innovation

1

Youth unemployment 2

EU-Russia relations 3

Corruption 1

Education and skills

development

2

Increasing inequality 3

Persistent youth

unemployment

1

Managing political

transitions

2

Societal tensions 3

Geopolitical tensions 1

Structural economic

reform

2

Managing urbanization 3

Education and skills

development

1

Building sustainable

governance systems

2

Delivering hard infra-

structure

3

6 © GfK 2015 | Macroeconomic landscape & Technology World | June 2015

The Technology World


+10%

-1%

+2%

+1% +1% 2010

$920bn Economic recovery

2011 $1,008bn Smartphone, tablet PC & emerging market strength offsets sluggish developed markets

2012 $995bn $ value hit by currency weakness outside North America

2013 $1,017bn Smartphone and tablet growth offsets decline in more mature products

2014 $1,030bn Growth sustained by Smartphone Transition in Emerging Markets

2015 Forecast Emerging market smartphone strength and new product categories, e.g. wearables, smarthome

Spending on Consumer Tech Devices has Flattened

GfK Trends and Forecasting, Global Tech Device Sales Revenue; Volume in USD & Year-on-Year Growth – 2015 forecast includes over 70 consumer tech products

2015 global spending will be over-shadowed by the decline in mature product sectors and

subdued demand in emerging markets


6

0

3

-3

3

-1

8 8 8 8

26 27

10 10

22 22

26 25

2014 Forecast 2015Middle East/Africa

Latin America

Emerging Asia

Developed Asia

North America

Europe

% Growth (Value) in €

Share of Tech Devices by GfK Boutique | Retail Sales Revenue in % by Region

Emerging Asia is the Leading Region in Tech Spending

and likely to grow at a good pace as well

Share of Tech Devices Sold in % units

2015F v 2014


Smartphones

Media Tablets

Laptops

Desk PCs

LCD TVs

Digital Still Photography

Feature phones

2011 2012 2013 2014 2015-F

Smartphones, tablets,

and laptops accounted for >50% of global spending in 2014

Global Sales Value, 2015 estimated, Global consumer tech devices retail sales revenue in USD - top tier products

\Mobile internet devices includes over 70 consumer tech products

So what devices are consumers spending on … Mobile internet

devices still dominate


India

43.1%

Focusing on the BRIC markets, smartphone sales

continue to be healthy

Brazil Russia

China 3.8%

Total market including 2015 estimation by GfK Trends and Forecasting , growth is for number of device units

While India will be the fastest growing

market in terms of year-on-year growth

in 2015, China smartphone adoption

reaching saturation levels


How about newer product categories?

Global sales of wearable devices have dramatically increased over the past couple

of years - fitness trackers & watches being most prominent

Total market including 2015 estimation by GfK Trends and Forecasting | Christmas stat from GfK point of sales tracking ; Figures are device units

Wearables consist of smart watches, wearable headsets, wearable cameras, health and fitness trackers and smart glasses

Impact of Christmas:

40% of wearable device sales in

2014 in France, Germany and the UK were generated in the

fourth quarter

2014

31m

2016

forecast

114m

2015

72m


Developing markets will gradually take a greater market share of

wearables as they become recognised and price points fall

13% China

4% Emerging APAC

4% ME & Africa

3% South America

2016

71% North America

Western Europe

Dev. APAC

North America, Western Europe and Dev. APAC to contribute >70% of the total wearable

demand in 2015 and 2016

Total market including 2015 estimation by GfK Trends and Forecasting , growth is for number of device units

Share of Tech Devices Sold in % units


Source: 2013 Roper Reports® Worldwide – Consumer behaviour and attitudes in 31 markets

19% Use a tablet

65% Use a desktop computer

60%

40%

Use a laptop

Use a smartphone

70% of people online use

more than one

device to connect

This device adoption is changing the way our audiences behave

and how they consume content

How are people are connecting to the internet today ?

New solutions like cross media

panels offer a unique source of media measurement which are key to capturing these changes

Who is my

customer?

What media does

she use?

Why and how

does she buy my

products?


Speed of technology innovation is accelerating

Source for APAC smartphone data : GfK’s retail sales tracking data, 2011-14

Source for consumer opinion: GfK’s consumer trends | consumers surveys aged 15 years and over | Report covers 25 markets worldwide, 2013

Consumers increasingly seek the ability to upgrade their

hardware.

6645 different models

of smartphones offered

in 2014 in APAC 36% of global

consumers say:

"I look to buy new technology

products that can be

upgraded or uploaded."

Businesses are driving innovation … …as are consumers.

339% Since 2011


Technology Category is Categorized by Innovation

INNOVATION

Improved Display Quality – Retina , 4K , UHD

Wearable's

Smart homes

Augmented Reality

Connected Cars

3D printers

Drones and ………


BRAND LOYALTY & PRICE EROSION

Commodization of Products/Brands

Continuous Value Erosion

Online Sales & Price discounting

Media Fragmentation

Declining Loyalty

But there are challenges for tech brands!


GfK today will be available to help you navigate the changing

environment

How are the Asian consumers changing?

How is the changing landscape effecting

the value systems & buyer behaviour ? ? How will the market forces and new

innovations effect us in terms of how we

deal with markets & brands ? ? How do we protect and enhance the value

of our brand in this era of commoditization

and price erosion ? ? How are consumers using my, and my

competitors’ brands? Where should we

position our brand in the market place? ?


About GfK

GfK is the trusted source of relevant market and consumer information that enables its Tech

clients to make smarter decisions.

Asia in an international comparison - GfK Global€¦ · Global sales of wearable devices have...

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