Table of Contents
Introduction and Abbreviations
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- Definitions
- Telecommunications equipment types
- Some technology definitions
- Financial definitions
- Research methodology
- Consumer research
- ACORN
- Abbreviations
Premier Insight
Executive Summary
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- Vibrant but complex market conditions
- Mobile market dipped then revived
- Fashion is king
- Churn between networks
- Retailers scramble to expand
- Why the retail chains are expanding
- Product lifecycles shorten to drive demand
- New challenges as style takes prime position
- Just how does a retailer differentiate?
- Specialists dominate market share
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- Figure 1: Distribution of mobile phone handsets, by volume, 2005
- Implications of the expansion of the supermarkets
- Merger and acquisition among retailers
- Importance of the Internet
- Five main kinds of consumer
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- Figure 2: Consumer typologies, 2006
- A deal-driven market
- Evidence of a shift to contract sales?
- The mobile generation
- The future
Industry Issues and Insights
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- Buoyant demand
- Handset fashion creates desire
- Network strategies
- Subsidies influence the market dynamics
- Retailing is very competitive
- Loyalty is fairly low
- Two main market segments
- Seasonal strategies
- Contracts more lucrative
- Selling contracts requires more man power
- How the retailers vary
- Scramble for more sites
- Tough competition means pressure on independents
- Staff training
- Store design
- New format development
- Internet selling
- Will distribution of mobile phones broaden?
- Grey markets
- Blurring technologies
- Voice over Internet
- What do consumers want?
- New developments could reshape the market
- Buoyant demand, but tough competition
- Retailers will have to work harder and smarter
Retail Sales
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- Slower growth in 2005
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- Figure 3: All retail sales, at current and constant 2000 prices, 2000-06
- Price deflation has characterised electricals
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- Figure 4: Sales through electrical retailers, at current and constant 2000 prices, 2000-06
Sector Structure
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- The networks
- Fixed line service providers
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- Figure 5: Fixed line service providers, all revenue and share, 2003, 2004 and Q1 2005
- Independent specialists
- General retailers
Consumer Expenditure
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- The mobile phone market
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- Figure 6: Mobile phone subscribers, 2000-06
- Expenditure on mobile phones
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- Figure 7: UK retail sales of mobile phone handsets, by volume and value, 2000-06
- Segmentation of the mobile phone market
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- Figure 8: Mobile phones sold, by pre-pay or contract, 2003-05
- Fixed line telephones and answering machines
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- Figure 9: Fixed line telephones and answering machines, 2003-06
- Segmentation of fixed line equipment
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- Figure 10: UK retail sales of telephones and answering machines, by volume and value, 2003-05
Market Factors
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- The economy
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- Figure 11: GDP at current and constant 2001 prices, 2001-05 and forecasts for 2006 and 2011
- Growth of personal disposable income
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- Figure 12: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
- Population trends
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- Figure 13: UK population, by age group, 2001, 2006 and 2011
- Socio-economic trends
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- Figure 14: UK population, by socio-economic group, 2001, 2006 and 2011
- Changing working patterns and lifestyles
- Security and theft
- Health fears
- Technological developments
- Voice over Internet promises free talk time
- Further technological developments – 4G
- Content provision
The Consumer
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- Key consumer findings
- Fixed-line telephones
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- Figure 15: Types of telephone owned, 2000-05
- Mobile phones
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- Figure 16: Trends in ownership of mobile phones, 2000-05
- Multiple ownership of mobile phones
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- Figure 17: People in the household owning a mobile phone, 2000-05
- Type of mobile phone contract
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- Figure 18: Type of mobile phone contract used, 2002-05
- How long with current mobile network
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- Figure 19: How long with current network, 2001-05
- High ownership of mobiles among young children
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- Figure 20: Youth, ownership of mobile phones, who pays and type of contract, 2005
- Source of last mobile phone purchased
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- Figure 21: Outlet where last mobile phone purchased, January 2006
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- Figure 22: Outlet where last mobile phone purchased – Specialists, by gender, age and socio-economic group, January 2006
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- Figure 23: Outlet where last mobile phone purchased – Other specialists, non-specialist and non buyers, by gender, age and socio-economic group, January 2006
- Channel used for last mobile phone purchased
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- Figure 24: Channel used for last mobile phone purchase, January 2006
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- Figure 25: Channel used for last mobile phone purchase, by gender, age and socio-economic group, January 2006
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- Figure 26: Channel used for last mobile phone purchase, by outlet used for last purchase, January 2006
