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Headphones - UK - November 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Surge in Bluetooth market driving revenues
Figure 1: Value of headphone sales, by type, 2014-17
Smartphone manufacturers lead in a crowded marketplace
Figure 2: Headphone ownership, by brand, July 2017
Rising device use has driven headphone ownership
Figure 3: Device ownership, December 2015-June 2017
The consumer
Ownership struggling for growth
Figure 4: Headphone ownership, by type, July 2017
Nearly half of main headphones are in-ear
Figure 5: Main headphone ownership, by type, July 2017
Smartphone use driving headphone features
Figure 6: Headphone features, July 2017
A quarter of main headphones were free
Figure 7: Purchase location, July 2017
A third of people plan to buy headphones in the next year
Figure 8: Headphone purchase plans, July 2017
Importance of sound quality promotes demonstrations and review sites
Figure 9: Important upgrade factors, July 2017
What we think
ISSUES AND INSIGHTS
The challenges of the shift to wireless
The facts
The implications
Strong expertise vital in-store and online as headphones become more complex
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Surge in Bluetooth market driving revenues
A strong wired segment remains
Smartphone manufacturers lead in a crowded marketplace
Most people only have one brand of headphones
Rising device use has driven headphone ownership
Headphone jack removal leads to upsurge in wireless sales
MARKET SIZE
Surge in Bluetooth market driving revenues…
…but a strong wired segment remains
Figure 10: Value of headphone sales, 2014-17
Figure 11: Value of headphone sales, by type, 2014-17
MARKET SHARE
Smartphone manufacturer brands dominate ownership
Figure 12: Headphone ownership, by brand, July 2017
Most people only have one brand of headphones
Figure 13: Repertoire of number of brands owned, July 2017
People with smartphone headphones likely to own multiple brands
Figure 14: Repertoire of number of brands owned, by brand, July 2017
MARKET DRIVERS
Rising device use has driven headphone ownership
Figure 15: Device ownership, December 2015-June 2017
Wide availability of music, video and audio boosts headphone use
Headphone jack removal leads to upsurge in wireless sales
Advertising spend doubles as headphone brands push wireless adoption
Falling Pound drives import prices up amidst economic uncertainty
Designer brands pushing headphones as premium accessories
Figure 16: Beats Liverpool Football Club Headphones
Figure 17: Sennheiser’s Pink Floyd-inspired headphones
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Increasing range of truly wireless in-ear headphones
Google Pixel Buds bring new possibilities for headphones
Second generation of wireless earbuds set for 2018
Digital overtakes TV as dominant headphone advertising platform
Advertising spend doubles as headphone brands push wireless adoption
Samsung most recommended but Apple likely to be a favourite brand
LAUNCH ACTIVITY AND INNOVATION
Increasing range of truly wireless in-ear headphones
Figure 18: Bang & Olufsen’s BeoPlay E8 earphones
Figure 19: Bose’s SoundSport Free wireless headphones
Google Pixel Buds bring new possibilities for headphones
Figure 20: Google’s Pixel Buds headphones launched with the Pixel 2 smartphone
Beats continues to innovate in the on/over-ear segment
Figure 21: Beats Studio3 range, launched in September 2017
Second generation of wireless earbuds set for 2018
Figure 22: Apple’s AirPod wireless headphones
BRAND RESEARCH
Brand map
Figure 23: Attitudes towards and usage of selected brands, August 2017
Key brand metrics
Figure 24: Key metrics for selected brands, August 2017
Brand attitudes: Beats and Apple’s innovation underpins premium brand image
Figure 25: Attitudes, by brand, August 2017
Brand personality: Leading brands fostering fun, upbeat brand image
Figure 26: Brand personality – Macro image, August 2017
Audio-focused brands perceived as more cutting edge and stylish
Figure 27: Brand personality – Micro image, August 2017
Brand analysis
Samsung the most used and trusted brand despite lacking Apple’s differentiation
Figure 28: User profile of Samsung, August 2017
Sony remains a trusted brand despite less differentiation
Figure 29: User profile of Sony, August 2017
Bose’s premium pricing sees usage well below awareness levels
Figure 30: User profile of Bose, August 2017
Apple is most likely to be people’s favourite brand
Figure 31: User profile of Apple, August 2017
Sennheiser struggles for brand awareness but receives strong recommendations
Figure 32: User profile of Sennheiser, August 2017
Beats usage limited by high prices but satisfaction levels high
Figure 33: User profile of Beats by Dre, August 2017
Philips perceived as reliable but outdated and basic
Figure 34: User profile of Philips, August 2017
Marshall lacks brand awareness but maintains an upbeat, stylish perception
Figure 35: User profile of Marshall Headphones, August 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Headphone ownership flat at 81%
In-ear headphones are most popular
Wireless growth set to accelerate
A quarter of main headphones were free
In-store presence remains vital in headphone market
A third of people plan to buy headphones in the next year
Price remains a key issue in a crowded marketplace
Importance of sound quality promotes demonstrations and review sites
HEADPHONE OWNERSHIP
Ownership levels broadly unchanged from 2015
Figure 36: Headphone ownership, by type, February 2015 and July 2017
More than a third of over-55s do not own headphones
Figure 37: Headphone ownership, by type, by generation, July 2017
Nearly half of main headphones are in-ear
On/over-ear headphones weighted towards men and older consumers
Figure 38: Main headphone ownership, by type, July 2017
HEADPHONE FEATURES
Smartphone use driving headphone features
Warranties could gain importance as premium headphones grow
Figure 39: Headphone features, July 2017
Wireless growth set to accelerate
Figure 40: Headphone features, by gender, July 2017
On/over-ear headphones more likely to be wireless
Most headphone features more prominent among Millennials
Figure 41: Headphone features, by generation, July 2017
PURCHASE METHODS
A quarter of main headphones were free
In-store presence remains important in the headphone market…
…but trial periods could boost online sales
Gift market could boost sale events such as Black Friday
Figure 42: Purchase location, July 2017
Women far more likely to rely on free headphones with smartphone
Figure 43: Purchase location, by gender, July 2017
Online-only retailers most popular due to competitive pricing
Gender divide sees more men purchasing in specialist retailers
Figure 44: Online/in-store purchase location, by gender, July 2017
INTENT TO BUY
A third of people plan to buy headphones in the next year
Young Millennials are a key group to target
Figure 45: Headphone purchase plans, July 2017
Broadly level purchase intention for in-ear and on-ear models
Fitness market boosting demand for ear-hook/clip-on headphones
Technologically engaged wireless owners still likely to upgrade
Figure 46: Purchase plans, by headphone type, July 2017
IMPORTANT FACTORS WHEN UPGRADING
Price sensitivity high in a crowded market
Importance of sound quality promotes demonstrations and review sites
Design far less important than function and fit
Figure 47: Important upgrade factors, July 2017
Most people have three or more important upgrade factors
Figure 48: Repertoire of important upgrade factors, July 2017
Strong branding can reduce price sensitivity
Figure 49: Important upgrade factors, by brand of headphones owned, July 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Brand research
Brand map

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