7 18 37 62 80 104 118 128 136 130 116 109 155 185 206 195 177 169 17 61 130 228
326
139
267
441
685
1,010
1,264
2009 2010 2011 2012 2013 2014 FC
TV Desc PC/All in one Notebooks/Netbook Tablets Smart phones
In 2014 close to 2 billion "core Internet devices" will be sold,
out of these 1.2 billion will be smart phones
Global sales [million units]
Source: GfK Retail Panel , core devices which can connect to the internet
1,972
419
615
881
1,611
1,202
… going beyond a simple
communication device
Smartphones: Disrupting existing markets
Browser
Audio Player GPS
Video Player
Camera
Microphone
Loudspeakers
Smartphones are becoming a one-stop portal for all our consumer
device needs
Health
Massive growth in adoption of connected devices APAC excl. CN&JP, 2011 to 2014, Sales Value
+US$16 Bn
Source: GfK; Retail Data: Connected Devices, APAC excl. CN&JP, 2010 to 2014, Sales Value
-
5
10
15
20
25
30
35
40
45
1H 2011 1H 2012 1H 2013 1H 2014
US
D B
illi
on
s
NON-CONNECTED
CONNECTED
-US$7 Bn
There is a shift from Connected to Connected Anywhere…
Driving the demand for personal mobile devices
Source: GfK; Retail Data: Digital Devices, APAC excl. CN & JP, 2010 to 2014, Sales Units
3,490
1,978
5,200
3,831
1,425 1,327
465
4,407
16,793
49,892
Q31
1
Q41
1
Q11
2
Q21
2
Q31
2
Q41
2
Q11
3
Q21
3
Q31
3
Q41
3
Q11
4
Q21
4
Sales Units in Thousands
DESKTOP PC Laptops > 8" TABLET
≤ 8" TABLET SMARTPHONE
≡
Globally the majority of people use more than one device to
connect to the Internet
Source: GfK Roper Reports Worldwide, 2013; consumer behavior and attitudes in 31 markets
In Indonesia, Smartphone sales increased 7 fold in the past 5 years,
eclipsing feature phones for the first time in 2014
Indonesia following
global trend - Tablets and
SP growing at a
phenomenal pace
SP will make up 46% of
all devices sales up from
32% in 2013
Tablets growth eating
into Laptop and PCs
sales
Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2010 2011 2012 2013 2014 Fcst
Unit Sales
Desktop PC Laptop Tablet PC Smartphones Feature Phone
46%
32%
20%
Indonesia one of the fastest growing smartphone markets in the
world – 2015 expected to connect 40 mn more people
Over 50mn Smartphones sold in last 2 years (2013/14)
Source: Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities,, *the bubble figure refers to unit growth yoy
Smart+Feature Phone
9% 2% 4%
3%
2011
51,929K
Smartphones
2012
56,577K
2013
57,385K
2014
59,812K
2015 Forecast
61,732K
20% 44% 51%
27%
2011
12,083K
2012
14,513K
2013
20,897K
2014
31,473K 2015 Forecast
39,848K
In the space of 5 years, Indonesia has transformed from Nokia-land, to
BlackBerry-land, and now Android-land; while iOS struggling to gain traction
Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities
45%
18% 4% 0% 0%
2010 2011 2012 2013 2014 (F)
45% 53% 50%
20% 6%
2010 2011 2012 2013 2014 (F)
1% 1% 2% 3% 2%
2010 2011 2012 2013 2014 (F)
3%
23% 39%
65%
88%
2010 2011 2012 2013 2014 (F)
Growing trend of larger screens and Dual-Sim phones, Android dominant OS
Average Selling
Price
52% of devices sold in YTD 2014 were
Smartphones
88% of Smartphone are Android.
31% among Smartphone market
are devices with price <
IDR 1 Mio
4% of Smartphone market in YTD 14
are equipped with LTE ready.
26% of Smartphones sold have
4” screen size
65% of Smartphone devices
sold are Dual-SIM card
+56%
+293%
+264%
Growth YTD 14 vs YTD 13 (unit) , All data based on YTD Sep 2014 Data – Smartphone / Feature phone , Indonesia 37 Cities . Volume in Sales Units
Smartphones,
Mobile phones
or Phablet
OS
Screen Size
Digital
Standard
Number of
SIM Cards
Indonesians are ready for digital platforms just getting started
on online retail
Source: McKinsey & Company 2014 Report and GfK data
about 56% internet
penetration in Indonesia, less
than 10% are shopping
online
of population within 138 million
members living in urban area
are the middle class segment
(urban consuming class)
Smartphone devices sold
through online channel
entering the urban
consuming class each year =
a population the size of
Singapore
Less than 55 million
2% 10%
Less than
5
million
• A consumer survey, 2,400 face-to-face interviews about media usage in
Indonesia as well as device ownership and usage
• In addition, installation of approximately 600 Passive meters among respondents
in 5 Java cities – running through to March 2015.
