China Top US In Green Product Awareness

April 2, 2010

Consumers in emerging countries, including China, are more environmentally conscious than those in developed Western nations, a surprise observation that runs contrary to common wisdom.

The finding was the key takeaway in a recent Accenture survey of eight countries, including Germany, France, the United States and India. In all, the willingness to favor green products was greater in less developed economies.

Researchers said the difference appeared to be the result of the greater exposure to pollution and environmental degradation. In developing nations, such as India and China, the immediacy of air and water pollution is leading shoppers to select products with a smaller environmental impact.

“Consumers in difference places have a different perception of the harm to the environment that pollution can cause,” says Kumu Puri, managing director of the consultant’s consumer technology practice. “The numbers are so disparate.”

Overall, 84 percent of consumers in emerging countries said they would be willing to pay a premium for green consumer electronics – televisions, computers and cell phones. Only 34 percent of consumers in mature economies were willing to pay extra for electronic gear that uses less power or is easily recycled.

The highest level of environmental concern was found in China. Ninety-eight percent of consumers were willing to pay a premium. India was second with 84 percent, followed by Malaysia.

Only 43 percent of consumers were willing to shell out extra in the United States and 42 percent in Germany. Almost half of Japanese consumers (49 percent) said they would dig deeper into their wallets.

Puri said the findings uncovered a fundamental difference in green attitudes. What’s more, the difference in China may be a sign of a trend gaining steam. They survey was conducted online, meaning that only the most affluent consumers were able to take part. The rest of the nation may be getting ready to follow suit.

Accenture surveyed 16,000 consumers last fall for the research.


Sony Vows To Cut The Energy Use Of Every Product By 30%

January 7, 2010

Sony raised the stakes for environmentally friendly electronics.

Sony's new Dash Internet viewer, like all its products, need to be an energy miser

The Japanese television, camera and computer maker said at the Consumer Electronics Show it would reduce the power use of every one of its products by 30 percent. The goal is to be achieved by mid 2016.

Sony chose for its announcement CES, one of the world’s largest gatherings of electronics makers. By doing so, it obviously hoped to win the game of one upsmanship among electronics manufacturers. Then it add an even more ambitious target: It said its longer term aim is to have a zero carbon footprint (likely a plan that includes the purchase of increasingly dubious carbon offsets).

Despite its good intentions, Sony’s initiative is not solely driven by environmental responsibility.

In a survey released this week, Accenture found that 67 percent of consumers would be willing to pay a premium for a more environmentally friendly product. This was especially pronounced in emerging markets.

For instance, 98 percent of Chinese consumers were willing to shell out additional cash while only 43 percent of Americans. In other words, the trend is gong to become more important as fast growing emerging economies expand.

“We know consumers respond to responsible companies,” said one Sony executive.

For this reason, most other consumer electronics companies have their own efforts under way to cut power use. Many of those goals may now see a boost.

By the way, Sony said it power use targets would be compared to 2008 energy use levels.


Consumers Willing To Pay More For Green Products

August 25, 2009

Americans are becoming more sensitive to the environment.

In the past two years, so-called green awareness is up 7 percentage points. Seventy-two percent of consumers now say they pay attention to issues such as global warming.

Samsungs LED televisions are razor thin and are 40 percent more energy efficient than an LCD

Samsung's LED televisions are razor thin and are 40 percent more energy efficient than an LCD

This environmentalism is starting to show up at the cash register. According to research conducted late last year by consumer-electronics giant Samsung, consumers are willing to pay extra for products that meet their environmental standards.

“It’s becoming more and more significant,” said David Steel, senior vice president of Samsung’s strategic marketing.

The company’s research found that traditional buying criteria remain the top purchase considerations. Product reliability, for example, is number one, with 20 percent of consumers rating it the most important consideration. It is followed by price and product ratings or reviews.

Environmental considerations are showing up as swing factors when other criteria match up, said Steel. Energy efficient is the most important among them with 8 percent of consumers saying it is something they pay attention to.
Perhaps more importantly, the research found that when environmental factors influence purchase decisions, consumers are willing to pay up to 20 percent more for products, Steel adds.

Samsung hopes to take advantage of the new found environmental interest by emphasizing the power efficiency of its new LED TVs. LED models cut energy use by 40 percent compared with LCD televisions, he says.

They also don’t require the use of mercury during manufacturing. And over time, more improvements will follow. Samsung has two energy savings technologies under development that it refers to as active dimming and adaptive luminance. Both dim sections of a television screen when brightness or illumination are not needed.

“This is a journey,” says Steel. “We’re trying to improve the way we do business to be more green and sustainable.”


Analyst Sees Stability In Computer And Consumer Electronics Markets

April 13, 2009

Signs are dribbling in of an improving market place for computers and consumer electronics, even if demand for cellular handsets remains an unknown.

Broadpoint AmTech Analyst Doug Freedman more upbeat about back-to-school and holiday seasons

Broadpoint AmTech Analyst Doug Freedman more upbeat about back-to-school and holiday seasons

Doug Feedman of Broadpoint AmTech said on Monday he remains “positive” about computer and consumer electronics sales as he looks toward back-to-school and year-end holiday seasons this year.

Communications may not be seeing the same momentum, but cell phone manufacturing in March and the second quarter could be better than expected, he said.

Freedman is not the first analyst to point to greater market stability. Pundits have been saying for weeks that manufacturers began replacing depleted inventories in March, lifting orders for component suppliers.

But his commentary is an early suggestion that the second half of the year might be better than feared. He made his projection as he previewed Linear Technology’s earnings expected on Tuesday, and it comes on the same day Seagate said its quarterly business was better than anticipated.

