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Internet Cafés - UK - November 2003
Food Service: UK Price: £995 / $1522 / €1119
Contents
Introduction and Abbreviations
Summary of Key Report Findings
Market Factors
Market Size and Trends
The Supply Structure
Consumer Attitudes and Typologies
The Future
Forecast
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About this report

'Internet Cafes in the UK, 2003' is the latest report from Mintel Leisure Intelligence. It comes at a time when Internet penetration has risen dramatically, to 51% as of July 2003, while 47% of the population has access at home. Internet access is increasingly being seen as a low-cost product and this has affected the Internet café, with many businesses struggling to remain profitable.

Providing a unique investigation into the market's trends, sectors and consumers, Mintel’s report offers you an original and extensive insight into:

  • The benefits for Internet cafes of increased Internet penetration nation-wide
  • How consumers use the internet and what they use it for
  • The role of Internet cafés in today's leisure environment
  • Contracting consumer expenditure in Internet cafes and the subsequent diversification and specialisation of operators
  • Instability within the industry despite expansion plans in the branded sector
  • The increased competition facing Internet café operators
  • The increasingly apparent trend of segmentation of services by training, office services, PC and online gaming, mobile telephony, web design and hosting and PC repair.
  • The importance of the youth market and the demographic make up of consumers who are intent on using an Internet cafe
  • Just how vital tourists are to the market
  • The gender divide in café consumers - why men are twice as likely as women to have visited an Internet café in the last 12 months and the key differences in the way they use them
  • Key target markets and potential users
  • The possibilities of attracting segments where Internet penetration is low

This report examines Internet cafés as a retail outlet that sells Internet access via a computer terminal, traditionally alongside a food or drink offer.

The format varies considerably, however, and, in some cases the food and drink offer has become obsolete or irrelevant, such as in Internet Exchange outlets that operate within a public library. Many Internet cafés now offer an additional range of business, training and consultancy services, as well as networked systems for PC gaming.

Mintel offers you new analysis into:

Market factors/ Market size and trends/ The supply structure/ Consumer trends/ Consumer Attitudes and Typologies/ Future trends/ Market forecasts

Other reports of relevance include:

  • Lunchtime Eating Habits - UK, Leisure Intelligence, October 2003
  • Internet Quarterly - UK, Mintel Internet Series, September 2003
  • Holiday Bookings - UK, Leisure Intelligence, August 2003
  • Holidays, The Road to Recovery - UK, Special, February 2003
  • Coffee Shops - UK, Leisure Intelligence, January 2003
  • Video and Computer Games - UK, Leisure Intelligence, September 2002
  • Leisure and the Internet - UK, Leisure Intelligence, May 2002
If you want more details about this particular report, please contact the Mintel information team on  +1 312-932-0400 in the U.S.,  +44 028-90-241-849 in Northern Ireland,  +353 048-90-241-849 in the Republic of Ireland or  +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.
Key words and phrases within this report

Internet; Internet Exchange; CommsPort; Tesco; Wi-Fi; ADSL; Leisure Intelligence; Scotland; Net House Internet Cafés; North; Costa Coffee; England; McDonald; Stelios Haji-Ioannou; Pre-/no; South; Virgin; Iceland; Retired; Rising; Internet Quarterly; Special; Anglia/Midlands; ISPs; LearnDirect; Northern Ireland; PDI; Quark; Wales; POP; Aldi; Asda; Kwik Save; Lidl; Londoners; Marks & Spencer; Netto; Safeway; Sainsbury's; Somerfield; Special Groups
Contents

Introduction and Abbreviations

Definition

Consumer research

Lifestage and Special Groups

ACORN

Abbreviations

Summary of Key Report Findings

Increased Internet penetration leads to greater familiarity

Market has contracted

Instability within the industry

Increased competition

Diversification

Still a youthful environment

Tourists still vital

The gender divide

Potential users

The future

Market Factors

PDI and consumer expenditure

Figure 1: PDI and consumer expenditure, 1998-2006

Demographic trends

Trends in the UK’s age structure
Figure 2: Structure of the UK population, by age, 1998-2006
Socio-economic structure
Figure 3: Structure of the UK population, by socio-economic group, 1998-2006

Internet penetration

Figure 4: British Internet penetration, Jan 2001-Jul 2003

Profile of Internet users

Figure 5: British Internet usage profile, July 2003

Time spent on the Internet – inside and outside the home

Figure 6: Hours spent on the Internet at home and elsewhere, Summer 2003

PC and Internet usage

Figure 7: PC and Internet technology usage, July 2002-03

Online and computer games

Figure 8: Games machines owned, by household, June 2002
Figure 9: Attitudes towards video and computer games, June 2002

Computer literacy and training

Technological advancements are upping the competitive stakes

Free public access

Overseas visitors

Figure 10: Overseas visitors to the UK, by volume and expenditure, 1998-2003
Figure 11: Overseas visitors to the UK, by age, 2001

Market Size and Trends

Figure 12: Estimated revenue and percentage breakdown between Internet services and other products at UK Internet cafés, 2001 and 2003

Market size by outlet numbers

Figure 13: Number of Internet cafés in the UK, 2001 and September 2003

Internet cafés by location

Figure 14: Internet cafés in the UK, by location, September 2001 and 2003

The Supply Structure

The independent sector

Branded Internet cafés

CommsPort

Internet Exchange

easyInternetCafé (eIC)

Tesco

Consumer Attitudes and Typologies

Attitudes of Internet café users and potential users

Figure I: Attitudes of Internet café users and potential users, July 2001 and July 2003

Popular attitudes by demographics

Figure II: Attitudes of Internet café users and potential users, by gender, age and socio-economic groups, July 2003
Figure III: Attitudes of Internet café users and potential users, by lifestage and Mintel’s Special Groups, July 2003
Figure IV: Attitudes of Internet café users and potential users, by region, media usage and supermarket usage, July 2003

Consumer attitudes by reason for using Internet cafés

Figure V: Attitudes of Internet café users, by the most popular reasons of visiting Internet Cafés, July 2003

Consumer typologies

Consumer typologies by demographics

Figure VI: Consumer typologies, by gender, age and socio-economic groups, July 2003
Figure VII: Consumer typologies, by lifestage and Mintel’s Special Groups, July 2003
Figure VIII: Consumer typologies by marital status, working status and terminal education age, July 2003
Figure IX: Consumer typologies, by region and ACORN categories, July 2003
Figure X: Consumer typologies by media usage, Internet usage, supermarket usage and commercial TV viewing, July 2003

Consumer typologies by usage type

Figure XI: Consumer typologies, by usage, July 2003

The four consumer types and the purpose of their visit to Internet cafés

Figure XII: Consumer typologies, by the top five purposes of visiting Internet cafés, July 2003

The Future

Increased Internet penetration beneficial

Growth of the branded sector

But what about broadband?

Wireless opportunity

Expanding the customer base

Access is now offered by other retailers

Segmentation and diversification

Forecast

A population-based forecast

Figure 27: Forecast of potential target market, 2003-07

Higher levels of Internet penetration bad for business…

…but diversification and segmentation will be key growth drivers

Expanding consumer base a must