Table of Contents
Issues in the Market
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- Polarisation of usage
- Retail segmentation
- The role of the Internet
- Complexity and transparency
- Key themes
- Definitions
- Telephone equipment
- Mobile phone packages
- Technology definitions
- Abbreviations
Insights and Opportunities
Market in Brief
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- Historical trends
- Channels of distribution
- Market leaders
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- Figure 1: Where last mobile phone purchased, February 2007
- Consumer behaviour
- The future
Fast Forward Trends
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- Trend 1: Hire Hire
- Trend 2: Death of the Middle
- Trend 3: Transumer Express
Industry Insight
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- Key Points
- The market
- Future growth
- It is still a deal-driven market
- The network operators
- The new mobile phone consumer
- The next generation mobile phone store
- The multi-channel challenge
- Fashion & technology
- Convergence
- The impact of convergence
European Consumer Context
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- Fixed-line telephones
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- Figure 2: Types of telephone owned – Germany, Spain, France and GB, 2006
- Mobile phone ownership
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- Figure 3: Trends in ownership of mobile phones – Germany, Spain, France and GB, 2002-06
- Mobile phone features
- Features available
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- Figure 4: Have features – Germany, Spain, France and GB, 2006
- Features used
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- Figure 5: Use features – Germany, Spain, France and GB, 2006
- Percentage using features available
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- Figure 6: Percentage using features available – Germany, Spain, France and GB, 2006
Internal Market Environment
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- Number of connections
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- Figure 7: Total telecommunications connections, 2001-05
- Figure 8: Breakdown of telecommunications connections, by type, 2001-05
- Rely on mobile only?
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- Figure 9: Main method of making and receiving calls among UK adults, 2004 and 2005
- Fixed-line telephones
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- Figure 10: Types of telephone and fax machine owned, 2002-06
- Mobile phone ownership
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- Figure 11: Trends in ownership of mobile phones, 2000-06
- Multiple ownership of mobile phones
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- Figure 12: People in the household owning a mobile phone, 2002-06
- Type of mobile phone contract
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- Figure 13: Type of mobile phone contract used, 2002-06
- How long with current mobile network
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- Figure 14: How long with current mobile network, 2002-06
- Rising ownership of mobiles among children
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- Figure 15: Youth ownership of mobile phones, 2005 and 2006
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- Figure 16: Youth, ownership of mobile phones, who pays and type of contract, 2005 and 2006
- Mobile phone features
- Features available
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- Figure 17: Have features, 2004-06
- Features used
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- Figure 18: Features used, 2004-06
- Percentage using features available
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- Figure 19: Percentage using features available, 2004-06
- Commoditisation
- The social role of mobiles
- 3G drives content?
- Convergence
- A highly competed market
- Manufacturers moving in?
- Health issues
- Free calls/texts
- Complexity
Broader Market Environment
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- Population trends
- Growing population
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- Figure 20: UK: Population trends, 2002-07
- Immigration impact
- But ageing too
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- Figure 21: UK: Population trends by age band, 2002-12
- Household sizes getting smaller
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- Figure 22: UK: Percentage change of household size, 1996-2006
- Population implications
- Strong consumer confidence
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- Figure 23: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12
- But a more cautious consumer will emerge
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- Figure 24: PDI and consumer spend growth rates, at current and constant prices, 2002-07 and 2007-12
Market in Context
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- Consumer spending
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- Figure 25: UK: Consumer spending on communications, 2002-06
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- Figure 26: UK: Consumer price index (selected goods) and share of communications of all consumer spending, 2002-06
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- Figure 27: UK: Average weekly expenditure on telecoms of households, 2003/04-2005/06
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Online services on mobile
- Mobile TV
- Recycling
- Free services
- Tariffs
- Online innovation
- Exclusivity
- Own-label handsets
- Simplicity
- The manufacturers
- Store formats
Retail Sector Sales and Forecast
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- Key points
- Future
- Past
- Outlook
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- Figure 28: UK: Retailers’ sales, 2002-12
- Figure 29: UK: Other specialist retailers’ sales as share of all retailers sales, 2002-12
- Past trends
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- Figure 30: UK: Retail sales of telecommunications equipment, 2002-06
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- Figure 31: UK: Retail sales of mobile telephones, number of enterprises, 2001-05
Market Size and Forecast
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- Key points
- The mobile phone market
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- Figure 32: Mobile phone subscribers 2001-05 and UK retail sales of handsets, by volume, 2002-06
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- Figure 33: Index of UK sales of mobile phone handsets, by volume and value (current prices), 2002-06
- Figure 34: Market size and forecast for mobile phone handsets, at current and constant 2007 prices, 2002-12
- Factors incorporated in the forecast
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- Figure 35: UK: Fixed line subscribers, 2001-05
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- Figure 36: Sales of fixed line telephones and answering machines, by volume and value, 2003-06
- Figure 37: UK sales of telephones and answering machines, by type, volume and value, 2005
Where and How They Buy Mobile Phones
