Table of Contents
Introduction and Abbreviations
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- A market characterised by change
- Specialists dominate the telecommunications retail sector
- Store design and merchandising take on greater importance
- New technologies help stimulate the fixed line market
- Definitions
- Telecommunications equipment types
- Some technology definitions
- Retail definitions
- Financial definitions
- Research methodology
- Consumer research
- Lifestages
- ACORN
- Abbreviations
Executive Summary
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- Telecommunications market dominated by mobile phones
- Saturation means new industry focus
- Cameras and colour screens did well in 2003
- Fixed line market boosted by digital cordless phones
- Mobile phone retailing dominated by specialist multiples
- Expansion of the chains…
- Non-specialists growing in the UK market
- Specialist chains dominate sales of mobile phones
- Sales of fixed line phones dominated by electrical shops and catalogue showrooms
- Growth in 15-24s will help demand
- Shifting social profile also boosts demand
- Buoyant economic conditions have helped build the market
- Greater emphasis on sales of ‘content’
- Retailers also reduce their reliance on equipment sales
- More investment in retail store environments
- More advertising and sponsorship
- E-commerce retailing to grow
- 3G main stimulus to market growth
- Confidence in new technology is vital
- Possibility of contraction in suppliers
- Specialist retailers will benefit from new technology
- Networks will expand chains
- Regional variations mean opportunities for expansion
- Too many retailers chasing mature market
- More ability to cross sell in future
- Supermarkets could make further inroads
- Orange top in consumer research
- Consumers want good prices and high levels of service
- Five main customer types
- Specialist retailers will compete on service and advice
- Conclusion
Premier Insight
Retail Sales
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- Widening distribution channels
- Price deflection impacts on the market
- Retailers squeezed by rising costs and deflation
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- Figure 1: Retail sales through electrical appliance retailers, at current and constant 1995 prices, 1995-2003
- Electrical goods retailers perform well
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- Figure 2: Retail sales through all retailers and electrical appliance retailers, at current prices, 1995-2003
- Figure 3: Retail sales through all retailers and electrical appliance retailers, at constant 1995 prices, 1995-2003
Sector Structure
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- Network operators
- Fixed line telephony
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- Figure 4: Summary of residential market shares, by revenue and call volumes, April-June 2003
- Direct fixed line providers
- Indirect providers
- Mobile telephone operators
- Mobile phone users
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- Figure 5: Mobile phone users, UK, 1990-2003
- Mobile phone users by network provider
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- Figure 6: Mobile phone users, year to April 1999-2003 and Q1 2004
- Network share of mobile users
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- Figure 7: Call revenues (consumer expenditure on calls etc) by mobile network, 2003
- Handset manufacturers
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- Figure 8: Mobile phone handset sales in the UK, by volume (unit sales) and market share, 2003
- Stable prices
- Cordless digital phones boost the market
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- Figure 9: UK market for fixed line telephones and equipment, at current and constant 1998 prices,
- BT 1571 replaces the answer machine
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- Figure 10: UK market for fixed line telephones and equipment, 2000-03
- Distributors of telecommunications equipment
- The retailers
- Specialist retailers
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- Figure 11: Principal specialist retailers of telecommunications equipment in the UK, by number of outlets, 2000 and 2003
- Electrical specialists
- Other non-specialist retailers
- Mail order, Internet and direct sale
Consumer Expenditure
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- Figure 12: Consumer spend on household telephone services, 2001-02
- Market for home telephones
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- Figure 13: Average weekly and annual household spend on purchases of telecommunications equipment, 1998-2003
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- Figure 14: Breakdown of the fixed line telecommunications equipment market, 2000-03
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- Figure 15: UK retail sales of mobile phone handsets, by volume and value, 1998-2003
- Figure 16: Sales of pay-as-you-go vs pay-monthly mobile phones, by volume and type of package, 2002 and 2003
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Market Factors
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- Demographic trends
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- Figure 17: UK population, by age band, 1998, 2003 and 2007
- Figure 18: UK socio-economic groupings of adults, 1998, 2003 and 2007 (proj)
- Economic trends
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- Figure 19: PDI and consumer expenditure, at current and constant 1998 prices, 1998-2007
- Employment patterns
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- Figure 20: The size of the workforce in the UK, the number employed and percentage unemployed, 2000-07
- Mobile phone security
- Health fears
- Technological developments
- Content
The Consumer
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- Key findings
- Consumer views
- Youth ownership and usage of mobile phones
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- Figure 21: Ownership of mobile phones, by gender and age, 7-19s, 2003
