Smart Home survey Latam unveiled

CONTEXT recently expanded its smart-home survey coverage to Latam and Howard Davies, our CEO, presented the results at the recent GTDC conference in Miami.

This category is still in its infancy in Latam but, since things are now moving in the US and the UK, accelerated by the arrival of voice control with Amazon Echo and Google Home, we are keen to establish a baseline.

Here are some interesting findings from the survey:

  • Timescales given in response to the question, “When do you envisage you will have a smart home?” are shortest in Mexico. Brazil and Argentina are next, and Chile is some way behind.
  • It is open season on smart home for the channels – none has established themselves as the natural go-to place: in two countries (Brazil and Argentina) online retailing leads, in two others (Chile and Mexico) DIY is in front. Specialist technology retailers lag throughout Latam, which is surprising.
  • Awareness of voice control is high, in particular Apple Siri. This makes these countries fertile ground for the launch of Amazon Alexa and Google Home although, at the moment, people prefer to use smartphones to access smart home. We think this will change when they see the ease of access voice control provides.
  • Thermostats, lightbulbs, smart plugs, smart doorbells and locks, and smart cameras are the products people are most aware of. Lightbulbs and plugs are the entry products, the ones people are going to buy (intention to purchase > 4%). Smart doorbells and smart sound systems cross this threshold too.
  • Interestingly, leading reasons for purchase differ by country – security in Brazil and Chile, automation and making life easier in Mexico, lowering energy costs in Argentina. “Because it’s just cool,” scores very highly in Chile and Argentina – is this coming from tech lovers, early adopters, or just people for whom image is important?
  • Lack of understanding of benefits and lack of knowledge of products are key barriers, and this is unsurprising. But the strong vote for products that work together should be a call to action for the industry. The importance of integrated offerings is supported by the number of people who say that they don’t understand how the smart home concept fits together. The manufacturer or retailer who really communicates and delivers this will be in a strong position.
  • People are more concerned about the physical risks of owning a smart home product than the cyber risks. Product malfunction is the top risk in all countries.
  • The only country where retailers are doing a reasonable job of explaining smart home is Mexico.
  • There is a three horse race for the hub – Amazon Echo leads in Brazil, Google Home in Chile and Apple Homekit in Mexico. In Argentina, Amazon Echo and Google Home are neck and neck.

Smart Home in 2017 is going to be a battle of the giants! For more information, please click here!

by AS

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Filed under Connectivity, Smart Technology, Home automation, Smart Home

Latin American Consumers Ready for Smart Home

Over three quarters of consumers surveyed in Latin America’s leading economies say they want to know more about Smart Home products, according to CONTEXT’s new survey. With no one retailer dominating the Smart Home market in the countries surveyed, this potential demand for the new global wave in technology products and services presents significant opportunities for the IT channel in Latin America.

Carried out in January 2017, the CONTEXT Survey was announced at the Global Technology Distribution Council Latin American IT Distribution Summit in Miami, USA, and covered 2,000 consumers in Brazil, Mexico, Argentina and Chile.

The general picture for Smart Homes in these countries with a combined GDP of $USD4.4TN is good, with an encouraging level of awareness. However, it is clear that this awareness is not rooted in a deep understanding of the concept. This is partly down to limited exposure to Smart Home products or ideas, with very few people seeing or hearing things about Smart Home on a regular basis.

Such limited exposure is hardly surprising, given that no one channel is doing a good job of explaining or showcasing the concept. Where people have picked up on Smart Home, it tends to be from online sites – both retailers’ and manufacturers’ – rather than from in-person contact via things like store displays. This limits the degree to which consumers can interact and engage with Smart Home products.

As well as highlighting the opportunities, the CONTEXT Survey found that worries surrounding the idea of the Smart Home are prevalent, with 9 out of 10 people having at least one concern. Some of these are serious, including views that products may malfunction, causing harm or damage to the home. Privacy concerns and a fear of identity theft are also high on the list of worries.