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- Key findings
- Where people buy mobile phones
- Orange retains pole position
- CPW up and Vodafone down
- Other winners and losers
- Gifting is a big market
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- Figure 38: Outlet where last mobile phone purchased, January 2006 and February 2007
- Who buys where
- Specialists
- No pronounced gender bias
- The young like T-Mobile, O2 and other specialists
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- Figure 39: Mobile phone specialists where last mobile phone purchased, by age, February 2007
- Less affluent socio-economic bias at T-Mobile
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- Figure 40: Mobile phone specialists where last mobile phone purchased, by socio-economic group, February 2007
- Figure 41: Mobile phone specialists where last mobile phone purchased, by gender, age and socio-economic group, February 2007
- Pre-/no family lifestage is the most important
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- Figure 42: Mobile phone specialists where last mobile phone purchased, by lifestage, February 2007
- O2 has a very clearly defined audience
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- Figure 43: Bought last mobile phone from O2, by special group, February 2007
- Figure 44: Mobile phone specialist where last mobile phone purchased, by lifestage and Special Groups, February 2007
- Non-specialists
- Mobiles are a popular gift for women, teenagers and older people
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- Figure 45: Mobile phone received as a gift, by gender, age and socio-economic group, February 2007
- Supermarkets have fairly broad appeal
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- Figure 46: Bought last mobile phone from supermarket, by gender, socio-economic group and lifestage, February 2007
- But other retail outlets are biased to the young, families and urban prosperous
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- Figure 47: Bought last mobile phone from other retail outlet, by age, lifestage and ACORN category, February 2007
- Who on earth doesn’t have a mobile?
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- Figure 48: Those that do not have a mobile phone, by age, socio-economic group and commercial TV viewing, February 2007
- Figure 49: Non-specialists where last mobile phone purchased and those not having a mobile phone, by gender, age, lifestage, ACORN category and commercial TV viewing, February 2007
- Channel used for last mobile phone purchased
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- Figure 50: Channel used for last mobile phone purchased, February 2007
- Who buys from which channel
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- Figure 51: Channel used for last mobile phone purchased, by age, February 2007
- Figure 52: Channel used for last mobile phone purchased, by gender, age, lifestage and Special Groups, February 2007
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- Figure 53: Channel used for last mobile phone purchased, by socio-economic group and working status, February 2007
- Figure 54: Channel used for last mobile phone purchased, by socio-economic group and working status, February 2007
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- Figure 55: Channel used for last mobile phone purchased, by outlet used, February 2007
Where and How They Buy Mobile Phones – Detailed Consumer Demographics
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- Figure 56: Mobile phone specialist where last mobile phone purchased, by presence of children, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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- Figure 57: Non-specialists where last mobile phone purchased and those not having a mobile phone, by presence of children, Special Groups, working status, region, technology usage, Internet usage, newspaper readership and supermarket used, February 2007
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- Figure 58: Channel used for last mobile phone purchased, by presence of children, region, ACORN categories, technology usage, Internet usage, newspaper readership and supermarket used, February 2007
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Factors Clinching Decision Where to Buy
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- Key findings
- Topline and trend data
- Deals driven
- Word of mouth opportunities
- Customer loyalty
- Stores competing well
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- Figure 59: Factors clinching decision about where to buy mobile phone, January 2006 and February 2007
- Price and deals
- Lack of interest among older people
- Opportunity for M&S
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- Figure 60: Price and deal factors clinching decision about where to buy mobile phone, by gender, age, lifestage and supermarket used for groceries, February 2007
- The overall package matters to the ABs
- Cheap handsets are a driver for the less well off
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- Figure 61: Price and deals factors clinching decision about where to buy mobile phone, by socio-economic group, February 2007
- Trust and service
- Women less confident shoppers in this market
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- Figure 62: Trust and service factors, by gender, February 2007
- The young are motivated by good advice
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- Figure 63: Trust and service factors, by age, February 2007
- The Es are influenced by store familiarity and ABs by good explanation of features
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- Figure 64: Trust and service factors by socio-economic group, February 2007
- Iceland shoppers need help
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- Figure 65: Trust and service factors, by gender, age, socio-economic group and supermarket used for groceries, February 2007
- Choice of network and handset
- Getting the right network
- How cool do I look with this?
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- Figure 66: Choice factors, by gender, age, socio-economic group and lifestage, February 2007
- How clinching factors vary by last store used to buy mobile phone
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- Figure 67: Factors clinching decision about where to buy mobile phone, by outlet where last mobile phone purchased, February 2007
Factors Clinching Decision Where to Buy – Detailed Consumer Demographics
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- Figure 68: Factors clinching decision about where to buy mobile phone, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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- Figure 69: Factors clinching decision about where to buy mobile phone, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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Attitudes Towards Mobile Phones and Usage
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- Key findings
- How mobiles are used
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- Figure 70: Attitudes towards mobile phones and usage, February 2007
- What about the gadgets?