The Consumer – Detailed Consumer Demographics
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- Figure 27: Outlet where last mobile phone purchased – Specialists, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 28: Outlet where last mobile phone purchased – Other specialists, non-specialist and non buyers, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 29: Outlet where last mobile phone purchased – Specialists, by region and ACORN category, January 2006
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- Figure 30: Outlet where last mobile phone purchased – Other specialists, non-specialist and non buyers, by region and ACORN category, January 2006
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- Figure 31: Outlet where last mobile phone purchased – Specialists, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 32: Outlet where last mobile phone purchased – Other specialists, non-specialist and non buyers, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 33: Channel used for last mobile phone purchase, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 34: Channel used for last mobile phone purchase, by region and ACORN category, January 2006
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- Figure 35: Channel used for last mobile phone purchase, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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Consumer Attitudes and Typologies
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- Key consumer findings
- Factors clinching decision about where to buy
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- Figure 36: Factors clinching decision about where to buy mobile phone, January 2006
- 20-34s are deal-savvy
- Lowest price means most to the Ds
- Handsets matter
- Loyalty to the retailer
- Network means more to the 20-24s
- Choice matters more to younger consumers
- Advice for all
- Encourage recommendations
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- Figure 37: Factors clinching decision about where to buy mobile phone, by gender, age and socio-economic group, November 2005
- How Clinching factors vary, by store used for last mobile
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- Figure 38: Factors clinching decision about where to buy mobile phone, by shop or website where last mobile phone purchased, January 2006
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- Figure 39: Factors clinching decision about where to buy mobile phone, by channel used for last mobile phone purchased, January 2006
- Shopping behaviour when buying last mobile phone
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- Figure 40: Shopping behaviour when buying last mobile phone, January 2006
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- Figure 41: Shopping behaviour when buying last mobile phone, by gender, age and socio-economic group, January 2006
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- Figure 42: Shopping behaviour when buying last mobile phone, by shop or website where last mobile phone purchased, January 2006
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- Figure 43: Shopping behaviour when buying last mobile phone, by gender, age and socio-economic group, January 2006
- Loyal to Vodafone
- Phones4U building share
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- Figure 44: Shopping behaviour when buying last mobile phone, by shop or website where last mobile phone purchased, January 2006
- Mobile phone usage and habits
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- Figure 45: Mobile phone usage and habits, January 2006
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- Figure 46: Mobile phone usage and habits, by gender, age and socio-economic group, January 2006
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- Figure 47: Mobile phone usage and habits, by shop or website where last mobile phone purchased, January 2006
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- Figure 48: Mobile phone usage and habits, by gender, age and socio-economic group, January 2006
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- Figure 49: Mobile phone usage and habits, by shop or website where last mobile phone purchased, January 2006
- Identifying targets – consumer typologies
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- Figure 50: Consumer typologies for mobile phones, January 2006
- Talk-a-lots (13%)
- Emergencies-only (17%)
- Text-a-lots (18%)
- Unconcerned (33%)
- Featureless (19%)
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- Figure 51: Consumer typologies for mobile phones, by gender, age and socio-economic group, January 2006
- Clinchers for the typologies
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- Figure 52: Factors clinching decision about where to buy mobile phone, by consumer typologies, January 2006
- How the typologies behaved
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- Figure 53: Shopping behaviour when buying last mobile phone, by consumer typologies, January 2006
Consumer Attitudes and Typologies – Detailed Consumer Demographics
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- Figure 54: Factors clinching decision about where to buy mobile phone, by gender, age and socio-economic group, January 2006
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- Figure 55: Factors clinching decision about where to buy mobile phone, by gender, age and socio-economic group, January 2006
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- Figure 56: Factors clinching decision about where to buy mobile phone, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 57: Factors clinching decision about where to buy mobile phone, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 58: Factors clinching decision about where to buy mobile phone, by region and ACORN category, January 2006
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- Figure 59: Factors clinching decision about where to buy mobile phone, by region and ACORN category, January 2006
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- Figure 60: Factors clinching decision about where to buy mobile phone, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 61: Factors clinching decision about where to buy mobile phone, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 62: Factors clinching decision about where to buy mobile phone, by lifestage and Mintel’s Special Groups, January 2006
