PC Retailing - UK

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2007 - 141 Pages

Table of Contents

ISSUES IN THE MARKET

Main themes

Definitions

ABBREVIATIONS

MARKET IN BRIEF

Ownership & usage

Price-focus isn’t all

What women want? (And men too)

Spending growth slowing

IT to underperform all spend

Specialists under pressure

Verging on monopoly?

INDUSTRY INSIGHTS

Key points:

The market

The future

Laptops driving the market

Is the replacement cycle lengthening?

Are customers looking to trade up?

Is the need for more storage space driving purchases?

Online

Convergence and design

INTERNAL MARKET ENVIRONMENT

Competition from supermarkets

The online threat

New technology

Convergence

Price deflation

Figure 1: UK: Consumer price index for selected goods, 2002-06

The digital divide?

Home Computing Initiative

A necessity?

Scares

Ownership

Figure 2: Personal computer/laptop ownership, 2002-06

Figure 3: Home ownership of personal computers/laptops, by age group, 2006

Figure 4: Home ownership of personal computers/laptops, by income group, 2006

Figure 5: Home computer peripherals/hardware, ownership, 2002 and 2006

Figure 6: Ownership of home computer peripherals/hardware, 2002-06

Computer usage

Figure 7: What the home computer is used for, 2006

Figure 8: What home computer is used for, 2002-06

Factors in choosing a home computer

Figure 9: Most important factor when choosing a home computer, 2002 and 2006

Figure 10: Most important factor when choosing a home computer, 2002-06

BROADER MARKET ENVIRONMENT

Population trends

Growing, greying population

Figure 11: UK: Population trends, 2002-12

Figure 12: UK: Population trends, by age band, 2002-12

Figure 13: UK: Population, by age band, 2002, 2007 and 2012

Living alone

Figure 14: UK: Percentage change of household size, 2002-12

Implications for the PC market

Consumer

Increasingly affluent

Figure 15: UK population, by socio-economic group, 2002 and 2012 (proj)

Historically confident

Figure 16: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12

…but set to be reigned in

Figure 17: PDI and consumer spend growth rates, at current and constant prices, 2002-07 and 2007-12

MARKET IN CONTEXT

Key points:

Computer vs all spending

Figure 18: UK: Consumer spending on selected categories, 2002-2006

Figure 19: UK: Share of spending on information processing equipment of all consumer spending, 2002-06

Computer vs. blender

Figure 20: UK: Index of growth of consumer spending in selected top-line categories, 2002-06

Traditional recreation holds its ground

Figure 21: UK: Index of growth of consumer spending in selected recreational categories, 2002-06

Computers more stable than TVs

Figure 22: UK: Index of growth of consumer spending in selected recreational goods categories, 2002-06

SECTOR SIZE AND FORECAST

Key points:

Outlook

Economy and the consumer

The retail sector

Specialists

Figure 23: UK: Other specialist retailers’ and electricals retailers’ sales, 2002-12

Figure 24: UK: Other specialist retailers’ and electricals retailers’ sales as share of all retailers sales, 2002-12

Past trends

Figure 25: UK: Retail sales of photographic, optical and precision equipment, office supplies and equipment, 2003-06

Enterprises

Figure 26: UK: Retail sale of photographic, optical and precision equipment, office supplies and equipment, number of enterprises, 2003-05

STRENGTHS AND WEAKNESSES IN THE MARKET

Strengths

Weaknesses

MARKET SIZE AND FORECAST

Key points:

Past

Figure 27: Market size of information processing equipment, by value, 2002-07

Inside the PC market

Figure 28: UK: Index of growth of expenditure in selected IT goods categories, 2002-06

Future

Figure 29: Market size and forecast of information processing equipment, by value, 2002-12

Slower growth expected

New technology to drive demand and deflation

Laptops to gain further ground

EUROPEAN CONSUMER CONTEXT

Computer ownership

Figure 30: GB, France, Spain and Germany: Computer ownership in the home, 2006

Peripherals ownership

Figure 31: GB, France, Spain and Germany: Peripherals ownership in the home, 2006

Figure 32: GB, France, Spain and Germany: Peripherals ownership in the home, 2006

Main user

Figure 33: Europe: Main user in the home, GB, France, Spain and Germany, 2006

Main uses

Figure 34: Europe: Main use in the home, GB, France, Spain and Germany, 2006

Figure 35: Europe: Main use in the home, GB, France, Spain and Germany, 2006

Broadband access

Figure 36: Europe: Share of households with broadband Internet access, 2006

Most important factors when choosing a home computer

Figure 37: Germany and GB: Five most important factors when choosing a home computer, 2006

Figure 38: Spain and France: Five most important factors when choosing a home computer, 2006

WHERE AND HOW THEY BUY HOME COMPUTERS

KEY FINDINGS

WHERE PEOPLE BUY PERSONAL COMPUTERS

Figure 39: Outlets used for buying last home computer, May 2007

Trend data

WHO BUYS WHERE

Figure 40: Outlets used for buying last home computer, by age, May 2007

Figure 41: Outlets used for buying last home computer, by socio-economic group, May 2007

PC World and Dell customers are heavy Internet users

Figure 42: Outlets used for buying last home computer, by Internet usage, May 2007

Figure 43: Outlets used for buying last home computer, by gender, age, socio-economic group and Internet usage, May 2007

Channel used for last personal computer purchased

Figure 44: Channel used for buying last home computer, May 2007

Figure 45: Channel used for finding and buying last home computer. May 2007

Who buys from which channel

Figure 46: Channel used for buying last home computer, by demographic sub-group, May 2007

