MOBILE COCOONING: HOW GROWING RELIANCE ON SMART DEVICES IS INFLUENCING CONSUMER BEHAVIOUR Euromonitor International September 2013 MOBILE COCOONING: HO W GROWING RELIANCE O N SMART DEVICES IS I NFLUENCING CONSUMER BEHAVIOUR P a s s p o r t I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Demand Factors ....................................................................................................................... 1 Chart 1 Leading Countries by Mobile Internet Subscriptions 2012 ........................... 2 Mobile Behaviour ...................................................................................................................... 2 Commercial Impact ................................................................................................................... 3 Chart 2 Global Sales of Selected Electronic Devices 2012 ....................................... 5 Marketing Opportunities ............................................................................................................ 5 Outlook ..................................................................................................................................... 6 Summary 1 Mobile Cocooning: Opportunities and Challenges ....................................... 7 Introduction ................................................................................................................................... 8 Cocooning on the Move ............................................................................................................ 8 Chart 3 Use of Apps: Home and Away 2013............................................................. 8 Social Impact ............................................................................................................................ 9 Demand Factors ......................................................................................................................... 10 Expansion of the Internet ........................................................................................................ 10 Table 1 Internet Users as % Population by Country 2007/2012/2017 ..................... 12 Table 2 Internet Retailing by Country 2007/2012 .................................................... 13 Increased Adoption of Smart Devices ..................................................................................... 13 Chart 4 Global Sales of Smartphones Versus Feature Phones 2007/2012 ............ 14 Growth in Wireless Access ..................................................................................................... 14 Table 3 Mobile Internet Subscriptions by Country 2007/2012 ................................. 14 Higher Network Speeds .......................................................................................................... 15 Expanding Access To Wi-fi ..................................................................................................... 16 Location-based Mobile ............................................................................................................ 17 the Transition To Cloud Computing ........................................................................................ 18 Security and Privacy Concerns ............................................................................................... 18 Chart 5 Attitudes Towards Internet Privacy 2013 .................................................... 19 Mobile Behaviour ........................................................................................................................ 20 Digital Versus Traditional Media ............................................................................................. 21 Mobile Phone Activities ........................................................................................................... 21 Chart 6 Global: Mobile Phone Activities Away From Home 2012 ........................... 21 App Dependency .................................................................................................................... 22 Summary 2 World‟s Most Used Apps July 2013 ............................................................ 23 Summary 3 Euromonitor International Pulse Survey: Favourite Apps 2013 .................. 24 Social Networking Behaviour .................................................................................................. 25 Chart 7 Reasons for Using Social Networking Websites 2011................................ 26 Chart 8 Leading Social Media Websites Globally 2013 .......................................... 27 Table 4 Facebook Users by Region 2012 ............................................................... 28 Table 5 Fastest Growing Facebook Countries 2012 ............................................... 28 People Power ......................................................................................................................... 29 Entertainment on the Move ..................................................................................................... 30 © Euromonitor International MOBILE COCOONING: HO W GROWING RELIANCE O N SMART DEVICES IS I NFLUENCING CONSUMER BEHAVIOUR P a s s p o r t II Summary 4 Top 10 iOS Game Apps by Monthly Downloads May 2013 ........................ 31 Summary 5 Top 10 Google Play Game Apps by Monthly Downloads May 2013 .......... 32 Smart Travel ........................................................................................................................... 32 Summary 6 Selected Travel Apps 2013 ........................................................................ 33 Mobile Shopping ..................................................................................................................... 34 Chart 9 Frequency of Mobile Phone Activity in Stores 2012 ................................... 35 Growing Popularity of Fitness Apps ........................................................................................ 36 Commercial Impact .................................................................................................................... 36 Growth of Internet Enabled Devices ....................................................................................... 36 Table 6 Global Sales of Selected Electronic Devices 2007/2012 ............................ 37 Chart 10 Leading Markets for Smartphones 2012 .................................................... 38 Chart 11 Top 10 Global Smartphone Manufacturers by Retail Volume 2012 ........... 40 Chart 12 Top 10 Global Tablet Manufacturers by Retail Volume 2012 ..................... 40 Chart 13 Leading Markets for Tablets and Other Portable Computers 2012 ............ 41 App Development ................................................................................................................... 42 Chart 14 Global Mobile App Store Downloads 2011-2016 ........................................ 43 Impact on the Video Games Market ....................................................................................... 44 Table 7 Global Sales of Video Games 2007/2012 .................................................. 45 Impact on Foodservice ........................................................................................................... 45 Marketing Opportunities ............................................................................................................. 46 Mobile Ad Revenues ............................................................................................................... 46 Chart 15 Forecast Mobile Advertising Revenue by Region 2012/2016 ..................... 46 Email Campaigns.................................................................................................................... 47 Viral Marketing ........................................................................................................................ 48 Summary 7 Top Brand-driven Social Video Advertising Campaigns of 2012 ................ 49 Ratings Apps Increase Publicity for Small Businesses ........................................................... 49 Getting the Best Out of Social Media ...................................................................................... 49 Key Market Trends ..................................................................................................................... 51 Brazil ....................................................................................................................................... 51 Chart 16 Brazil: Mobile Phone Activities Away From Home 2012 ............................. 51 Table 8 Brazil: Sales of Mobile Devices and Games 2010-2012............................. 52 Chart 17 Brazil: Smartphone Operating Systems 2012 ............................................ 53 China ...................................................................................................................................... 53 Summary 8 China: Leading Social Networking Websites 2013 ..................................... 54 Chart 18 China: Mobile Phone Activities Away From Home 2012 ............................ 55 Table 9 China: Sales of Mobile Devices and Games 2010-2012 ............................ 56 Chart 19 China: Smartphone Operating Systems 2012 ............................................ 56 France 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