Always on Sale: How can manufacturers and retailers drive up market values?
This report looks at the aftermarket for personal navigational devices, otherwise known as sat-navs.
The sector has been one of the prodigious performers of the in-car technology market over the past five years, with rising volume sales and increasing penetration. However, in recent times, manufacturers have faced increased challenges as a result of more intense competition, forcing prices down and making it harder to generate sales value growth, despite rising volumes.
This report looks at the aftermarket for personal navigational devices, otherwise known as sat-navs.
The sector has been one of the prodigious performers of the in-car technology market over the past five years, with rising volume sales and increasing penetration. However, in recent times, manufacturers have faced increased challenges as a result of more intense competition, forcing prices down and making it harder to generate sales value growth, despite rising volumes.
In response to an increasing focus on price, manufacturers have looked to added functionality as a way of encouraging existing users to trade up (such as widescreen, 3D displays) and bringing new users into the fold – for example, moves to integrate voice controls are seen as a way of making the technology more accessible.
Perhaps the greatest challenge manufacturers now face is the GPS-enabled smart phone. Handsets like the iPhone already have convergence down pat, whilst offering many of the leading sat-nav brands’ software (available as a downloadable application). Given that smartphone penetration is expected to increase rapidly, what should the likes of TomTom and Garmin now do?
Main issues
What impact has the recession had on the market and is there anything manufacturers can do to limit its negative effects?
What are the key distribution channels for sat-navs and how are these changing?
Can the duopoly of TomTom and Garmin be broken by the smaller manufacturers?
What potential does the market have for growth in the short term and longer term?
What factors drive consumer choice and how will these impact on first-time buyers?
Mintel’s research shows that contracts are still the main way people are getting a new mobile handset. But will the rising popularity of SIM only deals mean this will always be the case?
Older respondents are most likely to opt for basic, pay as you go handsets (68% of over 55’s). What strategies could retailers take to make more expensive smartphone contracts appeal to this group?
Respondents are focussed more on mobile design (47%) over more technical aspects, such as mobile operating system (8%). Will this create challenges in selling smartphones to the mass-market?
What impact has the recession had on the market and is there anything manufacturers can do to limit its negative effects?
