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Telephones and Answering Machines - UKProduct Type: Market Research ReportPublished by: Mintel International Group Ltd. Published: March 2005 Product Code: R560-1547 Description Mintel last reported on the UK market for domestic telephones and telephone answering machines (TAMs) in 2003, and the market has continued to evolve in the two years that have followed. Key to the changing size and shape of the market has been the mass appeal of mobile telephones, the introduction and wide take-up of broadband Internet connections in the home and consumers' desire to have the latest electronic equipment.
To establish consumer attitudes towards and habits in using domestic telephones and telephone answering machines, Mintel instructed the British Market Research Bureau to conduct a survey of 976 adults aged 15+ in December 2004. Respondents were asked a series of questions that elicited information highlighting potential avenues for manufacturers and distributors of these products to pursue. This report considers the hypothesis that: "The telephone and answering machine market has reached a crossroads. It must either seize the initiative, placing itself at the forefront of technological developments and so re-capture the public's interest, or accept a subservient role, simply adding features and functions that have proved popular with mobile phones. This latter positioning may result in the answering machine becoming seen as arcane, and phased out of most homes in favour of voicemail. The former position will rely on innovations being seen as affordable and useful. Table of Contents Introduction and Abbreviations Report coverage and definitions Consumer research ACORN Advertising data Abbreviations Executive Summary 94% of households have a landline Mobiles on the move Wealth of the nation Domestic landline market hits £265 million in 2004 Far from just hanging on BT remains dominant... ...but other key players have designs on top spot An adspend recovery? Telewest Broadband Eurobell tops the list Electrical multiples remain the main route to market Smooth talkers Cost issue weighs in Older people prefer landlines Technology could save the day Market Drivers Telephone lines and answering services hit a wall Done talking? Figure 1: Proportion of households with none, one, two, three or more telephone lines, 2001-04 All in one and one for all Figure 2: Ownership of telephone equipment, by main type, 1998-2004 Cordless phones most popular among wealthier families The ubiquitous mobile Figure 3: Mobile phone subscribers, in millions, 1994-2004 Voicemail standoff Worldwide and home-based - the Internet Figure 4: Internet usage at home and work, place of study or elsewhere, 2003-04 A little more conversation Broadband broad base Wi-Fi and Internet phones on the way for homeowners The email effect Digital switchover Employment impact The popularity of working from home Figure 5: Trends in working from home, by gender, age and socio-economic group, 1999-2004 A popular option for the self-employed Figure 6: The UK workforce and self-employed as a percentage of the workforce, 1999-2004 A high-spending, high-tech culture Figure 7: PDI and consumer expenditure, at constant prices, 1999-2008 Smaller households are becoming the norm Figure 8: Trends in household size, 1999-2009 Market Size and Trends A wealthier market...but room for caution Figure 9: UK retail sales of telephones and answering machines, by volume and value, 1999-2004 Topped out? Figure 10: UK retail volume sales of telephones and answering machines, by sector, 2000-04 On a slippery slope? What price an answer? Figure 11: UK retail value sales of telephones and answering machines, by sector, 2000-04 Corded phones cling to a third of the market Figure 12: UK volume sales of telephones and answering machines, by sector, 2004 Time to give up the ghost? Figure 13: UK value sales of telephones and answering machines, by sector, 2004 The average price of a landline phone and answering machine rises Figure 14: Average cost of a telephone and telephone answering machine, 1999-2004 Market Segmentation A healthy market? Figure 15: UK retail sales of cordless telephones, by volume and value, 1999-2004 Integrated answering machines Figure 16: UK retail volume sales of cordless telephones, by type, 2000-04 Value of corded phone sector has halved since 1999 Figure 17: UK retail volume and value sales of residential corded telephones, by type, 1999-2004 Cheap at half the price Figure 18: Average price of corded phones, 1999-2004 TAMs and answering machines endure a steep decline Figure 19: UK retail sales of TAMs and answering machines, by volume and value, 1999-2004 A nail in the coffin for standalone units Figure 20: UK retail value and volume sales of TAMs and answering machines, by type, 2000-04 What can be done? The Supply Structure BT remains the biggest provider of cordless phones Figure 21: Selected estimated brand shares of cordless phones, 2000-04 Four companies account for 75% of the corded phone sector Figure 22: Manufacturer brand shares of corded phones, 2000-04 BT and Betacom stand out in a shrinking market Figure 23: Manufacturer brand shares of TAMs and answering machines, 2000-04 Key players BT Binatone Betacom Philips Panasonic Significant others Amstrad Doro Geemarc Advertising and Promotion Above-the-line adspend in decline Figure 24: Main monitored media advertising expenditure on residential telephone answering machine equipment, 1999-2004 Phone sexy Telewest Communications tops the list Figure 25: Main monitored media advertising expenditure on residential telecommunications equipment, by selected companies, 1999-2004 Telewest adspend far outstrips the rest Figure 26: Main monitored media advertising on residential telecommunications equipment, by market share of selected companies over the period 1999-2004 Distribution Independents and specialist phone shops fade away Figure 27: UK retail value sales of cordless telephones, by outlet type, 2000-04 Storing up trouble? Catalogues get a bigger slice of a smaller pie Figure 28: UK retail value sales of corded telephones, by outlet type, 2000-04 No winners in a shrivelling sector Figure 29: UK retail value sales of TAMs and answering machines, by outlet type, 2000-04 In the public eye Figure 30: Phone and answering machines sold through selected retailers, by manufacturer/agent, January 2005 Who will sell the high-tech solutions? The Consumer Cordless is king Figure 31: Type of telephone owned, 1998-2004 Cordless phones for the settled down The bigger the better Consumers in London and the South East are big cordless supporters Pay-as-you-go is the way to go Figure 32: Types of communication used, December 2004 Almost a quarter of 35-44-year-olds have an answering service/machine Third agers provide long-time support Storing up messages Attitudes towards communication Figure 33: Attitudes towards communication, December 2004 Thumbs up for texting It's good to talk, but better to text? Figure 34: Attitudes towards communication, by types of communication used, December 2004 Stressing the text The write way A cordless incentive for those who think mobiles are intrusive Home telephone advocates... Figure 35: Home telephone usage, December 2004 ...and who they are Pay-as-you-go could win over the masses It's a buyers' market The Consumer - Detailed Demographics Telephone and answering machine ownership Figure 36: Type of phone, by age, presence of children and marital status, 2004 Figure 37: Type of phone, by household size, lifestage and Mintel's Special Groups, 2004 Figure 38: Type of phone, by gender, socio-economic group, working status and region, 2004 Answering machines and voicemail Figure 39: Types of answering service/device used, profiles for VoIP email/answering machines, by gender, age, socio-economic group, region, working status, presence of children, household size, lifestage, supermarket usage, media usage, tenure, commercial TV viewing, ACORN categories and Mintel's Special Groups, December 2004 Attitudes towards the home telephone Figure 40: Home telephone usage, by gender, age and socio-economic group, December 2004 Figure 41: Home telephone usage, by media usage, tenure and supermarket usage, December 2004 The Future Time is running out for answering machines... ...but technology may buoy the cordless and corded phone industry Answer-fun... ...and practical too The next step or a great leap forward The next generation of telephony Not just cordless...but wireless Help on the high street Safe as houses? Forecast Figure 42: Forecast of the UK retail sales of telephones and answering machines, by value, 2004-09 Cordless phones continue to lead the way Corded phones continue to suffer TAMs and answering machines will fade out eventually Figure 43: Forecast of the UK retail sales of telephones and answering machines, by volume, 2004-09 Threats to the market Factors used in the forecast |
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