Consumer Digital Lifestyle Index

Transcription

1 Consumer Digital Lifestyle Index Reporting Period: 2nd Half, 2011 (Covering July to December 2011) Report date: May 2012 Author: Danny Meisels, Account Director, Media and Market Insights Tel: (02) Fax: Project Director: Matthew Daniel, Research Director, Media and Market Insights Tel: (02) Fax: Report Code: Canon CDLI 2 nd Half 2011 GfK Retail and Technology Australia Pty Ltd ABN PO Box 134, North Sydney NSW 2059 The information contained in this report is believed to be accurate but is not guaranteed to be correct or complete

2 PART 1 Market figure overview In the second half (2H) of 2011, Australians purchased million digital lifestyle products at local retail stores 1, a 6.7% increase on the volume of products purchased in the second half of The robust 6.7% increase in demand for these discretionary categories is significant given the challenging trading conditions, including reports of weak employment growth, fragile consumer confidence, and curtailed retail spending as consumers pay down debt. The strong demand is attributed to the significant innovation and unprecedented affordability of advanced technology across the product categories of the Canon CDLI report. - Full Year 2011 volume results: million devices purchased, a 4.8% increase over FY2010 Australians spent $3.430 billion locally on digital lifestyle products in the second half of 2011, with consumers spending a significant $2.364 billion on the top 3 products alone: Personal Computers ($1.088 billion), LCD TVs ($956 million), Digital Cameras ($320 million). - Full Year 2011 value results: $6.345 billion Strong market competition in the report categories continued to see technology prices slide in all 13 categories, with average selling prices (ASPs) for the half year alone down 13%. - Full Year 2011 ASP decline: 13.5% The 13% decrease in ASPs for 2H offset the 6.7% increase in the volume of products purchased thereby reducing the total cost to the Australian consumer for their digital lifestyle products by around $275 million. The total value of products covered by the Canon CDLI fell 7.4%, from $3.705 billion in 2H 2010 to $3.430 billion in 2H Full-year ASP decline of 13.5% yielded a total spend of $6.345 billion, a 9.4% decrease over the FY2010 figure of $7.0 billion, saving the consumer a total of $655 million for 2011 Strong category volume growth was observed for Personal Computers (+42% on the back of strong demand for tablet PCs and advanced notebooks), Digital SLR cameras (+26%), LCD TVs (+21%), PVRs (+17%), MFDs (+14%), and DVD (including Blu-ray) players 2 (+6%) Notable category performers, in volume terms, included: - Games consoles, which maintained volume sales in excess of 1 million units, despite increased usage of low-cost, smartphone-based games applications. Digital cameras, achieving sales of more than 1.4 million units the category remains in the top-three for the ninth consecutive year despite market maturity, household penetration of >80% and the proliferation of competing photo-capture devices. 1 Excludes internet/online sellers 2 DVD players include traditional DVD players and Blu-ray players, a newer technology capable of playing both DVD and higher quality Blu-ray discs. Copyright GfK Retail and Technology, 2012 Page 1 of 15

3 PART 2 Digital Lifestyle Retrospective: 2003 vs Leading categories stay on top; prices free-fall o Despite the changes to digital technology over the past nine years of CDLI tracking, the category rankings by value have remained relatively stable with Digital Still Cameras, TVs and Games Consoles still among the top 5 products purchased by Australian consumers, signalling the importance of imaging and entertainment oriented products as a key dimension of Australian consumers digital lifestyles. The Top 5 product categories (by value) Digital Still Cameras 1. Personal Computers 2. DVD Players 2. LCD/LED TVs 3. Digital Camcorders 3. Digital Cameras 4. Games Consoles 4. Plasma TVs 5. Plasma TVs 5. Games Consoles o While successive innovation has kept these categories relevant to consumers lifestyles and highly desirable, evident through the increased volume, average selling prices have declined massively over the period between first-half 2003 and second-half 2011, driving a trend towards increased device ownership and shortening upgrade cycles. In particular: Digital camera prices have dropped by 68% ($628 vs. $221) TVs prices have plummeted by 90% for plasmas ($10,156 vs. $1,030) and 73% for LCDs ($2,265 vs. $615) o The digital camera category performance of top three by value over the past nine years is unique and indicates the enduring and escalating importance of images in the digital lifestyle with consumers continuing to take more and more photos. The category performance is expected to continue as the perpetual innovation-to-upgrade cycle continues The mass image-capture trend is now deeply embedded as a digital lifestyle trend, with consumers now taking an average of 146 photos per month (up 57% vs. 1H 2008), with DSLR photographers taking a significant 288 photos per month on average. Tech evolution; Usage revolution: o The innovation cycle over nine years of CDLI reporting has seen gradual performance enhancements culminate to revolutionise the way we engage with technology and integrate it into our lifestyles: Extreme value and the quest for quality have extended big-screen Full HD/3D viewing experiences and surround sound from the enthusiast to the mass audience with Full HD now accounting for 58% of 2011 TV unit sales and 3D TVs now accounting for 18% of Q TV unit sales. Indeed, GfK s Video Entertainment study indicates 6% of Australian households currently own, and a further 16% state they intend to purchase a 3D TV in the next year. Copyright GfK Retail and Technology, 2012 Page 2 of 15

