UK Technology News- March 2012

Retail Overview     Dear Ms. Voisdie,     No joy yet for some Tech industries Little has changed in technical consumer goods markets in February with the market value dynamics of the last 6 months continuing to provide a good guide to current events. September 2011 - February 2012 % value change compared to the same six month period one year ago shows:- Consumer Electronics  -18% IT Retail                       +6% Photo                           -9% Small Domestic App.    +6% Major Domestic App.    +1%   There is some expectation that April will start to bring better news as new models, sporting events, and Easter start to have an impact. For now, the usual suspects are driving whatever growth there is in Digital Products; namely Tablets and E readers in IT, and Jumbo screens, Headphones and Soundbars in CE, Changeable Lens Cameras in Photo and Smart Phones. Most of what’s left are replacement markets where some consumers do not see sufficient innovation to replace what they currently own.   For retail the figures above tell most of the story in that multi category tech retailers, whilst not doing well, are the most insulated. Independents which tend to carry only CE and MDA, or worst still just CE, are having the most difficulty currently. Outside of IT and CE, internet growth continues, taking share from the High Street. For IT and CE, Internet % of business is typically static mirroring the overall market dynamics. Overall Internet % of total Tech business value is growing and we expect this to continue as more “portable shopping devices” are purchased.   The upcoming sporting events and digital switchover will help many markets as well as strong innovative product line ups should they appear in the next few months. 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!       Understanding Webbooks remains the key to the IT market     After a positive Christmas, February was a disappointing month for the tracked IT market, with a value decline of -1% compared to February 2011. Contrasting this, an Average Selling Price increase of 5% across all categories ameliorated the effect of a -6% fall in volume comparing the same time period. What this shows is that the key issue facing retailers and manufacturers throughout 2012 will be how best to navigate the changing IT landscape. An example of this is the places that consumers are choosing to shop, with Mass Merchandisers and CES retailers having had a more encouraging month, with 5% value growth February-on-February.  more...       Prepay market share at an all-time low     At the start of 2012, the growth of Smartphones shows no signs of abating, accounting for nearly two-thirds of total handset sales in February, and continuing to show double digit rates of growth year-on-year. The contract market is now over 90% smartphones, and with high spec handsets moving down the monthly price points, both through strong promotions on high end models, and the continued development of more affordable products, it seems likely that in the near future traditional feature phones will lose all presence in this sector.  more...       Will 2012 bring CE out of decline?     2011 has been dire for the Consumer Electronics industry with an annual value decline of -18.4% and February 2012 on February 2011 shows no improvement, with a value decline of -21%. The early weeks of March show a slight improvement, but nothing to get excited about. However, 2012 is set to provide a host of opportunities for the CE industry. There are a number of high profile events being broadcast including the Olympics, the European Championships and the Queen's Diamond Jubilee.  more...       Office Hardware projections aren't clear     The Office hardware market (excluding stationery and paper) has struggled to grow over the last year. March 2011 - February 2012 has seen a fall in market volume of -0.4% and a further fall of -3.9% in value terms on the March 2011 - February 2012 period. The current malaise in macro-economic factors has driven key office hardware segments into decline, e.g. Single Function Printers, Laser Cartridges, Scanners and Laminating systems. However, one key area which has continued to grow throughout the current downturn is that of Projectors.  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.