News The State of the
News The State of the Industry Current State of Affairs and Outlook revenue thanks to several effects: The soccer world cup in South Africa helped the key sector TV. We had +14% revenue for LCD TV, and PDP grew by 3%. Many TV stations started regular broadcasts in HD, which supported demand in HD TV sets and receivers. In several European countries like Spain, Italy and Portugal the analogue switch-off made it necessary to exchange existing products both in video and audio segments. Many innovations, most of which have been introduced at IFA 2009, have been marketed in the first half of 2010 and created additional demand and sales at higher margins. are reinforcing their marketing in Q4, coinciding with IFA. Why do you think this is so? Q4 traditionally is the most important buying period for consumer electronics, everywhere. The whole supply chain of the industry is targeted for this crucial window. Marketing activities therefore are clustered to influence buying decisions. The coincidence with IFA is logical as IFA is timed in early September on purpose to serve as the major marketing opportunity at the beginning of this season. IFA is the kick-off for all activities, versus retailers and consumers, and the enormous media coverage from the IFA show floor creates awareness and demand for all the new innovative products. What are the sweet spots in the CE industry at the moment? It’s clearly the innovations, which create substantial business. From January through June 2010 we have seen impressive growth rates in the following segments: TV: LED gained 22% of the LCD market with a growth of 51% in screen sizes 37” and above. Web content access on the TV set (Hybrid TV) gained 21%; DVB-T/C tuners gained 63% plus another 25% growth for DBT-T alone. Blu-ray players: these are now counting for 27% of the DVD product group while Blu-ray recorders are already at 3% in value. HiFi: Blu-ray is doing excellent in Audio Home Systems and System-In-The- Box, sound bars and docking stations for portable media Hans-Joachim Kamp Chairman of the Board of ZVEI Consumer Electronics division Vice President ZVEI and Member gfu Controlling Board HJK: Europe has seen an excellent first half of 2010 with +8% revenue versus the first half 2009 (which was Interview What is the current state of the Consumer Electronics Industry in Europe, and how does Europe compare to the rest of the world? These are the kinds of heart-felt questions that many are asking themselves as we arrive at a very “upbeat” 50th Edition IFA. We asked Hans-Joachim Kamp to give us the point of view from “close-up”… at -5%). After two first half years with negative results, in 2010 the CE industry and the retailers realised more The weaker markets in Eastern and Central Europe finally saw a turnaround from the negative CE trends in May/June. These countries now show good growth rates, however coming from very bad trends in 2009. In general the mentioned positive trends apply on a global level. The fiscal crisis influenced the private consumption but not the willingness to spend available income for CE products. It appears that more and more companies 4
News players are doing very well. The complete HiFi sector grew by 4% in the first half year-on-year. After several years in which the hardware itself was sufficient (the TV set is now flat for the majority) it seems that content is now more in the consumer’s focus: digital broadcast (even HD), Internet access, connectivity via the home network and the PVR function. The TV sector has seen margins cut down to almost nothing since the financial crisis, and this doesn’ t appear to be changing. What can manufacturers and retailers do to get around this? The magic word is innovation. To reduce power c o n s u m p t i o n w i t h o u t sacrificing picture quality and performance, to integrate more and more functions gives the opportunity to up-sell on the shop floor. Over the years we have seen a permanent rise in the average price per set to now 540 Euros for LCD TVs, slightly up again in the first quarter 2010, and products with a superior quality can be sold at a better margin. What does it take to be successful in the market today? We have to be innovative and make the innovation visible to the consumer. Useful innovation creates willingness to spend at the customer side. And the figures demonstrate that this works: LED backlight, energy consumption down, more connectivity, web content access and the ease of use help already to keep prices stable. How are marketing and communication strategies evolving? It is very clear that companies will have to use all new communication channels like Internet reports and social networks in addition to the classical activities below and above the line. Environmental aspects and total lifecycle perspectives from manufacturing to usage and quality to recycling will get more room, transparency is the key word. Why is IFA so important for manufacturers, distributors and retailers? IFA is the best marketing platform right at the beginning of the most important buying season. B u y e r s c a n c o l l e c t information about trends, what will be a hot item to sell; they can compare the complete product range of all vendors important to their business. IFA as the world’s biggest CE trade show is the place where vendors show their line-up for Q4 as well as innovations for the following year to plan ahead. Buyers can meet with the sales reps of their region and the marketing staff and place orders based on profound m a r k e t i n t e l l i g e n c e international O f f i c i a l D a i l y N e w s S o u r c e f o r I n t e r n a t i o n a l V i s i t o r s a t I F A IFA International is a CLEVERDIS Publication 65 avenue Jules Cantini - Tour Méditerranée – 13006 Marseille • France Tel: + 33 442 77 46 00 • Fax: + 33 442 77 46 01 SARL capitalised at e128,250 - VAT FR 95413604471 / RCS Marseille 413 604 471 info@cleverdis.com www.cleverdis.com During IFA: Press Center – Hall 6.3 – Room 401 Tel: +49 (0)30 3038 81136 / Fax: +49 (0)30 3038 81146 @ifa-international.org www.ifa-international.org • Publisher: Gérard Lefebvre • Publishing Director: Jean-Guy Bienfait • Project Manager: Bettina Badon • Editor-in-Chief: Richard Barnes • Associate Editor: Jooree Cho • Editorial team: Neil Crossley, Michael Demiak, Marc Dezzani, Joe Morgan, Julian Newby, Emmanuel Poidevin, Gary Smith, Jo Stephens • Photos: Didier Baverel • Videos: Cine plus Media Service GmbH & Co. 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