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THE WORLD OF GADGETS

CONLUMINO & AFFINION

OCTOBER 2013

THE WORLD OF GADGETS

CONLUMINO AND AFFINION

© 2013 Conlumino [email protected] | 020 7936 6654

Introduction

Gadget research Prepared for Affinion | October 2013

Affinion International Ltd 50 Charter Court, Slough, Berkshire, SL1 2EJ 01753 753338 [email protected] www.affinioninternational.co.uk

Conlumino 7 Carmelite Street, London EC4Y 0BS 020 7936 6654 [email protected] www.conlumino.com

It is strange to think that not so long ago many of us did not own most of the gadgets we now take for granted. This is all the more so given how much gadgets have become an embedded part of our lives. This research takes a look at the impact gadgets have had on us, what we spend on them and the issues and problems they can cause us. The statistics are fascinating not only because they show how important gadgets are to the economy and society, but also because they reveal the risks – and potential costs – we face by not having our gadgets insured. We hope you find the research interesting. If you have any comments or queries please do feel free to get in touch. About Affinion International Affinion International, a division of Affinion Group, provides a wide range of protection and lifestyle products that offer value to consumers whilst building additional revenue streams and increased customer-to-brand loyalty and engagement for its partners. The division is made of more than 1,200 employees and offers services in 17 countries throughout Europe, Africa and South America. Over the past 15 years, Affinion International has built an impressive client base that includes 13 of the top 20 EU banks and many of Europe’s premier brands in travel and retail. For more information, visit www.affinioninternational.co.uk

Foreword


Introduction


•  The next time you are on public transport take a look around at your fellow passengers. How many have those iconic white wires stretching to their ears? How many are scanning newspapers on tablet devices? How many are reading an e-book? And how many are staring down checking their phones?

•  The answer is likely to be quite a few, often over half. However, regardless of the numbers involved it is certain that there will be many more gadget users today than there were just five years ago.

•  Much of this, of course, is down to technological innovation. In the scheme of things, smartphones, tablets and e-readers are all relatively new inventions – products that consumers have readily bought into and integrated into their everyday lives.

•  This integration is evidenced by the fact that we collectively spend a huge proportion of our time using gadgets for personal tasks – some 60 days a year on average. Of course, some of this includes the time we spend working on things like laptops or listening to music on our MP3 players; but we also spend almost two hours a day using our smartphones.

•  It is interesting, however, that while gadgets do absorb a lot of our time they have also allowed us to make more effective use of our day. The portability of devices like tablets allows us to do tasks, like grocery shopping, while travelling or waiting around – time that may otherwise be underutilised. Equally, it must not be forgotten that some gadgets, like e-readers, have simply displaced the time we would have previously spent reading physical books.

•  If the time figures are revealing so too is our spend on gadgets. This year consumers will fork out some £9bn on various products. That’s £1bn more than we were spending in 2008 and some £2bn more than in 2003.

•  Our obsession with gadgets is so great that, thanks to the spending we have made over the past ten years, UK households now own £51.6bn worth of gadgets and devices – up from £43bn five years ago and £38bn ten years ago.

•  That gadgets are now such a valuable part of the household

inventory is not without its problems. The portability of many gadgets means that we collectively carry around products worth an astonishing £22bn. And, as many people know to their cost, things that are carried around are at risk of being stolen, lost or broken. Indeed, it is particularly worrying that a quarter of us are concerned about being mugged for our gadgets.

•  When it comes to gadget disasters, over the past twelve months these cost consumers some £1.2bn. Most of these come from breakages (£800m) but stolen items (£211m) and lost items (£181m) are also significant contributors.

•  Worryingly, despite the high cost of gadget disasters, only a minority of consumers have their devices insured with some two-thirds having no insurance at all.

•  As technology evolves and as competition between device manufacturers increases, the significance and usage of gadgets looks set to rise still further; in turn this will push up the value of gadgets as well as the annual losses.

