Table of Contents
Consumer Electronics in Australia - Industry Overview
EXECUTIVE SUMMARY
Price deflation in consumer electronics
Online retailing presents compelling offer to consumers
Convergence of product functionality
Portability is paramount
Visual quality stretches into the next frontier
KEY TRENDS AND DEVELOPMENTS
Wide adoption of online shopping
Social media and networking
Product convergence
Strength of Australian dollar drives prices down
Specialist retailers
Summary 1Leading Specialist Retailers 2010
MARKET DATA
Table 1Sales of Consumer Electronics by Category: Volume 2005-2010
Table 2Sales of Consumer Electronics by Category: Value 2005-2010
Table 3Sales of Consumer Electronics by Category: % Volume Growth 2005-2010
Table 4Sales of Consumer Electronics by Category: % Value Growth 2005-2010
Table 5Consumer Electronics Company Shares 2006-2010
Table 6Consumer Electronics Brand Shares 2007-2010
Table 7Sales of Consumer Electronics by Distribution Format 2005-2010
Table 8Forecast Sales of Consumer Electronics by Category: Volume 2010-2015
Table 9Forecast Sales of Consumer Electronics by Category: Value 2010-2015
Table 10Forecast Sales of Consumer Electronics by Category: % Volume Growth 2010-2015
Table 11Forecast Sales of Consumer Electronics by Category: % Value Growth 2010-2015
SOURCES
Summary 2Research Sources
Consumer Electronics in Australia - Company Profiles
Altech Computers Corp Pty Ltd in Consumer Electronics (Australia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Harvey Norman Holdings Ltd in Consumer Electronics (Australia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 1Harvey Norman Holdings Ltd: Harvey Norman in Australia (View 1)
Chart 2Harvey Norman Holdings Ltd: Harvey Norman in Australia (View 2)
INTERNET STRATEGY
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 7Harvey Norman Holdings Ltd : Competitive Position 2010
JB Hi-Fi Ltd in Consumer Electronics (Australia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 3JB Hi-Fi Ltd: JB Hi-Fi in Elizabeth Street, Melbourne (View 1)
Chart 4JB Hi-Fi Ltd: JB Hi-Fi in Elizabeth Street, Melbourne (View 2)
INTERNET STRATEGY
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 10JB Hi-Fi Ltd : Competitive Position 2010
Multimedia Technology Pty Ltd in Consumer Electronics (Australia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Camcorders in Australia - Category Analysis
HEADLINES
TRENDS
Camcorders is seeing negative value growth, as it has been experiencing significant challenges, particularly in relation to tightened customer spending on discretionary products, category deflation and the effects of the high Australian dollar.
COMPETITIVE LANDSCAPE
Sony Australia retained the leading position in camcorders in 2010. The company has very strong brand equity in this category derived mainly from the Handycam brand, a brand which has become synonymous with camcorders. Handycam continues to target the growing number of devices to create video blogs or amateur videos, which are then uploaded to YouTube. The company has created aggressive marketing platforms to encourage content creation through video blogging as a route to promote its product.
PROSPECTS
The category is predicted to turn in a weaker performance over the 2010-2015 forecast period. Volume sales are anticipated to decline at a CAGR of 14%, while a negative CAGR of 9% in constant value terms is expected between 2010 and 2015. The value decline is driven by the strengthening Australian dollar forcing imports to be cheaper. At the same time, the category will face price deflation due to intensifying competition from the online channel.
