GfK Retail and Technology
GfK RT 1-2008 editorial
Dear reader, GfK Retail and Technology continued to perform strongly in 2007. We achieved the highest level of sales growth (10.8%) of all GfK Group divisions and contributed € 261 million to Group sales. Key to our continued success are undoubtedly our GfK experts worldwide, our web-based reporting platform, StarTrack and an increasingly broad service offering tailored to suit specific company needs; both locally and globally. Working in partnership with the Consumer Electronics Association (CEA), GfK now offers comprehensive reporting and forecasting on the global CE and Technical Consumer Equipment markets. First global results are available and with this service, GfK can show you the full picture on your global markets. Find out more about this exciting collaboration on page 2. Did you know that GfK not only tracks retail sales in the consumer segment of the Information Technology market, but also provides international market research solutions in the business 2 business segment? GfK experts talk about the increasingly important part of the IT sector on page 3.
Dr Gérard Hermet COO of GfK Retail and Technology Management Board Member of the GfK Group Member of the MSI (Marketing Science Institute) Board of Trustees
As ever, GfK was active at several high profile events across the globe in the first three months of 2008 (see page 7). The next international GfK hosted event, the 4th GfK Optics Conference (pages 4 & 8) will take place in Milan on 09th May, followed by the bi-annual GfK Consumer Electronics Conference (CEC) on 10th June (page 8). We look forward to seeing you there!
Sincerely
Contents
Page 2: GfK global forecasting in partnership with the Consumer Electronics Association, CEA
2 Global TCE Forecasting:
5 DIY - Expanding in Italy:
GfK is collaborating with the Consumer Electronics Association, CEA, to provide comprehensive forecasting on the global Technical Consumer Equipment market.
A look at international DIY turnover and GfK Italy‘s new service offering in the sector DIY / Gardening.
3 GfK tracking B2B IT:
Dr. Gérard Hermet‘s GfK AG Management Board mandate is extended, plus
An interview with GfK‘s Pascal Bollon on the dynamic Information Technology Business 2 Business market.
6 News extra:
new service offerings in France and New Zealand.
4 4th GfK Optics Conference:
7-8 Conferences and Events:
On 9th May 2008, GfK will be holding its bi-annual Optics Conference in Milan. We take a look at turnover and products sold in international optics markets.
GfK‘s participation at key international CE, Retail, Telecommunication and Photo events, plus information about upcoming GfK hosted events.
Newsletter 1-2008
GfK Retail and Technology
global tce forecasting the tCE market in 2008 na (BRIC countries), however Western European and North American regions will also continue to play a significant role. In 2008 China alone will represent 10% of the world TCE market, positioning itself second to the USA, which The latest 2008 forecasts from GfK and currently holds 20% of share. the CEA indicate a moderate growth of +6.7%. In other words, consumers will GfK / CEA forecasts and reporting will spend $42 billion USD more on Techni- offer a valuable insight into the global cal Consumer Equipment in 2008 over TCE market; keeping you up-to-date 2007. This growth is largely expected to on movements within this dynamic come from Brazil, Russia, India and Chi- market. In 2007, worldwide household expenditure on Technical Consumer Equipment topped $600 billion USD according to GfK and the CEA (see Chart 1).
Global tce expenditure Chart 1: Global Technical Consumer Equipment expenditure (2005-2008 forecast)
+6.7% over 2007
Page
GfK and the Consumer Electronics Association, CEA, have joined forces to provide the most comprehensive analysis of the global Technical Consumer Equipment (TCE) market to date. This dynamic market, tracked within GfK’s Digital Convergence service offer, looks at the convergence of digital technologies within the Consumer Electronics, Information Technology, Photo and Telecommunication sectors. The fast-moving TCE market is making good headway - in particular thanks to new technologies and growth in emerging markets. The most technologically advanced market, Japan, is now making way for new growth markets in other Asian countries such as China and India. In 2008, GfK and the CEA will provide detailed reports and forecasts on global consumer electronics markets; answering crucial questions on which business opportunities are arising from consumer expenditure, in which countries/ regions market potential lies, future predictions for electronics goods and many more. As well as providing global information on expenditure in the TCE market, GfK and the CEA will support retailers and manufacturers in thinking globally and acting locally, to ensure companies have the latest knowledge on market trends in different countries and regions. +++
about the cea The Consumer Electronics Association (CEA) is the pre-eminent trade association promoting growth in the $148 billion U.S. consumer electronics industry. More than 2,200 companies are CEA members. Services include legislative
advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. The CEA also sponsors and manages the International CES – where Entertainment, Technology and Business converge. All profits from CES are reinvested into CEA‘s industry services.