Summary

Gadget nation The nation and its gadgets

Gadget nation



Summary

A £9bn market This year British consumers will spend a whopping £9bn on all sorts of gadgets – that’s almost £370 for every household in the country. Fuelled by an ever increasing array of new technologies and devices, our spending has swelled dramatically and is up by almost a third compared to ten years ago. Indeed, we now spend a much greater proportion of our discretionary spend on gadgets than ever before.

We own £51.6bn of gadgets Our annual spend on gadgets pales in comparison to the total value of the gadgets we personally own. This now stands at an estimated £51.6bn or just over £2,000 for every household. In the past five years, the value of gadgets owned has increased by almost 20%; in the past ten years, the value has increased by over 37%. Both of these rises are thanks, in large part, to an increased ownership of tablets and smartphones.

The majority buy at least one gadget a year UK consumers are avid gadget shoppers with almost three-quarters buying them at least once per year – and many doing so more frequently. The main driver for buying, it seems, is a desire to have the latest technology. Upgrading is an important driver of the market which underscores the importance of regular product updates and refreshes.

Tablets and smartphones Tablets and smartphones have seen the sharpest rise in ownership over the past ten years and over half of consumers now personally own a smartphone. Comparatively, just under a third of consumers personally own a tablet device, showing there is significant headroom here for future growth. However, of all gadgets, digital cameras have the highest level of ownership with over three-quarters saying they have one.

Gadget nation



Spending on gadgets

Total expenditure on gadgets All figures are in £m

Chart shows the total expenditure made on gadgets by consumers in 2003, 2008 and a projected value for 2013; all figures are shown in £m.

We spend over £9bn a year on gadgets

7,095 8,045

9,087

2003 2008 2013

Growth (2003-13)

+28.1% •  Today UK consumers spend well over £9bn a year on all

sorts of technological gadgets; that’s over £370 for every household.

•  Fuelled by an ever increasing array of new technologies and devices, our spending has swelled dramatically and is up by almost a third compared to ten years ago. Even compared to five years ago, we now spend some 13% more on gadgets.

•  As can be seen on the charts on the following two pages, household ownership of many gadgets is high. This is especially so for devices like tablets and smartphones which where not around ten years ago.

Growth (2008-13)

+13.0%

Gadget nation



Ownership of gadgets

Household ownership of selected gadgets All figures are percentages

77.1 69.2

64.6

52.1 46.4 43.0 42.4 41.9 41.0 37.4

32.3 31.1 30.5 25.4 22.4 22.0 21.9 19.3

15.4 15.4 13.7 12.5 6.1 4.7 4.7 3.8 3.3 1.6 0.9

Chart shows the percentage of households who own at least one of each type of gadget in 2013

Ownership is high, but there is room for future growth

Gadget nation



Change in ownership

Change in household ownership of selected gadgets (2003-13) All figures are percentage points

30.3 27.9 20.5

8.1 5.6 4.4 4.2 4.1 4.0 3.1 3.1 2.6 2.5 2.1 0.4

-0.3 -0.8 -0.8 -1.2 -2.0 -2.0 -2.1 -2.2 -2.5 -7.0 -9.2 -10.9 -13.2

-20.5

Chart shows the change in the percentage of households owning certain gadgets between 2003 and 2013.

Tablets & smartphones have grown from a standing start

Gadget nation



Total value of gadgets owned

Total value of gadgets owned by UK households All figures are in pounds

Diagram shows the total value of all gadgets (as defined on the charts on the previous page) owned by UK households; excludes devices which are owned by businesses.

Households own £51.6bn worth of gadgets

£37.5bn £43.1bn

£51.6bn

•  In terms of total value, UK households currently own gadgets worth £51.6bn; this excludes gadgets which belong to businesses.

•  This is equivalent to over £2,000 per household, meaning that gadgets are now one of the major types of asset held by households.

•  In the past five years, the value of gadgets owned has increased by almost 20%; in the past ten years, the value has increased by over 37%.

2003 2008 2013

Gadget nation



Frequency of purchase

How frequently do you buy gadgets and why All figures are percentages

Chart shows the percentage of consumers who say they buy gadgets at various frequencies; the table shows reasons for buying gadgets.