When asked what user scenarios were encouraging them to buy Smart Home products, the top three responses were “arriving home”, “waking up”, and “advanced security”. In terms of the Smart Home hubs people would be most likely to trust, the Survey found that while there are variations across different countries, Apple, Amazon and Google dominate. Amazon has a clear lead in Brazil, while Apple leads in Mexico and Chile. Google is in the lead in Argentina.

In summary, despite the lack of deep knowledge and the barriers this creates, the good news is that across all countries there is an appetite to learn more. This is especially in terms of how they can save money, and how they can make home living more enjoyable, easier and better.

by JD

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Filed under Connectivity, Home automation, IoT, Smart Home, Smart Technology

Why isn’t IT market intelligence obsessed with optimising the multibillion-dollar mature industries?

I’ll level with you, I‘m confused.

When I look at recent premier IT events such as Mobile World Congress (MWC) in Barcelona and CES in Las Vegas, I see an industry that is almost entirely focused on the future. Obviously, technology players want to accelerate innovation – the event programme at this year’s MWC for example includes a session called the “4th Industrial Revolution”.

But what about optimising the performance of the mature €650 billion[1] European IT market? Compare the MWC and CES programmes with the Consumer Goods Forum, the premier gathering of the food and drink sector, at €1,048 billion[2] making it the largest manufacturing industry in Europe, and you’ll see a programme in which innovation is there, but sitting alongside good stewardship of their well-established sectors.

In a mature industry, performance parameters are well known, top line growth is small, big players that can’t keep up get acquired by nimbler competitors, and optimisation is key. As well as innovating in emerging technologies, the IT industry should be innovating in its core businesses to optimise performance in the mature sectors. One example – in an area I know well – is how companies see the role of sales tracking in the new world of established technologies, grown up now after 30 years. The over-complication of market intelligence (MI) offerings here is causing a raft of issues, and users of this data should be demanding better. To paraphrase a few people, I’ve heard:

“We are drowning in data, we just don’t know what to do with it …”

“We spend so much time compiling different sources that the real analytics come as a second thought”, and

“We don’t fully understand what each dataset actually represents, or how to act on it.”

In the IT sectors, this sentiment isn’t exclusive to vendors – it is shared in their channel by distribution and reseller partners –it being generally accepted that MI data is sub-par as delivered today.

This problem has been around for quite some time. In a previous role at one of the largest and oldest technology firms in the world, I worked with one of the most sophisticated MI solutions I’ve ever seen. “Well done them”, you might think. In reality, it wasn’t without strife. It took the company over three years to design and implement that solution and, to this day, it still requires many people across the globe to combine multiple data sources into ‘one version of the truth’. The company implemented this solution at the tail end of what was generally considered the ‘maturation’ of the PC industry. Any other company thinking of undertaking a similar task today in the printing, display, PC, or other flat or declining mature industry, would need to be resource-rich and highly committed to the cause.

Whilst it is imperative to stay abreast of shifts in consumer and business trends, managing the at-risk 1% of a multi-billion-dollar established industry is as important, if not more so in some cases, as getting established in multi-million-dollar upcoming categories. Indeed, the frustration voiced by the industry would suggest that this is the case. Is it possible that many participants in these mature-technology industries are struggling to monitor and protect their cash-generating business, and that this impacts their ability to invest in new technology in the future?

What is needed to fulfill the requirements of such companies? At CONTEXT, we are working with our customers and partners to address this issue, and have designed a number of new services that provide both broad and specific analyses of mature IT product categories. The key focus areas for this new breed of deliverables are reliability, cost-effectiveness and simple implementation, so that instead of drowning in data and wasting time trying to bring together multiple data sources, the user is able to integrate information easily into existing operations and spend time more productively in improving their business. In essence, that’s our aim at CONTEXT: to help our customers and partners Optimise Today, and Accelerate Tomorrow.

by TP

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[1] EITO Report Western Europe 2013/14

[2] Food Drink Europe 2014

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Inversión, Contenido y Educación del Consumidor: CES y Realidad Virtual en 2017

En el CES de este año celebrado en Las Vegas, el CEO de Nvidia, Jen-Hsun Huang, anunció en su discurso de apertura a la prensa que están trabajando con Audi en un coche autónomo que saldrá a la venta en el 2020. También informó que el catalizador de todas sus innovaciones tecnológicas de la GPU había sido el gaming. De hecho el gaming se ha identificado como la actividad más pesada que el procesador de un PC de consumo tiene que llevar a cabo. Jen-Hsun declaró que “… todos los juegos son realidad virtual”, en la mayoría de los juegos se tiene que crear un mundo virtual en el que un jugador viva. Con algunas notables excepciones, CES 2017 fue el año del coche autónomo!