CATEGORY DATA
Table 12Sales of Camcorders by Category: Volume 2005-2010
Table 13Sales of Camcorders by Category: Value 2005-2010
Table 14Sales of Camcorders by Category: % Volume Growth 2005-2010
Table 15Sales of Camcorders by Category: % Value Growth 2005-2010
Table 16Camcorders Company Shares 2006-2010
Table 17Camcorders Brand Shares 2007-2010
Table 18Sales of Camcorders by Distribution Format 2005-2010
Table 19Forecast Sales of Camcorders by Category: Volume 2010-2015
Table 20Forecast Sales of Camcorders by Category: Value 2010-2015
Table 21Forecast Sales of Camcorders by Category: % Volume Growth 2010-2015
Table 22Forecast Sales of Camcorders by Category: % Value Growth 2010-2015
Cameras in Australia - Category Analysis
HEADLINES
TRENDS
Consistent with most consumer electronics categories, cameras is seeing negative value growth, as it has been experiencing significant challenges, particularly in relation to tightened customer spending on discretionary products, category deflation and the effects of the high Australian dollar.
COMPETITIVE LANDSCAPE
Within cameras, Canon holds the highest volume share of 23%. The company leads as it competes successfully in both the compact and DSLR categories. The company has an extensive distribution network that spans across all key channels.
PROSPECTS
Encouragingly for cameras, the development of the Mirrorless Interchangeable Lens Camera (MILC) category has prompted some volume growth. MILC is an emerging class of digital cameras, intermediate between compact digital cameras and digital single-lens reflex cameras (DSLR). Manufacturers and consumers see this class of cameras as ‘disruptive technology’ as MILC is able to deliver high image quality with a compact camera size. The development has encouraged consumers to upgrade from compact cameras to MILC with some manufacturers reporting strong growth since launch. Consumers are feeling more positive about the economy post-GFC and are more willing to purchase higher priced items. Prices for MILC have started to decline to be comparable with entry-level DSLRs.
CATEGORY DATA
Table 23Sales of Cameras by Category: Volume 2005-2010
Table 24Sales of Cameras by Category: Value 2005-2010
Table 25Sales of Cameras by Category: % Volume Growth 2005-2010
Table 26Sales of Cameras by Category: % Value Growth 2005-2010
Table 27Cameras Company Shares 2006-2010
Table 28Cameras Brand Shares 2007-2010
Table 29Sales of Cameras by Distribution Format 2005-2010
Table 30Forecast Sales of Cameras by Category: Volume 2010-2015
Table 31Forecast Sales of Cameras by Category: Value 2010-2015
Table 32Forecast Sales of Cameras by Category: % Volume Growth 2010-2015
Table 33Forecast Sales of Cameras by Category: % Value Growth 2010-2015
Computers and Peripherals in Australia - Category Analysis
HEADLINES
TRENDS
The key highlight for 2010 was the launch of Apple’s iPad. It revolutionised the way consumers use computers as it provided superior portability, connectivity and content. Its lifestyle-led brand proposition and market leading product design elements all lead to a huge media and consumer following. This led to fast product adoption and won many new iPad fans over.
COMPETITIVE LANDSCAPE
In computers, Hewlett-Packard Australia Pty Ltd through its HP and Compaq brands led sales in 2010 with a 29% share. It managed to acquire a broad distribution channel that allows the brands to be present in major retailers. Pricing was also kept very competitive to encourage trade up and switching.
PROSPECTS
The forecast trend is for portable computers to lead category growth. Tablets will be the key product driving growth during the forecast period. This growth sits on the back of changing consumer needs where the ability to be connected and allowing one to communicate and access the internet anywhere and anytime is a fast emerging consumer habit.
CATEGORY DATA
Table 34Sales of Computers and Peripherals by Category: Volume 2005-2010
Table 35Sales of Computers and Peripherals by Category: Value 2005-2010
Table 36Sales of Computers and Peripherals by Category: % Volume Growth 2005-2010
Table 37Sales of Computers and Peripherals by Category: % Value Growth 2005-2010
Table 38Computers and Peripherals Company Shares 2006-2010
Table 39Computers and Peripherals Brand Shares 2007-2010
Table 40Sales of Computers and Peripherals by Distribution Format 2005-2010
Table 41Forecast Sales of Computers and Peripherals by Category: Volume 2010-2015
Table 42Forecast Sales of Computers and Peripherals by Category: Value 2010-2015
Table 43Forecast Sales of Computers and Peripherals by Category: % Volume Growth 2010-2015
Table 44Forecast Sales of Computers and Peripherals by Category: % Value Growth 2010-2015
Home Audio and Cinema in Australia - Category Analysis
HEADLINES
TRENDS
Consumers have a strong preference for products which have appealing form factor, built-in with multiple features, space efficient and of good value. As such, home cinema and speaker systems and other home audio and cinema which are usually well designed are growing strongly in value and volume. In contrast, audio separates and speakers which tend to be conservative in design enhancement and lack the multifunction built-ins are seeing, declined in volume and value sales.