Nearly three quarters buy gadgets at least once a year

•  UK consumers are avid gadget shoppers, with almost three-quarters buying them at least once per year – and many doing so more frequently.

•  The main driver for buying, it seems, is a desire to have the latest technology. Upgrading is an important driver of the market which underscores the importance of regular product updates and refreshes.

•  The general importance of gadgets to consumers is underlined by the fact that almost a third buy them because they want to treat themselves.

27.7

32.1

22.7

12.1

5.4

Every two years

Every year

Every 6 months

Every 3 months

Every month

What drivers purchasing %

Want latest technology 52.7

Want to upgrade 31.3

Felt like treating myself 30.2

Replace old item 22.6

Upgrade from provider 19.7

First time buyer 19.6

Replace broken item 17.6

Gift from/for others 14.1

To keep up with trends 13.4

Replace stolen item 4.2

Get a new style/design 3.7

Gadget lifestyles The importance of gadgets and how people use them

Gadget lifestyles



Summary

We spend 60 days a year using gadgets for personal tasks The average person spends over four hours a day using the various gadgets they own for personal, non-business related tasks. This is an increase of an hour (or 31%) on a year ago and over two and a half hours on ten years ago. On an annual basis, this means that people are spending an average of 60 days a year using gadgets. Tablets are used for around an hour and fifty minutes per day.

We carry around £22.6bn of gadgets Collectively, consumers regularly carry some £22.6bn of gadgets around with them; a dramatic increase on just five years ago when this figure was £16.5bn. Part of the increase is down to the increased portability of many gadgets, especially with devices like tablets replacing less portable items such as laptops and desktops.

8 out of 10 of us is never parted from our smartphone Our reliance on our phones is evidenced by the fact that some 81.6% of consumers say that they carry their smartphone with them wherever they go; the comparative figure for standard mobiles is 56%. By comparison just 5.2% permanently carry around their tablet device and some 10.5% never take their tablet away from home.

Tablets are more functional than phones Although many consumers use their smartphones for a range of non-call related tasks – setting an alarm, taking photos, recording videos, and of course sending texts – the small form factor of phones makes them more unsuited to a variety of other tasks such as surfing the web. By comparison, tablets are more flexible and are used for a wider range of tasks and activities.

Gadget lifestyles



Time spent using gadgets

Average number of minutes devices are used per day All numbers are minutes and are averages for all consumers

People spend almost two hours a day using smartphones

197.4

138.5 112.3 109.8 108.3

79.2 68.3 68.2 61.8 57.6 53.7 52.0 49.9 46.5 42.6 40.0 35.0 29.1

Chart shows the average amount of time owners of various gadgets spend using those devices per day. All figures are in minutes; only users of each device are included within the average time spent.

•  If proof were needed that gadgets have now become an entrenched part of everyday life, the average usage figures provide the evidence.

•  On average, consumers spend over 3 hours a day using their laptops, over 2 hours using their BlackBerry devices, and just under 2 hours using their smartphones.

•  Meanwhile, tablets are used for around an hour and fifty minutes per day.

Gadget lifestyles



Time spent using gadgets

Total amount of time spent using technology gadgets for personal tasks All figures are in minutes and refer only to technology gadgets like iPhones, tablets, computers, etc.

We spend over 4 hours a day using gadgets for personal tasks

103

197

258

2003 2008 2013

Chart shows the average amount of time owners of technology gadgets spend using all of their devices per day. All figures are in minutes. Gadgets in this instance exclude things like hairdryers.

•  In total, consumer spend over four hours a day using the various technology gadgets they own for personal, non-business related tasks.

•  This is an increase of an hour (or 31%) on a year ago and over two and a half hours on ten years ago.

•  There are probably three main drivers of increased usage. First, is the fact that gadgets now are portable – this means that people can use them on the go or while watching television. Second, compared to the recent past gadgets like smartphones now have multiple functions which makes people use them more intensely. Third, new devices like e-readers have created new opportunities for gadget usage.

