PC Retailing - UK - July 2007

Table of Contents

• Issues in the Market
• Main themes
• Definitions
• Abbreviations
• Market in Brief
• Ownership & usage
• Price-focus isn' t all
• What women want? (And men too)
• Spending growth slowing
• IT to underperform all spend
• Specialists under pressure
• Verging on monopoly?
• Industry Insights
• Key points:
• The market
• The future
• Laptops driving the market
• Is the replacement cycle lengthening?
• Are customers looking to trade up?
• Is the need for more storage space driving purchases?
• Online
• Convergence and design
• Internal Market Environment
• Competition from supermarkets
• The online threat
• New technology
• Convergence
• Price deflation
  • Figure 1: UK: Consumer price index for selected goods, 2002-06
• The digital divide?
• Home Computing Initiative
• A necessity?
• Scares
• Ownership
  • Figure 2: Personal computer/laptop ownership, 2002-06
  • Figure 3: Home ownership of personal computers/laptops, by age group, 2006
  • Figure 4: Home ownership of personal computers/laptops, by income group, 2006
  • Figure 5: Home computer peripherals/hardware, ownership, 2002 and 2006
  • Figure 6: Ownership of home computer peripherals/hardware, 2002-06
• Computer usage
  • Figure 7: What the home computer is used for, 2006
  • Figure 8: What home computer is used for, 2002-06
• Factors in choosing a home computer
  • Figure 9: Most important factor when choosing a home computer, 2002 and 2006
  • Figure 10: Most important factor when choosing a home computer, 2002-06
• Broader Market Environment
• Population trends
• Growing, greying population
  • Figure 11: UK: Population trends, 2002-12
  • Figure 12: UK: Population trends, by age band, 2002-12
  • Figure 13: UK: Population, by age band, 2002, 2007 and 2012
• Living alone
  • Figure 14: UK: Percentage change of household size, 2002-12
• Implications for the PC market
• Consumer
• Increasingly affluent
  • Figure 15: UK population, by socio-economic group, 2002 and 2012 (proj)
• Historically confident
  • Figure 16: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12
• ...but set to be reigned in
  • Figure 17: PDI and consumer spend growth rates, at current and constant prices, 2002-07 and 2007-12
• Market in Context
• Key points:
• Computer vs all spending
  • Figure 18: UK: Consumer spending on selected categories, 2002-2006
  • Figure 19: UK: Share of spending on information processing equipment of all consumer spending, 2002-06
• Computer vs. blender
  • Figure 20: UK: Index of growth of consumer spending in selected top-line categories, 2002-06
• Traditional recreation holds its ground
  • Figure 21: UK: Index of growth of consumer spending in selected recreational categories, 2002-06
• Computers more stable than TVs
  • Figure 22: UK: Index of growth of consumer spending in selected recreational goods categories, 2002-06
• Sector Size and Forecast
• Key points:
• Outlook
• Economy and the consumer
• The retail sector
• Specialists
  • Figure 23: UK: Other specialist retailers' and electricals retailers' sales, 2002-12
  • Figure 24: UK: Other specialist retailers' and electricals retailers' sales as share of all retailers sales, 2002-12
• Past trends
  • Figure 25: UK: Retail sales of photographic, optical and precision equipment, office supplies and equipment, 2003-06
• Enterprises
  • Figure 26: UK: Retail sale of photographic, optical and precision equipment, office supplies and equipment, number of enterprises, 2003-05
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
• Past
  • Figure 27: Market size of information processing equipment, by value, 2002-07
• Inside the PC market
  • Figure 28: UK: Index of growth of expenditure in selected IT goods categories, 2002-06
• Future
  • Figure 29: Market size and forecast of information processing equipment, by value, 2002-12
• Slower growth expected
• New technology to drive demand and deflation
• Laptops to gain further ground
• European Consumer Context
• Computer ownership
  • Figure 30: GB, France, Spain and Germany: Computer ownership in the home, 2006
• Peripherals ownership
  • Figure 31: GB, France, Spain and Germany: Peripherals ownership in the home, 2006
  • Figure 32: GB, France, Spain and Germany: Peripherals ownership in the home, 2006
• Main user
  • Figure 33: Europe: Main user in the home, GB, France, Spain and Germany, 2006
• Main uses
  • Figure 34: Europe: Main use in the home, GB, France, Spain and Germany, 2006
  • Figure 35: Europe: Main use in the home, GB, France, Spain and Germany, 2006
• Broadband access
  • Figure 36: Europe: Share of households with broadband Internet access, 2006
• Most important factors when choosing a home computer
  • Figure 37: Germany and GB: Five most important factors when choosing a home computer, 2006
  • Figure 38: Spain and France: Five most important factors when choosing a home computer, 2006
• Where and How They Buy Home Computers
• Key findings
• Where people buy personal computers
  • Figure 39: Outlets used for buying last home computer, May 2007
• Trend data
• Who buys where
  • Figure 40: Outlets used for buying last home computer, by age, May 2007
  • Figure 41: Outlets used for buying last home computer, by socio-economic group, May 2007
• PC World and Dell customers are heavy Internet users
  • Figure 42: Outlets used for buying last home computer, by Internet usage, May 2007
  • Figure 43: Outlets used for buying last home computer, by gender, age, socio-economic group and Internet usage, May 2007
• Channel used for last personal computer purchased
  • Figure 44: Channel used for buying last home computer, May 2007
