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Communications, Media & Technology

Igniting Growth in Consumer Technology

Italy Report - 2016 Edition

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Igniting Growth in Consumer Technology

The consumer technology industrys decade of unprecedented growth is coming to an end as the smartphone market hits maturity. The 2016 Accenture Digital Consumer Survey for communications, media and technology companies polled 28,000 consumers in 28 countries on their use of consumer technology. The global research indicates that consumer demand is sluggish across a number of categories from smartphones to tablets and laptops. And unfortunately, demand for the next generation of devices enabled by the Internet of Things (IoT) is not growing fast enough to offset declines in traditional categories.

Italian Report Summary:Innovation and security are the keys to unlock the new digital ecosystem

Purchase intent remains higher than other European countries Nearly half of the Italian respondents are satisfied with their current smartphone

and the ones that are planning to buy a new one are motivated mainly by innovative features and functionalities

Intelligent devices User Experience have significantly improved but price, risk and security are the top barriers to IoT adoption

The winners will be those who can ensure a superior customer experience simplifying the use of devices, build security and trust and work with their ecosystem partners to push disruptive innovation.

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About the 2016 Accenture Digital Consumer SurveySurvey methodology

1,000 respondents from each of the 28 countries

New countries included in the survey

Quantitative online consumer survey 28,000 interviews conducted across 28 countries Data collection by Harris Interactive

OctoberNovember 2015

Online population, 1455+ years of age

Male 14 to 17 years 35 to 44 years

18 to 24 years 45 to 54 years

25 to 34 years 55+ years

Female

Data collection

In-Field timeline

Respondents

Australia

Brazil

Canada

China

Czech Republic

France

Germany

Hungary

India

Indonesia

Italy

Japan

Mexico

Netherlands

Poland

Philippines

Romania

Russia

Saudi Arabia

Slovakia

South Africa

South Korea

Spain

Sweden

Turkey

UAE

UK

USA

5%

18%

26%20%

15%

16%53%47%

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1. Growth is stalling

Intelligent devices User Experience and adoption have improved but

...security is still an issue

Italians are early adopters with the highest adoption of:

Mobile payment services

Wearable devices

2. Innovative features are the Key to Unlock

3. Roadblocks to IoT adoption

91% already own a Smartphone. Italians have the highest penetration in the European market (EU 77%, Germany 82%, UK 77%)

42% are satisfied with smartphone and dont plan to replace it (Global 47%, Germany 51%, UK 54%)

57% use or plan to use mobile payment (Germany 29%, UK 30%)

20% plan to buy a fitness monitor (+7% points from 2015)

65% use it daily or weekly (48% average in Europe)

16% plan to buy a smartwatch (+5% points since 2015)

50% of those who are planning to buy a smartphone are motivated by innovative features and functionalities (Global 41%, Germany 37%, UK 39%)

ONLY 9% plan to increase spending on smartphones, tablets and laptops -20% points from 2014

64% believe that new IoT devices are too expensive especially for the later adopters

Executive Summary

72% are aware of the recent hacker attacks using IoT devices

66% of these say it will impact their use and purchase decisions

72% experienced a challenge when using their IoT device -22% points from 2015

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Purchase intent is stable or declining but in Italy it remains higher than other European countries

Figure 1: Smartphone purchase intent by country

The smartphone market has reached maturity

56 percent of Italian consumers plan to purchase a smartphone in the next 12 months (see Figure 1). This is a 8 points drop from the purchase intent rate last year.

Purchase intent rate in percent (2016) 48

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Global

Change in percentage point (since 2015)

38USA 0

India68-4

China61

-21

Japan28-6

UK37 0

Europe41

-7 Italy56

-8

Germany46

+1

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Nearly half of the Italian consumers are satisfied with their current device (see Figure 2). Another 34 percent say they recently purchased a new smartphone and 5 percent indicate they do not plan to buy a smartphone because there are not so many innovative features in the new devices.

