Everyone in the market research industry knows that we’re drowning in data. But the mere fact that there is lots of it, doesn’t necessarily mean it’s more useful than back in 2013 when there was only about 1/8th of today’s total available amount . The key is whether that data is A. ‘analysable’ (i.e. databased, processed, categorised and readily available), and B. analysed well. Continue reading
Tag Archives: IT sales
I wondered why IT sales are doing so well, despite these extraordinary, uncertain times with Brexit, growing isolationism across the rest of Europe and insults thrown between Trump and Korea. According to the latest figures from the CONTEXT Distribution panel, revenues are up in the Eurozone by 6.7% compared to last year, with the UK steaming ahead with revenue growth of nearly 13%.
My colleagues are often blogging about the exciting new or “interesting” products that start to appear in our sales data – wearable devices, 3D printers, games consoles, mobile phones. Printers, on the other hand, can sometimes be overlooked but this is a market not to be ignored. In fact, in Germany, which represents around 20% of all revenues we pick up from the Distribution channel for IT products, Printing Consumables is ranked 2nd, behind only mobile computing. A similar picture emerges for France and the UK.
So, what is impacting the print market at the moment? We notice, particularly in the UK, workplaces transforming as millennials are looking beyond the traditional office. Working from home is increasing motivation and productivity and new technology is changing the way we work. Vendors are faced with new opportunities, and are rising to the challenge of how to best support the customers’ needs, be it savings on print costs, digitization, unified platforms – essentially, solutions for wherever your ‘office’ is at this precise moment.
Each quarter, the shift is moving from single to multi-function printers. We demand more from a printer than just printing. Unit sales of Inkjet and Laser multi-function printers grew around 6% in Q1 this year and now account for around 70% of all printers sold in Western Europe.
Inkjets are marking their return in the B2B sector with consistent double digit revenue growth of both the consumer and the business inkjets since Q2 2016. With more emphasis on lower print costs for businesses, vendors, particularly Epson and HP, are moving further into the higher price bands with revenues for business inkjets over Euro 400 growing by 37% year-on-year in Q1 2017. Business inkjets now account for almost 40% of all printer revenue in the SMB channel.
Finally, we’re also seeing a return in consumer confidence in some of the countries that have been struggling in the last couple of years. Spain has demonstrated an overall growth year-on-year of 16% in the print market, with a 12% growth in IT sales overall.
So, World disorder? I guess so, but business goes on and the printer market is still alive and well.
UK consumers’ confidence in their ability to weather the uncertainty around Brexit continues to slide as we approach the most crucial shopping period of the year, according to the latest Retail Pulse UK Survey carried out by CONTEXT. Across a range of criteria, the Great British public are shying away from spending. On top of this, UK retailers are getting ready to raise prices early next year as the pound continues to perform poorly. This means consumers have a choice to make; buy now – even though they’re unsure about their finances – or delay purchases and pay more later.
The CONTEXT Retail Pulse Survey is published quarterly, and examines consumer sentiment towards the UK economy and personal finances. The report for Q2 2016 showed that people 65 years and above were very bullish on Brexit—indeed, many of those surveyed likely favoured withdrawal from the EU. But just five months later, confidence in the future prospects of the economy from this age group has fallen significantly. While 42 per cent of UK 65+’s expected positive economic performance in July 2016, feelings have swung massively in the opposite direction with 44 per cent now believing the economy will get worse.
Anxiety about the economy is also creeping into everyday purchasing decisions by all age groups. Consumers in the UK are now two times less likely to invest in electrical products—including smartphones, TVs, and notebooks— than they were in July. This is due to increased worries about the state of personal finances, with one third of all those questioned agreeing they will cut back on electrical purchases due to just this one factor alone.
The CONTEXT Retail Pulse Survey reveals the current trepidation felt in the UK. With the European Commission slashing its growth forecast for the UK for 2017, many expect inflation to rise. Factor in a weak pound, and an uncertain jobs market, it’s no surprise to see UK consumers thinking of cutting back their spending on consumer technology.
Taken as a whole, the Survey suggests a potential negative impact on retailers this holiday season, with Black Friday almost upon them. There is – however – a bright spot: stores looking to make a success of the imported American event and the run-up to Christmas should look to young professionals aged 25-34. According to the CONTEXT Survey, 22 per cent of this age group think their personal finances will improve—the most positive sentiment of any age group—and 19 per cent say they will spend more on electricals in the next quarter.
There are also other indicators in the CONTEXT Survey that suggest UK consumers may be willing to spend, despite their uncertainty. Household saving now stands at 5.1 per cent, a return to the low levels last seen just before the global financial crisis. Unsecured borrowing is also rising, reaching a 10.3 per cent year-on-year increase. This could indicate a more carefree attitude to spending amongst younger demographics. Those savvy enough to see price rises coming could increase the overall spending and make this holiday season a success for the industry.