COMPETITIVE LANDSCAPE
Panasonic has just tipped Sony to lead sales in 2010. Panasonic’s share of volume is 20% versus Sony’s 19% in 2010. Panasonic has been successful in bundling its sales of home cinema and speaker systems with TV sales. These bundles create a compelling value proposition for consumers and resulted in positive sales for Panasonic.
PROSPECTS
Consumers will be looking for ways to integrate devices and have each device working with another in a fuss-free and seamless manner. In that sense, docks and home cinema and speaker systems allow for that combination. During the forecast period, it is anticipated that devices will communicate with each other with much greater ease through wireless or near-field technology.
CATEGORY DATA
Table 45Sales of Home Audio and Cinema by Category: Volume 2005-2010
Table 46Sales of Home Audio and Cinema by Category: Value 2005-2010
Table 47Sales of Home Audio and Cinema by Category: % Volume Growth 2005-2010
Table 48Sales of Home Audio and Cinema by Category: % Value Growth 2005-2010
Table 49Home Audio and Cinema Company Shares 2006-2010
Table 50Home Audio and Cinema Brand Shares 2007-2010
Table 51Sales of Home Audio and Cinema by Distribution Format 2005-2010
Table 52Forecast Sales of Home Audio and Cinema by Category: Volume 2010-2015
Table 53Forecast Sales of Home Audio and Cinema by Category: Value 2010-2015
Table 54Forecast Sales of Home Audio and Cinema by Category: % Volume Growth 2010-2015
Table 55Forecast Sales of Home Audio and Cinema by Category: % Value Growth 2010-2015
In-Car Entertainment in Australia - Category Analysis
HEADLINES
TRENDS
New car sales in 2010 increased over the previous year. Consumers have gained back some confidence post-GFC and have started to purchase bigger ticket items which they had previously put on hold. The strength of the Australian dollar has allowed car distributors to provide deep discounting hence further encouraging new car sales. This has resulted in sustained growth in other in-car entertainment devices such as amplifiers as consumers spend to enhance their existing audio/video systems.
COMPETITIVE LANDSCAPE
Within in-car entertainment, Pioneer Australia holds the highest volume share of 18%. The company leads in volume share for both in-dash media players as well as in-car speakers. Pioneer always had a high standing and strong reputation in car audio and visual equipment among in-car entertainment enthusiasts. It places high emphasis on product innovation and leads the market in audio and visual reproduction.
PROSPECTS
The category is expected to perform moderately over the forecast period. Volume sales are anticipated to grow at a CAGR of 5% while a negative constant value CAGR of 3% is expected over the forecast period. The value decline is driven by the strengthening Australian dollar forcing imports to be cheaper. At the same time, the category will face price deflation due to intensifying competition from the online channel.
CATEGORY DATA
Table 56Sales of In-car Entertainment by Category: Volume 2005-2010
Table 57Sales of In-car Entertainment by Category: Value 2005-2010
Table 58Sales of In-car Entertainment by Category: % Volume Growth 2005-2010
Table 59Sales of In-car Entertainment by Category: % Value Growth 2005-2010
Table 60In-car Entertainment Company Shares 2006-2010
Table 61In-car Entertainment Brand Shares 2007-2010
Table 62Sales of In-car Entertainment by Distribution Format 2005-2010
Table 63Forecast Sales of In-car Entertainment by Category: Volume 2010-2015
Table 64Forecast Sales of In-car Entertainment by Category: Value 2010-2015
Table 65Forecast Sales of In-car Entertainment by Category: % Volume Growth 2010-2015
Table 66Forecast Sales of In-car Entertainment by Category: % Value Growth 2010-2015
Mobile Phones in Australia - Category Analysis
HEADLINES
TRENDS
Feature phones are increasingly being replaced by smartphones as consumers are drawn to the extensive applications available to engage and entertain. Telecommunication providers drive aggressive programs to lock consumers into mobile phone plans contracted over 24 months by dangling the latest smartphone at zero cost or for a token price.
