Claiming a 44 percent share smartphones, mobile phones and wearables are still the powerhouse in the $1.2 trillion technical consumer goods (TCG) market. Although global smartphone demand declined three percent in 2018 to 1.44 billion, sales remain strong and reached $522 billion. These are GfK’s findings are released to coincide with Mobile World Congress 2019 in Barcelona.
Global smartphone sales remained strong in 2018 as the premium trend continues to fuel growth. In figures, this equates to an increase of five percent ($522 billion). However, the demand for smartphones in 2018 declined by three percent to 1.44 billion units sold worldwide versus 2017. Smartphones represent the majority of the total spend on the global TCG market last year. This is expected to grow plus one percent in 2019.
The figures for Q4 2018 reveal a similar trend. Around 375 million smartphones (down seven percent) were sold worldwide year-on-year with a sales value of $144 billion.
While premium continues to fuel growth, dearth of appealing innovation continued
Around twelve percent (up from nine percent in 2017) of smartphones sold were priced at more than $800 in 2018. The mid-segment of $150-400 continues to be an important competitive battleground accounting for 46 percent of smartphones sold globally in 2018 (up two percent from 44 percent in 2017).
Although a somewhat tough comparison with a strong Q4 2017, from October to December 2018, the dearth of appealing innovation continued prolonging replacement cycles and putting average selling price (ASP) under pressure. As a result, ASP declined two percent to an average of $384.
Technological convergence enabling richer experiences
GfK’s Consumer Life Study shows that consumer trends are changing when it comes to possessions. Not only do they “prefer to own fewer but higher quality items” that they will pay premium prices for, but they “value experiences more than possessions”. Whether it is memory size, larger screen size or a multiple high megapixel
Igor Richter, GfK’s Telecommunication expert says: “Our research shows that although the new features in smartphones have comparable performance features and computing power with laptops, these high-end specs still need to be converted into new experiences. High-end gaming has been reigned by the PC industry and is currently a major growth driver there. However, there is an untapped potential for more demanding gaming on the smartphone. Despite the relatively small smartphone screens compared with PC’s, their fast chipsets, sharp displays and increased battery capacity makes these gaming smartphones ideal handsets to deliver the processing power hungry gaming experience on the go. This explains why 55 percent of smartphone users worldwide played games on their smartphone in the last 30 days.”
Core wearables remained on a strong growth path in 2018, with year-on-year demand up 16 percent and sales value up 35 percent. Demand was driven by the rise of SIM-enabled smartwatches which represent the majority of sales value within the Core wearables category. SIM-enabled smartwatches accounted for 17 percent of the Core wearables sales value, up from eight percent in 2017.
Demand in Central & Eastern Europe and Emerging Asia* is only partially offsetting the decline in China
The Chinese market consumes the majority of the global smartphone production, as well as being the home of local brands that are becoming increasingly global. 40 percent of the Chinese brands’ smartphone production in 2018 was purchased outside of China, that is up from 31 percent in 2016. The recent decline of demand in China in Q4 2018 (minus 19 percent year-on-year) is by its weight (27 percent in sales value) having a significant impact on the global figures. The continued demand in Emerging Asia* (plus 13 percent year-on-year) and Central & Eastern Europe (plus three percent year-on-year) only partially offset the decline in China in Q4 2018.
*Countries included in Emerging Asia in this release:
Developed Asia: Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea, and Taiwan.
Emerging Asia: Bangladesh, India, Indonesia, Cambodia, Malaysia, Myanmar, Philippines, Thailand, and Vietnam.
TikTok looks for SA talent
The fast-rising short-video platform has launched a #PickMe campaign to discover local stars.
TikTok, which claims to be the world’s leading destination for short-form videos, launches its first PickMe campaign, an effort to discover creative talents and provide a stage to express themselves in South Africa. Starting March 1, TikTok kicked off a month-long search through participants’ 15-second videos under hashtag #PickMe.
TikTok says it is committed to investing in South Africa and discovering the local talents. The PickMe campaign is supported by its local partners like Huawei, MTV Base and Digify Africa.
Local stars, including comedian and singer Lasizwe and singer Nadia Jaftha, have joined the campaign and called for users to show their talents on TikTok.
