Communications, Media & Technology Igniting Growth in Consumer Technology Italy Report - 2016 Edition 1
Igniting Growth in Consumer Technology The consumer technology industry s 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. 2
About the 2016 Accenture Digital Consumer Survey Survey methodology Data collection Quantitative online consumer survey 28,000 interviews conducted across 28 countries Data collection by Harris Interactive 1,000 respondents from each of the 28 countries Australia Poland In-Field timeline October November 2015 Brazil Canada Philippines Romania Respondents Online population, 14 55+ years of age China Czech Republic Russia Saudi Arabia 47% 53% 16% 5% 18% France Germany Hungary Slovakia South Africa South Korea India Spain 15% Indonesia Italy Sweden Turkey Japan UAE 20% 26% Mexico Netherlands UK USA Male 14 to 17 years 35 to 44 years Female 18 to 24 years 45 to 54 years 25 to 34 years 55+ years New countries included in the survey 3
Executive Summary 1. Growth is stalling 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%) ONLY 9% plan to increase spending on smartphones, tablets and laptops -20% points from 2014 2. Innovative features are the Key to Unlock Italians are early adopters with the highest adoption of: 64% believe that new IoT devices are too expensive especially for the later adopters 72% experienced a challenge when using their IoT device -22% points from 2015 Intelligent devices User Experience and adoption have improved but Mobile payment services 42% are satisfied with smartphone and don t plan to replace it (Global 47%, Germany 51%, UK 54%) 50% of those who are planning to buy a smartphone are motivated by innovative features and functionalities (Global 41%, Germany 37%, UK 39%) 57% use or plan to use mobile payment (Germany 29%, UK 30%) 65% use it daily or weekly (48% average in Europe) Wearable devices 20% plan to buy a fitness monitor (+7% points from 2015) 16% plan to buy a smartwatch (+5% points since 2015) 72% are aware of the recent hacker attacks using IoT devices...security is still an issue 66% of these say it will impact their use and purchase decisions 4
The smartphone market has reached maturity Purchase intent is stable or declining but in Italy it remains higher than other European countries 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. UK USA 37 Europe 38 0 0-7 41 +1 46-8 56 Germany Italy -21 61 Global Purchase intent rate in percent (2016) 48 Change in percentage point (since 2015) -6 India China 28-6 Japan -4 68 Figure 1: Smartphone purchase intent by country 5
Italians are Smartphone early adopters 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. 42% 34% 13% are satisfied with their current device just bought a new device cannot afford a new smartphone 5% feel there are no innovative features in the new devices Global 47% Global 26% Global 16% Global 4% Germany 51% Germany 26% Germany 9% Germany 8% UK 54% UK 22% UK 12% UK 7% Figure 2: Top four reasons for not purchasing a smartphone 6
Growth is tapering across all traditional categories Only 9 percent plan to increase spending on smartphones, tablets and laptops, 20 points drop from 2014 due to a lack of market innovation 9,0% PRODUCTS Purchase intent rate in percent (2016) Change in percentage point (since 2015) Italy 16% Italy 5% 29,0% Smartwatch Global 13% EU 9% Global 1% EU 2% 69,0% Italy 20% Global 13% Italy 7% Global 1% 50,0% Fitness monitor EU 10% Italy 17% EU 2% Italy 5% 10,0% 22,0% Connected home surveillance cameras Global 11% EU 8% Italy 15% Global 1% EU 2% Italy 3% 2014 Planned spend on traditional devices 2016 Planned spend on traditional devices Smart home thermostat Global 9% EU 7% Global 0% EU 1% Italy 10% Italy 1% Increase Stay about the same Decrease Personal drones Global 7% EU 5% Global 1% EU 1% Figure 3: Change in spend on traditional devices Figure 4: Purchase intent for IoT devices in the next 12 months 7
Growth is stalling and IoT has not yet filled the gap 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 64% 31% 19% 17% 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 Global 62% Global 47% Global 23% Global 17% EU 64% EU 29% EU 25% EU 15% Germany 53% Germany 35% Germany 30% Germany 14% UK 58% UK 28% UK 26% UK 21% Figure 5: Barriers to purchasing IoT devices and services 8
Security fears are shutting down use 72 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 Very aware Somewhat aware 23% 27% decided to postpone purchasing an IoT device 12% decided to quit or terminate an IoT device or service till they were assured of safety 49% Not very aware Not aware at all 22% 6% 27% decided to be more cautious when using IoT devices and services 24% are not too concerned about security breaches such as hacker attacks Figure 6: Awareness of security issues about IoT devices and services Sample base: All Respondents Figure 7: Impact of security concerns on IoT usage Sample base: Very aware/somewhat aware Respondents 9
Intelligent devices User Experience has significantly improved Even if consumers confirm a better customer experience, they still struggle with connectivity and device set-up issues 6% 28% 17% 21% 21% 20% 13% 17% 18% 16% Consumer did not experience any challenges Setup did not proceed properly Could not connect to the internet Was not personalized to the consumer s preferences Was not visuallyaestetically appealing 2015 2016 Figure 8: Top challenges in using IoT devices and services 10
Actions to take now to ignite the next five years of growth 1. Fix the basics Ensure a superior customer experience simplifying the use of devices Build security and trust 3. Think ecosystem. It s time to co-innovate with partners 2. Sustain disruptive innovation culture Get serious about ecosystems Ride the wave of the most new and innovative technologies 11
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 28,000 consumers in 28 countries, including Australia, Brazil, Canada, China, Czech Republic, France, Germany, Hungary, India, Indonesia, Italy, Japan, Mexico, the Netherlands, the Philippines, Poland, Romania, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Spain, Sweden, Turkey, the United Arab Emirates, the United Kingdom and the United States. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions underpinned by the world s largest delivery network Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. The sample in each country is representative of the online population, with respondents ranging in age from 14 to 55 plus. The survey and related data modelling quantifies consumer perceptions of digital devices, content and services, purchasing patterns, preference and trust in service providers, and the future of their connected lifestyle. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. Copyright 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 12