Audio Equipment - UK - September 2007

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• A market under pressure
• Digital increasing accessibility
• Manufacturers continue to innovate
• Older consumers becoming more important
• A competitive future
• Internal Market Environment
• Key points
• Music for life
• Downloading grows
  • Figure 1: PC ownership and Internet use, 2002-07
• Downloading hammers CD market
  • Figure 2: Purchasing of pre-recorded CD albums and CD singles in the last 12 months, 2005-07
• Increasing download sites
• Radio listening
  • Figure 3: All UK radio listeners, 2004-07
• Broader Market Environment
• Key points
• Changing age profile against audio
  • Figure 4: Changing age profile of the UK population, 2002-12
• Growth in income favours audio equipment
  • Figure 5: PDI and consumer expenditure, at constant 2002 prices, 2002-12
• Busy working days
• Taking action to be healthy
  • Figure 6: Agreement with general lifestyle statement ' I do some form of sport or exercise at least once a week' , 2002-06
• Competitive Context
• Key points
• Mobile phones the major competitor
• Competition in the home audio market...
• ...and in the portable market
• Competition from other leisure activities
  • Figure 7: How 11-19-year-olds spend their money, 2006
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Price erosion persists
  • Figure 8: UK retail sales of audio equipment, by value, at current and constant prices, 2002-07
• The future of the market
• Convergence will not be the end of dedicated MP3 players
• Digital will take over, and have important repercussions
• Branding becomes more important
• Forecast
  • Figure 9: UK retail sales of audio equipment, at current and constant prices, 2002-12
  • Figure 10: UK retail sales of MP3 players, at current and constant prices, 2002-12
• Factors used in the forecast
• Segment Performance
• Key points
• Apple has the largest market share of the MP3 player market
  • Figure 11: Manufacturers' shares in MP3 market, 2005-07
• Overall demand for MP3 players enjoys record growth
  • Figure 12: UK retail value sales of portable MP3 players, by volume and value, 2000-07
• The overall market for portables peaked in 2006
  • Figure 13: UK retail value sales of portable audio players, by volume and value, 2002-07
• Home audio
  • Figure 14: UK retail sales of home audio/hi-fi equipment, by value, at current and constant prices, 2002-07
• Hi-fi separates move to speakers
• Market Share
• Key points
• Apple' s share of MP3 under attack
  • Figure 15: Manufacturers' shares in MP3 players, 2005-07
• Sony dominates home audio
  • Figure 16: Manufacturers' shares of the home audio market, 2006 and 2007
• Companies and Products
• Key points
  • Figure 17: Advertising expenditure of audio equipment brands detailed in this section
• Major companies
• Alba
• Apple Computer UK Ltd
  • Figure 18: Apple' s range of iPod audio devices, 2007
• Creative Labs
  • Figure 19: Creative audio range, 2007
• Philips Electronics UK Ltd
  • Figure 20: Philips UK audio range, 2007
• Samsung (UK) Ltd
• Sony UK Ltd
  • Figure 21: Sony UK audio range, 2007
• Other companies
• Bang & Olufsen UK Ltd
  • Figure 22: Bang & Olufsen audio range, 2007
• Bose Ltd
  • Figure 23: Bose' s product range in-home audio equipment, 2007
• Bowers & Wilkins
• Monitor Audio Ltd
• Pioneer (GB) Ltd
• Pure Digital
• Linn Products Ltd
• Logitech
• Roberts Radio Ltd
  • Figure 24: Roberts Radio audio range, 2007
• Toshiba
• Brand Communication and Promotion
• Key points
• Adspend consistently high
  • Figure 25: Main monitored media advertising spend on audio equipment, 2003-07
• 11 advertisers exceed £250K spendFigure 26: Main advertisers in the audio equipment market, 2006
• Advertising strategies emphasise portable products
• Retailers up the ante
  • Figure 27: Main monitored media spend by top five audio retailers, 2003-06
• Channels to Market
• Key points
  • Figure 28: Retail distribution of audio equipment, 2005-07
• Multiple electricals and grocers fight it out
• Independents lose out...
• Portable players extend outlets
• The Internet' s the thing
• Consumer 1 -- Listening to Music
• Key points
• Multiple sources of music
  • Figure 29: Method of listening to music nowadays, July 2007
• Practicality and choice
• Secondary sources popular
• Parents are a better bet for converged devices
• Are MP3 players at saturation point?
• Portable CD players hang on with older consumers
• DAB radio yet to make big impact
• Consumer 2 -- Attitudes Towards Technology
• Key points
• Do consumers buy music or technology?
  • Figure 30: Attitudes towards new technology, July 2007
• It' s like buying a new car (almost)
• Social networks and wider Internet community play a big part
• The effect of age
• Price figures prominently
  • Figure 31: Features influencing decision to buy an MP3 player, July 2007
• Are consumers that savvy when it comes to file format?
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Internal market environment
  • Figure 37: Agreement with ' Music is an important part of my life' , by gender, age and socio-economic group, 2006
  • Figure 38: Agreement with selected lifestyle statements, 2002-06
  • Figure 39: Agreement with general attitudinal statements on music, 2002-06
  • Figure 40: Types of music that 11-14-year-olds like, 2002-06
  • Figure 41: Household ownership of PCs, 2002-06
  • Figure 42: Households using PC to listen to music, 2006
  • Figure 43: Adults who have used the Internet in the last 12 months, 2002-06
  • Figure 44: Frequency of using the Internet, 2002-06
• Consumer 1 -- How they listen to music
  • Figure 45: Use of MP3 players through speakers to listen to music, by age and socio-economic group, July 2007
  • Figure 46: Method of listening to music nowadays, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 47: Method of listening to music nowadays (continued), by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 48: Frequency of use of mobile phone, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 49: Frequency of use of mobile phone, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 50: Frequency of use of mobile phone, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
• Consumer 2 -- Attitudes towards new audio technology
  • Figure 51: Attitudes towards new audio technology, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 52: Attitudes towards technology, by way audio listened to, July 2007
  • Figure 53: Attitudes towards technology, by way audio listened to, July 2007
  • Figure 54: Features influencing decision to buy an MP3 player, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 55: Features influencing decision to buy an MP3 player, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
• Consumer 3 -- Further analysis
  • Figure 56: Repertoire of methods of listening to music nowadays, July 2007
  • Figure 57: Repertoire of methods of listening to music, by Mintel' s target groups, July 2007
  • Figure 58: Features of MP3 players sought on purchase, by Mintel' s target groups, July 2007
  • Figure 59: Features of MP3 players sought on purchase, by MP3 usage, July 2007
  • Figure 60: Usage of MP3 players, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007
  • Figure 61: Mintel' s target groups, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage and TV reception, July 2007