4 Quality continues to drive digital still camera purchases (78% of new camera purchasers indicate Quality is either Very Important or Extremely Important in the Digital Camera buying process) and strong sales volume amid 80%+ market penetration and camera-equipped phones in every pocket Single-device convergence yields to multi-device integration as the user not a device becomes the point of convergence, integrating devices seamlessly into their lifestyles aided by digital interfaces including Wi-Fi; HDMI and USB and a host of online (social networks, mobile devices) and offline (in-home printing, photo labs, print kiosks, photobooks) sharing options. Purchasers of technology 3 own an average of 6.17 digital lifestyle products Purchasers of digital technology 4 acquired an average of 2.21 digital devices per person in 2H 2011 o Push to pull content consumption on our terms. Consumers now have more control than ever before around how, when and what content they access The living room TV remains the central home viewing experience but multi-screening behaviour, with consumers accessing multiple devices simultaneously (e.g., TV plus PC, TV plus tablet) means that usage occasions have increased and often overlap. Around 6-in-10 free-to-air, subscription or pay TV viewers, engage in other activities while watching TV, including browsing the internet, using Facebook or Twitter, playing video games, or watching other video content 66% of recent notebook PC buyers use their notebooks in the living room 24% of recent PC buyers watch TV content on their PCs (up from up from 16% two years earlier). 1-in-6 Australians now own a tablet PC and they spend 1hr 15mins watching video entertainment on their tablet PC in an average week. Around 45% of consumers use smaller screen devices such as PCs, tablet computers to consume video entertainment/content/video clips. More than a third of recent TV buyers watched previously recorded TV content in the last month. 12% of recent TV buyers permanently or regularly have a portable hard drive connected to their TVs (compared to 6% in 2H 2009). 29% of recent PC buyers said they had used their new computer to make a voice/video call (e.g. Skype) in the last month (compared to 23%, 2 years earlier) Demonstrating the evolution in the way we use different devices to support our digital lifestyle, in just the last two years, the PC has been redefined from a work tool in 2009 (47% of consumers) to a device primarily for internet-related activities in 2011 (89%) 77% of personal computers are primarily used for entertainment media consumption (e.g. surfing the net, music, viewing photos, movies, playing games, reading books for leisure), up from 71% in the 2 years to Q When they access the internet on their new computers, 52% access social networking websites, such as Facebook and Twitter. 3 GfK ConsumerScope survey of digital camera buyers, February Figure includes 1.5 cameras, 1.4 computers, 1.2 mobile phones and 1.1 TVs 4 Ibid. Copyright GfK Retail and Technology, 2012 Page 3 of 15

5 Choice has exploded from VHS, early DVD, free-to-air and limited paid channels in 2003 to increased free-to-air and paid TV, DVD and Blu-ray, online movie downloads, PVRs, internet catch-up TV, and streaming sites such as YouTube/VIMEO. While in 2003 the primary use of the TV was watching broadcast shows; in % of consumers access catch-up TV, 16% download full length movie titles from the internet and at least 10% access online content via their TVs A third of recent TV buyers also used their TV to play video games using a games console. Copyright GfK Retail and Technology, 2012 Page 4 of 15