Gadget lifestyles



Functions of gadgets

What consumers use their technology gadgets for All figures are percentages

Tablets are used for multiple functions

0.7 0.5 1.6 0.9 1.9 3.5 2.6

88.7

2.6

21.8

3.5

20.4

0.2 0.9 1.2

96.1

2.0 6.7 5.9 6.3 4.3

0.4 0.8 2.7 2.0 0.0 0.4 1.6 0.0 2.4

31.6 28.3

79.8

39.1

49.2

26.7

17.6 11.4

38.4

28.3

9.8 5.9

9.8

24.8 26.4

7.8

26.5

88.6

71.9

32.7 26.6

38.0

11.1

44.5

5.6 3.6 2.4 8.8

29.9

38.6

To read books

To watch television, film or other

media

To surf the web

The shop online

To play games

To listen to music

To do work To phone or call friends

To use social media like

Facebook or Twitter

To take photos

To take videos

As an alarm clock

To educate children

To navigate or look at

maps

Reading the news

Smartphone

E-reader

Tablet

Laptop

Chart shows the percentage of owners of each device saying they use it regularly for various functions.

Gadget lifestyles



Where gadgets are used

Where do consumers use devices? All figures are percentages

82% carry their smartphone wherever they go

0.8 5.4 4.9 8.5 9.8

96.3

55.3 60.5 63.1 52.9

31.3 33.5 28.9

3.5 8.0

63.6

85.6

32.9

10.5 8.6

55.6 54.2

1.6 2.1

49.8 39.2

58.6

38.6 35.3

1.3 5.4 4.9

6.4 18.9

0.2

21.5 23.7 14.4

13.8

12.5 24.5

25.3

8.6 17.8

15.2

5.6

26.9

16.7 10.2

11.1 17.4

3.2 4.3

20.9 25.3

21.8

20.9 19.6

5.4

10.8 11.5

21.3

35.8

2.0

17.4 5.3 17.3 23.2

31.3

32.9 32.0

42.3

42.7

15.2 5.6

24.9

40.5

36.9

11.1 20.0

30.2 21.3

20.9 24.1

16.4

27.4 28.0

10.9

22.4 11.5

31.9

27.2

0.7 4.6 7.9 3.8 8.7

12.5

7.7 12.4

40.7 28.0

3.0 1.6 12.9

27.1 35.7

11.1

5.8

49.2

40.4

7.4 10.5 2.3

10.0 13.6

81.6

56.0 67.2

31.9

8.4 0.7 1.4 2.6 1.3 1.4

12.5 1.3 1.5 4.9 3.6 3.0 1.6 2.5 5.2 8.6 11.1

2.6 15.8

31.9

0.9 0.9 0.9 3.0 3.4

Never take from home

Rarely take from home

Sometimes take from home

Chart shows the percentage of consumers who take various devices outside of the home and the frequency with which they do.

Often take from home

Carry wherever I go

Gadget lifestyles



Diagram shows the total value of all gadgets that consumers regularly carry around with them for 2003, 2008 and 2013.

Bag value of gadgets

Total value of gadgets that consumers carry around with them All figures are in pounds

Consumers carry £22.6bn of gadgets around with them

£11.6bn £16.5bn

£22.6bn

2003 2008 2013

•  Consumers regularly carry some £22.6bn of gadgets around with them; a dramatic increase on previous years.

•  Part of the increase is down to the greater portability of many gadgets, especially with devices like tablets replacing less portable items such as laptops and desktops.

•  The higher value of many portable gadgets, such as expensive smartphones, has also played a part in pushing up the value.

Gadget obsession The importance of gadgets to consumers

Gadget obsession



Living without gadgets

22% say they could not live without their smartphone The fact that gadgets have become such an embedded part of daily live is demonstrated by the fact that so many of us can’t bear to be parted from them. Overall, just shy of 87% say they would not like to live without their smartphone, with 22% saying it’s something they simply could not live without. This is far higher than for clothing where only 25% say they’d would be fine to live without the latest fashions.