For all enquiries concerning GfK‘s collaboration with the CEA, please contact : Antony Rode, Market Manager Digital Convergence Tel: +33 1 4714 4400 E-mail:
[email protected] Over $660 USD billion global Technical Consumer Equipment expenditure in 2008*
* Source GfK / CEA, forecast 2008
GfK Retail and Technology
GfK tracking b2b IT Nothing illustrates better the continuing importance of the business segment to the health of the IT sector than the recent decision by Dell to launch a high volume charm offensive towards the B2B channel. Complementing retail channels by offering dedicated solutions to software houses and Value Added Resellers - this is the job of the GfK B2B Information Technology team. Pascal Bollon, GfK‘s Global IT Director, tells us more. GfK contact Pascal Bollon Global Director Information Technology Tel.: +44 870 603 8100
[email protected] Q). why GfK retail and technology in the business channel? “Not only does GfK have a sample of over 2000 across the EMEA region in dealers and VARs alone, but each country has at least one channel specialist, working with a clear focus and drive set by a regional team headed by Steve Bambridge and building on a track record that spans two decades. The answers we provide are unique: as usual, GfK is the “frontline” data provider, more interested in the channel reality than the latest “buzz”. Moreover, as a demonstration of our commitment to the channel we provide active support for trade associations, buying groups and other organisations supporting the activities of the channel, providing information and insights in a variety of ways.“
GfK contact Steve Bambridge B2B IT Channel Manager EMEA Tel.: +44 870 603 8100
[email protected] Q). why the channel? “While many IT vendors sell directly to their largest custmers, they do not have the skills or resources to reach every possible customer: the channel therefore not only acts as the melting pot for their many and varied offerings, it is also the natural way to reach out to the small and medium business community, which according to the EU, still accounts for 99% of all businesses, 67% of private sector employment and 57% of overall value added. Reaching out to 23 million customers - that is the role of the channel.“
“The Channel Survey International, [...] offers unique insights into the activities and views of both specialist retailers and B2B IT solution providers.“
Newsletter 1-2008
Page
Q). How is GfK meeting the needs of the B2B IT channel? “The only way for GfK to build strong relationships is by providing relevant information. GfK offers a wealth of information on IT sales trends within the B2B IT channel (see Chart 1) and beyond that on the wider trends within IT, Telecommunications, and Consumer Electronics. More specifically, we now have the GfK TopView report, developed for the B2B IT channel to provide rapid and easy access to top line market information across the IT space. To help with competitive positioning we can also provide channel benchmark reports. In addition, GfK also carries out a survey across our sample, and beyond it, that is now highly regarded as a ”State of the Nation” on everything ”corporate”: The Channel Survey International, now spanning over 20 countries across EMEA and 6000 IT solution providers, offers unique insights into the activities and views of both specialist retailers and B2B IT solution providers, including how they interface with IT distributors.“
*
**
Chart 1: Sales units, PCs, Q4 2007 (Source GfK, *WEU6 = Germany,
France, UK, Italy, Spain, Netherlands, **CEE5 = Russia, Poland, Ukraine, Czech Republic, Turkey)
Q). what can we expect to see from gfk in The Future? “Just like the channel, the GfK B2B IT team is constantly adapting its focus, offer and services: this year we will introduce Total Business Reporting, an application of the Total Store Concept, adapted to meet the needs of the channel. For the first time GfK will be able to offer information on the real share of sales of different types of service, hardware and software coming out of the channel - not based on “insights”, but measured. The GfK Channel Survey suggests that added value services make up an increasing proportion of the revenue generated by IT Resellers and in some Western European countries account for more than 40% of all revenues. With Total Business Reporting, GfK Retail and Technology will able to give a bird’s eye view of the business reality in 2008.“
GfK Retail and Technology
4th GfK Optics Conference european optics market OPTICIANS: Products Chart 1: Opticians Products, Europe 5, Value Trends 2007 vs. 2006 (Source GfK)
Newsletter 1-2008
Page
GfK began auditing Optics products in 1990. As well as tracking the sales of eye care products such as corrective ophthalmic lenses and contact lenses, GfK also tracks fashion accessories such as sunglasses and frames, which are playing an increasingly significant role in the Optics industry worldwide. The GfK Optics Conference is an annual event, sharing GfK and guest speaker insights on this industry. With the majority of Optics retail panels tracking European countries until 2007, GfK took an important step towards providing a fully global service offering last year, by establishing retail panels in key Asian countries such as China and Japan. GfK market estimates for China alone show the significance of Asian markets – around 75 million pairs of spectacles (i.e. a frame fitted with an ophthalmic lens) were sold through Chinese optical retailers in 2007. Combined with contact lenses, the industry is worth $1.94 billion.