6 PART 3 Market Figures Detail Lower prices support digital lifestyle demand In the second half of 2011, Australians spent $3.430 billion on million consumer electronics products, via Australian retailers, according to research compiled by GfK Retail and Technology. While the total value of products covered in the Canon CDLI fell 7.4%, from $3.705 billion in 2H 2010, the total volume of Canon CDLI products acquired actually increased by 6.7%, from 8.5 million in 2H 2010 (Figure 1) 5. The resilience of the underlying demand in volume terms for these product categories is very positive given the challenging trading conditions and events during the reporting period. For example, the local media was dominated by news of a worsening European debt crisis, consumer confidence fell sharply in August, the Australian share market bottomed in October, households increased their savings, and growth in retail sales generally was very weak. The 6.7% growth in the volume of products acquired by Australian consumers in 2H 2011, combined with the 7.4% decline in the value achieved in the most recent period, reflect the fact that Australian technology consumers continue to benefit from even lower prices, and it is likely that these lower prices coupled with significant product innovation stimulated demand for Canon CDLI products, expressed by the actual number of units sold (i.e. volume), above the levels achieved in the same 2H period in both 2010 and Figure 1: All Products in CDLI: Half-Year Value & Volume $4,500 $4,000 $3,500 Sales Volume Sales Value $4,111 $3,936 $3,705 $3,430 14,000,000 12,000,000 Sales Value Millions $3,000 $2,500 $2,000 $1,500 $1,000 $500 $1,213 3,118,336 $1,598 4,050,755 $2,182 5,475,463 $2,465 6,062,537 $2,880 7,012,702 8,952,510 8,403,299 8,500,823 9,066,222 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Sales Volume Units $0 2H H H H H H H H H Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology 5 PVRs and Personal Computers were added to the CDLI time series data in January This helps explain the increase in 2H 2008 values/volumes. Copyright GfK Retail and Technology, 2012 Page 5 of 15

7 Figure 2 illustrates how the various CDLI product categories contributed to the decrease in total sales revenues. Almost every category had a part to play in the market value decline. Personal Computers 6 however, increased in total sales values in 2H 2011, thereby reducing the overall decrease in total sales values. Plasma TVs sales decreased by almost the same amount as Personal Computer sales increased, effectively cancelling out the increase accounted for by this highly successful and popular product category. Figure 2: Share of Change in Sales Value - 2H 2010 to 2H % -40% -20% 0% 20% 40% 60% Personal Computers 51% Compact Photo Printers Single Function Inkjet Printers MFDs PVRs DVD Players DVD Recorders Digital Camcorders 0% 0% -1% -1% -3% -8% -9% Games Consoles Digital Cameras Digital Media Players LCD TVs -15% -18% -21% -24% Plasma TVs -51% Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology Market size by product category ($ value) Even though both categories recorded lower revenue figures, the biggest contributors to the Canon CDLI this reporting period were personal computers and LCD TVs. (Figure 3) In 2H 2011, Personal Computers represented a relatively large (32%) share of the market (up 6.2% on the second half of 2010) with strong contributions from both notebooks and tablet PCs. LCD TV purchases accounted for 28% of all spending on CDLI product categories (up 0.3%). Digital Cameras contributed 9.3% of the revenue, while Games Consoles captured 8.1% of CDLI revenues. 6 Data for personal computers includes notebooks, netbooks, tablets and desktops but not monitors or other accessories. Copyright GfK Retail and Technology, 2012 Page 6 of 15

8 Though available only in larger screen sizes (and therefore more expensive) than LCD TVs, Plasma TVs accounted for just 7.8% of total revenues (down 3.2% on 2H 2010 reflecting a continuation of the trend towards both LED/LCD TVs in large screen sizes and the purchase of smaller LCD TVs for other rooms in the home). Digital Media Players captured 6.7% of CDLI revenues (down 1.1%), while sales of DVD Players and Recorders, Camcorders, PVRs and the three printer categories accounted for the remaining 9%. Figure 3: Market Size by Product Category (Total 2H 2011 Sales: $3,430m) Digital Cameras 9% Games Consoles 8% Plasma TVs 8% Digital Media Players 7% DVD Players 2% MFDs 2% Digital Camcorders 2% DVD Recorders 1% PVRs 1% LCD TVs 28% Personal Computers 32% Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology Volume trends (units sold) The year-on-year unit sales comparisons in Figure 4 indicate that five Canon CDLI categories achieved solid volume increases in 2H 2011, while seven sold significantly fewer units than in 2H Starting with the categories that grew, Australian consumers purchased +42% more Personal Computers (which includes tablet PCs, notebooks and all-in-one desktops) in 2H 2011 than they did in 2H Tablet PCs almost tripled in units sold. However, the Tablet PC category is becoming a crowded place, with 15 brands competing for a piece of the action in 2H 2011, compared to just 5 brands in 2H They also bought +21% more LCD TVs (which includes LED TVs) than in the previous corresponding period. Lower prices contributed to the volume increase, as did the latest innovations in Smart (internet capable) TVs and 3D TVs (including more content and lower cost 3D eyewear). Copyright GfK Retail and Technology, 2012 Page 7 of 15