Smartphones are most important In terms of ranking the devices they own in order of importance, smartphones come out firmly on top with 29% of people ranking them as number one. Tablets come in second place, mentioned by almost 16% of people. E-readers and digital cameras come in third and fourth place, respectively. Older technology, like MiniDisc players are ranked the lowest.

65% would rather lose £100 than their phone The importance we attach to our mobiles is evident from the fact that a majority of us would rather lose our wallets, £100 in cash, our credit cards, watches or jewellery rather than losing our phones. Passports and car keys are both seen as being more important; a majority of people would rather lose their phones than these items.

25% of us worry about being mugged With people carrying around some £23bn of gadgets, it is hardly surprising that large numbers are concerned about being mugged whilst carrying various devices. Around 40% are also concerned about losing their gadgets. Both of these figures are also influenced by the fact that, over time, gadgets have become more expensive with many having a high second-hand resale value.

Gadget obsession



Living without gadgets

How people would feel about living without gadgets (and other items) All figures are percentages

Smartphones are the gadget most would least like to live without

19.2 32.4

21.9 19.5 37.5

16.4 9.1 13.8 17.4 23.6

7.3 3.8 10.4 3.6 11.1

2.2 6.8

32.8

34.1

34.7 41.8

24.9

27.9 24.8

26.0 22.8 23.9

18.4 14.8

12.0 8.3

11.1

5.9 6.6

36.4 21.2

30.3 19.5 14.4

31.1 38.2 26.5 24.9 17.3

33.3 36.0

18.6 28.0 11.1

17.0 10.9

7.7 7.0 9.8 15.2

4.6 11.5 18.9 17.2 13.2 9.8 21.0 28.2

13.7 28.5

0.0 21.3 9.5

3.9 4.7 3.1 1.6

3.0

11.5 9.1 11.9

12.4 6.8

19.6 16.9

23.7

31.1

55.6 34.0

18.1

Chart shows how people feel about living without various gadgets; please note that where values do not sum to 100%, the balance is made up of people saying not sure or don’t know.

I could not live without this

Hard to live without this

Could live without, but would not be happy

Could live without and would be neutral about it

Happily live without

88.4 87.6 86.9 80.8 76.8 75.4 72.0 66.3 65.1 64.8 59.0 54.7 41.0 39.9 33.3 25.2 24.0

Percentage who don’t want to live without

Gadget obsession



What would you rather lose?

Percentage of people who would prefer to lose various items All figures are percentages and numbers are pairs – i.e. what would you prefer to lose your mobile or your wallet/purse

People would rather lose other items than mobiles

My mobile

34.2% £100 in cash

65.0% My mobile

72.9% My car keys

26.3% My mobile

36.8% My credit card

62.4% My mobile

33.3% My watch

65.9% My mobile

78.5% My passport

20.7% My mobile

25.8% Expensive piece jewellery

73.4

My mobile

19.4% My wallet/purse

79.8% •  The importance we attach to our mobiles is

evident from the fact that a majority of us would rather lose our wallets, £100 in cash, our credit cards, watches or jewellery rather than losing our phones.

•  Passports and car keys are both seen as being important; a majority of people would rather lose their phones than these items.

Gadget obsession



Relative importance of gadgets

Consumers ranking each gadget as being the most important to them All figures are percentages

Smartphones and tablets are most important

29.8

15.8

9.9 8.9 6.7 5.9

4.3 4.3 3.2 3.2 1.9 1.7 0.9 0.8 0.8 0.5 0.5 0.5 0.3 0.1

Chart shows the percentage of consumers who say that each gadget is the most important to them from all gadgets that they own.

Gadget obsession



Gadget worries

What gadget worries do consumers have? All figures are percentages

A quarter of us worry about being mugged for our gadgets

54.4

48.8

40.9 40.8

25.6 22.5

Loss of important data or information

Sensitive or personal information falling into

the wrong hands

Losing the device Breaking or damaging the device

Being mugged while carrying expensive

devices

Becoming too dependent on the gadget/device

Chart shows the percentage of all gadget owners who say they worry about particular issues related to their devices.