Spectacle Lenses
Care Products
Sunglasses
Contact Lenses
Frames
OPTICIANS: Countries Chart 2: Opticians Countries, Europe 5, Value Trends 2007 vs. 2006 (Source GfK)
Under the themes “Technology, Fashions, Emotions Worldwide”, the 4th GfK Optics Conference will take place on 9th May in Milan, Italy. GfK’s global Division Manager for Optics, Carlo Abbiati, will host this event in line with one of the world largest Optics shows, Mido Italy – the International Optics, Optometry and Ophthalmology Exhibition. Register for the conference online at: http://www.gfk.it/opconf.html, or contact Carlo Abbiati and his team for more information: Carlo Abbiati Global Director Optics Tel: +39 02 8550 51 E-mail:
[email protected] Technology * Fashion * Emotions worldwide
http://www.gfk.it/opconf.html
Sunglasses in trend: Optics increasingly recognised as a fashion accessory.
GfK Retail and Technology
diy: expanding in italy At Practical World 2008 in March, GfK Retail and Technology provided the first international overview of turnover in DIY Superstores available in the industry (see Chart 1). Results for France are set to follow by the end of 2008.
GfK contacts Markus Wittmann Global Director DIY Tel.: +49 911 395 2222
Newsletter 1-2008
Page
by December 2007 (Christmas period) reaching nearly € 270 million in turnover. The Do It Yourself market segment (e.g. Powertools, Handtools, Coating Material, Building Chemistry etc.) has been the most important market segment throughout the whole year in Italy. In August 2007, this market segment achieved the best performance with more than 55% market share in value terms. In other words, the Do It Yourself segment produced more than half of the turnover of the DIY Superstores in August. The Gardening segment became the second strongest market segment in April 2007, with 21.8% market share in value. However this fell to 5.4% at the end of the year. The opposite situation occurred in the Household Appliances segment. In fact, this segment demonstrated its best performance in December 2007 with an 8% market share.
New product groups
[email protected] Chart 1: Turnover in DIY Superstores across Europe, 2007 (Source GfK)
Igor De Biasio Gardening Products Italy +39 02 8550 5251
In January 2007, GfK Italy began auditing the sales within the DIY Superstores channel (580 Point of Sales) in order to provide macro information about the most important categories (see Chart 2).
In addition to the service offering available in 2007, GfK Italy also began auditing more then 50 product groups from January 2008 within the following categories (on a monthly basis): Gardening, Power Tools, Measuring Tools, Decoration, Renovation, Drive Technology and Lighting.
In 2007, the Italian DIY market achieved a turnover of more than € 2.7 billion. Clear seasonality peaks could be seen during the year: The most profitable month was August 2007 (corresponding to the holiday period in Italy) with almost € 300 million in turnover, followed
GfK Italy is now able to provide clients with information regarding volume and value trends, features, brand market share, best sellers, as well as model hit lists for the 50 additional products groups; giving clients are more detailed view of the Italian DIY market.