9 PVR unit sales grew by +17% reflecting significantly lower prices, the systematic rollout of the switchover from analogue to digital-only broadcasting as well as growing awareness of the extra content available for free from the digital only channels (such as ABC2, ABC3 and SBS TWO). MFDs achieved +14% volume growth stimulated by price reductions and further technological innovations from the major manufacturers. Many Australian homes now have multiple computers and the need to be able to print from each of them has grown accordingly. MFDs with the ability to print wirelessly help to meet this need, as evidenced by the fact that over half of all the MFDs purchased in 2H 2011 were able to print wirelessly. DVD players posted solid volume gains of +6% echoing increased sales of Full HD and 3D TVs, based on strong demand for Blu-ray players (including 3D Blu-ray players). Games consoles also performed relatively well, maintaining volume sales in excess of 1 million units, despite increased competition from low-cost, handheld, smartphone-based games applications. On the minus side, compact photo printers and single function inkjet printers posted significantly lower sales volumes (down 62% and 44% respectively) reflecting the consumer shift towards MFDs. Plasma TV (down 19%) lost a lot of ground to smaller LCD and larger LED/LCD TVs, while DVD recorder volumes fell 15%, possibly due to consumers opting for the simplicity of PVRs (no discs). Figure 4: Unit Sales: Year on Year Comparison Unit Sales Thousands 1,800 1,600 1,400 1,200 1, % -44% Compact Photo Printers Single Function Inkjet Printers 2H H 2011 %change 2H 2010 to 2H % -15% Plasma TVs DVD Recorders 1,459 1,522 1,369 1,447 0% 6% 1,009 1, % -6% -5% Digital Camcorders Digital Media Players Digital Cameras Games Consoles DVD Players Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology 14% MFDs 17% 21% PVRs 1,280 42% 1,553 LCD TVs 1,485 1,048 Personal Computers 60% 40% 20% 0% -20% -40% -60% -80% -100% % change Year on Year Copyright GfK Retail and Technology, 2012 Page 8 of 15

10 Digital media player volumes were considerable (over 1.36 million units were sold) but nevertheless down 6% on 2H 2010, indicating the media player market could be close to saturation or in need of further innovation. The increased penetration of smartphones also offering media player functionality could account for some of this decrease. In the imaging categories, overall Digital Camcorder volumes declined by 9% in 2H 2011, (although there was a 25% volume increase in the higher image-quality Full-HD camcorders); while Digital Camera volumes, reflected different movements in the different camera types, with an 8% decrease in the fixed lens (compact) category, offsetting a 26% increase in the Digital SLR category, to record an overall digital camera volume decrease of 5%. Value sales trends ($ sold) The total value of the products covered in the CDLI fell 7.4% (from $3,705 million in 2H 2010 to $3,430 million in 2H 2011) reflecting a combination of price and volume movements. Performing so strongly in volume terms that this category offset the decline in selling prices (detailed below), Personal Computer sales values were the only category to grow in total dollar terms (up 15%). Also performing reasonably well, MFDs (-4%), and LCD TVs (-6%), both declined by less than the CDLI average on the back of solid volume increases. DVD players were fairly typical of the CDLI overall, falling 8% in value terms on lower prices, despite the growing demand for Blu-ray players. PVRs, Digital Cameras and Games Consoles each declined by 13% in value terms. The 13% decrease in Digital Camera values, concealed opposing movements in the different camera types, with a 20% decrease in the fixed lens category, cancelling out an otherwise positive 4% increase in the Digital SLR category. Increased PVR volumes were offset by lower PVR prices. Games Console volumes were static so all of the value decrease was due to lower prices. Plasma TVs (-35%) dragged the index a lot lower in value terms due to both lower volumes and prices. Digital Camcorders also reflected significantly lower selling prices, falling 29% in value terms, as did DVD Recorders (-27%) and Digital Media Players (-21%). Copyright GfK Retail and Technology, 2012 Page 9 of 15