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- Figure 71: Attitudes towards mobile phones and usage, February 2007
- Has anything changed?
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- Figure 72: Attitudes towards mobile phones and usage, January 2004, January 2006 and February 2007
- The mobile connection
- Battle of the sexes
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- Figure 73: Attitudes towards mobile phones and usage, by gender, February 2007
- Age: social versus safe
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- Figure 74: Attitudes towards mobile phones and usage, by age, February 2007
- Socio-economics: It’s a C thing
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- Figure 75: Attitudes towards mobile phones and usage, by socio-economic group, February 2007
- ACORN: it’s not about money
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- Figure 76: Attitudes towards mobile phones and usage, by ACORN category, February 2007
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- Figure 77: Attitudes towards mobile phones and usage, by gender, age, socio-economic group and ACORN category, February 2007
- What’s in a handset?
- Features and age
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- Figure 78: Attitudes towards mobile phones and usage, by age, February 2007
- C2 bling
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- Figure 79: Attitudes towards mobile phones and usage, by socio-economic group, February 2007
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- Figure 80: Attitudes towards mobile phones and usage, by gender, age and socio-economic group, February 2007
- Can’t live without it?
- Mobile teen spirit
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- Figure 81: Attitudes towards mobile phones and usage, February 2007
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- Figure 82: Attitudes towards mobile phones and usage, by socio-economic group, February 2007
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- Figure 83: Attitudes towards mobile phones and usage, by gender, age and socio-economic group, February 2007
- Do the retailers stand apart?
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- Figure 84: Attitudes towards mobile phones and usage, by outlet where last mobile phone purchased, February 2007
- Identifying targets
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- Figure 85: Consumer typologies for mobile phones, February 2007
- Limited use (23%)
- Who are the Limited use?
- Only in emergencies (29%)
- Everydays (48%)
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- Figure 86: Consumer typologies for mobile phones, by gender, age and socio-economic group, February 2007
- What clinched the deal for the consumer types?
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- Figure 87: What clinched the decision about where to buy the mobile phone, by consumer types, February 2007
Attitudes Towards Mobile Phones and Usage – Detailed Consumer Demographics
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- Figure 88: Attitudes towards mobile phones and usage, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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- Figure 89: Attitudes towards mobile phones and usage, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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- Figure 90: Attitudes towards mobile phones and usage, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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- Figure 91: Consumer typologies for mobile phones, by lifestage, presence of children, Special Groups, working status, region, ACORN categories, technology usage, Internet usage, newspaper readership, commercial TV viewing and supermarket used, February 2007
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Channels of Distribution
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- Fixed line equipment
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- Figure 92: Distribution of fixed line telecommunications equipment (phones, fax, answering machines), by channel, 2003-06(e)
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- Figure 93: Distribution of fixed line telecommunications equipment (phones, fax, answering machines), by channel, by value, 2003-06(e)
- Mobile handsets
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- Figure 94: Distribution of mobile handset sales, by channel, 2000, 2002 and 2004-06(e)
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- Figure 95: Distribution of mobile handsets, by channel, by volume, 2000, 2002, 2004-06
Retail Competitor Analysis
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- Figure 96: UK: Leading telecommunications specialists, 2006
- Channel used for last mobile phone purchased
- Evaluation
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- Figure 97: Telecommunication specialists, evaluation, 2006/07
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Retail Advertising and Promotion
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- UK advertising expenditure
- Specialist mobile phone stores
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- Figure 98: Main media advertising spend, by leading specialist mobile phone stores, 2002-06
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- Figure 99: Share of main media advertising spend by leading specialist mobile phone stores by retailer, 2006
- Figure 100: Share of main media advertising spend, by specialist mobile phone stores by media, 2006
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- Figure 101: Media advertising spend by leading specialist mobile phone stores by media, 2006
- Non-specialists
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- Figure 102: Main media advertising spend, by leading non-specialist stores on advertising mobile phones, 2002-06
- Figure 103: Main media advertising spend by leading non-specialist stores on advertising mobile phone, 2006
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- Figure 104: Media advertising spend by leading non-specialist stores on advertising mobile phone by media, 2006
- Mobile phone manufacturers
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- Figure 105: Main media advertising spend by leading manufacturers on advertising mobile phones, 2002-06
- Figure 106: Main media advertising spend, by leading manufacturers on advertising mobile phones, 2006
Brand Elements
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- Figure 107: Attitudes to telecoms retailing brands, April 2007
- O2
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- Figure 108: Words associated with O2 brand, April 2007
- Brand qualities
- Save O2
- Phones 4U
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- Figure 109: Words associated with Phones 4U brand, April 2007
- Brand qualities
- The right ideas – execute!