Maybe there is hope for the year after all.


Cisco Promises Big Push Into The Consumer Market This Year

January 7, 2009

Network equipment provider Cisco Systems promised a substantial thrust into the consumer market with a stream of new products over the next year and a half.

During a press conference at the Consumer Electronics Show in Las Vegas, CEO John Chambers suggested the technology powerhouse could release products every couple months this year.

This time its about executiion, says John Chambers

This time it's about executiion, says John Chambers

“This time, it is going to be about execution and a steady stream of products,” Chambers said, referring to the next 12 to 18 months.

He also indicated Cisco would be open to acquisitions in the consumer space during the next three to five years.

Cisco’s interest in the consumer market traces back to its 2003 acquisition of home-networking company Linksys. Two years later, it purchased Kiss Technology of Denmark, a maker of DVD players.

At this year’s show, Cisco unveiled 1) a line of Media Hubs designed to store and distribute video, music and other content around the home, 2) a home audio system capable of playing music in multiple rooms, and 3) its Eos software platform developed to help media companies deliver content to groups of users.

The products hope to capitalize on several trends Chambers sees underway on the Web:

*Consumers want to access any content on any device;
*Content will find users based on their interests instead of requiring people to search for it;
*Communities will begin to build in greater numbers around specific interests; and
*The majority of online communications will be visual.


Consumer Electronics Returns Are A $13.8 Billion Problem In The U.S. Likely To Get Worse

December 16, 2008

They are the six little words that can spoil an electronic vendor’s holiday.

After months of design meetings, weeks of in-store discounting and last-ditch advertising blitzes, million of crystal-clear flat-panel TVs, GPS locators and feature-stuffed smart phones have found their ways under American Christmas trees

Returns can be 5% to 6% of a vendors sales

Returns can be 5% to 6% of a vendor's sales

Now comes the verdict merchants fear most: “I want to take them back.”

Each year, $13.8 billion of electronics goods is returned to manufacturers, retailers and communications companies in the U.S. With the global downturn wearing on consumer spending, the total may be down slightly this year.

But on a percentage-of-sales basis, it could rise, with devastating consequences for companies already living on razor-thin margins.

“I believe the industry realizes this is a significant problem,” says Brian Sprague, senior executive at Accenture, who calculates the annual returns number.

Sprague says returns can account for 2 to 3 percent of a retailer’s sales and 5 to 6 percent of a manufacturer’s sales.

Among the products most likely brought back are mobile phones (especially smart phones), GPS gear and wireless networking equipment. High-definition televisions and computers also make the roundtrip to stores are a fairly brisk rate.

About one-quarter of consumers return because a product doesn’t work or because they perceived it doesn’t work. Only 5 percent of products actually have defects, says Sprague.

Nearly half of returns come because items don’t meet buyer expectation while the remaining consumers developed some sort of remorse for purchasing what they did – a feeling more buyers could have this year with money increasingly tight.

Sprague offers a list of best practices for companies experiencing returns. Many firms are doing some of them and top companies are doing many of them, he says. But “some companies are saying our margins are so thin we can’t put (new procedures) in there,” he says.

On his list are: 1) use graphical information and illustrations on a Web site to educate buyers about the use of a product; 2) put more product experts on consumer call-in lines; 3) put educated staff in stores to help with installations, data transfers and the like; 4) add to the packaging a request to call with problems or questions; and 5) provide displays at the point of purchase on how a product is used.


More Bad Economic News: Black Friday Consumer Technology Sales Fell For The First Time

December 9, 2008

Consumer technology purchases in stores across the U.S. fell for the first time during the week of Thanksgiving, which includes the top shopping day Black Friday, NPD Group.

No blowout sales hurt business

No blowout sales hurt business

Sales were off 8 percent compared with last year as discounting appeared to be less widespread – with the exception of Black Friday’s TV deals.

Nevertheless, there were some bright spots. Sales of LCD televisions larger than 30 inches were up 18 percent in units and notebooks unit growth climbed almost 19 percent. Sales of GPS equipment, plasma TVs and digital picture frames were up, but aggressive price declines saw revenue dip.

“There were no blowout sales to attract consumers,” said Stephen Baker, an NPD vice president. “Deals mimicked a typical weekend sale.”


Low-Cost Atom Has Mighty Sales With (Surprise) A Healthy Margin, Intel Says

October 14, 2008
Intels Atom
Intel’s Atom

Intel’s bid to build a consumer-electronics business is gaining ground, the company said Tuesday as it unveiled solid third-quarter financial results.

The Atom chip racked up sales of $200 million as shipments were unable to keep up with demand for this first consumer-products chip. Atom is a low-cost processor designed for portable Internet devices, but currently being used largely in tiny laptops.

Intel said that while Atom brought down the average selling price of its processors, the product has healthy margins that top those of some of its low-cost Celeron notebook chips.

The fourth quarter should see higher sales as Intel increase production to meet demand. The whole point is to sell the product at new low price points, the company said.


Wi-Fi Coming To Consumer Electronics Devices (Finally); Almost 1 Billion Devices Predicted By 2012

October 6, 2008
Wi-Fi Goes CE
Wi-Fi Goes CE

For years Wi-Fi has been seen as a holy grail of the consumer electronics business: televisions without wires, cell phones capable of making Internet phone calls for free.

The magic cauldron may finally be arriving. The shipment of consumer-electronics products with the wireless technology is anticipated to reach almost 1 billion units by 2012, according to In-Stat.

This will include digital TVs and cellular handsets, which should surpass laptops as the largest category of Wi-Fi devices by 2011. The growth rate of Wi-Fi devices should be 26 percent annually, In-Stat says.


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