Connected objects: The internet of things

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1 Connected objects: The internet of things Katia HERSARD Chief E-commerce & Marketing Officer Fnac Fnac Group /

2 An in-depth survey conducted through our Fnac innovation panel Respondents specifics: + Geek profile + Early adopters of innovations + Urban All generations/ages 1

3 The concept of connected objects seems to be well known by our respondents. Even if it is still considered as quite a recent one. Means of learning about connected objects 94% are familiar with the concept of connected objects Newspaper article 58% 49% Social Media / Internet 40% Television 60% declare knowing the concept quite well Shops 31% 25% Word of mouth 24% Radio 51% heard of connected objects more than a year ago 2

4 An object allowing an easier & simplified life AN EASIER LIFE "La centralisation des données permettant d'obtenir des statistiques " " Ils simplifient la vie " " Le fait de faciliter la vie de tous les jours " SIMPLICITY OF USAGE " Pratiques à utiliser, à distance, à plusieurs simultanément " " Permet la compilation de données et le suivi de celles-ci " 3

5 . a coach for a healthier well-being KEEPING TRACK OF YOUR PERFORMANCES "Bilan activité et historisation " "La possibilité d avoir un historique " "Le suivi des courbes de poids automatiquement " THE COACHING ASPECT " Les données fournies le côté coaching les objectifs à atteindre " " En matière de santé, le coté "coaching" voire culpabilisant si l'activité physique exercée sur une période donnée est insuffisante. Cela me pousse à bouger plus qu'avant " " En ce qui me concerne, j'ai un fit bit, ce qui me permet de connaitre le nombre de pas que j'ai fait dans la journée, de connaître le nombre de calories dépensées et de pouvoir adapter mon alimentation en fonction J'aime pouvoir aller plus loin certains jours, me dépasser " 4

6 An object that helps with your everyday life & home living CONTROL CENTRALIZATION " La centralisation des données permettant d'obtenir des statistiques" " Aspect pratique et simple, la centralisation des informations dans le smartphone, la simplification et le gain de temps de certaines tâches " CONNECTED HOME " La mobilité : pouvoir avoir un accès partout ««mieux gérer sa maison, énergie en étant connecté à son téléphone» 5

7 Connected objects are mainly considered to be an expensive modern technological breakthrough. Total Agree MODERN 47% 46% 93% EXPENSIVE 50% 42% 92% TECHNOLOGICAL BREAKTHROUGH 49% 42% 91% TREND 49% 41% 90% THE FUTURE 52% 34% 86% PRACTICAL 60% 21% 81% USEFUL 54% 13% 69% NON ESSENTIAL 40% 19% 59% COMPLICATED TO USE 28% 5% 33% HARMFUL TO YOUR HEALTH 20% 5% 25% DANGEROUS 16% 5% 21% Somewhat agree Strongly agree 6

8 An expensive perception however a possibility of finding affordable products in each family of products EXPENSIVE for 92 % 16% Are willing to pay dearly in order to have a Connected Object 52% 39% There are certain families of products for which prices are affordable We can find affordable products in each family of Connected Objects 77% 71% Connected Objects are not affordable products and are very expensive Connected Objects are very expensive for what they are 25% It is expensive but truly justified 7

9 In terms of aided awareness the two most emblematic products are Smart Watches and Connected Bracelets. 84% declare having heard of Smart watches 70% for Connected bracelets 67% for Smart printers 65% for Smart surveillance cameras 64% for Connected glasses 8

10 A coherent price perception compared to the reality of pricing Smart weight scales Connected bracelet Smart watch Smart alarm systems Price: Price: Price: Price:

11 Domotics and health objects are considered to be the most useful products in comparison with other categories SMART ALARM SYSTEMS SMART SURVEILLANCE CAMERAS SMART SMOKE DETECTORS SMART PRINTERS SMART THERMOMETERS SMART BLOOD PRESSURE MONITORS Useful SMART BABY MONITORS SMART PILL CONTAINERS SMART WATCHES SMART LOCKS SMART FRIDGE CONNECTED BRACELET SMART WEIGHT SCALES SMART LAMPS CONNECTED PLANT SENSORS SMART GLASSES CONNECTED TOYS SMART SHOES CONNECTED FORKS CONNECTED CIGARETTE 9% 17% 5% 4% 24% 32% 29% 37% 44% 41% 53% 51% 50% 57% 65% 64% 69% 80% 85% 85% DOMOTICS HEALTH 10

