Tag Archives: ERT

VOICE CONTROL: THE SOUND OF 2018

Smart home sales will dominate 2018, driven by voice control, and wireless headphones still present a huge opportunity, claims Gekko managing director Daniel Todaro

What does 2018 have in store for consumer electronics? The trends all seem to be pointing in the same direction and I have been saying throughout 2017 that it’s no secret – the smart home is set to dominate 2018.

With a sharp increase in products available in mass distribution in 2017, increasing 14.5 per cent year on year and gaining popularity among consumers, including technophobes, the smart-home category is going to grow, with more choice and greater integration to establish AI interfaces as the norm for many.

The smart home is the connected home and includes smart speakers, such as Amazon’s Alexa and Google Home, which is estimated to be a $13 billion business by 2024, fuelled by the increase in network connectivity and a rise in demand for connected-home devices, such as thermostats.

The home automation element of smart living is expected to grow – especially when you consider that it’s not just thermostats that you can manage from your smart speaker, but also lighting, security cameras and door bells to name a few. This creates an increased opportunity in a category that’s still growing and definitely not stagnating. In fact, it’s estimated that consumer spending on smart-home technology is expected to grow 29 per cent year on year.

Evolving

The market is, of course, evolving and 2018 will be the year that the marketplace starts to get a lot more crowded, as the category develops from Amazon and Google offering their own range of speakers in a variety of form factors.

Google and Alexa Assistants are also being integrated into products from other hardware brands, such as Sonos, which has already released the Sonos One – with Alexa. It also hopes to integrate Siri and Google Assistant soon.

Apple’s HomePod will hit homes in 2018 and will, of course, garner attention, but its Siri solution offers some weak competition. Audio brands such as Yamaha, Libratone and Ultimate Ears all announced Alexa-driven smart speakers at IFA this year, with Sony, Philips and LG adding Google Assistant integration to their smart products.

So how do you choose between one solution and another? Well, research conducted by Stone Temple indicated that when 5,000 of the same questions were asked to Google Assistant, Microsoft’s Cortana, Siri and Alexa, it was Google Assistant that came out on top with 68 per cent of questions answered, compared with 21 per cent for Amazon’s Alexa.

In selling the smart home, we know that in many instances it will require an assisted sale to do the category justice. This is important to consider, as retail value is expected to reach €5.11 billion (£4.5bn) worldwide this year.

More importantly, the opportunity in 2018 is that 44 per cent of shoppers don’t know whom to trust to install their smart-home devices.

So, consider what has been discussed in ERT as part of the Turning Point debate, and look to exploit the trends and develop the opportunity into profitability by starting to focus on smart home installation. Products that come with installation, like Hive by a British Gas engineer, could gain an edge over products like Nest, where the homeowner would normally have to source their own installer.

Consumers welcome a full-service solution, and with 35 per cent of smart-home sales in 2018 expected to be for energy management and with 19 per cent for home-security, there’s plenty of opportunity for the switched-on retailers. So why not create a solution that assists in the install and integrates every smart-home device as and when a consumer adds to their connected-home environment?

Another major trend is the growth in wireless headphones. Although currently only accounting for less than 20 per cent of all headphones sales in the UK, a seismic change is expected over the next 12 to 24 months. By 2021, they will become standard, with worldwide sales projected to reach 206 million units, up 96 per cent on this year’s anticipated figures.

Phenomenal

This phenomenal upsurge is driven by the increasingly rare 3.5mm jack in premium smartphones. This growth will be reflected across a wide spectrum of price points and brands, meeting the needs and expectations of younger generations who demand no ‘wires’.

Retailers will need to be able to match this trend in their ranging and also consider compatibility for iOS or Android devices, as not all headphone products may work on every device.

Trends in retail execution are also set to change further in 2018, as identified by Barclaycard, whose research found that shoppers want new and engaging high-street experiences, such as in-store events, and are spending more when they find them. Those UK retailers who are tapping into this demand have seen annual turnover increase by an average of 14 per cent, according to Barclaycard research.

Retailers who are already investing in such events are now planning to double this investment over the next two years, as more than a third (36 per cent) now host events in-store, from classes and courses to exclusive sales previews. The research also showed that decision-makers are planning to increase investment for in-store theatre by a further 113 per cent over the next 24 months, suggesting that some retailers, maybe your competition, now view this kind of marketing as key to driving footfall and boosting sales.

With a lack of innovation from some CE categories, keep on top of those ‘growth’ categories and retail trends in 2018 to be top dog.

Read the article at ERT Online

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WHAT YOU SHOULD BE STOCKING THIS CHRISTMAS

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Christmas comes but once a year, so target customers with what they want and capture your share of that lucrative seasonal peak in sales, advises Gekko managing director Daniel Todaro

It’s Christmas and there’s nothing that gets people more excited than the gift of technology.

We Brits rack up a staggering £11 billion on credit cards to fund the ‘perfect’ Christmas and we start early. More than a quarter (27 per cent) of shoppers begin their gift shopping in the three months before the big day and 48 per cent just one month before. So it’s time to start your Christmas ranging.

In this world of plenty, deciding what to stock can be a difficult decision for a retailer, so keep it relevant to what your consumers either need or desire. To do this, it’s essential to be in tune with your customer base and the latest trends. What was selling five years ago may not be relevant today.

A good place to start is a category that’s most definitely relevant – the smart home. Listen to your peers and follow the advice of the ERT Turning Point summit participants: “All it takes is a small bit of space to introduce the smart home to your store – even just a metre square is enough to bring a whole new category to your customers”.