COMPETITIVE LANDSCAPE
In the overall mobile phone category, Nokia leads with a 38% volume share, followed by Samsung with 25% and Apple with 13%. Nokia and Samsung strengthened their positions in feature phones with volume shares of 43% and 33%, respectively. Within smartphones, Nokia has 33% volume share, followed by Apple with 27% and Samsung with 16%.
PROSPECTS
The category is expected to turn-in a good performance over 2010-2015. Volume sales are anticipated to increase at a CAGR of 2% while a constant value CAGR of 6% is expected over the forecast period. The strong growth is supported by the rise of smartphones.
CATEGORY DATA
Table 67Sales of Mobile Phones: Volume 2005-2010
Table 68Sales of Mobile Phones: Value 2005-2010
Table 69Sales of Mobile Phones: % Volume Growth 2005-2010
Table 70Sales of Mobile Phones: % Value Growth 2005-2010
Table 71Mobile Phones Company Shares 2006-2010
Table 72Mobile Phones Brand Shares 2007-2010
Table 73Sales of Mobile Phones by Distribution Format 2005-2010
Table 74Forecast Sales of Mobile Phones: Volume 2010-2015
Table 75Forecast Sales of Mobile Phones: Value 2010-2015
Table 76Forecast Sales of Mobile Phones: % Volume Growth 2010-2015
Table 77Forecast Sales of Mobile Phones: % Value Growth 2010-2015
Portable Media Players in Australia - Category Analysis
HEADLINES
TRENDS
Value sales of portable media players grew by 5% in 2010. The growth is a result of continued consumer need for portability and accessing information on-the-go. The great value of gadgets like E-readers also encouraged purchase. The introduction of iPod Touch has reinvigorated the portable multimedia player segment and redefined the category substantially.
COMPETITIVE LANDSCAPE
Overall in the portable media player category, Apple held the largest volume share in 2010 of 60%. Its leadership in the other categories include a 34% volume share in portable MP3 players and an 83% volume share in portable multimedia player.
PROSPECTS
The category is predicted to turn in a moderate performance over 2010-2015. Volume sales will increase at a CAGR of 3%, while a constant value CAGR of 1% is expected over the forecast period. The strong growth in portable multimedia players and E-Readers are normalized by declines in portable MP3 players and other portable media players.
CATEGORY DATA
Table 78Sales of Portable Media Players by Category: Volume 2005-2010
Table 79Sales of Portable Media Players by Category: Value 2005-2010
Table 80Sales of Portable Media Players by Category: % Volume Growth 2005-2010
Table 81Sales of Portable Media Players by Category: % Value Growth 2005-2010
Table 82Portable Media Players Company Shares 2006-2010
Table 83Portable Media Players Brand Shares 2007-2010
Table 84Sales of Portable Media Players by Distribution Format 2005-2010
Table 85Forecast Sales of Portable Media Players by Category: Volume 2010-2015
Table 86Forecast Sales of Portable Media Players by Category: Value 2010-2015
Table 87Forecast Sales of Portable Media Players by Category: % Volume Growth 2010-2015
Table 88Forecast Sales of Portable Media Players by Category: % Value Growth 2010-2015
Televisions and Projectors in Australia - Category Analysis
HEADLINES
TRENDS
The digital switch over is being phased in from 2010, lasting till 2013. Consumers who are not digital-ready are making last minute purchases to meet the timeline. This has stimulated sales of LCD TVs in particular. LCD TVs grew fastest in volume, recording 30% growth compared to 2009. It is clearly the preferred choice over plasmas TV due to its price advantage.