[email protected] Fabrizio Marazzi Renovation/Decoration Products Italy +39 02 8550 5235
[email protected] Ivano Garavaglia Power Tools/Measuring Tools/Drive Technology/ Lighting Italy +39 02 8550 5302
[email protected] Chart 2: 2007 Turnover in DIY Superstores, Italy (Source GfK)
Newsletter 1-2008
GfK Retail and Technology
Page
news extra: GfKRT worldwide at a glance Mgt. Board mandate
investing in Oceania
February 2008 - The GfK Supervisory Board has extended the GfK Group Management Board mandate of Dr. Gérard Hermet, COO of GfK Retail and Technology, by a further five years until 31st December, 2013. Under Hermet‘s management, GfK Retail and Technology has expanded worldwide; with GfK companies now supplying key retail companies and online sales organisations with data from over 70 countries. Dr. Gérard Hermet has been active in the market research industry for almost 30 years. He holds an MBA from the ICN Business School in Nancy, France and a PhD in Economic Sciences from the University of Grenoble, France. His career began in 1978 with Burke Marketing Research in Paris, before joining GfK France six years later as Managing Director. He joined the GfK Management Board on 1st January 1999. Dr. Gérard Hermet was president of the AFM (French Association of Marketing) frrom 1998-2000 and Vice President of EMAC (European Marketing Academy) between 2003-2005. He is co-author of the book “The Market Share – Concept, Determination and Usage (Economica 1995) and is a member of the MSI (Marketing Science Institute) Board of Trustees. GfK contact Petra Bickel Tel. +49 911 395 3030
[email protected] February 2008 - GfK Retail and Technology has established its first office in New Zealand with GfK’s Johan Lagerholm appointed as Country Manager.
GfK has been conducting research in New Zealand for ten years, however up until 2008 this has been managed by the Sydney office. A physical presence in the country will ensure that GfK can now realise the full commercial potential of New Zealand. Several New Zealand markets are already being measured using the GfK retail panel; including Entertainment, Consumer Electronics, Imaging/Photo, IT and Small Domestic Appliances, which are all tracked on a monthly or a weekly basis. All major retailers based in New Zealand participate in the panels by providing EPOS data, giving a highly accurate and detailed picture of market movements. Telecommunication is set to become the next sector tracked by GfK. Additional weekly reports will also be launched, providing a tactical complement to the more strategic monthly reporting. GfK contact Johan Lagerholm Tel. +64 9 918 7950
[email protected] New watch panel in europe February 2008 - GfK Retail and Technology has extended it‘s service offering in France by acquiring the watch panel of the French market research company, Société V, on 21st February 2008. The Société V watch panel was established 15 years ago. With this acquisition, GfK Retail and Technology
is now able to track the watch market in France, in addition to in Germany, Italy and more recently in the UK (from September 2007). GfK tracks watch markets within it‘s Fashion sector, in addition to Accessories, Home Textiles, Jewellery, Luggage and Textiles. GfK contact france GfK contact fashion Frédéric Wasson Marion Knoche Tel. +33 1 47 14 44 40 Tel. + +49 911 395 2414
[email protected] [email protected] Newsletter 1-2008
GfK Retail and Technology
Page
Conferences and Events GfK Retail and Technology attended several key events during the first quarter of 2008. The year kicked off in the USA at the world’s largest Consumer Electronics show, the International CES in Las Vegas. In February, GfK attended international events in Europe in the sectors Retail Services and Telecommunications. And in March, GfK visited the International DIY fair, Practical World, in Germany for the first time and held a business seminar at the Photo Imaging Expo in Japan. For the third year running GfK was active at the International CES in Las Vegas from 7th - 10th January 2008. GfK experts Claude Floch and Oliver Malandra shared their insights on the impact of multifunctionality on the digital consumer and Jürgen Boyny, Global Director for Consumer Electronics, spoke at the CE Supply Chain Academy. We look forward to seeing you at next year’s event from 8th – 11th January, 2009. Please contact GfK’s Lorna Duffy for more information (
[email protected], Tel.: +44 870 603 8100). The 14th Retail Summit, held in the Czech Republic, focussed on expansion in Retailing in Central and Eastern European countries. GfK’s Friedrich Fleischmann, Global Division Manager for Retail Services, participated in panel discussions on Nonfood Retail in CEE and Retail and the Internet. For more information contact: friedrich.fleischmann@ gfk.com, Tel.: +49 911 395 2372. Next year’s Retail Summit event will be held on: 3 - 4 February, 2009.