The smart home is a great opportunity for retailers looking to widen their customer base. With the smart-home market expected to be worth £53.4 billion by 2022 – an annual increase of 14.5 per cent – it has been assisted hugely by sales of ‘smart’ speakers from brands such as Google and Amazon.

Google has integrated its Google Assistant into products from other brands, such as Sony, Panasonic and JBL, increasing reach and popularity. Amazon Echo and Alexa is also being integrated into speakers and soundbars from Yamaha and other smart-home devices, such as thermostats from Hive.

Further proof as to why you don’t want to miss out on the action is the fact that 42 per cent of these smart speaker ‘early adopters’ have gone on to buy a second device. The message is clear. The smart home is here to be expanded in your range plans and with smart speaker products available from £49, ranging needn’t be an expensive investment.

Justified

The decision to range smart speakers can be justified by the fact that demographics indicate some users have never bought actual physical music. When you consider that 52 per cent of all music streamed is by the 16 to 24 age group, it’s clear to see why the wireless speaker market is set to increase 21 per cent in 2017 – equating to 55 million units shipped globally.

A study from Nielsen affirms that connected technology is the highest use of media devices among 18 to 24-year-olds, and this age group uses connected tech five times more than those aged 50+ age. That will not only grow, but also change to include older age groups very rapidly, as the smart home becomes a mainstay for all.

Music on the go is another growth sector opportunity, with headphones set to increase four per cent to 368m global unit sales this year. Premium audio brands are increasingly moving towards wireless technology, meeting the needs and expectations of younger generations. As consumers favour the wireless approach to music and media on the go, retailers need to be able to match this trend and also consider compatibility for iOS or Android devices – not all headphone products will work on every device.

The smart TV category continues to grow and is, of course, relevant to retailers in the run-up to Christmas. In the EU, smart TVs account for 57 per cent of all TVs sold, which surprised me.

It does, however, demonstrate that there is a continuing market for smart TVs and, more importantly, an opportunity to upgrade customers.

With UK shoppers spending in the region of £474 (£305 EU average) on around eight people this Christmas, the need to meet the magic £59 price point in your ranging is essential to capture the 73 per cent of sales achieved in retail for at least one gift.

Giving shoppers this experience on the shopfloor is what can set independent retailers apart from multiple and online retailers.

Off course, an omni-channel approach should not be ignored and where you can’t physically display products because of space restrictions, implement a system that enables online ordering and 24-hour click and collect from your store.

And remember, the smart home is not just for Christmas – so embrace it all the time

Read the article at ERT: http://ertonline.co.uk/opinion/jingle-bell-stock/

 

 

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Connect with your customer

Once the stuff of science fiction, the connected home is now a reality, with smart technology now found in almost all categories across consumer electronics and domestic appliances.

Consumers are starting to take a real interest in the smart home. But it’s up to retailers to bridge the gap between desire and knowledge, offering consumers a personalised service. This is an area where independent retailers can excel over their multiple counterparts.

Although there is clearly demand among consumers for smart products, many retailers may still be sceptical that the smart home is the future. If you are a sceptic, take a look at your top-end TVs and MDAs – chances are they all include smart features that your customers aspire to have in their homes.

New smart MDA products, such as the LG InstaView fridge-freezer (pictured) and the Hoover Wizard smart oven, have additional features to complement your customers’ lifestyles. You can offer these smart MDA solutions as the top of your ranging. Soon all appliances and CE products will be smart. Customers who have bought that smart TV or washing machine are likely to come back in-store looking for the next appliance to complete their smart home.

If you are thinking about ranging smart-home products, but don’t know where to begin – start small. There are plenty of products that require only a small investment, but can have a huge lifestyle impact for consumers. Smart plugs, such as those from Hive and TP-Link, allow users to control their appliances from any smart device. From turning on a lamp, to making sure your hair straighteners are turned off, smart plugs are an inexpensive and easy to install and a great way to introduce customers to the category. Likewise, ranging at around £70, smart light bulbs, such as Philips Hue or Lifx, are a great smart-home product, allowing consumers to switch on their lights or change the colour, and can be linked to a device such as Google Home.

Excitement

Then you can move on to other key smart-home areas, such as thermostats from Hive and Nest, and smart security products, such as the Ring video doorbell. These products are more of an investment with an average basket value of £123, but the lifestyle benefits will appeal to interested consumers. Similarly, smart speakers are an up-and-coming category creating a lot of excitement.

As recently published in ERT, a survey by German electronics retailer Reichelt found that 56 per cent of Brits were already using, or would consider using, a voice-controlled connected device in the home. However, 55 per cent did not know how to install them or would need to seek professional help.

There is definitely an opportunity for independent retailers to fill this gap, offering customers professional installation or even training in-store from a member of staff. With some multiple retailers lacking the wi-fi connection needed to fully set up a smart speaker or security system in-store, set your shop apart by offering a full demo-ready model of all your smart-home products for shoppers to try out. This could make your store an obvious destination.

But it’s important that you don’t confuse shoppers with technical jargon. Make sure your staff are communicating what the smart home offers each customer, be it peace of mind when leaving their home for a long period, the money-saving benefits of a smart thermostat, or even the convenience of a smart assistant.

Equally, make sure that, when demoing a product, your staff have been thoroughly trained and are able to answer any questions. Shoppers will want to be reassured that the device is easy to install, unobtrusive and convenient for them.

This will help inspire customers to come to you to upgrade all their appliances to create a smart home for themselves. With the average basket value of a smart-home purchase trending at £105, the prospects are good.

 

Read more at http://ertonline.co.uk/opinion/connect-with-your-customer/

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