Tag Archives: Market intelligence

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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Filed under Enterprise IT, Market Analysis, Mobile technology, Networking, Retail

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

Is Black Friday dead? A US perspective

Guest blog by Chris Petersen, CEO of IMS, Inc.

Is Black Friday dead, or just rapidly waning? Data indicates the demise of the premier kickoff to holiday shopping in the US. It’s not just about the economy and consumer confidence, although those are key factors. The retail phenomena unfolding right now is about universal changes in consumer behaviour, regardless of socio-economic status.

Black Friday has declined in US retail … will the same trend happen in Europe?
In the not too distant past, stores were the premier focal point of holiday shopping. Black Friday was an event created by bricks and mortar retailers to entice consumers to come shopping on the Friday after US Thanksgiving, which always falls on the 4th Thursday of November. Since many US customers take off from work on Black Friday, it became the quintessential retailer marketing event to lure shoppers to the stores with “best deals” of the season. The theory was that if shoppers came early to find a deal, they would come back to stores for the rest of their shopping.

Not surprising, the UK and other European retailers adopted Black Friday as a promotional event to kick off the holiday selling season and draw traffic to stores. CONTEXT’s analysis of distribution trends in 2015 was very predictive for UK retail sales spiking for Black Friday. Will the trend continue in 2016?

Black “Friday” — death by a thousand clicks
Increasingly retail stores have been jumping the gun on Black Friday by offering Black Friday sales before the actual Friday. The result in the US is that there is no longer a singular event. Black Friday has suffered scope creep, and it literally has become a “Black Week” of promotions and deals.

More importantly, consumers don’t see Black Friday as just “stores” any more. Amazon and other online retailers have creatively capitalised on “Black Friday” by offering daily online deals across an entire week, or more. This has created a new trend for “Cyber Monday” which is the first Monday after the traditional Black Friday. In the US, workplace productivity actually drops on Cyber Monday as people at work scramble to get better deals on stuff they didn’t buy or couldn’t get on Black Friday. Cyber Monday is projected to be the single largest volume day of the entire holiday shopping season.

Did the same trend happen in the UK and other countries? Compared to the US, the UK has a higher % of sales occurring online, especially for technology. Many of the UK promotional ads in 2016 now in fact show the Black 5 days of deals: Thursday, Friday, Saturday, Sunday and Cyber Monday.

The net result is that today’s consumer is an empowered consumer. They are not bound by place or time of event. This translates into a much diminished effect of single retailer store events like Black Friday.

Large retailers have privately confided that Black Friday needed to “die”. The traditional approach of cramming all deals into a single day dramatically lowers prices and margin. It would be healthier for both if retailers and consumers could evaluate offers and spread shopping over a period of time. In fact, that is how today’s omnichannel shoppers are already behaving – shopping multiple days in multiple ways.

So what happened in the UK for 2016?
Were Black Friday sales up again this year? Or, did consumers shift more of their shopping purchases to Cyber Monday? How much of their Christmas budget have they spent? The final store sales numbers won’t be tallied for a couple of weeks.

However, CONTEXT is conducting consumer pulse survey right now. We are asking consumers when they shopped, and how much they purchased on Black Friday and Cyber Monday. It will be interesting to see how much they expect yet to spend in the rest of holiday season.

 

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Filed under IoT, IT Distribution, Market Analysis, Mobile technology, PCs, Retail, Retail in CONTEXT, Smart Technology, Tablet PCs

IoT & Wearables: capturing the consumer in 2015

Excitement is building in the IT retail markets around two areas: the Internet of Things, and Wearables.  In both these areas, there are vanguard products already available on the market today that indicate a huge potential for sales.

Wearables are dividing into two categories, “single-function” and “smart” devices. The “single-function” typically will be the mass products, as they can be cheap and do one job well. The “smart” devices such as Apple Watch and Samsung Gear S are the high end multi-function devices, and are creating new markets for IT retail products by crossing over into the luxury goods category. With the right branding, these have the potential for huge sales coupled with good margins.

With the Internet of Things, the possibilities for IT retail are also substantial because each solution  – almost by definition – requires a multiplicity of single integrated devices. Instead of buying one sensor to control multiple legacy devices, if we take lighting as an example, products such as Philips Hue have light bulbs with integrated controllers where the consumer is obliged to buy multiple units. Start thinking other functions just in the home such as central heating, and the possibilities for expansion of IT in a retail environment are becoming larger by the day.

Of course, predictions have been made in the past, but ultimately all depends on manufacturers not only exciting the imagination of the consumer and getting them to swipe their credit cards, but also hitting the right price point.

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