Figure 47: Channel used for buying last home computer, by socio-economic group, May 2007

Channel by seller

Figure 48: Channel used for buying last home computer, by seller used, May 2007

Retailer correlation

Figure 49: correlation between outlets/suppliers used for buying last home computer, May 2007

WHERE AND HOW THEY BUY HOME COMPUTERS -DETAILED CONSUMER DEMOGRAPHICS

Figure 50: Outlets used for buying last home computer, by region, presence of children in household, source of regular grocery shopping, mobile phone network provider and TV reception, May 2007

Figure 51: Channel used for buying last home computer, by socio-economic group, region, Internet usage, source of regular grocery shopping, mobile phone network provider and TV reception, May 2007

CHANNELS OF DISTRIBUTION

Figure 52: UK: Outlets used for buying last home computer, May 2007

RETAIL COMPETITOR ANALYSIS

Figure 53: UK: Leading PC retailing specialists, 2005 and 2006

Market shares

Figure 54: UK: Estimated share of spending of leading PC retailing specialists, 2005 and 2006

Figure 55: UK: Share of spending of leading PC retailing specialists, 2006

Evaluation

Figure 56: PC retailing specialists, evaluation, 2006/07

RETAILER PROFILES

APPLE RETAIL UK

Strategic evaluation

Background

Financial performance

Figure 57: Apple Retail UK: Group financial performance, 2004-07

Store portfolio

Figure 58: Apple Retail UK: Outlet data, 2004-07

Retail offering

Market positioning

Brands and product offer

Advertising & marketing

E-commerce

DABS.COM

Strategic evaluation

Background

Financial performance

Figure 59: Dabs.com: Group financial performance, 2001/02-2005/06

Retail offering

Market positioning

Brands

Product offer

Pricing

e-commerce & home shopping

DELL B2C RETAIL EUROPE

Strategic evaluation

Background

Dell founded in 1984

The Dell model

Alienware acquisition

Financial performance

Figure 60: Dell EMEA: Financial performance, 2001/02-2005/06

Figure 61: Dell B2C Retail Europe: Estimated retail sales, 2001/02-2005/06

Store portfolio

Retail offering

Market positioning

Product offer

Figure 62: Dell Global: Product breakdown, 2005

Figure 63: Dell Global: Product breakdown by category, 2001/02-2005/06

Pricing

Advertising & marketing

e-commerce & home shopping

DSG INTERNATIONAL (PC WORLD/PC CITY)

Strategic evaluation

Background

Financial performance

Figure 64: DSG International: Group financial performance and outlet data, 2001/02-2006/07

Figure 65: DSG International: Computing division financial performance and outlet data, 2001/02-2006/07

PC World

Figure 66: PC World and PC World Business: Sales and operating profit, 2001/02-2006/07

PC City

Figure 67: PC City: Financial performance, 2001/02-2005/06

Dixons Ireland

Figure 68: Dixons Ireland: Financial performance, 2001/02-2005/06

Selected electricals operations

Figure 69: Currys and UniEuro: Financial performance, 2001/02-2006/07

Store portfolio

PC World

Figure 70: PC World: Outlet data, 2001/02-2006/07

PC City

Figure 71: PC City: Stores and sales area, 2002/03-2006/07

Ireland

Figure 72: Dixons Ireland: Outlet data, 2001/02-2006/07

Selected electricals operations

Figure 73: Currys and UniEuro: Outlet data, 2001/02-2006/07

Store environment

Retail offering

Market positioning

Brands

Product offer

Pricing

Operational issues

EVESHAM TECHNOLOGY

Strategic evaluation

Background

Financial performance

Figure 74: Evesham Technology: Group financial performance, 2001/02-2005/06

Store portfolio

Retail offering

Market positioning

Brands

Product offer

Pricing

Operational issues

Advertising & marketing

KESA ELECTRICALS

Strategic evaluation

Background

Financial performance

Figure 75: Kesa Electricals: Group financial performance, 2002/03-2006/07

Store portfolio

Figure 76: Kesa Electricals: Outlet data, 2002/03-2006/07

Retail offering

Market positioning

Brands

Product offer

Figure 77: Kesa Electricals’, product mix, 2002/03

Pricing

e-commerce & home shopping

Figure 78: Kesa Electronics, country-by-country affiliated websites, 2007

MICRO ANVIKA LTD

Strategic evaluation

Background

Financial performance

Figure 79: Micro Anvika Ltd: Group financial performance, 2001/02-2005/06

Store portfolio

Figure 80: Micro Anvika Ltd: Outlet data, 2000/01-2005/06

Retail offering

Market positioning

Brands

Product offer

Pricing

e-commerce & home shopping

RETAIL ADVERTISING AND PROMOTION

UK advertising expenditure

Specialist retailers

Figure 81: Main media advertising spend, by leading specialist retailers, 2002-06

Figure 82: Main media advertising spend, by top six specialist retailers, by media, 2006

Figure 83: Main media advertising spend, by leading specialist retailers, by media, 2006

Non-specialist retailers

Figure 84: Main media advertising spend, by leading non-specialist retailers, 2002-06

Figure 85: Main media advertising spend by top nine non-specialist retailers, by media, 2006

Figure 86: Main media advertising spend, by leading non-specialist retailers, by media, 2006

Product brands

Figure 87: Main media advertising spend, by leading product brands, 2002-06

Figure 88: Main media advertising spend, by leading product brands, by media, 2006

Figure 89: Main media advertising spend, by leading product brands, by media, 2006

APPENDIX: RESEARCH METHODOLOGY

Abstract

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