En cuanto a la Realidad Virtual, mi experiencia después de haber asistido al CES de este año hace que me pregunte:”¿qué será lo siguiente?” El año pasado fui testigo del lanzamiento de tres gafas de Realidad Virtual de alta gama para el consumidor (Rift, Vive, PSVR) y la comercialización agresiva de las Gear VR de Samsung, pero en cambio CES 2017 no ofreció muchas noticias sobre la Realidad Virtual, a excepción de nuevos fabricantes de HMDs y de sus complementos. En cuanto a los productos de hardware existentes, no hemos visto una adopción masiva de la Realidad Virtual durante el 2016 y esto no ha sido una sorpresa para CONTEXT.

El primer factor a tener en cuenta es el coste adicional de la Realidad Virtual. Se necesita un PC potente y costoso, o una PlayStation 4. Además, la experiencia de la Realidad Virtual en dispositivos móviles sigue siendo muy inferior en términos de procesamiento 3D, en comparación con los cascos de Realidad virtual que se conectan a un PC o a una consola. La Realidad Virtual Móvil debería ser el hogar natural de esta tecnología, dada la proliferación de teléfonos inteligentes en comparación con los PC gaming, pero aún no existe la gran aplicación que pueda impulsar las ventas; la Realidad Virtual todavía está esperando a su Pokémon Go !. Hasta que las GPUs móviles estén a la altura de las GPUs de los PCs de alta gama, los desarrolladores de aplicaciones deben enfocarse en los juegos ingeniosos y adictivos. Se puede hacer un paralelismo con los primeros días de Atari: los desarrolladores de aplicaciones de Realidad Virtual son esenciales para crear un género de entretenimiento desde cero.

Varias cosas deben suceder en 2017 para mejorar las ventas de los dispositivos de Realidad Virtual, además de reducirse los costes iniciales de adopción. En este momento, las tiendas de aplicaciones de estos dispositivos, e incluso la plataforma Steam PC, se inundan de contenido de Realidad Virtual barato y a menudo de mala calidad. Para la mayoría de los dispositivos, a excepción de las Rift, el universo de desarrolladores de Realidad Virtual de PCs está dominado por estudios independientes de calidad variable, y posiblemente esto, combinado con un mercado de software confuso y masificado, recuerde a las condiciones que causaron el colapso de la industria de videojuegos en 1983. Facebook y Oculus se destacan por su inversión en los estudios Oculus y el apoyo a los títulos AAA. Juegos como Chronos y The Unspoken nos dan una idea de lo bueno que puede ser el contenido de Realidad Virtual, y Facebook merece elogios por estar invirtiendo en software para el que probablemente no verá ganancias a corto plazo. En 2017 necesitamos más fabricantes que inviertan en contenido AAA de Realidad Virtual; después de todo, el mercado de juegos de PCs de alta gama está ayudando a revitalizar la industria madura del PC, y además, las Vive y las Rift dependen de estos PCs y de su contenido. El mensaje que la industria de Realidad Virtual necesita para 2017 es: inversión, contenido y educación del consumidor.

by EM

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The Swansong of the HDD?

Storage components have come a long way since the first 3.75 MB HDDs were introduced by IBM in 1956. 2016 in particular has been a landmark year for storage components, as aftermarket sales of solid state drives (SSDs) through European distribution overtook those of hard disk drives (HDDs) for the first time, marking a trend which we expect to speed up in the coming years.