- Virgin Mobile
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- Figure 110: Words associated with Virgin mobile brand, April 2007
- Brand qualities
- What’s stopping Virgin?
- Orange
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- Figure 111: Words associated with Orange brand, April 2007
- Brand qualities
- Is Orange all image?
- Tesco Mobile
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- Figure 112: Words associated with Tesco Mobile brand, April 2007
- Brand qualities
- Tesco Mobile for technophobes?
- Usage of brand
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- Figure 113: Consumer usage of various telecoms retail brands, April 2007
- Attitudes towards brands
- O2 seen as perfect package?
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- Figure 114: Attitudes towards telecoms retail brands, April 2007
- Brand satisfaction and performance
- O2 conquers, Orange divides
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- Figure 115: Customer rating of Telecoms retail brands, April 2007
- Brand commitment
- Likeability ≠ first choice?
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- Figure 116: Degree of customer commitment to Telecoms retail brands, April 2007
- Round up
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Retailer Profiles
3
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- Strategic evaluation
- Background
- Financial performance
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- Figure 117: 3: UK revenue split by type of customer, 2006
- Store portfolio
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- Figure 118: 3: Interior
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
- Advertising
The Carphone Warehouse
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- Strategic evaluation
- Network operators – friend or foe?
- Diversification – a good move, but insignificant so far
- Background
- Financial performance
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- Figure 119: The Carphone Warehouse: Group turnover, 2001/02-2006/07
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- Figure 120: The Carphone Warehouse: Retail turnover, 2002/03-2006/07
- Figure 121: The Carphone Warehouse: Distribution turnover, 2006
- Figure 122: The Carphone Warehouse: Total group turnover by region, 2006
- Store portfolio
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- Figure 123: The Carphone Warehouse: Interior
- Figure 124: The Carphone Warehouse: Outlet data, 2002-07
- Figure 125: The Carphone Warehouse: Outlet data, April 2007
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- Figure 126: The Carphone Warehouse: Store development, 2002-07
- Retail offering
- Market positioning
- Product offer
- Brands
- Pricing
- e-commerce & home shopping
- Advertising
Orange UK
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- Strategic evaluation
- Background
- Orange quickly establishes itself in the market
- Changes of ownership
- Financial performance
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- Figure 127: Orange Retail Ltd: Group financial performance, 2001-05
- Store portfolio
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- Figure 128: Orange Retail Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Product offer
- Operational issues
- Advertising & marketing
- e-commerce & home shopping
Phones 4U
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- Strategic evaluation
- See what you can do without O2
- A young image
- Reliant on network operators
- Background
- Financial performance
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- Figure 129: Phones 4U: Financial performance, 2001-06
- Store portfolio
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- Figure 130: Phones 4U: Interior
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
- Advertising
Telefonica O2 Europe
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- Strategic evaluation
- Background
- O2 begins life as part of BT
- European operations
- Mobile Virtual Networks
- Telefonica acquires O2
- Financial performance
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- Figure 131: O2 Plc: Mobile telecommunications turnover, country breakdown, 2003-05
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- Figure 132: O2 Plc: Revenue split by segment & country, 2003-05
- Figure 133: O2 (Retail): Group financial performance, 2002-05
- Store portfolio
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- Figure 134: O2 (Retail): UK outlet data, 2002-06
- Retail offering
- Market positioning
- Product offer
- Operational issues
- Advertising & marketing
- e-commerce & home shopping
T-Mobile UK
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- Strategic evaluation
- Background
- Financial performance
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- Figure 135: T-Mobile UK: Turnover, 2003-06
- Store portfolio
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- Figure 136: T-Mobile UK: Store portfolio, 2002-06
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
- Advertising
Virgin Mobile
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- Strategic evaluation
- Background
- Financial performance and store portfolio
- Stores
Vodafone Group
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- Strategic evaluation
- Background
- First mover advantage
- Retail expansion
- Mannesmann acquisition
- Financial performance
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- Figure 137: Vodafone Distribution Limited (retail outlets): Group financial performance, 2001-05
- Major European operations
- The global and European context
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- Figure 138: Vodafone Plc: Selected financial data from major European markets, 2006
- Figure 139: Vodafone Plc: Average monthly ARPU, 2006
- Vodafone Italy
- Vodafone Spain
- Vodafone Germany
- Store portfolio
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- Figure 140: Vodafone Distribution Limited (retail outlets): Outlet data, 2001-06
- Vodafone Connectivity Centres
- MVNO deal with Asda
- Retail offering
- Market positioning
- Product offer
- Operational issues
- Advertising & marketing
- e-commerce & home shopping
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