Consumer Electronics in Europe

Consumer Electronics in Europe Juergen Boyny

GfK | April 2017 © GfK 21 April 2017 | Consumer Electronics in Europe

1

Europe is developed and mature region Digital world

Sales value % 6%

19%

4% 17%

4% 17%

4% 17%

76%

78%

79%

79%

2014

2015

2016

2017

2014-2017:

Eastern Europe: -12% in Euro

Source: Digital World by GfK Boutique

© GfK 21 April 2017 | Consumer Electronics in Europe

Western Europe: -1% in Euro

Other regions: +12% in Euro

2

TV Market in Europe Some basic data (2016)

West

East

No. of households

173 mn

136 mn

Installed TV base

321 mn

199 mn

Multiownership

1.9

1.5


3

TV Multiownership Europe

Potential

Where to sell more? Norway

3.1

France

1.8

UK

Germany Italy

Poland

2.7 1.5 1.5 1.2


4

Even there is a sustainable growth into bigger screen sizes, 32 Inch in units is still the biggest share and is growing in units PTV/FLAT Jan 15-Dec 15

16 3

25

WEU 17 Panelmarket Inch Size Development

Sales Units Jan 16-Dec 16 Jan 15-Dec 15 : Jan 16-Dec 16

14 3

27

25 12 5

9 31.696,4 -9,7

Source: GfK POS

13 3

11 3

32.475,9 2,5


Jan 15-Dec 15

5,5

-9%

14,2

-7% 8%

up to 24 Inch 25-29 Inch

-23%

30-34 Inch

23,2

Sales Value Jan 16-Dec 16 Jan 15-Dec 15 : Jan 16-Dec 16 4,7

40-44 Inch

8%

45-49 Inch

17,4

55-59 Inch

6,8

50-54 Inch

-31%

60-69 Inch 70+ Inch

23% 49%

21,4 7,3

72% Abs.

+/- % PY

15.846,5 -5,6

-15%

13,8 21,7

35-39 Inch

0%

24

Jan 16-Dec 16 Sales Units,Sales Value

17,3 4,7

23,7 9,9

-14% -4% -47% -7% -2% -31% 9% 33% 35%

15.636,0 -1,3 5

After change of DVB-T broadcasting in France has pushed smaller screen sizes PTV/FLAT Total

Germany

JanJanDec 15 Dec 16

JanDec 15

9.7

16.4 14.5 3.4

3.1

25.4 26.7

up to 24 Inch 25-29 Inch 30-34 Inch 35-39 Inch 40-44 Inch

24.5 23.9 12.5 13.1 5.2

45-49 Inch 50-54 Inch 55-59 Inch 60-69 Inch 70+ Inch

3.5

2.8

7.3

22 24.3 2.9

25.8 26.2 14.2 14.1 6

14

9.3 11.1

JanDec 16

3

4.1

16

Great Britain

WEU 17 Screen Size by Country France

JanJanDec 15 Dec 16

JanJanDec 15 Dec 16

18.1 14

18.1 20.9

22.5

26.8 12.8 8.1

4.4

6.8

20.6

4.4

29.3

27.2 16.9 5.7

10.4 2.6

21.3 12.3 3.6

4.5

32.4

17.6 10.7

8.2

7.8

Italy

Spain

JanJanDec 15 Dec 16

JanJanDec 15 Dec 16

24.3 20.7

22.1 18

6.3 30.1

20.7 7.8 3.6

5.7

5.2

30.4

21.8 9.5 7.8

3.8

27.4

25.9 11.4 2.8 4.8

3.7

28.1

Austria

JanJanDec 15 Dec 16

5.8

5.8

24.2 27.7

12.8 2.6

6.6

16.2 13.3 3.9

Switzerland

JanJanDec 15 Dec 16

6.6

5.6

22.7 21.4

Netherlands

JanJanDec 15 Dec 16

10

25.3

8.3

24.4

Belgium

JanJanDec 15 Dec 16

7.4 2.6

26.4

5.6

24.9

3.1

14.5 14.6

22.4 16.3 2.7

19.1

22.4 15.6 21.3

31

16.5 4

3.4

4.3

4.9

7.7

8.7

Sweden

JanJanDec 15 Dec 16

7

17.4 16.9

30.5

15.9 3.7

12.5 2.6

30.1

16.9 4.4

9.6

30.1

17.5 3.3

13.6 2.6

17.7 7.6 22.3

6,598

6,480

6,080

5,687

4,759

6,056

4,370

4,483

3,178

3,124

726

796

643

554

1,040

986

624

613

679

-10

2

Sales Units +/- %

-14

-2

-7

-6

-11

27

-11

3

-5

-2

-11

10

-12

-14

-10

-5

-13

-2

-3

Source GfK POS

21

20

19


18

15

19

14

14

10

10

2

2

2

2

3

3

2

2

24.5

681

Sales Ths. Units Sales Units %

5

8.5

32,476 100

15.5

4.7

31,696 100

7.4

21.9 20.8

2.6

2.7

26.5 26.6 26.4

Jan-Dec 16 Sales Units %

2

2

6

223 minutes linear TV on average per person are watched in Germany in 2016. Independent of TV set used Viewing Time