There are 5 categories of video shooting in the campaign, namely dance, acting, comedy, singing and cosmetics. Participants need to shoot a 15-second video using TikTok using #PickMe and tag @tiktok_africa to participate in the challenge. The finalists will be selected based on their video performance. The most popular and talented participants will have the chance to win prizes like Huawei Mate 20 Pro smartphones, a day at MTV Base, and a once-off-presenter opportunity and attendance at an intensive video production workshop delivered by Digify Africa.
“TikTok has definitely evolved into something that everyone loves and uses. It’s given creators a space to create more unique content and also help the creator gain a whole new kind of fan base, ” says Preven Reddy, Imbewu The Seed TV-star and Megazone radio host who is also a TikTok user.
Says TikTok video creator Mihlali Nxanga: “As a young South African working towards being in the entertainment industry, TikTok has given me the platform to grow my following tremendously. Within 6 months, my fan base has grown by a whopping 90 000, and not only from South Africa, but the whole world. For me, TikTok is not just a content platform, it is a global community.”
The campaign will wrap up on March 31. The list of the finalist will be announced in the app and on official Instagram @tiktok_southafrica. For more information, please visit the TikTok app.
Rugby fan experience transformed by digital platform
The South African Rugby Federation has embraced digitalisation as a key enabler of its strategic aspirations. It has worked with Accenture to transform fan engagement for Springbok supporters with the launch of a digital fan platform.
“Digital technology and social media have transformed how modern fans watch, support and engage with their favourite teams,” says SA Rugby CEO Jurie Roux. “To maintain our relevance amid this new market dynamic, and grow our fan base, we’ve acknowledged the vital need to digitally transform our organisation.”
Wayne Hull, managing director for Accenture Digital in Africa, says: “SA Rugby’s ambition to pivot to a more fan-centric strategy requires digital design, content, platforms and insights because modern consumers, including loyal Springbok supporters, engage predominantly via mobile digital channels and expect hyper-personalised experiences.”
Accenture Digital’s development process started with quantitative and qualitative research, which informed the user experience (UX) design guidelines and content strategy for the digital fan engagement platform.
“To know what fans want, we needed to understand the fans themselves,” says Hull. “The Accenture Digital team mined the research data and identified multiple fan ‘personas’, which all have different content consumption, platform functionality and engagement preferences.”
The platform development team focused on three critical elements to meet these requirements – the customer experience (CX), the engagement engine and cloud-based deployment.
“To deliver a memorable and engaging CX, Accenture Digital leveraged leading digital experience software,” says Hull. “The result is a fully integrated and responsive platform that creates seamless, personalised digital fan experiences across SA Rugby’s content, commerce and digital marketing initiatives in a manner that makes fans feel recognised and connected to the players and the game.”
The new platform will serve as the first point of call for any rugby fan who wants to get their data fix with exclusive statistics, analytics and insights. The platform’s content style will include more visual elements – videos and images – with more concise articles that are easier to digest, in accordance with evolving content consumption preferences on mobile screens. This will complement long-form thought leadership and insight pieces.
In addition, fans will enjoy exclusive access to player-related content, such as behind-the-scenes footage and game and training performance stats. SA Rugby will also benefit from the ability to track comments and mentions via the Sitecore analytics platform Accenture Digital implemented, to respond and engage in the conversations Springbok fans are having on social media about the game, the teams or the players.
To do this, SA Rugby required a consolidated view of the customer. However, data resided in disparate sites across ticketing providers and SA Rugby’s e-commerce and online magazine databases. This information will be consolidated into the CRM system, with multiple integration points available to leverage this data.
The CRM system’s functionality will help to reveal insights such as fan communication preferences and their likes and dislikes, which will place hyper-relevance at the core of SA Rugby’s fan experience and engagement strategy.
The final element in the platform development was cloud deployment, which allows fans to access the platform from any device that has an internet connection. The platform is hosted within the Microsoft Azure environment, which is stable, secure and fully redundant. It gives SA Rugby the flexibility to manage the platform themselves, with the option to integrate or scale additional functionality down the line.
Based on the outcome, Hull believes that Accenture Digital has successfully reimagined, built and delivered a world-class, modern and mobile-friendly digital fan platform that creates a fun, immersive and engaging experience for fans.
“It’s a major step towards helping SA Rugby realise its ambition to become a fan-centric, forward-looking and nimble organisation, and we look forward to building and developing the platform further with the team as their digital fan engagement requirements evolve,” says Hull