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- Figure 22: Usage of features of mobile phones, 11-19s, 2003
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- Figure 23: Youth mobile phones, type of payment, 2003
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- Figure 24: Youths with mobile phones, who pays? 2003
- Adult ownership and usage of mobile phones
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- Figure 25: Adult ownership and usage of mobile phones, 2003
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- Figure 26: Features of mobile phones, 2003
- Where consumers shop
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- Figure 27: Source of purchase of telecommunications equipment, 1998, 2000 and 2002
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- Figure 28: Outlet used for last mobile phone purchase, 2004
- Characteristics of purchasers of mobile phones
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- Figure 29: Outlet from which last mobile phone was purchased, specialists, by gender, age and socio-economic group, 2004
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- Figure 30: Outlet from which last mobile phone was purchased, other outlets, company phones, phones received as gifts and non-ownership, by gender, age and socio-economic group, January 2004
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- Figure 31: Outlet from which last mobile phone was purchased, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 32: Outlet from which last mobile phone was purchased, by lifestage, presence of children and Mintel’s Special Groups, 2004
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- Figure 33: Outlet from which last mobile phone was purchased, by region and ACORN category, 2004
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- Figure 34: Outlet from which last mobile phone was purchased, by region and ACORN category, January 2004
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- Figure 35: Outlet from which last mobile phone was purchased, by media useage, commercial TV viewing and store used for regular grocery shopping, January 2004
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- Figure 36: Outlet from which last mobile phone was purchased, by media useage, commercial TV viewing and store used for regular grocery shopping, January 2004
Consumer Attitudes and Typologies
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- Key findings
- What consumers want when shopping
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- Figure 37: Attitudes to shops or outlet for mobile phone shopping, summary, January 2004
- Characteristics of attitudes to outlets selling mobile phones
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- Figure 38: Attitudes to shops or outlets for mobile phones, by gender, age and socio-economic group, January 2004
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- Figure 39: Attitudes to shops or outlets for mobile phones supermarkets and specialist food retailers, by gender, age and socio-economic group, January 2004
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- Figure 40: Attitudes to shops or outlets for mobile phones, by gender, age and socio-economic group, January 2004
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- Figure 41: Attitudes to shops or outlets for mobile phones, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 42: Attitudes to shops or outlets for mobile phones, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 43: Attitudes to shops or outlets for mobile phones, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 44: Attitudes to shops or outlets for mobile phones, by region and ACORN category, January 2004
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- Figure 45: Attitudes to shops or outlets for mobile phones, by region and ACORN category, January 2004
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- Figure 46: Attitudes to shops or outlets for mobile phones, by region and ACORN category, January 2004
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- Figure 47: Attitudes to shops or outlets for mobile phones, by media usage, commercial TV viewing and store used for regular grocery shop, January 2004
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- Figure 48: Attitudes to shops or outlets for mobile phones, by media use, commercial TV viewing and store used for regular grocery shopping, January 2004
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- Figure 49: Attitudes to shops or outlets for mobile phones, by media use, commercial TV viewing and store used for regular grocery shopping, January 2004
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- Figure 50: Attitudes to usage and habits for mobile phones, January 2004
- Characteristics of attitudes to mobile phones
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- Figure 51: Attitudes to usage and habits for mobile phones, by gender, age and socio-economic group, January 2004
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- Figure 52: Attitudes to usage and habits for mobile phones, by gender, age and socio-economic group, January 2004
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- Figure 53: Attitudes to usage and habits for mobile phones, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 54: Attitudes to usage and habits for mobile phones, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 55: Attitudes to usage and habits for mobile phones, by region and ACORN category, January 2004
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- Figure 56: Attitudes to usage and habits for mobile phones, by region and ACORN category, January 2004
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- Figure 57: Attitudes to usage and habits for mobile phones, by media use, commercial TV viewing and store used for regular grocery shopping, January 2004
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- Figure 58: Attitudes to usage and habits for mobile phones, by media use, commercial TV viewing and store used for regular grocery shopping, January 2004
