Karin du Chenne on going mobile

Du Chenne has 16 years in research and is MD of the research team at TNS Research Surveys in Johannesburg, supplying cutting edge information to clients in the financial, technology, government and FMCG sectors.

The GTI 2009 sought to understand the evolution of global and local trends in mobile technology. As such it is a tool for global strategic planning and marketing tactics. Now in its fourth year, the study interviewed a total of 200 622 respondents across 32 markets during November and December 2008.

The study showed that a large proportion of those with access to mobile internet are not using it, while leading mobile internet markets have lately seen usage fall. Thanks to better functionality (and perhaps more experienced users) it seems that the new generation of Smartphones are the principal means of accessing the mobile internet. As much as 64% of all mobile internet access is done from Smartphones, while Apple estimates that Google hits from iPhones are 50 times higher than for other handsets. While Smartphones present a tempting opportunity, however, it should be known that competition is fierce, and to a great degree supply is outstripping demand in mobile internet services. Du Chenne does contend, however, that internet access via mobile is still in its infancy due to a lack of appropriate (and more affordable) devices.

Smartphones could prove to be the solution if pricing were to come down. Du Chenne mentioned that Smartphones had reached 20% penetration globally, with a 15% penetration figure for South Africa. With Asia leading the trend it's encouraging to see a 44% penetration there. Good news is that they are not the preserve of professionals, but are also being used by young working people and students. In South Africa there is an opportunity to push instant-messaging services, but the problem here lies with the local mobile operators failing to promote these services because they are so cheap.

Although globally mobile brand commitment is in sharp decline (one in three Hong Kong consumers are looking to switch their current brand of handset and network provider), most new mobile purchases are motivated by theft. Not surprisingly, South Africans take the lead here with 35% of purchases motivated by the theft of their previous phone, while globally a lower but still significant 20% of purchases are owing to theft.

Another encouraging trend is that the popularity of alternative mobile functions is rising sharply. Whereas text messaging used to be the number one trigger of mobile purchases, with buyers reportedly wanting “a good SMS experience”, it now seems that camera and music functionality is gaining considerable ground. In South Africa especially, music is becoming a driving factor owing to so many consumers who live in cramped conditions with their family members and desire a form of escape. This is merely a trend, however, as SMS is still the top choice of mobile communication at 80%.

Another encouraging development is that even in the South African workplace mobiles are now preferred over fixed lines, with 68% usage compared to 29% fixed-line usage. Consumers have cited privacy concerns in open-plan offices to account for this curious trend. Du Chenne contends that with the banning of social media like Facebook in the workplace, social access via mobile is also set to become more important.

Generally the study further concluded that:
• Mobile instant messaging (MIM) and mobile email will cannibalise usage share of SMS and email from PC
• MIM presents a massive opportunity in China
• messaging will become a stronger purchase driver.