COMPETITIVE LANDSCAPE
Samsung leads LCD TVs in 2010 as it combines aggressive pricing with heavy trade promotion that encourages consumers to select the brand. The brand stands out as it is considered to be reliable and known to be of good quality. It is in a sweet spot as unlike the less known brands, Samsung is well regarded in consumers’ considerations. Consumers are willing to pay a slight premium over the unknown brands. Its form factor and overall design is considered to be market leading, suited to being a stylish addition to any home.
PROSPECTS
Volume and constant value CAGRs over the forecast period are projected to be negative. It is forecasted that volume will decrease by 1% and value by 5% in CAGR terms.
CATEGORY DATA
Table 89Sales of Televisions and Projectors by Category: Volume 2005-2010
Table 90Sales of Televisions and Projectors by Category: Value 2005-2010
Table 91Sales of Televisions and Projectors by Category: % Volume Growth 2005-2010
Table 92Sales of Televisions and Projectors by Category: % Value Growth 2005-2010
Table 93Sales of LCD TVs by Type 2009-2010
Table 94Sales of Plasma TVs by Type 2009-2010
Table 95Televisions and Projectors Company Shares 2006-2010
Table 96Televisions and Projectors Brand Shares 2007-2010
Table 97Sales of Televisions and Projectors by Distribution Format 2005-2010
Table 98Forecast Sales of Televisions and Projectors by Category: Volume 2010-2015
Table 99Forecast Sales of Televisions and Projectors by Category: Value 2010-2015
Table 100Forecast Sales of Televisions and Projectors by Category: % Volume Growth 2010-2015
Table 101Forecast Sales of Televisions and Projectors by Category: % Value Growth 2010-2015
Video Players in Australia - Category Analysis
HEADLINES
TRENDS
The cost of data download has fallen dramatically over the last year of the review period due to the intense competition between telecommunication providers. Consumers, hence, are buying into generous data plans which encourage data download and streaming. Content on the internet is far richer than what the video stores or media retailers have. This has shifted how consumers acquire content; more are switching away from video disc to downloading video files. This trend is set to continue as consumers realise the convenience, the better value and wide selection available online.
COMPETITIVE LANDSCAPE
Panasonic, Samsung and Sony are the three key brands in BD players. Collectively, they make up about 75% volume share. These were the early innovators and were the first to introduce the BD player platform. Panasonic was especially key in supporting the Blu-ray platform over the HD DVD format. Panasonic leads with a 31% volume share in 2010, it has aggressive advertising and promotion to drive awareness for the platform. Trade support has been strong and retailers are incentivised to promote the brand.
PROSPECTS
The price of movie and TV show titles in the BD format is about 30% higher compared to DVD format. This is a deterrent for consumers to enter the BD platform. However, prices of discs in BD format are anticipated to fall significantly during the forecast period as its adoption and distribution increase. Movie titles are now being produced in both DVD and BD formats and this encourages equalisation in price over time.
CATEGORY DATA
Table 102 Sales of Video Players by Category: Volume 2005-2010
Table 103Sales of Video Players by Category: Value 2005-2010
Table 104Sales of Video Players by Category: % Volume Growth 2005-2010
Table 105Sales of Video Players by Category: % Value Growth 2005-2010
Table 106Video Players Company Shares 2006-2010
Table 107Video Players Brand Shares 2007-2010
Table 108Sales of Video Players by Distribution Format 2005-2010
Table 109Forecast Sales of Video Players by Category: Volume 2010-2015
Table 110Forecast Sales of Video Players by Category: Value 2010-2015
Table 111Forecast Sales of Video Players by Category: % Volume Growth 2010-2015
Table 112Forecast Sales of Video Players by Category: % Value Growth 2010-2015