• Study to provide Cross device linkages and real-time big data on what are
people doing on their devices
Introducing the Google Digital Metering Project
Next few slides give you a very first glimpse of what we are
finding from the media usage part of the study .
Please be mindful these are preliminary un-weighted and part sample data from 1450 consumers only
COMPUTER (PC)
29%
TABLET (TB)
8%
Multi-screen usage is just starting to happen , Smartphone main gateway to
the world
FEATURE PHONE (FP)
44%
25% have both PC and Smartphone , whereas 6% have Smartphones and Tablets
Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N= 1450
SMARTPHONE (SP)
73%
Base: All Respondents
PC + SP 25%
TB + SP 6%
Excl. SP 33%
81% Social networking
(Facebook, Twitter, etc.)
59% Chatting (YM, Skype,
Gtalk, etc.)
37% Watching video via
YouTube, Vimeo
78% Call/SMS
79% Browsing
Only in Indonesia, people use mobile phones for ‘social networking’
more often than making calls!
Source: Media Behaviour and Consumption, Indonesia 2014, among smartphone users, urban middle class
32% Emailing
Base: Smartphone Users
58% Social networking
(Facebook, Twitter, etc.)
29% Chatting (YM, Skype,
Gtalk, etc.)
38% Watching video via
YouTube, Vimeo
65% Do assignment / work
73% Browsing
What do people in Indonesia use PC for?
Source: Media Behaviour and Consumption, Indonesia 2014
50% Emailing
Base: PC Users
Smartphones are the primary gateway to Internet
7% Use a tablet
4% Use a desktop
computer
16%
87%
Use a laptop
Use a
smartphone
29% of people online use
more than one device
to connect
Source: Media Behaviour and Consumption, Indonesia 2014
Base: Internet Users
0
10
20
30
40
50
60
706
- 9
9 -
10
10 -
11
11 -
12
12 -
13
13 -
14
14 -
15
15 -
16
16 -
17
17 -
18
18 -
19
19 -
20
20 -
21
21 -
22
22 -
23
23 -
24
00 -
01
01 -
06
PC Smartphone
Tablet Feature Phone
TV Radio
Print Media (Magazine, Newspaper, Tabloid)
Smartphones are always on during waking hours, parallel usage during evenings
starting to show
Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N=
am
Base: All Respondents
Today’s consumers are mobile,
connected, in control…and expect
the best in technology and a
great user experience
The evolution of technology is both shaped by and drives
consumer behaviour
Sources: (1) GfK, Global Sales Value % 2013/2014 estimated. Global consumer tech devices retail sales revenue in USD - top tier products, December 2013. (2) Gartner, (3) Gartner
The explosion of digital devices and internet accessibility have
changed the way consumers…
Global mobile transactions are
predicted to reach
$617bn
in 2016 (2)
And global mobile ad revenue to reach:
$24.5bn
in 2016 (3)
Mobile will soon be the important channel to
drive business growth Search Shop Communicate
Engage
with brands
Gather
information
Harvard Business Review, 2012, Roland T. Rust, Christine Moorman and Gaurav Bhallla: Rethinking Marketing
Earlier Now
Product
Customer
Customer
Product
We need to move from being product to customer centric
Understand how consumers are using their mobile devices
Define your mobile strategy, understanding mobile audience
Improve your mobile properties performance
Optimize content by OS and device
Make mobile an effective channel for search
Improve mobile ad effectiveness
Intercept consumers in their purchase journey
Mobile
Audience
Measurement
Mobile
Web
Benchmark
Cross
Device
Insight
Mobile
Ad
Analysis
Mobile
User
Journey Mobile
Search
Measurement
• Get ready for the constantly connected consumer – talk to them at a personal
level
• Don’t just extend advertising strategies to include mobile but instead center them
around it
• How consumers will find and buy you will also change soon enough , engage
them across the journeys they make
Final thoughts
GfK. Growth from Knowledge
Helping you make better decisions
We are the trusted source of relevant market and consumer information.
• 13,000 experts in 100 countries
• 5m consumer and electronics products
sales tracked globally for brands and
manufacturing companies
• Supplying television audience
measurement in 8 media markets, as well
as digital and radio tracking in more
countries
• Providing insight through social media data
• Part of Europanel partnership, capturing
scan-based purchasing
We drive insights by bringing together unique data assets ,
innovation platforms & industry expertise
Innovative technology
platforms
Big-data, behavioral
digital analytics
Business opportunities
Winning strategies
Our data assets
Your data assets
Other data assets
Industry expertise Proven market
research and product expertise