Trend towards mobility and home networking

Mobile computers and mobile availability of internet and entertainment, with classic processing performance for DVDs, pictures and a wide range of other digital content are significant growth drivers for the IT markets in Germany and across Europe. In addition, new products such as e-readers, mobile internet devices, tablet PCs, slates and user-friendly electronic dictionaries are also benefiting from the trend towards mobility. In the wake of this, accessories such as mobile computer mice and speakers, design-oriented keyboards and large-format monitors are also gaining in importance. The demand for products that can be categorised under the term "home networking" is also rising. In the first half of 2010, categories such as printers with a network connection, wireless router upgrades for faster data transfer, devices for p-LAN networking, hard disks incorporated into the network and NAS systems contributed to growth in both sales revenue and unit sales.

IT market is becoming more heterogeneous

This year has seen the beginnings of a paradigm shift in the IT market. Over the past ten years, every product group has enjoyed predominantly positive development. Now, however, demand is increasingly concentrated on innovative product categories. In the coming years, a heterogeneous market structure is likely to develop, subject to the individual availability of technical equipment and the personal focus of use. For manufacturers and retailers, the breadth and depth of the range of goods is an increasingly important aspect in the bid to offer consumers more choice. Currently, sales growth is reported for all-in-one desktop computers, media and small-sized hard disks, security and enabling software, ergonomic accessories, stands and fans for mobile computers and traditional accessories such as batteries, bags, adaptors and small projectors.

Customers increasingly value-oriented

On the side of the customer, purchasing behaviour has been changing for some time. Technical details have been the focus of discussions with customers over the past few years. The internet means that consumers are now better informed. Added to this, consumers now consider some specifications as part and parcel of the standard features of a particular manufacturer's products, rather than as a crucial factor in the purchasing decision. Colours, design, brand image and product performance are all growing in importance. Successful examples are the latest market launches of a wide variety of mobile internet devices, e-readers and netbooks.

Along with household equipment in general, the number of IT products per household is also rising significantly. Traditional desktop computers, notebooks with large screen formats for home use, small-sized notebooks and netbooks for use on the go and tablet PCs are just a few examples of today's wide variety of devices which enable digital content to be experienced and generated. This development is already having a positive effect on a broad spectrum of accessory product categories, and is bound to generate growth in certain market segments in future.

Outlook

In light of the current upward trend in the economy and the positive development in consumer sentiment, GfK Retail and Technology is forecasting that year-end business in Europe will continue to follow the trends already identified. A well thought-out and locally adapted range of products and attractive product presentation are key to the growth of the IT market. In future, the wrong product range policy will relatively quickly result in a lack of business success, even though this may not have been the case in the past.

The method

Through its retail panel, GfK Retail and Technology regularly gathers data on hardware and software, IT accessories, office equipment supplies in more than 80 countries worldwide. The present analysis is based on current developments in the IT market in Germany and the rest of Europe.