Content, also released figures on European countries’ entertainment download habits. Please contact GfK’s Lynne Henry to find out more (
[email protected], Tel.: +44 870 603 8100). Next year’s event will be held on 16 – 19 February 2009. GfK attended the DIY industry‘s major event, Practical World in Cologne, Germany, for the first time ever this year. The global DIY team, headed by Markus Wittmann, presented the first international overview for DIY turnover (see page 5) and took part in round table discussions on brands and the German DIY market. To find out more, please contact GfK’s Helena Oswald (
[email protected], Tel.: +49 911 395 2148). Visit us at the next Practical World from 28 February - 3 March, 2010.
GfK at the Photo Imaging Expo, PIE 2008
Q1 2008 was rounded off with a visit to Japan for the Photo Imaging Expo (PIE) 2008 on March 21st. Marion Knoche, Global Director for Imaging/ Photo, presented the latest global figures on the Digital Still Camera market – over 126 million DSCs were sold in 2007, which represents an impressive 18% increase on 2006. For more information about GfK at this event, please contact GfK’s Junko Koketsu (
[email protected], Tel.: +81 3 5350 4621). We look forward to seeing you at PIE 2009 from 26 - 29 March.
GfK at the GSMA Mobile World Congress
+++
The GSMA Mobile World Congress took place in Fira de Barcelona, Spain, from 11-14th February 2008. GfK presented the latest global figures on handset sales – over 1bn units in 2007! GfK m2, GfK’s specialist company for researching Mobile
A list of upcoming international events and conferences hosted or attended by GfK Retail and Technology can be found on our website, www.gfkrt.com.
Newsletter 1-2008
GfK Retail and Technology
Page
upcoming international events 2008 GfK at MEM 2008 - Location: Cannes, France
TELECOMMUNICATION
8 - 9 May
OPTICS
9 May
CONSUMER ELECTRONICS
10 June
- Booth, Speaker - GfK event contact: Lynne Henry:
[email protected] About this event: The MEM 2008 is the official annual event of the Mobile Entertainment Forum, an established international mobile entertainment conference and exhibition.
4th GfK Optics Conference - Location: Milan, Italy - GfK event contact: Carlo Abbiati:
[email protected] About this event: GfK will present the current market and future trends of the international optics industry. Register online at http://www.gfk.it/opconf.html
GfK International CE Conference - Location: Munich, Germany - GfK event contact: Petra Merk:
[email protected] About this event: At this GfK hosted Consumer Electronics event we will highlight the impact of environmental issues on Consumer Electronics products. Event website: www.cec2008-gfk.com
GfK RT 1-2008 GfK Retail and Technology GfK Marketing Services Nordwestring 101 90319 Nuremberg Germany Tel.: +49 911 395-0 Fax: +49 911 395-4046 Web: http://www.gfkrt.com Editor: Helen Proctor E-Mail:
[email protected] © 2008 GfK Retail and Technology
The global GfK Retail and Technology newsletter Algeria Argentina Australia Austria Bahrain Belgium Botswana Brazil Bulgaria Cambodia Canada Chile China Croatia Cyprus Czech Republic Denmark Egypt Estonia
Finland France Germany Greece Hong Kong Hungary India Indonesia Iran Ireland Israel Italy Japan Jordan Korea Kuwait Latvia Lebanon Lithuania
Malaysia Morocco Mexico Namibia Netherlands New Zealand Nigeria Oman Pakistan Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Singapore Slovakia Slovenia
South Africa Spain Sweden Switzerland Syria Taiwan Tanzania Thailand Tunisia Turkey UAE Uganda Ukraine United Kingdom USA Vietnam Yemen