Connected objects: The internet of things

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Connected objects:

The internet of things

Katia HERSARD

Chief E-commerce & Marketing Officer Fnac Fnac Group / 12.06.2014

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An in-depth survey conducted through our Fnac

“innovation panel”

Respondents specifics:

+ Geek profile

+ Early adopters of innovations + Urban

All generations/ages

Fnac Group / 12.06.14 / Connected objects: the Internet of things 1

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The concept of connected objects seems to be well known by our respondents.

Even if it is still considered as quite a recent one.

2

Means of learning

about connected objects

Newspaper article

Social Media / Internet

58% 49%

Television

40%

Shops Word of mouth

31% 25%

Radio

24%

94

^%are familiar with the concept of connected objects

60

^%declare knowing the concept quite well

51

^%^{heard of}connected objects more than a year ago

Fnac Group / 12.06.14 / Connected objects: the Internet of things

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An object allowing an easier & simplified life

AN EASIER LIFE

"La centralisation des données permettant d'obtenir des statistiques "

" Ils simplifient la vie "

" Le fait de faciliter la vie de tous les jours … "

SIMPLICITY OF USAGE

" Pratiques à utiliser, à distance, à plusieurs simultanément "

" Permet la compilation de données et le suivi de celles-ci "

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…. a coach for a healthier well-being

4

"Bilan activité et historisation "

"La possibilité d’avoir un historique "

"Le suivi des courbes de poids automatiquement "

KEEPING TRACK OF YOUR PERFORMANCES

THE COACHING ASPECT

" Les données fournies le côté coaching les objectifs à atteindre "

" En matière de santé, le coté "coaching" voire culpabilisant si l'activité physique exercée sur une période donnée est

insuffisante. Cela me pousse à bouger plus qu'avant "

" En ce qui me concerne, j'ai un fit bit, ce qui me permet de connaitre le nombre de pas que j'ai fait dans la journée, de connaître le nombre de calories dépensées

et de pouvoir adapter mon alimentation en fonction J'aime pouvoir aller plus loin certains jours, me dépasser… "

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An object that helps with your everyday life

& home living

CONTROL CENTRALIZATION

" La centralisation des données permettant d'obtenir des statistiques"

" Aspect pratique et simple, la centralisation des informations dans le smartphone, la simplification et le gain de temps de certaines tâches "

CONNECTED HOME

" La mobilité : pouvoir avoir un accès partout «

« mieux gérer sa maison, énergie en étant connecté à son téléphone »

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6

“Connected objects” are mainly considered to be an expensive modern technological breakthrough.

47%

50%

49%

52%

60%

54%

40%

28%

20%

16%

46%

42%

41%

34%

21%

13%

19%

5%

MODERN EXPENSIVE TECHNOLOGICAL BREAKTHROUGH TREND THE FUTURE PRACTICAL USEFUL NON ESSENTIAL COMPLICATED TO USE HARMFUL TO YOUR HEALTH DANGEROUS

Somewhat agree Strongly agree

Total Agree 93%

92%

91%

90%

86%

81%

69%

59%

33%

25%

21%

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7

An expensive perception however a possibility of finding affordable products in each family of products

“Connected Objects”

are not affordable products and are very expensive

“Connected Objects”

are very expensive for what they are

77

^%

71

^%

There are certain families of products for which prices are affordable

We can find affordable products in each

family of “Connected Objects”

It is expensive but truly justified

52

^%

39

^%

25

^%

16

^%

Are willing to

pay dearly

in order to have a

“Connected Object”

EXPENSIVE for

92 ^%

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8

84

^% declare having heard of

Smart watches

70

^% ^forConnected bracelets

67

^% ^forSmart printers

65

^% ^forSmart surveillance cameras

64

^% ^forConnected glasses

In terms of aided awareness the two most emblematic products are Smart Watches and Connected Bracelets.

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9

A coherent price perception compared to the reality of pricing

Smart weight scales

138 €

Price: 99-179 €

Connected bracelet

147 €

Price: 69-199 €

Smart watch

177 €

Price: 50-233 €

Smart

alarm systems

251 €

Price: 90-299 €

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10

Domotics and health objects are considered to be the most useful products in comparison with

other categories

85%

80%

69%

65%

64%

57%

53%

51%

50%

44%

41%

37%

32%

29%

24%

17%

9%

5%

4%

SMART ALARM SYSTEMS SMART SURVEILLANCE CAMERAS SMART SMOKE DETECTORS SMART PRINTERS SMART THERMOMETERS SMART BLOOD PRESSURE MONITORS SMART BABY MONITORS SMART PILL CONTAINERS SMART WATCHES SMART LOCKS SMART FRIDGE CONNECTED BRACELET SMART WEIGHT SCALES SMART LAMPS CONNECTED PLANT SENSORS SMART GLASSES CONNECTED TOYS SMART SHOES CONNECTED FORKS CONNECTED CIGARETTE Useful

DOMOTICS

HEALTH

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11

Our customers declare to be already well equipped and bring up in-depth feedbacks on this market.

41%

possess a

“Connected Object”

60% 33% 3%

associated mobile O.S

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12

Usefulness and practicality of the product drive the purchase. Not perceived as gadgets

Gadget-like aspect

27%

.