Customer Types
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- Figure 59: Consumer mobile phone purchasing typologies, February 2004
- Typology groups
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- Figure 60: Mobile phone customer types, by gender, age and socio-economic group, January 2004
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- Figure 61: Mobile phone customer types, by lifestage, presence of children and Mintel’s Special Groups, January 2004
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- Figure 62: Mobile phone customer types, by region and ACORN category, January 2004
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- Figure 63: Mobile phone customer types, by media useage, commercial TV viewing and store used for regular grocery shopping, January 2004
- Figure 64: Profile of shopper types by outlet used, January 2004
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- Figure 65: Shopper types by attitudes to mobile phones, January 2004
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Retail Market Shares
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- Mobile phones
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- Figure 66: Retail volume sales of mobile phone handsets, by outlet type, 2003
- Figure 67: Retail volume sales of mobile phone handsets, by outlet type, 1999-2003
- Fixed line telephony
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- Figure 68: Distribution of fixed line telephone equipment, by type of retailer, 2003
- Figure 69: Distribution of fixed line telephone equipment, by type of retailer, 2000-03
Retail Profiles
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- The Carphone Warehouse plc
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- Figure 70: The Carphone Warehouse, UK store numbers, 2000-04 (est)
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- Figure 71: The Carphone Warehouse plc, financial performance, 1999-2003
- Figure 72: Segment analysis, 2002 and 2003
- The Link
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- Figure 73: The Link, store numbers, 2000-03
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- Figure 74: The Link, financial performance, 1999-2003
- Phones 4U
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- Figure 75: Phones 4u, financial performance, 1998-2002
- Vodafone
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- Figure 76: Vodafone UK, financial performance, 2000-02
- O2
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- Figure 77: O2, financial performance (UK), 2002-03
- T-Mobile
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- Figure 78: T-Mobile, selected statistics, 1999-2003
- Orange
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- Figure 79: Orange (UK) plc, financial performance, 1999-2003
- Independent retailers/small chains
- Other retailers with telecommunications equipment
- Electrical retailers
- Currys
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- Figure 80: Currys, store numbers, sales area, and productivity, 1999-2003
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- Figure 81: Currys, sales performance, 1999-2003
- Comet
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- Figure 82: Comet, store numbers, selling area and productivity, 1999-2003
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- Figure 83: Comet, sales and operating profit, 2000-04
- Department stores
- John Lewis
- Other non-specialist retailers with mobile phones
- Woolworths
- Virgin Megastore
- Jessops
- Superdrug/3
- Argos
- Littlewoods Index
- Supermarkets
- Tesco
- Sainsbury’s
- Internet retailing
- Mobileshop.com
- Talkingshop.co.uk
- Mobiles.co.uk trading as Mobiles Online
- E2Save
- Dial-a-phone.co.uk
Retail Practices and Operational Issues
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- Advertising spend
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- Figure 84: Main media advertising expenditure on telecommunications equipment by the top 20 spenders, 1999-2003
- Figure 85: media used by all telecommunications equipment advertisers, 2002-03
- Background to retail growth to date
- Outlet numbers
- Market shares of specialist shops/general retailers
- Location strategies
- Influence of style/fashion on retail
- Do stores have to be high tech?
- Staff recruitment, training, incentives, retention
- Using technology in staff training
- Bonus and incentives
- Internet as information source, as direct sales channel
- New retailers entering the market
- Advertising and marketing (relating to retail)
- Discounting
- VAT
- OFCOM review
- Outlook
The Future
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- 3G main stimulus to market growth
- Fixed line products mature, but need to catch up with mobiles
- Ageing population puts more pressure on future prospects
- Confidence in new technology is vital
- Greater competition in the market, with 3
- Specialist retailers will benefit from new technology
- Networks will grow their retail presence
- Non-network multiples will grow virtual services
- Store environments will continue to improve
- Overcrowding in the retail market
- More emphasis on staff training
- More ability to cross sell in future
- Great growth prospects for supermarkets
- Summary
Forecast
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- Figure 86: Forecast of the telecommunications market, at current prices, 2003-09
- Figure 87: Forecast of sales through electrical retailers, 2003-09
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Appendix
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- Figure 88: Attitudes to shopping for mobile phones, by the last retailer used, January 2004
- Figure 89: Attitudes to shopping for mobile phones by the last retailer used (last six attitudes), January 2004
- Figure 90: Attitudes to mobile phones, by the last retailer used, January 2004
- Figure 91: Attitudes to mobile phones, by last shop used, January 2004
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