Figure 2: Top four reasons for not purchasing a smartphone

Italians are Smartphone early adopters

42% 34% 13%are satisfied with

their current devicejust bought

a new devicecannot afford

a new smartphone

5%feel there are

no innovative features in the new devices

Global 47%

Germany 51%

UK 54%

Global 26%

Germany 26%

UK 22%

Global 16%

Germany 9%

UK 12%

Global 4%

Germany 8%

UK 7%

7Figure 4: Purchase intent for IoT devices in the next 12 months Figure 3: Change in spend on traditional devices

Growth is tapering across all traditional categoriesOnly 9 percent plan to increase spending on smartphones, tablets and laptops, 20 points drop from 2014 due to a lack of market innovation

2014 Planned spend on traditional devices

PRODUCTS

Smart home thermostat

Purchase intent rate in percent (2016)

Change in percentage point (since 2015)

IncreaseStay about the sameDecrease

2016 Planned spend on traditional devices

10,0%

50,0%

29,0%

9,0%

69,0%

22,0%

Smartwatch

Fitness monitor

Connected home surveillance cameras

Personal drones

Global 1%

Italy 5%

EU 2%

Global 1%

Italy 7%

EU 2%

Global 1%

Italy 5%

EU 2%

Global 0%

Italy 3%

EU 1%

Global 1%

Italy 1%

EU 1%

Global 13%

Italy 16%

EU 9%

Global 13%

Italy 20%

EU 10%

Global 11%

Italy 17%

EU 8%

Global 9%

Italy 15%

EU 7%

Global 7%

Italy 10%

EU 5%

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Growth is stalling and IoT has not yet filled the gap

Figure 5: Barriers to purchasing IoT devices and services

Price, risk and security are the top barriers to IoT adoption: 64 percent declares that IoT devices are too expensive and 31 percent are concerned about privacy and security issues

find IoT devices are too expensive

are concerned about privacy and security issues

are unsure of any devices that would be valuable to them

find IoT devices too confusing

64% 31% 19% 17%

Global 62%

EU 64%

Germany 53%

UK 58%

Global 47%

EU 29%

Germany 35%

UK 28%

Global 23%

EU 25%

Germany 30%

UK 26%

Global 17%

EU 15%

Germany 14%

UK 21%

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Security fears are shutting down use72 percent are aware of the recent hacker attacks using IoT devices, and 66 percent of these say it will impact their use and purchase decisions

Figure 6: Awareness of security issues about IoT devices and services Figure 7: Impact of security concerns on IoT usage

Sample base: Very aware/Somewhat aware RespondentsSample base: All Respondents

decided to postpone purchasing an IoT device

Very aware

Somewhat aware

Not very aware

Not aware at all decided to be morecautious when usingIoT devices and services

decided to quit or terminatean IoT device or service tillthey were assured of safety

are not too concerned about security breaches such as hacker attacks

27%

27%

12%

24%6%

22%

49%

23%

10Figure 8: Top challenges in using IoT devices and services

Intelligent devices User Experience has significantly improvedEven if consumers confirm a better customer experience, they still struggle with connectivity and device set-up issues

Consumer did not experience any challenges

Setup did not proceed properly

Could not connect to the internet

Was not personalized to the consumers preferences

Was not visually- aestetically appealing

2015 2016

6%28%

17%21%

21%20%

13%17%

18%16%

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Actions to take now to ignite the next five years of growth

Ensure a superior customer experience simplifying

the use of devices

Get serious about ecosystems

Ride the wave of the most new and innovative technologies

Build security and trust

1. Fix the basics

2. Sustain disruptive innovation culture

3. Think ecosystem. Its time to co-innovate with partners

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About the 2016 Accenture Digital Consumer Thought Leadership program

The Accenture Digital Consumer Thought Leadership program for communications, media and technology companies is based on a survey which was conducted online between October and November 2015, with