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- Figure 63: Factors clinching decision about where to buy mobile phone, by region and ACORN category, January 2006
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- Figure 64: Factors clinching decision about where to buy mobile phone, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 65: Shopping behaviour when buying last mobile phone, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 66: Shopping behaviour when buying last mobile phone, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 67: Shopping behaviour when buying last mobile phone, by region and ACORN category, January 2006
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- Figure 68: Shopping behaviour when buying last mobile phone, by region and ACORN category, January 2006
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- Figure 69: Shopping behaviour when buying last mobile phone, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 70: Shopping behaviour when buying last mobile phone, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 71: Mobile phone usage and habits, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 72: Mobile phone usage and habits, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 73: Mobile phone usage and habits, by region and ACORN category, January 2006
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- Figure 74: Mobile phone usage and habits, by region and ACORN category, January 2006
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- Figure 75: Mobile phone usage and habits, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 76: Mobile phone usage and habits, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 77: Consumer typologies for mobile phones, by presence of children, lifestage and Mintel’s Special Groups, January 2006
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- Figure 78: Consumer typologies for mobile phones, by region and ACORN category, January 2006
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- Figure 79: Consumer typologies for mobile phones, by media usage, commercial TV viewing and source of regular grocery shopping, January 2006
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- Figure 80: Consumer typologies for mobile phones, by where bought last mobile phone, January 2006
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- Figure 81: Consumer typologies for mobile phones, by channel used to buy last mobile phone, January 2006
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- Figure 82: Factors clinching decision about where to buy mobile phone, by consumer typologies, January 2006
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Retail Market Shares
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- Fixed line equipment
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- Figure 83: Distribution of fixed line telecommunications equipment (phones, fax, answering machines), 2003-05
- Mobile handsets
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- Figure 84: Distribution of mobile handsets, 2000-05
Retailer Profiles
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- Specialists
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- Figure 85: Summary of spcialist mobile phone retailers, 2005
- The Carphone Warehouse plc
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- Figure 86: The Carphone Warhouse, UK and Irish outlet numbers, 2002-06
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- Figure 87: The Carphone Warehouse plc, group financial performance, 2001-05
- Figure 88: The Carphone Warehouse plc, UK financial performance, 2001-05
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- Figure 89: The Carphone Warehouse, segmental analysis, 2005
- The Link
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- Figure 90: The Link, store numbers, 2001-05
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- Figure 91: The Link, financial performance, 2001-05
- Vodafone
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- Figure 92: Vodafone, UK store numbers, 2001-05
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- Figure 93: Vodafone Distribution Ltd, (including UK retail), financial performance, 2001-05
- Phones4U
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- Figure 94: Phones4U, store numbers, 2001-05
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- Figure 95: Phones4U, financial performance, 2001-05
- Orange
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- Figure 96: Orange UK, store numbers, 2001-05
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- Figure 97: Orange retail, financial performance, 2000-04
- O2
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- Figure 98: O2, store numbers, 2002-05
- T-Mobile
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- Figure 99: T-Mobile, UK store numbers, 2001-05
- Virgin Mobile
- 3 (Hutchison Mobile)
- Other mobile phone specialists
- Electrical retailers
- Currys
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- Figure 100: Currys, store numbers, 2001-05
- Dixons (Currys.digital)
- Comet
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- Figure 101: Comet, store numbers, 2001-05
- Non-specialists
- John Lewis
- Argos
- Tesco
- Sainsbury’s
- Asda
- Marks & Spencer
- Woolworths
- Jessops
- Amazon
- Boots
- Direct sellers/Internet specialists
- Dial-a-phone
- Mobiles.co.uk
- Mobileshop.com
The Future
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- Fixed line market about to change
- Demand for mobiles will be strong
- Replacement handsets will drive the market
- Challenge to build loyalty
- Store chains will continue to grow
- Internet will also grow
- More investment in concept stores for larger cities
- Specialists will benefit from 3G growth
- Pay-as-you-go is not dead
- Non-network stores will continue to develop services
- Conclusions
Forecast
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- Strong demand for mobiles predicted
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- Figure 102: Forecast of the telecommunications market, 2006-11
- NPD to drive both sectors
- Blurring the boundaries: Compatibility and Integration
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- Figure 103: Forecast sales of telecommunications equipment, at current prices, 2006-11
- Factors incorporated in the forecast
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