11 Figure 5: Sales Values: Year on Year Comparison 2H H 2011 % Change 2H 2010 to 2H 2011 $1,400 40% $1,200 15% 20% Sales Value Millions $1,000 $800 $600 $400 $200 $0-45% -44% $1 $1 $3$2 Compact Photo Printers Single Function Inkjet Printers -35% $407 Plasma TVs $266-29% -27% $82 $58 $77 $57 Digital Camcorders DVD Recorders -21% -13% -13% -13% $369 $287 $319 $320 $276 $228 Digital Media Players Games Consoles Digital Cameras $93 $86 $26 $23 PVRs $1,021 $956 $947-4% -8% -6% DVD Players LCD TVs $73$70 MFDs $1,088 Personal Computers 0% -20% -40% -60% -80% -100% % change Year on Year Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology Copyright GfK Retail and Technology, 2012 Page 10 of 15

12 Consumers benefit from technological improvements at lower prices Between 2H 2010 and 2H 2011, competition in most product categories combined to deliver a weighted average price decrease of 13% across the Canon CDLI product categories. With improved specifications and features in several key categories, the lower prices once again delivered incredible value to those consumers who bought consumer electronics, cameras and other digital lifestyle products during the reporting period. For example, in camcorders, despite the continuing category evolution towards flash and Full HD models, digital camcorder prices fell 22% (to $283). While average selling prices for Digital Cameras dropped a more modest 9% (to $221) between 2H 2010 and 2H 2011, the movement to digital SLR cameras continued and, in compact cameras, consumers gained access to improved specifications and features in optical zoom, optical image stabilisation and sensor performance. Consumers also continued to benefit from substantial price decreases in flat panel TVs and personal computers. For example, Plasma TV average selling prices fell 19% (to $1,030), while LCD TV average prices fell by 23% (to $615). Personal computer prices fell by 19% to $732, on average, due to the lower average prices for the growing proportion of tablets, despite the growing popularity of all-in-one desktops and higher spec d notebooks. MFD average prices declined by 16% (to $120) as wireless printing capabilities became even more common. Consumers with wireless-capable printing devices can print from their personal computers and smartphones without connecting via a cable. This enables consumers to print their personal documents or photos not only from anywhere in their homes, but from anywhere in the world. In Games Consoles, average selling prices were down 13% (to $274) in the face of increased competition from app-based games running on smartphones (and/or tablet PCs). DVD player and recorder prices declined by 13% and 14% respectively (to $92 in players and $448 in recorders), despite growing interest in Blu-ray (and 3D Blu-ray). Copyright GfK Retail and Technology, 2012 Page 11 of 15

13 Figure 6: Changes in Average Selling Prices: 2H 2010 to 2H 2011 Average selling price change ($) $150 $100 $50 $0 -$50 -$100 -$150 -$200 -$250 -$300 PVRs -$100-25% LCD TVs -$182 Digital Camcorders -$78 Plasma TVs -$249 Personal Computers -$171 MFDs Digital Media Players -$22 -$30 -$74 -$42-23% -22% -19% -19% -16% -15% -14% -13% -13% DVD Recorders $ change % change Games Consoles Consumer Digital Lifestyle Index, Reporting Period 2H 2011 Compiled by GfK Retail and Technology DVD Players Digital Cameras -$14 -$21-9% Single Function Inkjet Printers $0 0% Compact Photo Printers 47% $80 50% 40% 30% 20% 10% 0% -10% -20% -30% Average selling price change (%) Copyright GfK Retail and Technology, 2012 Page 12 of 15

14 The longer term shifts in average selling prices for Canon CDLI categories are summarised in the following charts. $700 $600 Figure 7: The evolution of CDLI average selling prices DVD Recorders PVRs $500 Games Consoles Average selling prices $400 $300 $200 $100 $0 Compact Photo Printers Digital Cameras Digital Media Players MFDs Single Function Inkjet Printers DVD Players Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology Figure 8: The evolution in average TV and PC prices $3,500 $3,000 Average selling prices $2,500 $2,000 $1,500 $1,000 $500 Plasma TVs Personal Computers LCD TVs $0 Consumer Digital Lifestyle Index, Reporting Period: 2H 2011 Compiled by GfK Retail and Technology Copyright GfK Retail and Technology, 2012 Page 13 of 15

