Research from Parks Associates reveals challenges manufacturers face as they seek to drive higher rates of purchase in the connected consumer electronics (CE) markets. 360 View: CE Adoption & Trends notes that while consumer intentions in 2017 mirror the levels of the previous two years, the long-term trend shows lower percentages of households buying CE than in the past, with purchasing rates dropping from 87 per cent in 2008 to 74 per cent in 2016. Low buying patterns for game consoles (12 per cent), connected Blu-ray (5 per cent), and DVRs (3 per cent) contribute to the decline.
“Today, consumers are satisfied with many of their existing products, provided they are working well,” said Tricia Parks, President, CEO, and Founder, Parks Associates. “Many product categories are following predictable patterns. Consumers value their connected CE products, but there is no big purchase buzz except for personal assistants with voice, particularly the Amazon Echo. Its ‘wow factor’ is translating into true consumer excitement, interest, and adoption.”
Parks Associates finds smart speakers with personal assistants, such as the Amazon Echo/Dot/Tap and Google Home, earn the highest NPS (Net Promoter Score) of all surveyed CE devices. The excitement generated by the Amazon Echo has set off a round of competitive entries and new options.
According to Parks Associates, more broadly diffused broadband capability and saturation for flat screens and smartphones contribute to declining purchase rates for many CE categories. A lack of familiarity for innovations such as VR headsets and 4K TVs also contributes. 360 View: CE Adoption & Trends shows that broadband households now own an average of 8.1 connected CE products in their homes, a 76 per cent growth in the average volume of devices since 2010. Many households are satisfied with what they have; manufacturers need to excite their markets with innovations.