Very Practical

61%

Curiosity

39%

Early adopter

23%

Innovating aspect

45%

Usefulness

40%

Concept of connecting

things

40%

Gadget-like aspect

27%

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13

In comparison with other technological products, customer reviews seem highly important when preparing the purchase

searched for Information on

Specialized Websites

55 ^%

48 ^%

viewed

Customer Reviews

43 ^%

^readNewspaper articles

40 ^%

^comparedRetailers /

E-commerce websites

22 ^%

^visited

Retailers/Websites to get a clearer idea

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14

A truly recent market in terms of purchase

purchased their products

in the last

3 months

50 ^%

58 ^%

43

^%

33

^%

24

^%

23

^%

20

^%

6

^%

2

^%

4

^%

2

^%

2

^%

3

^%

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15

The price is not the most important criteria in terms of product choice.

USER FRIENDLINESS

ASSOCIATED MOBILE O.S.

DESIGN PRICE

LATEST EDITION SIZE

BRAND

9.8

9.5

8.9 8.7 8.5 8.4

7.8

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16

96% are satisfied with their connected objects

51%

44%

42%

30%

36%

34%

20%

11%

8%

11%

42%

48%

56%

49%

45%

40%

47%

25%

17%

User friendliness Design Handling of the product Associated mobile App Synchronisation Autonomy Break resistance Third party applications The communatarian aspect After Sales Services

Somewhat Satisfied Very Satisfied

Total Satisfied 93%

92%

90%

86%

85%

79%

60%

58%

33%

28%

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17

An important weight for Internet purchases (declarative)

60 ^% 40 ^%

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18

Retailer selection criteria

COMPETITIVE PRICES LATEST TRENDS

TECHNICALLY COMPETENT STAFF AFTER SALES SERVICES

INTERESTING PROMOTIONS RETAILER/SITE REPUTATION WIDE RANGE OF PRODUCTS

70 ^% 63 ^%

62 ^% 55 ^%

55 ^% 54 ^% 54 ^%

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19

Even if the price is not the 1^st issue, it is still important in

selecting a retailer that proposes the best price on the market

70%

63%

62%

55%

54%

50%

49%

46%

41%

37%

35%

26%

COMPETITIVE PRICES LATEST TRENDS TECHNICALLY COMPETENT STAFF AFTER SALES SERVICES INTERESTING PROMOTIONS RETAILER/SITE REPUTATION WIDE RANGE OF PRODUCTS HIGH-END PRODUCTS STAFF IS ATTENTIVE TO YOUR NEEDS STAFF RAPIDLY AVAILABLE A REFERENCE FOR CONNECTED OBJECTS ABILITY TO TEST THE PRODUCT ABILITY TO BUY COMPLEMENTARY PRODUCTS A PROFESSIONNAL DEMONSTRATING THE USE OF THE PRODUCT

Very

important

Total Important 96%

93%

84%

92%

88%

87%

89%

84%

82%

80%

78%

67%

78%

58%

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20

Smart watches seem to highly progress and are considered to be most wanted product in terms of future purchases

38 ^%

have the intention of purchasing a

Smart smoke detector

52 ^%

Connected bracelet

56 ^%

Smart watch

47 ^%

Smart printer

37 ^%

Smart surveillance

camera

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For the moment, well established brands hold the first positions in terms of aided awareness.

21 20%

94

^%

85

^%

78 ^%

46 ^%

30%

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Considered brands for next purchase

22

38

^%

31^%

21 ^%

15%

15^%

11%

havent’ made up their minds yet

32 ^%

considered by considered by

considered by

considered by

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23

An high growing market: 26% of our clients planned to purchase a connected object in the months to come

26 ^%

have the intention of purchasing a

"Connected Object"

in the months to come

7 ^%

have the intention of offering a

"Connected Object"

as a gift in the months to come

? ? ? ? ? 29 ^%

haven’t yet decided

if they are going to

purchase a "Connected Object"

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In collaboration with

Connected objects: The internet of things

Connected objects:

The internet of things

Respondents specifics:

+ Geek profile

+ Early adopters of innovations + Urban

All generations/ages

94

60

51

77

71

52

39

25

16

92 %

84

70

67

65

64

138 €

147 €

177 €

251 €

41%

“Connected Object”

60% 33% 3%

61%

55 %

48 %

43 %

40 %

22 %

50 %

58 %

43

33

24

23

20

6

2

4

2

2

3

9.8

9.5

8.9

8.7 8.5 8.4

7.8

60 % 40 %

70 % 63 %

62 % 55 %

55 % 54 % 54 %

38 %

52 %

56 %

47 %

37 %

94

85

38

32 %

26 %

7 %

? ? ? ? ? 29 %

92 ^%

55 ^%

48 ^%

43 ^%

40 ^%

22 ^%

50 ^%

58 ^%

60 ^% 40 ^%

70 ^% 63 ^%

62 ^% 55 ^%

55 ^% 54 ^% 54 ^%

38 ^%

52 ^%

56 ^%

47 ^%

37 ^%

32 ^%

26 ^%

7 ^%

? ? ? ? ? 29 ^%