Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Sub-group definitions
Executive Summary
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- The consumer
- Living in a hyper-connected era is around the corner
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- Figure 1: Ownership of digital products, 2015-2018
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- Figure 2: Usage frequency of different digital products, December 2018
- Two key expansion strategies for smartphones: to higher-end market and to less developed areas
- Tablets enjoy robust growth among young consumers and parents
- Smart home is expanding fast, but be careful not to be white elephants
- Wearable and VR products experience slow expansion but are on the way to gaining more heavy users
- Rising favourability towards domestic brands
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- Figure 3: Top seven favourite brands and their products, December 2018
- Consumers prefer to dominate the purchase decision of digital products
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- Figure 4: Decision-makers of different types of digital products, December 2018
- Ergonomic design is a nice-to-have after achieving functional upgrades
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- Figure 5: Motivations to buy digital products, December 2018
- Stereotype of brands in mind limits consumers’ acceptability towards crossover products
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- Figure 6: Comparison of brands’ crossover products related to their core business, December 2018
- What we think
Issues and Insights
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- Achieve market expansion by taking corporate social responsibilities
- The facts
- The implications
- Move to kids market to avoid being replaced
- The facts
- The implications
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- Figure 7: Marketing images related to kids of Huawei’s tablet, MediaPad M5
- Figure 8: Marketing image of The ONE piano
- Slow down the pace of brand crossover
- The facts
- The implications
The Consumer – What You Need to Know
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- Consumers are ready for IoT era
- Stimulate sales by targeting specialised markets
- Pursuing upgraded functions is the main reason to buy digital products
- Consumers are not so convinced by crossover products
Ownership of Digital Products
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- Smartphone, laptop/desktop and camera markets recovered from the decline in 2017
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- Figure 9: Ownership of smartphones, laptops/desktops and digital/video cameras, 2015-2018
- Almost all have a smartphone
- Tablets have witnessed robust growth since 2017
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- Figure 10: Ownership rate of tablets, 2015-2018
- The penetration of tablets among old consumers reached a peak
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- Figure 11: Ownership of tablets, by age, 2017-2018
- Tablets have successfully caught parents’ attention
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- Figure 12: Ownership of tablets, by family status, 2017-2018
- Can smart TVs/projectors be the control system of a smart home system?
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- Figure 13: Ownership of smart home devices, 2015-2018
- Young consumers are the key group to target for smart home market
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- Figure 14: Ownership of smart home devices, by age, December 2018
- Smart TVs/projectors are more favoured beyond tier one cities
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- Figure 15: Ownership of smart TVs/projectors, by city tier, December 2018
- The interest in wearables has faded
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- Figure 16: Ownership of wearable products, 2016 and 2018
- The era of VR has not yet arrived
- E-readers and games consoles markets grow slowly
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- Figure 17: Ownership of e-readers and games consoles, 2015-2018
- Male consumers didn’t buy into the innovations of e-readers
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- Figure 18: Ownership of e-readers, by gender, 2015-2018
- Consumers restart to buy more types of digital products
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- Figure 19: The number of digital products consumers own, 2015-2018
Trends in Product Usage
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- Addiction to smartphones will grow even higher
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- Figure 20: Comparison of products’ ownership rate and usage frequency (% of using more often), December 2018
- Smart home appliances and wearable products stand out from emerging tech products
- Raise young consumers’ usage intention towards wearables by adding more complicated health data-tracking functions
- Be prepared for the competition of VR products
- VR products start to gain more attention in lower tier cities
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- Figure 21: Ownership and usage frequency (% of using more often) of VR products, by city tier, December 2018
- Smart TV/projector market is not as so promising as expected
- Losers: e-readers and games consoles
- Unavoidable addiction to be online
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- Figure 22: Usage trends (% of using more often) of selected digital products, 2015-2018
Favourite Brands and Products
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- Huawei is becoming the national brand of smartphones
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- Figure 23: Top seven favourite brands and their products, December 2018
- Xiaomi wins as an ecosystem provider
- Cameras surpass laptops and tablets to have the second best reputation
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- Figure 24: Percentage of favourite products mentioned by consumers, December 2018
- Cost-efficient smartphones contribute to the development of the current market
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- Figure 25: Percentage of consumers who mentioned smartphone as their most satisfied digital product, by income level, December 2018
- Smartphone brands ranked behind need to focus on product quality control and provide higher-end ones to cultivate brand reputation
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- Figure 26: Favourite brands of smartphones mentioned by consumers, December 2018
- Apple faces the challenge of losing the next generation
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- Figure 27: Top four brands of smartphones mentioned by consumers, by age, December 2018
- Japanese brands are dominating the camera market
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- Figure 28: Favourite brands of cameras mentioned by consumers, December 2018
- Camera fans are more likely to be owners of niche products
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- Figure 29: Satisfaction rate of cameras of owners across products, December 2018
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- Figure 30: Marketing images of Huawei’s 360° camera and Insta360, March 2019
- Brands famous for smartphones are trying to gain market share of laptops
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- Figure 31: Favourite brands of laptops, December 2018
- “Android party” is still struggling in tablet market
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- Figure 32: Favourite brands of tablets, December 2018
Decision-Makers of Digital Products Purchase
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- Personal opinion matters the most when buying digital products
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- Figure 33: Decision-makers of different types of digital products, December 2018
- Men vs women, who are more impulsive when buying digital products?
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- Figure 34: Percentage of making purchase decision by myself, by gender, December 2018
Motivations to Buy Digital Products
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- Function is the key motivation
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- Figure 35: Motivations to buy digital products, December 2018
- Look and feel of the product have limited influence on consumers’ decision-making
- Upgrading is the main reason for new purchase
- To be more convenient and unique
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- Figure 36: TURF analysis of motivations for buying digital products, December 2018
- Ergonomic design is a plus when technology hits a ceiling
Attitudes towards Crossover Production
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- Domestic brands need to work hard to gain reputation in health sector
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- Figure 37: Comparison of brands’ crossover products in health sector, December 2018
- Crossover products related to core business are more likely to be accepted by consumers
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- Figure 38: Comparison of brands’ crossover products related to their core business, December 2018
- Manufacturers of electronic devices are not expected to enter food and drink industry
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- Figure 39: Comparison of brands’ crossover products in food and drink sector, December 2018
- Home appliance companies match better with baby market
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- Figure 40: Comparison of brands’ baby stroller, December 2018
- Opportunity for tech companies in outdoor activities?
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- Figure 41: Comparison of brands’ electric scooter, December 2018
- Xiaomi has succeeded in building its loyal consumer base
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- Figure 42: Supporting rate towards selected crossover products of Xiaomi fans vs non-fans, December 2018
Meet the Mintropolitans
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- Not yet to switch off
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- Figure 43: Comparison of products’ usage frequency (% of using more often), by consumer classification, December 2018
- Target consumers of games consoles and digital/video cameras might lean to MinTs
- MinTs are technology-driven
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- Figure 44: Motivations to buy digital products, by consumer classification, December 2018
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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