HDD manufacturers have recognised the growing importance of SSDs: in the last two years they have bought up several players in the SSD market or/and have started to produce SDDs themselves. As well they might. SSDs are already better in every technical aspect: they have a larger capacity, they are faster, and they are more reliable. Unlike HDDs, which have mechanical parts, there are (almost) no limits to the development of SSDs and their miniaturisation. Indeed, whilst HDD capacity appears to be capped at the 10 TB currently touted by WDC’s flagship model, Seagate unveiled a huge 60 TB SSD in August last year at the Flash Memory Summit.

Manufacturers have yet to give up on HDDs however, extending their lifespan by investing in such technology as Helium or SMR, and banking on the one very clear advantage of HDDs over SSDs – price. For now, the cost of a gigabyte of storage on HDD is about a quarter of that on SDD, and this makes it attractive to businesses who want to lower IT infrastructure costs as much as possible and do not  need the technical advantage of SSDs.

For businesses where time efficiency represents a potential cost-saving however, the move to SSD for their IT infrastructure represents a worthy operational investment, notwithstanding the cost premium. At CONTEXT, for example, we recently made the choice to transfer our main database from an all-HDD system to an all-SSD system by Q2 2017. By doing this we should save 10-15% in terms of time and resources. The savings will allow us to develop new projects but, more immediately, our reports will run faster. This means we can look to deliver our products more quickly, which is key for our clients – the earlier they have information, the more actionable it is.

Storage requirements for such things as back-up on the other hand do not need the latest speed and features, and in areas such as these HDDs will remain the go-to technology for the time being, but only as they remain the cheaper option.

Seagate is saying that HDDs will be around for the next 20 years or so, we suspect they may not last that long. Will they be gone earlier? We’ll be watching closely.

by GM

 

 

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2017 Tech Retail Trends – Omnichannel Transformation

 

Omnichannel is critical, but 40% of retailers say that they are not yet getting an ROI on their omnichannel investments

At its CES breakfast in Las Vegas, two retail CEOs presented their view of omnichannel transformation in Europe, and CONTEXT delivered the highlights of the Omnichannel Retail Survey it conducted in December 2016. The responses from 31 European technology retailers, two-thirds of them in the C-suite, illustrate dramatically the transformation of retail to omnichannel.

While the focus last week in Las Vegas was on new products, CONTEXT hosted a CES breakfast on selling technology products in an omnichannel world. Retailers clearly recognise the critical importance of omnichannel transformation – 90.3% of responses to the CONTEXT survey said that omnichannel is critical or very important to their business, but 40% also said that they are not yet getting an ROI.

“Consumers are already omnichannel, but very few retailers are, because it is really hard and expensive to become truly omnichannel,” said Oliver Meakin, CEO of Maplin, as he opened the session. “Service and advice will be the key areas of differentiation in technology retailing in the future, coupled with good old retail-tainment – people like going shopping, and, therefore, omnichannel – rather than pure clicks – will ultimately win through.”

While the investments are substantial, they appear to be worthwhile. Retailers responded that they know they have to do it. 96.8% responded that they are transforming themselves to adapt to customer behaviour. The expectation is that omnichannel customers will engage more often, purchase more, and potentially add more items to their market basket. And yet, when CONTEXT asked the top tech retailers if omnichannel customers were more profitable, the verdict was not clear:
• 40% of tech retailers said yes, omnichannel customers are more profitable
• 30% said no, omnichannel customers are not more profitable
• 30% said they do not know

This mixed set of responses is indicative of two factors. Major omnichannel investments are relatively recent, so perhaps there has not been time to measure results. Additionally, it can be challenging for retailers to measure total customer relationships across time and channels.

“Do the consultants on omnichannel realise how difficult it is?” asked Hans Carpels, President of Euronics International, Europe’s second-largest tech retailer. Mr Carpels highlighted as an example the difficulty of setting up an omnichannel returns process with stores who are not the beneficiaries of that particular online sales.

There are no end of processes which need to be addressed in order to make omnichannel work. As Dr Chris Petersen, keynote speaker and retail expert said, “The whole is greater than the sum of the parts. You may have a great click-and-collect experience online, but if you wait for ten minutes to collect your goods, or the wrong product has been picked, that one piece breaks the whole experience.”