  • Figure 45: Channel used for finding and buying last home computer. May 2007
• Who buys from which channel
  • Figure 46: Channel used for buying last home computer, by demographic sub-group, May 2007
  • Figure 47: Channel used for buying last home computer, by socio-economic group, May 2007
• Channel by seller
  • Figure 48: Channel used for buying last home computer, by seller used, May 2007
• Retailer correlation
  • Figure 49: correlation between outlets/suppliers used for buying last home computer, May 2007
• Where and How They Buy Home Computers --Detailed Consumer Demographics
  • Figure 50: Outlets used for buying last home computer, by region, presence of children in household, source of regular grocery shopping, mobile phone network provider and TV reception, May 2007
  • Figure 51: Channel used for buying last home computer, by socio-economic group, region, Internet usage, source of regular grocery shopping, mobile phone network provider and TV reception, May 2007
• Channels of Distribution
  • Figure 89: UK: Outlets used for buying last home computer, May 2007
• Retail Competitor Analysis
  • Figure 105: UK: Leading PC retailing specialists, 2005 and 2006
• Market shares
  • Figure 106: UK: Estimated share of spending of leading PC retailing specialists, 2005 and 2006
  • Figure 107: UK: Share of spending of leading PC retailing specialists, 2006(e)
• Evaluation
  • Figure 108: PC retailing specialists, evaluation, 2006/07
• Retailer Profiles
• Apple Retail UK
• Strategic evaluation
• Background
• Financial performance
  • Figure 109: Apple Retail UK: Group financial performance, 2004-07
• Store portfolio
  • Figure 110: Apple Retail UK: Outlet data, 2004-07
• Retail offering
• Market positioning
• Brands and product offer
• Advertising & marketing
• E-commerce
• Dabs.com
• Strategic evaluation
• Background
• Financial performance
  • Figure 111: Dabs.com: Group financial performance, 2001/02-2005/06
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• e-commerce & home shopping
• Dell B2C Retail Europe
• Strategic evaluation
• Background
• Dell founded in 1984
• The Dell model
• Alienware acquisition
• Financial performance
  • Figure 112: Dell EMEA: Financial performance, 2001/02-2005/06
  • Figure 113: Dell B2C Retail Europe: Estimated retail sales, 2001/02-2005/06
• Store portfolio
• Retail offering
• Market positioning
• Product offer
  • Figure 114: Dell Global: Product breakdown, 2005
  • Figure 115: Dell Global: Product breakdown by category, 2001/02-2005/06
• Pricing
• Advertising & marketing
• e-commerce & home shopping
• DSG International (PC World/PC City)
• Strategic evaluation
• Background
• Financial performance
  • Figure 116: DSG International: Group financial performance and outlet data, 2001/02-2006/07
  • Figure 117: DSG International: Computing division financial performance and outlet data, 2001/02-2006/07
• PC World
  • Figure 118: PC World and PC World Business: Sales and operating profit, 2001/02-2006/07
• PC City
  • Figure 119: PC City: Financial performance, 2001/02-2005/06
• Dixons Ireland
  • Figure 120: Dixons Ireland: Financial performance, 2001/02-2005/06
• Selected electricals operations
  • Figure 121: Currys and UniEuro: Financial performance, 2001/02-2006/07
• Store portfolio
• PC World
  • Figure 122: PC World: Outlet data, 2001/02-2006/07
• PC City
  • Figure 123: PC City: Stores and sales area, 2002/03-2006/07
• Ireland
  • Figure 124: Dixons Ireland: Outlet data, 2001/02-2006/07
• Selected electricals operations
  • Figure 125: Currys and UniEuro: Outlet data, 2001/02-2006/07
• Store environment
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Evesham Technology
• Strategic evaluation
• Background
• Financial performance
  • Figure 126: Evesham Technology: Group financial performance, 2001/02-2005/06
• Store portfolio
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising & marketing
• Kesa Electricals
• Strategic evaluation
• Background
• Financial performance
  • Figure 127: Kesa Electricals: Group financial performance, 2002/03-2006/07
• Store portfolio
  • Figure 128: Kesa Electricals: Outlet data, 2002/03-2006/07
• Retail offering
• Market positioning
• Brands
• Product offer
  • Figure 129: Kesa Electricals' , product mix, 2002/03
• Pricing
• e-commerce & home shopping
  • Figure 130: Kesa Electronics, country-by-country affiliated websites, 2007
• Micro Anvika Ltd
• Strategic evaluation
• Background
• Financial performance
  • Figure 131: Micro Anvika Ltd: Group financial performance, 2001/02-2005/06
• Store portfolio
  • Figure 132: Micro Anvika Ltd: Outlet data, 2000/01-2005/06
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• e-commerce & home shopping
• Retail Advertising and Promotion
• UK advertising expenditure
• Specialist retailers
  • Figure 133: Main media advertising spend, by leading specialist retailers, 2002-06
  • Figure 134: Main media advertising spend, by top six specialist retailers, by media, 2006
  • Figure 135: Main media advertising spend, by leading specialist retailers, by media, 2006
• Non-specialist retailers
  • Figure 136: Main media advertising spend, by leading non-specialist retailers, 2002-06
  • Figure 137: Main media advertising spend by top nine non-specialist retailers, by media, 2006
  • Figure 138: Main media advertising spend, by leading non-specialist retailers, by media, 2006
• Product brands
  • Figure 139: Main media advertising spend, by leading product brands, 2002-06
  • Figure 140: Main media advertising spend, by leading product brands, by media, 2006
  • Figure 141: Main media advertising spend, by leading product brands, by media, 2006