12 Our customers declare to be already well equipped and bring up in-depth feedbacks on this market. 41% possess a Connected Object associated mobile O.S 60% 33% 3% 11

13 Usefulness and practicality of the product drive the purchase. Not perceived as gadgets Early adopter 23% Very Practical 61% Innovating aspect 45%. Gadget-like aspect 27% Usefulness 40% Curiosity 39% Concept of connecting things 40% 12

14 In comparison with other technological products, customer reviews seem highly important when preparing the purchase 22 % visited Retailers/Websites to get a clearer idea 55 % searched for Information on Specialized Websites 48 % viewed Customer Reviews 40 % compared Retailers / E-commerce websites 43 % read Newspaper articles 13

15 A truly recent market in terms of purchase 58 % 6 % 33 % 43 % 2 % 4 % 50 % 24 % 2 % purchased their products in the last 3 months 23 % 20 % 3 % 2 % 14

16 The price is not the most important criteria in terms of product choice. USER FRIENDLINESS ASSOCIATED MOBILE O.S. DESIGN PRICE LATEST EDITION SIZE BRAND

17 96% are satisfied with their connected objects Total Satisfied User friendliness 51% 42% 93% Design 44% 48% 92% Handling of the product 42% 48% 90% Associated mobile App 30% 56% 86% Somewhat Satisfied Very Satisfied Synchronisation Autonomy 36% 34% 45% 49% 85% 79% Break resistance 20% 40% 60% Third party applications 11% 47% 58% The communatarian aspect 8% 25% 33% After Sales Services 11% 17% 28% 16

18 An important weight for Internet purchases (declarative) 60 % 40 % 17

19 Retailer selection criteria COMPETITIVE PRICES LATEST TRENDS TECHNICALLY COMPETENT STAFF 63 % 62 % 70 % AFTER SALES SERVICES INTERESTING PROMOTIONS RETAILER/SITE REPUTATION WIDE RANGE OF PRODUCTS 55 % 55 % 54 % 54 % 18

20 Even if the price is not the 1 st issue, it is still important in selecting a retailer that proposes the best price on the market Very important COMPETITIVE PRICES LATEST TRENDS TECHNICALLY COMPETENT STAFF AFTER SALES SERVICES INTERESTING PROMOTIONS RETAILER/SITE REPUTATION WIDE RANGE OF PRODUCTS HIGH-END PRODUCTS STAFF IS ATTENTIVE TO YOUR NEEDS STAFF RAPIDLY AVAILABLE A REFERENCE FOR CONNECTED OBJECTS ABILITY TO TEST THE PRODUCT ABILITY TO BUY COMPLEMENTARY PRODUCTS A PROFESSIONNAL DEMONSTRATING THE USE OF THE PRODUCT 70% 63% 62% 55% 55% 54% 54% 50% 49% 46% 41% 37% 35% 26% Total Important 96% 93% 84% 92% 88% 87% 89% 84% 82% 80% 78% 67% 78% 58% 19

21 Smart watches seem to highly progress and are considered to be most wanted product in terms of future purchases 56% have the intention of purchasing a 52% have the intention of purchasing a 47% have the intention of purchasing a 38% have the intention of purchasing a 37% have the intention of purchasing a Smart watch Connected bracelet Smart printer Smart smoke detector Smart surveillance camera 20

22 For the moment, well established brands hold the first positions in terms of aided awareness. 94 % 85 % 78 % 46 % 30% 20% 21

23 Considered brands for next purchase havent made up 32% their minds yet considered by 38% considered by 31% considered by 21 % considered by 15% considered by 15% considered by 11% 22

24 An high growing market: 26% of our clients planned to purchase a connected object in the months to come 26 % 7 %????? 29 % have the intention of purchasing a "Connected Object" in the months to come have the intention of offering a "Connected Object" as a gift in the months to come haven t yet decided if they are going to purchase a "Connected Object" 23

25 In collaboration with

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