Gadget disasters When gadgets get broken, stolen or lost

The hot issues



Summary

Gadget disasters cost £1.2bn Over the past twelve months the total cost of various gadget disasters amounts to just over £1.2bn. Breaking gadgets is by far the largest contributor to this total, costing consumers just over £800m in a year. Comparatively the losses from gadgets being stolen or lost are less; however, in cash terms they remain sizable at £211m and £181m respectively.

17% of people have broken a gadget in the past year Over the past year, 17% of gadget owners have broken at least one of their devices. Smartphones are the most commonly broken device with just over 4% of owners breaking them in some way over the past twelve months. Such a high breakage rate underlines the fact that smarphones are used intensively and are often taken away from home.

Almost two thirds have no insurance Overall, some 64% of consumers have none of their gadgets insured. The most commonly cited reason for a lack of insurance is the expense of the payments. Among those that do have insurance, a smartphone is the most insured item with a third of owners having some sort of policy in place; a quarter of tablet owners have their device insured.

The hot issues



Summary of disasters

Percentage of consumers who have lost, broken or had gadgets stolen All figures are percentages and refer to the past 12 months

Almost 17% of consumers broke a gadget in the past year

Chart shows the percentage of all consumers who have lost or broken a gadget or had one stolen over the past twelve months.

Lost 3.8%

Stolen 4.2%

Broken 16.7%

•  Over the past twelve months relatively few consumers have lost gadgets, with slightly more having had them stolen.

•  However, a relatively high percentage – well over one in ten – have broken at least one of their gadgets in some way.

The hot issues



Loss of gadgets

Percentage of people who have lost certain gadgets All figures are percentages

1.51

0.92

0.44 0.43 0.41 0.32 0.29 0.27 0.22 0.22 0.21 0.21 0.20 0.20 0.18 0.17 0.15 0.14 0.13 0.11 0.10 0.05 0.04 0.04 0.03 0.03 0.02 0.02 0.01

Overall 3.8% of people have lost gadgets in the past year

Chart shows the percentage of all consumers who have lost certain gadgets over the past twelve months.

The hot issues



Stolen gadgets

Percentage of people who have had certain gadgets stolen All figures are percentages

1.93

1.70

0.82 0.61

0.44 0.42 0.41 0.38 0.36 0.33 0.31 0.24 0.23 0.23 0.22 0.21 0.20 0.20 0.20 0.19 0.18 0.18 0.17 0.16 0.11 0.09 0.04 0.02 0.01

4.2% of people have had a gadget stolen over the past year

Chart shows the percentage of all consumers who have had certain gadgets stolen over the past twelve months.

The hot issues



Broken gadgets

Percentage of people who have broken certain gadgets All figures are percentages

4.14

3.21 3.10

2.31

1.31 1.30 1.03 0.92

0.73 0.53 0.46 0.44 0.44 0.32 0.31 0.28 0.22 0.21 0.20 0.20 0.18 0.14 0.13 0.11 0.06 0.04 0.03 0.01 0.01

16.7% of people have broken a gadget over the past year

Chart shows the percentage of all consumers who have broken certain gadgets over the past twelve months.

The hot issues



Cost of disasters

The cost of various gadget disasters All figures are pounds and refer to the past twelve months

Gadget disasters cost consumers £1.2bn a year

Chart shows the percentage of all consumers who have broken certain gadgets over the past twelve months.

Lost £181m

Stolen £211m

Broken £800.7m

Total: £1,192.9m

+ + =

•  Over the past twelve months, the total cost of various gadget disasters amounts to just over £1.2bn.

•  Breaking gadgets is by far the largest contributor to this total, costing consumers just over £800m in a year.

•  Comparatively the losses from gadgets being stolen or lost are less; however, in cash terms they remain sizable at £211m and £181m respectively.

The hot issues



In their own words

Consumers describe their gadget disasters

Comments taken from open questions on the consumer survey.