The reality is that is that transformation to omnichannel is happening in retail. It is significant that 19.4% said that they are well prepared for omnichannel, 74.2% said that they are making considerable progress and only 6.4% owned up to being not ready.

Clearly, other than sales from social media, the majority of retailers are now offering enormous variety in how they fulfil customer orders, whatever this may cost them.

omnichannel-graphs-04

The level of complexity is evident from the different areas of investment which retailers have made. Systems integration tops the list, as it is essential to develop the web interface and link the POS system with logistics and CRM. Only returns management scored low, with just over 20% of retailers having added new internal or external resources in that area.

omnichannel-graphs-03

Our key takeaways

It is clear that omnichannel is not just the new normal for customers, but for retailers as well. There are some clear trends and calls to action for 2017. In the retailer transformation to omnichannel:
• Retailers will continue to invest in omnichannel but will have to manage programmes closely to ensure that they get the ROI on it, or they risk seriously weakening their financial position.
• We expect that omnichannel retailers will gain competitive advantage by increasing the number of categories and SKUs held online – in the survey, 80% said that they have already significantly increased the number of SKUs.
• Retailers will manage the inventory implications of omnichannel fulfilment by partnering with third parties such as distributors.
• Omnichannel success will be not based on one thing, but rather a collective enterprise approach involving merchandising, systems, technology, and logistics.
• Consumers do not think in terms of channels: they view their path to purchase as a seamless experience across their customer journey. As a consequence, the term omnichannel itself is no longer accurate. In 2017 omnichannel will become omniretailing.
It is a great time to be an omni-consumer and a very challenging time to transform to become an omni-retailer!

For more information about the CONTEXT Retailer Omnichannel Survey please email asimon@contextworld.com

oliver-meakin-2Oliver Meakin, CEO of Maplin speaks at CONTEXT Retail CEO Breakfast at CES, 6 January 2017

By AS

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Filed under IT Distribution, omnichannel, Retail, Retail in CONTEXT

Global Desktop 3D Printer Market Rises +27%

According to our latest figures, worldwide shipments of 3D Printers rose +25% year-to-date (YTD) through the first three quarters of 2016 thanks again to shipments of low priced Personal/Desktop 3D Printers.

Of the total 217,073 3D printers shipped year-to-date, 96% of these were Personal/Desktop printers, carrying an average price of just under $1,000.  This represents a 27% year-on-year growth for this sub-category compared to a decline in shipments of -12% YTD in the Industrial/Professional segment which saw only 7,726 units shipped through the first three quarters of 2016. While the market is still largely defined by the shipment of Industrial/Professional printers – which accounted for 78% of the global revenues – the market is clearly settling into two distinctive segments.

Vendor wise, in the Desktop/Personal 3D Printer segment, Taiwan’s XYZprinting remained the global leader so far in 2016, seeing its share grow to 22% through the first three quarters.  This side of the market saw the exit by the #3 global overall player 3D Systems and the continued repositioning of the #1 global 3D Printer market Stratasys of its MakerBot line away from the lowest end.

The Industrial/Professional segment was marked by the official entrance of HP into the space but printers did not begin shipping until the end of the year. While the Industrial/Professional segment has, in general, cooled off in the past few years, the shipment of additive manufacturing devices capable of printing in metal materials was one major bright spot within this category.  This Metal side was not immune to market changes in recent quarters either however, with a slow-down seen in this sub-segment as well in the 2nd half as General Electric (GE) acquired two of the top five metal making 3D Printer companies (Arcam and Concept Laser).

Projections for the full year 2016 remain reserved for the Industrial/Professional market and bullish for the Desktop/Personal market, largely in-line with trends seen through the first three quarters.  Forecasts turn more bullish in the Industrial/Professional sector in 2017 and beyond as the HP and GE ramp results in a return of growth; the Desktop/Personal market is expected to continue its unfettered growth.

by CC

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Filed under 3D Printing, Imaging, Uncategorized