Consumers’ purchases of computers, mobile phones to dip, newer gadgets to soar

A new Accenture survey predicts that consumer purchase rates for personal computers and mobile phones (excluding smartphones) will decline by 39 % and 56 % this year compared with last year, respectively. By contrast, buying rates of 3DTVs (three-dimensional TVs) are expected to rise 500 %; tablet computers 160 %; ebook readers 133 %; and smartphones 26 %.

The annual survey focused on usage and spending on 19 different consumer electronics technologies among more than 8,000 consumers in eight countries in both emerging markets and developed economies: Brazil, China, India, Russia, France, Germany, Japan and the United States.  Survey respondents in emerging countries represent key urban markets rather than the population as a whole.

The survey found that only 17 % of survey respondents plan to buy a desktop or laptop computer in 2011-- a 39 % drop from 2010.  Tracking with this trend, the survey revealed that 75 % of U.S. survey respondents emailed each week from their PCs in 2010, down from 80 % the year before. The research also showed that respondents are using multiple devices such as tablet PCs for activities that used to be done on traditional PCs.  For example, on at least a weekly basis, 40 % of the respondents email from a tablet PC. In addition to checking email, respondents are using tablet PCs for browsing the web, watching videos and reading books, newspapers and magazines.

 “The research findings raise the question as to whether, in the long run, desktop and laptop PCs in the home will be increasingly replaced by a group of newer technology alternatives such as tablet computers, netbooks, smartphones and e-book readers,” said Kumu Puri, senior executive with Accenture’s Electronics & High-Tech Practice. “If strength is measured by unit sales, the computer will remain the strong consumer technology giant for many years. Our research found that 93 % of survey respondents own a computer—a higher proportion than any of the 19 technologies included in the survey. But if measured by growth rate, the PC market--at least for consumers--has reached a level of saturation and will continue to see diminished growth rates. There’s increasing potential for an end in sight for the relevance of the personal computer in the home as we know it today.”

The research also found that ownership of basic mobile phones dropped from 79 % in 2009 to 65 % in 2010. In the same period, ownership of smartphones quadrupled from eight % to 32 %. In the survey, mobile phones were described as having basic voice capability but not the enhanced features available on smartphones, such as surfing the Internet.

3D TVs

Unlike purchases of PCs and mobile phones, purchase rates of 3D TVs are expected to grow this year at the fastest rate--500 %—of all 19 technologies included in the survey.  As consumer electronics companies consider ways to increase demand for 3D TVs, price emerged as the biggest lever for driving greater interest in this new technology product.  According to the survey, 57 % of respondents said they would be more inclined to buy a 3D TV if the price were within their budget.  Finding this price point was more significant among respondents under 24 years old (64 %) than respondents who were older (50 %).  Other factors respondents said would make them more inclined to buy a 3D TV included having greater availability of 3D content and not having to wear 3D glasses.

Among respondents in all eight countries surveyed, Chinese consumers were among the most enthusiastic purchasers and users of the latest consumer technologies. While two % to three % of respondents in most countries own a 3D TV, twice that many Chinese respondents say they own one. Sixty-nine % of the nation’s respondents want or plan to own a 3D TV, compared with only one-fourth of U.S. consumers and one-fifth of Japanese consumers.

Chinese respondents are big users of smartphones, the survey revealed.  More than half (53 %) of Chinese respondents currently own a smartphone versus one-third of U.S. respondents.  Furthermore, smartphones are predicted to be the most purchased device in China next year, with 38 % of those surveyed planning to buy one.

The survey, conducted in October and November of 2010, sought to cover a demographically representative sample across all geographies. The annual research began as a U.S. study in 2008 and grew to a global study in 2010. For the 2011 report Accenture conducted a quantitative online consumer study consisting of surveys of 8,002 consumers in eight countries: Brazil, China, France, Germany, India, Japan, Russia and the United States. In Brazil, China, India and Russia the sample is representative of urban and semi-urban populations. Survey respondents were asked about the following 19 technologies: computers, mobile phones, digital photo cameras, DVD players, regular TV, high definition TV, portable music players, game consoles, VCRs, smartphones, GPS, digital video cameras, portable gaming devices, digital video recorders, netbooks, BluRay players, tablet computers, ebook readers, and 3D TVs. To calculate the change in annual purchasing rates, Accenture first subtracted the %age who purchased in 2010 from the % who intend to buy in 2011. That total was divided by the %age who purchased in 2010.

Younger, digitally engaged consumers exhibit upscale shopping behavior

Consumers who are single tend to have a higher disposable income and this audience represents significant buying power for luxury brands.

A study by International Demographics titled “The Media Audit” reveals that social media Web sites such as Facebook and Twitter have reached critical mass with consumers who are in important life stages. “Younger people are more digitally engaged,” said Milton Pedraza, CEO of The Luxury Institute, New York. “They have more time than older people with families and over time, as people get older, they have less time to use Facebook and Twitter.”International Demographics develops syndicated research studies for the marketing, communications and media industries.

The study was conducted among 65,000 consumers, skewing more towards those who are younger and single, or who have young children living at home who frequently visit Facebook and Twitter.According to The Media Audit report, 51 percent of U.S. adults surveyed have visited Facebook or Twitter in the last month.However, among adults who are under 35 and single with no child, 80 percent have visited these sites.The report also reveals that these same adults have extremely active lifestyles and exhibit upscale shopping behavior.

In addition, these single consumers are less likely to own a home, which in turn, frees up more income.

According to the study, this group is 25 percent more likely than the general population to shop at Neiman Marcus and 20 percent more likely to shop at Nordstrom.Adults who are under 25, with no children and single are 12 percent less likely to be heavily exposed to outdoor billboards, 52 percent less likely to be heavily exposed to a newspaper and 13 percent less likely to be heavily exposed to television.Age plays a major role in how likely a person is to engage in social media, but important demographic characteristics also matter.Life stages of a consumer and their ability to use social media, as well as their concerns as shoppers, make them of interest to marketers.

Even though young, single consumers without children are more likely to shop at upscale retailers than the general population, Mr. Pedraza believes they are not the most important customers.  “One thing I would guarantee is that they are not likely to spend more than people in their 40s and 50s,” Mr. Pedraza said. “They are probably likely to have a lower transaction spend than the older population. They are not the heavy buyers.

 “They may be more likely to shop at these department stores,” he said. “But by no means are they the most important shoppers at these stores.”