My friend slammed shut my suitcase and

crushed my new phone. The screen was broken

beyond repair.

I dropped my phone in the toilet. I dried it out and it worked but

after I disinfected it, it suddenly stopped

working.

I cut through my expensive new

headphone leads when I was pruning

the garden.

My son trod on my tablet and shattered

the screen; I now have a very expensive

kaleidoscope.

Sand got into the charging

socket

I left my phone in my pocket and my Mum

washed my jeans, and my phone!

It just got old and stopped working one

day.

I charged my phone with the wrong

charger.

The hot issues



Percentage who have gadgets insured

64% of consumers have no gadget insurance

Percentage of consumers who do and don’t have insurance Figures are percentages of all gadget owners

Chart shows the percentage of all consumers owning gadgets who have or have not insured them.

64%

No insurance

36% No insurance

•  Notably, almost two-thirds of consumers say that they have no insurance for their gadgets.

•  Some 36% of consumers do have cover and, of these, around 64% say that they are covered by their home insurance policy and 20% say that the gadget itself came with an insurance policy.

The hot issues



Percentage who have gadgets insured

Just under a third of consumers have insured their phone

31.3

27.9 26.9 25.0 24.8

22.8 21.7 21.3 20.6

17.0 16.5 16.0 15.9 14.5

12.2 10.9 10.8

4.8

Items consumers have insured All figures are the percentage of people owning each gadget who have insured it

Chart shows the percentage of all consumers owning each gadget who have insured that particular item.

The hot issues



Views on insurance

The expense of insurance payments is a barrier to uptake

Reasons people do and don’t take out gadget insurance All figures in the tables are the percentage of people mentioning that factor

Tables show the reasons why people do and don’t take out gadget insurance; consumers were able to pick as many factors as were relevant to them.

Reasons why people take out insurance for gadgets

The insurance is part of my home insurance policy 63.8

It came with insurance 19.9

I am cautious and tend to insure everything I can 8.7

No particular reason 8.7

I can’t afford to replace my gadgets so I need to be covered by insurance 8.4

The insurance is part of a policy my business has 4.1

I have the latest gadgets so it’s worthwhile insuring them 3.8

The kids use my gadgets so they’re more likely to get damaged 2.2

I am prone to damage things so it seems like a good investment 1.6

I was talked into it by a salesperson 1.6

I am prone to lose things so it seems like a good investment 1.4

Reasons why people don’t take out insurance for gadgets

The insurance payments are too expensive 40.1

I am very careful with my gadgets so unlikely to lose or damage them 28.5

The value of the gadgets is just too low to justify insurance 24.6

The insurance just seems unnecessary 22.3

No particular reason 21.2

I can easily afford to replace my gadgets so don’t need insurance 15.0

My gadgets are quite old so I don’t need insurance 10.2

I did not like the insurance sales process 5.3

Don’t take gadgets out of the home so they’re unlikely to get damaged 4.7

The process of insuring gadgets is too complex 4.1

I am constantly upgrading my gadgets so don’t need insurance 2.7

Methodology About the research

Methodology



Methodologies and sources

•  A combination of consumer research, secondary research and market forecasting were used to compile this report.

•  Consumer research in this report is based on a survey conducted with a UK nationally representative poll of consumers. 2,010 consumers were interviewed during August 2013 and questioned about the gadgets they owned and how they used them.

•  All numbers relating to expenditure and forecast expenditure of gadgets are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources (such as the BRC and ONS), retailers’ results and trading updates, other secondary sources and industry surveys, Conlumino’s ongoing programme of research into consumer spending and habits, and underlying economic drivers and trends. Conlumino analysts both model and interpret this information to provide guidance on the likely future direction of retail expenditure at an overall, sector and category level.

•  Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Conlumino/Affinion.

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Conlumino

020 7936 6654 [email protected]

7 Carmelite Street, London EC4Y 0BS

Affinion International Ltd

01753 753338 [email protected]

50 Charter Court, Slough, Berkshire, SL1 2EJ

affinion international: the world of gadgets

Technology

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introduction gadget

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