EURONICS INTERNATIONAL

EURONICS INTERNATIONAL
WHAT IS NEEDED FOR A SMART HOME BREAKTHROUGH
EURONICS ORGANISATION
EMEA TERRITORY
Present in 35 countries across EMEA territory
Countries: 35
Members: 29
Dealers: ~ 6,000
Outlets: > 10.000
Employees: > 50,000
Turnover: 18.2 bln. €
EURONICS MEMBERS
MAJOR RETAIL STORE BRANDS
Present in 35 countries across EMEA territory
BUSINESS PROFILE
LEADING INTERNATIONAL RETAIL GROUP
Turnover development, Billion €
17.6
17.6
2012
2013
18.2
16.2
15.1
14.4
14.1
2008
2009
12.6
10.8
8.3
2002
8.7
2003
9.2
2004
9.9
2005
2006
2007
2010
2011
2014
POSITION GLOBALLY
2014 RESULTS
Euronics vs leading global retailers, billion €
30.7
21.3
18.2
14.9
12.5
12
MARKET DEVELOPMENT
MARKET DECLINE OF 0.9% IN 1ST H 2015 MAINLY DRIVEN BY CE & IT
Total sales € 114,3 Bil. (-0,9% vs. Q1-Q2 '14)
0.1%
10.4%
-0.1%
CE
16,288
Telecom
30,133
2.6%
-37.6%
20.0%
2.0%
0.3%
3.5%
SDA
8,554
Photo Office
2,753 Equipment
7,966
-0.9%
IT
29,280
26.5%
1.3%
7.1%
-0.8%
13.6%
-1.5%
MDA
19,357
17.4%
2.2%
10.4%
-41.6%
7.7%
5.7%
Germany
UK
France
Italy
Russia
Turkey
Spain
Netherlands
Sweden
Belgium
UAE
Austria
Denmark
Finland
Czech Republic
Portugal
Greece
Kazakhstan
Romania
Ukraine
Hungary
Slovakia
23.2%
17.3%
11.3%
7.3%
7.1%
5.9%
5.8%
4.0%
2.9%
2.4%
1.8%
1.8%
1.7%
1.2%
1.0%
0.9%
0.8%
0.8%
0.8%
0.8%
0.7%
0.4%
PAST 25 YEARS
Consumers have enjoyed tremendous value
Average prices …. Added value ?
100 is index
260
240
Energy
220
200
Water
180
160
Food
140
120
100
801996
2006
2015
White
Goods
INNOVATION FOR GROWTH
New business
Smart Home
•
•
•
•
•
Safety & Security
Smart Products
Energy control & monitoring
Sport & Health
Enjoying life
No box moving. Consumers want to
understand. Staff Training is key.
We have the staff to do the job.
Not science fiction anymore
Your home devices connected and you’re in control
Wouldn’t it be great if...

You wake up in the morning and your coffee
machine turns on, lights gradually brighten,
the TV shows the news or you hear your
favorite music.

You leave for work, and your lights go off
automatically, your thermostat senses there’s
nobody around and turns down the
temperature, the door locks and your security
camera is on

You return home and the house comes alive
again

Your oven gives you an alert when your dish
is ready based on a recipe you uploaded
earlier directly from your favorite cooking
website. In the meantime you can relax with
your family & friends
1962
Smart Home
2015
EURONICS INTERNATIONAL
THE SMART HOME OPPORTUNITY
HUGE POTENTAIL , BUT TRUSTED ADVISOR & TRUSTWORHINESS I KEY
The privacy aspect is a showstopper for the majority of consumers!
• Retain people and
capabilities in stores is
key both in the Selling &
Installation process
• Segment stores on
installation capabilities
• Security & Data protection
aspect will be a key
decision parameter for the
consumers
THE SMART HOME OPPORTUNITY
HUGE MARKET POTENTIAL, BUT MANY QUESTIONS & ROADBLOCKS
AHEAD!
Key take-aways
•
TCG market stagnant, Smart Home market
expected to grow exponentially
•
How to sustainably grow the market as an
industry?
•
Role of suppliers / distributors / retailers
•
How to educate the consumer?
•
Training & installation will become key!
•
Which alliances / brands will likely prevail?
•
Which use cases / devices will grow?
GLOBAL RETAIL LANDSCAPE
U.S. RETAILERS LEADING, BUT NOBODY “CRACKED THE CODE”
TOWARDS CONSUMERS YET IN THE SMART HOME CATEGORY
MAIN SEGMENTS SMART HOME
WHAT DO PEOPLE REALLY CARE ABOUT?
Value (%) related to the overall Smart Home Market, BSRIA Smart Home study 2013
HOW TO WIN CONSUMERS ?
TO EXPLAIN USE CASES IS KEY
Bring the experience in-store
Not easy, but good news!
72% of all households have
never heard about „smart
home“ yet.
After introduction, expressed
usage intent is high.
There is a major role for
added value retailers like us!
AWARENESS OF SMART HOME
Germans have the greatest awareness (source: Context, Smart Home Survey 8/2015)
DRIVERS OF AWARENESS
SOURCE: CONTEXT, SMART HOME SURVEY 8/2015
German retailers and online lead the way in promoting smart home
EURONICS JOINED THE ALLSEEN ALLIANCE
JANUARY 2015
FULL COMMITMENT TO DEVELOP IOT IN-STORE WITH KEY PARTNERS
Almost 200 brands in the alliance
• Euronics is open for all alliances,
but AllSeen Alliance broadest with
most cross industry members
• Majority of new products will be
launched in 2016 with „AllJoyn
Certified“ qualification
• Pushing interoperability, one app,
right security, go-to-market story
CONCLUDING
What is needed for a Smart Home breakthrough?
• Solid product roadmap from at least 4 suppliers in the key segments
• Increased awareness through experience in store
• Interoperability between devices
• Convenient control through one single app
• Right level of security
THANK YOU FOR YOUR ATTENTION
JOEY TANG