UK Technology News- January 2012

No respite for CE markets, more optimism in IT     Dear Ms. Voisdie,     2011 has been an incredibly tough year for durable technology markets and all the signs are that this continues into 2012. Consumer confidence dropped again in December on the GfK index and is historically very low compared with 1992 and 2008/9. The impact of low confidence tends to be fewer shopping trips for non-essentials, this of course makes it especially difficult for electrical specialists, and delayed replacement of devices we already own which still work.   Consumer electronics (Audio and Video) has suffered the most and had an annual value drop of -14%, around £800 million loss at retail. This rate continues monthly and weekly into January. Causes include a mix of heavy price erosion, limited innovation and some cannibalisation (MP3 players by Smart Phones for example). There is some good cheer in that the very largest TVs continue to grow in sales, along with Soundbars, Headphones, TV Wall Mounts and Portable Digital Radios. The coming London Switchover and summer of sport will bring forward some sales of key devices into the first half of the year, bringing a much needed boost to a number of categories.   The IT Markets had a much better year with Value growth of just over 10%. This was driven by eReaders, Web Books, Storage and a number of accessories. Again heavy price erosion has been evident but the innovations have allowed growth nevertheless.   Photo has been mixed with a value decline in 2011 of -4%, simply put, the “point and shoot” category of the market is falling but the more expensive changeable lens sector grows in part compensation. Of course, the rise of the Smart Phone is partly the cause of this and the more than 15 million Smart Phones sold in 2011 have contributed to a substantial revenue transfer from players in MP3/Cameras to the players in the Telco sectors.   So, a mixed picture going into 2012, with Consumer Electronics being in an especially tough place. Innovation and 2012 events bring some room for optimism and an improvement in consumer confidence is also required.   Nigel Catlow Business Group Director GfK Retail and Technology UK Click here to see what events GfK RT UK are involved in over the next few months. Want up to date global market information on your market? Then sign up to GfK Retail and Technology News alerts now! Follow us on Twitter!       Mobile Accessories market continues to show growth     The total mobile accessories market grew in December to take the largest sales since January 2011. The main drive behind this increase in sales was the protection segment of the market, which is made up of cases and screen protectors. Another area which has experienced growth in the mobile accessories market is wired mobile headsets with a microphone, perhaps as consumers look to purchase headsets which allow both speech and the ability to listen to music through their smartphones.  more...       Looking back at 2011 for Consumer Electronics     As we move into 2012 we are able to look back on one of the most difficult trading periods that the retail industry has seen for more than a decade. The overall Consumer Electronics market has contracted by 14% in comparison to 2010, with the majority of the electronics categories feeling the effects of the continued economic downturn. Comparing the weekly figures (looking at a 5 week on 5 week comparison to minimise the disruption caused by the calendar changes), Consumer Electronics' market value fell by 15.7% compared to December 2010. This has been further hampered by faltering consumer confidence which fell to -31 points in November 2011.  more...       The hero for IT in 2011?...the webbook     2011 saw a wave of negativity sweep through the UK's economic landscape. Increases in VAT, a retracted level of spending, austerity measures from the Government, natural disasters across the globe, retail store closures, scandals across the media and riots; the likes of which had not been seen since the 80s. Perhaps, it is now time to take stock of what this really meant to the IT market in 2011?  more...       Contact  |  Unsubscribe  |  GfK Retail and Technology UK Copyright © 2012 GfK Retail and Technology UK   Published by GfK Retail and Technology UK, Sheer House, Station Approach, West Byfleet, Surrey KT14. Managing Director GfK UK: Ian McCann GfK Retail and Technology UK, Editor in Chief: Ami Brooks, Sheer House, Station Approach, West Byfleet, Surrey, KT14 6NL, Tel. +44 (0) 870 603 8247, Fax +44 (0) 870 603 8200, ami.brooks@gfk.com Reproduction or any other form of duplication only with the written permission of the publisher. All rights reserved. Newsletter powered by GfK SE Integrated Software Services.