Top 10 Consumer Trends for 2012: Smartphone Universe

Displacing computers worldwide, in 2012, smartphones are reaching out to the lower end of the mass market so expect apps to reflect this.

This piece is the seventh in a weekly series of consumer comments exploring each of the trends Euromonitor International identified in the recent Top 10 Trends for 2012 article.

Worldwide, smartphones are the communications accessory of choice, including in emerging markets where consumers are taking up new, more basic models as this prop moves from being a luxury item to a necessary lifestyle aid. According to Euromonitor International data, annual smartphone sales surged from US$7.9 billion to US$83.3 billion between 2005 and 2010, with China surpassing the USA as the largest national market during 2009. Real global smartphone sales are forecast to reach US$137.4 billion in 2012. For many developed market consumers, PCs and laptops are beginning to take a backseat as most smartphone owners use these convenient devices to surf the internet and watch TV anywhere from parliaments to buses. New aids such as Hive Dock, designed to assist elderly people with visual impairments to use smartphones will expand the population of smartphone users still more. 2012 will see more consumers using their smartphones to make transactions, using mobile, cashless technologies from Near Field Communication to QR codes to personal card readers.

Russia's Communications Market Largest in Eastern Europe

Russia's large size, population and continued economic development made it the dominant communications market in Eastern Europe in 2011. Click to tweet!  The country's burgeoning high-income households and falling rates for telecom services are driving consumer market growth, while its urban centres and large swathes of territory offer communications businesses diverse opportunities. However, Internet access remains limited in rural areas, while high income inequality restricts consumer market potential.

Top 10 Consumer Trends for 2012:Tech Lifestyles Versus Slow Living and The Best of Both

Some consumers are embracing an 'always-on' lifestyle while others are trying to disengage.

This piece is the eighth in a weekly series of consumer comments exploring each of the trends Euromonitor International identified in the recent Top 10 Consumer Trends for 2012 article.

For the 2012 consumer – from toddlers upwards, technology is part of life with a lot of simultaneous tech consumption (watching TV and using a computer at the same time, for example). Access to the internet has extended to accompany people as they go about their daily lives, at work and on holiday. We're moving into a technology space where mobility is becoming less about devices, and more about the mist of data that we each generate with every interaction on the internet.

Another quad-core smartphone in the market

Samsung revealed the eagerly anticipated flagship smartphone Galaxy S3 last night. Prior to the official event, leaks made their rounds on the rumour mills, including hints of a larger screen and a quad-core processor over its predecessor. 

Samsung managed to keep the overall size similar to the S2, despite sporting a 4.8” screen. Uncharacteristic of Samsung though, the company did not push its engineering department to attain a slimmer look, less than 8mm in depth, which would have allowed S3 to be the slimmest smartphone in the market. There was no mention on the possibility of inductive charging for the phone either.  

The Galaxy S3 does not break any new ground in both specification and design, and will face strong pressure from HTC’s One X which has been available in the market for a few months. It is disappointing for a company that prides itself on engineering ingenuity to launch a me-too product, especially for its flagship range. However, Samsung has built up a loyal following for its smartphones and still enjoys a competitive edge over its rivals with its AMOLED screen. Euromonitor International expects Samsung to retain its ranking as the top smartphone manufacturer in 2012.

South Africa: Spotlight on Key Market Trends in Luxury Goods

With value sales of R5.6 billion (US$684 million) in 2010, the South African luxury goods market ranked 23rd out of the 26 countries covered by Euromonitor International's luxury goods research and accounted for 0.4% of the global market. Click to tweet! In terms of real growth over the 2005-2010 period, South Africa ranked 10th, just behind Hong Kong and ahead of Singapore.

Over 2005-2010, four of the 10 categories researched recorded positive real value growth. Luxury electronic gadgets led the way with constant retail value growth of 68%, followed by fine wines/champagne and spirits (21%), super-premium beauty and personal care (14%) and luxury travel goods (7%). Luxury jewellery and timepieces (-4%), writing instruments and stationery (-7%), accessories (-14%), fine china and crystal ware (-16%), tobacco (-35%) and designer clothing and footwear (-9%) all registered negative growth. Click to tweet!

Priced to Sell - Intel powered Smartphone

Analyst Insight by Wee Teck, Loo

Intel Corp announced the launch of the first smartphone running on its Atom processor, the XOLO X900. The device, developed by Lava International Limited (Lava) in India, will be running on the Android OS, which is expected to garner 62% of the Indian smartphone market in 2012.

The XOLO X900 is priced at an attractive Rs 22,000 (US$448), which is similar to the Motorola Atrix 2 and Samsung Galaxy S2, both of which have been in the market for a longer time. In terms of specifications, the X900 is on par with its competitors, which definitely bodes well for Intel and Lava’s maiden effort in the smartphone market.

China Passes the One Billion Mark for Mobile Phone Subscriptions

Analyst Insight by An Hodgson, Technology, Communications and Media Manager

The number of mobile phone subscriptions in China exceeded the one billion landmark in March 2012, the first country to do so in the world.  Click to tweet! Growth in household incomes, infrastructure development and a boom in smartphones have driven subscription rates, providing telecom businesses with opportunities. However, state control, income inequality and still-low per capita mobile penetration holds back sector growth, although consumers are benefitting from increasingly lower prices.

Retailers’ Strategies in Sub-Saharan Africa

Analyst Insight by Cedric Bra, Retailing Analyst

South African retailers are looking to expand northwards, while companies such as Kenyan-based Nakumatt Holdings Ltd and Zambian-based Zambeef Retailing Ltd are searching for opportunities in high growth markets and are investigating the strategies being employed by their larger South African competitors. Together these retailers highlight the opportunities provided by the countries in question but also the different methods being used to expand in their target markets.

Differing markets ask retailers a variety of questions

The African continent is made up of very diverse economies. Different countries are at very different stages of development and therefore, have very diverse retail landscapes in 2011. South Africa is considered a developed country thanks to its relatively high living standards and a diversified economy. Oil exporters like Equatorial Guinea and Gabon enjoy fairly high GDP per capita but their small populations and difficult business environments remain obstacles for large-scale retailers.

Worldwide Mobile Markets

The number of mobile phone subscribers is expanding rapidly across the globe. An Hodgson, technology, communications and media manager at Euromonitor International discusses the implications of a connected population worldwide. The greatest potential for mobile markets are in emerging economies, such as China, India, and Indonesia, where consumers are targeted with affordable handsets and pre-paid subscriptions. However, developed markets should not be ignored, as new mobile technology is constantly being developed to make networks faster. Euromonitor International forecasts 7.6 billion mobile phone subscribers worldwide by 2020, up from 5.5 billion in 2011.

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Top 10 Consumer Trends of 2012

2012 consumers have had to learn to feel at ease with thrift as economic downturns just won't seem to go away. But they know they are not alone in carving out a more creative life on a budget. They can link to and learn from other consumers and brands via tech-enhanced communications, particularly their beloved smartphones, to mould their lifestyles. It's just as well that right now, consumer identity is expressed in more complex ways than through consumption alone. Today, identity also encompasses weight, online status, green thrift, and attitudes to reality culture – even in emerging markets, where the joys of spending are still being discovered.