Development of average TV viewing time per day/person in min Min. 240 200 160

211 212 208 207 212 201 203 210 183 188 185 190 192

223 225 222 221 221 223 223

In addition to this the VoD consumption has to be counted and adds up to even more minutes

120 80 40

0

1988

Total viewers, all broadcasters, Monday to Sunday, 3 am – 3 pm TV-panel German speaking households | AGF in cooperation with GfK, TV Scope

2016

Source: AGF in cooperation with GfK Audience Measurement | https://www.agf.de/daten/tvdaten/sehdauer/ © GfK 21 April 2017 | Consumer Electronics in Europe

Viewing time of linear TV (incl. catchup) in Germany is still at a very high level

Challenge for all: Get younger generations who watch on Tablets and Smartphones to buy a large screen TV, i.e. change user habits 7

Linear TV Viewing times in Europe

Non-linear pickup has been swift in the UK but a slow starter throughout the rest of Western Europe. The majority of viewing time is still tied to the broadcast schedule be it live or through catch-up.

UK viewing time

2014 → 221 min 2015 → 216 min

5 min less

Data not measured by GfK but taken from website mentioned as source | Source: https://www.statista.com/statistics/422719/tv-daily-viewing-time-europe © GfK 21 April 2017 | Consumer Electronics in Europe

8

Living room 2017 in Europe: TV market in consolidation phase - demand driven by innovation and larger screen sizes Europe TV (incl. CIS) sales Mio units Europe TV (incl. CIS) sales Bn USD

Share of 60 inch + at TV units %

Share of UHD/4k at TV units %

In 2017

Share of smart TV at TV units %

Source: Demand Projector by GfK Boutique, March 10th 2017 Update © GfK 21 April 2017 | Consumer Electronics in Europe

2.9 Mio units

curved TV

0.5 Mio units

OLED TV

9

What’s next in TV


10

TV will be driven by new content and by access to new content.


11

Consumer want to have more than traditional content.

They will get APPS for different and new content step by step.


12

By changing nothing,

nothing changes.


13

Why not attending school using the big screen at home ? © GfK 21 April 2017 | Consumer Electronics in Europe

14

Why does her TV has no “Medical

Care App”?


15

Take Away:

connected TV should be be more than (movie) entertainment


16

Consumers are connected with all displays and all speakers (!)

at home, at work or outside. Innovative connectivity is driving the market.


17

Then always the question  do we need that?

Are we lost by all these innovations?

Innovation

is connectivity always and

everywhere? © GfK 21 April 2017 | Consumer Electronics in Europe

18

A lot of times, people don't know what they want until you show it to them. Steve Jobs


19

Connected Market shows a lot of different successful innovations. 2016 29.8 mn Headphones in Europe

2016 13.3 mn Bluethooth Speakers in Europe

2016 2.2 mn VR-Glasses

2016 1.8 mn Drones in Europe

(incl. VR headmounts) (DE, FR, GB, IT, NL, BE, ES, AT, PT)

Source: GfK POS / Sales units Europe 2016 2016


20

Connected Audio is existing since years and the development of audio streaming capable hardware is further positive All streaming-enables products, EU10

+13%

18.070

20.457

13.034 7.340

1.151 437 2010

2.110

3.643

732

2011

1.038 2012

Sales Un. Ths.

1.554 2013


+9%

2.268 2014

2.942 2015

Sales € mn.

3.191 2016

89% of audio streaming capable products provide Bluetooth as connectivity standard

(Units % Jan – Dec 2016)

21

Evolution in connected sound since 10 years Home use in a PC environment, sales peak in 2007/2008

Connect via 3.5 clinch. Portable. Sales Peak in 2011/2012

PC Speaker

Streaming directly to Spotify and Co via 3G/4G or WiFi? Voice activation and App integration

Mini Speaker

Bluetooth Speaker

Docking Speaker Sales peak in 2010/11 Home use, but living room oriented © GfK 21 April 2017 | Consumer Electronics in Europe

What’s next?

„Home Use“ developes into Connected AHS

Solely connected by Bluetooth. Portable. Sales rising since 2012 22

Speakers develop to intelligent personal assistants. The evolution of audio speakers continues …


23

Soon this will be a feature in a lot of audio products


24

Voice Interaction will be all around us.


25

Voice recognition

Voice control

Voice interaction © GfK 21 April 2017 | Consumer Electronics in Europe

26

Aug 31, 2017 1pm-3pm

5th GfK Technical Innovation Conference ”Digital transition: What is that for industry, retail and consumers?” © GfK 21 April 2017 | Consumer Electronics in Europe

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Thank you

[email protected]


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