15 About this report About the Canon Consumer Digital Lifestyle Index The Canon Consumer Digital Lifestyle Index (CDLI) is an independent research report commissioned by Canon and compiled by GfK Retail and Technology Australia. It reports on acquisition and usage of various digital products in Australia. The Index comprises information on digital cameras, digital camcorders, multi-function devices (i.e. all-in-one printers), inkjet printers, photo printers, personal computers (including tablet PCs), plasma TVs, LCD TVs, personal video recorders, DVD players and recorders (including Blu-ray players), digital media players and games consoles (including portable games consoles). The report covers all of the brands from all of the manufacturers and suppliers in these categories, not just the Canon branded products in these categories. The Index does not include information on mobile phones, cordless phones, white goods or other small domestic appliances (e.g. clock radios, toasters, kettles, etc.). Canon releases the CDLI twice each year with the intention of informing interested parties of the trends in purchase and usage of digital devices. Each release highlights changes compared to corresponding periods in prior years. Canon Consumer Digital Lifestyle Index - Methodology The Canon CDLI is independently compiled for Canon by GfK Retail and Technology Australia (GfK) based on GfK s retail audit panel and GfK s ConsumerScope tracking services. The GfK retail audit panel comprises a large group of Australia s major retailers of consumer technology: IT products Telecommunications Office Communications Electronic Entertainment Household Electrical Appliances Photographic Equipment Each week, retailers on the panel report their sales figures (units and $ value) for the relevant product groups. These figures are captured on GfK s retail tracking databases, aggregated, and reported on a regular basis. All dollar amounts are in Australian dollars. GfK s retail audit panel methodology excludes purchases from manufacturers (direct sales), auction websites (in Australia and overseas); and purchases by Australian consumers while travelling overseas. Products acquired direct from manufacturers via sales promotions (via redemption) are also excluded. The GfK ConsumerScope studies track and report on the purchase, ownership and usage of a rolling annual sample of approximately 4,000 recent digital camera buyers, TV buyers or PC buyers and 1,000 recent camcorder buyers (split into two equal fieldwork phases, conducted every 6 months). The ConsumerScope studies are syndicated surveys and subscribed to by the leading manufacturers, distributors and retailers in the Australian market. Copyright GfK Retail and Technology, 2012 Page 14 of 15

16 All ConsumerScope figures from this report have been sourced from a combination of the following reports: - GfK ConsumerScope, Digital Camera and Camcorder 2H 2011 Report - GfK ConsumerScope, PTV 2H 2011 Report - GfK ConsumerScope, PCs Q Report - GfK ConsumerScope, Video Entertainment Q Report GfK reserves the right to retrospectively revise data which have been reported in earlier versions of the Canon CDLI in order to present valid historical comparisons. About GfK Retail and Technology GfK Retail and Technology, Australia specialises in researching and reporting on the market for Consumer Electronics, IT products, Telecommunications, Office Communications, Electronic Entertainment, Household Electrical Appliances, and Photographic Equipment. GfK s expertise in these industries stems from GfK s unique ability to investigate the market from every angle: shipments-in, point-of-sale, retailer, and consumer. GfK s shipments-in service measures the volume of product that flows from manufacturers and suppliers into the supply chain. This component of GfK s business is branded Informark. GfK s point-of-sale (retail tracking) service is based on sales data obtained by electronic data exchange between GfK and Australia s major retailers. This data is collated and processed to produce actionable and timely research to key players in the market. GfK's retail panels provide highly accurate information down to the level of individual SKUs (items). This data allows decision-makers to analyse their product structure, pricing and distribution policy, and their position in relation to competitors. Specially developed software means clients can choose the format of the services they require and access the data online. The ability to combine data about brands, models, outlets and regions means that information can be analysed in almost any form. GfK s Retail Market Insights division manages a variety of in-depth consumer research, including its ConsumerScope service, in all of the industries listed above. These studies can be conducted continuously or on an adhoc basis, and are weighted to, or used in conjunction with GfK s other information sources to provide a complete and integrated overview of the retail market. GfK Retail and Technology services include: Market projections, trends and information about new products in each product category Market structures and distribution channels for each product category Market shares for individual brands and products Shares of distribution and product price trends Market reports Consumer and Trade research Copyright GfK Retail and Technology, 2012 Page 15 of 15