The World's Largest Home Appliance & IT Show "Disruptive Change" Seen at CES 2015
Keiko Tsuyama
Naoki Mori
Dentsu Inc.
Held annually in January in Las Vegas, the International CES is not only the world's largest consumer electronics show but also the earliest and hottest venue for understanding that year's technology and IT business trends. We spoke with freelance journalist Keiko Tsuyama, who has a column in The Wall Street Journal and has been covering CES since 2004, about trends among U.S. companies seen over 15 years of CES.
──How has CES changed over the past decade?
Around 2004, hardware was the main focus, with companies competing to make larger TVs and lighter notebook PCs. That has changed dramatically in recent years. While big players and large corporations showcase their flagship products, small businesses are starting to show real vitality. The number of startup exhibitors has surged by double digits in recent years, reaching 375 this year. Many interesting products have emerged, particularly in healthcare-related areas like wearables that integrate with apps.
──I think keywords like future technology trends, represented by IoT (Internet of Things), were prominent.
This year, IoT feels distinctly visible. We've entered a world where everything connects to and can be controlled from a single hub, like a smartphone. For example, when your morning alarm goes off, the blinds open, music plays on the radio, and coffee brews in the kitchen. It's not just individual appliances like refrigerators; the entire house is connected to the network. That world is becoming clear.
──That's the connected home, right? Is this already starting to happen in the US?
Americans are accustomed to using remote controls—like opening their garage without getting out of the car—and they have high smartphone literacy. If they can control everything in their home via smartphone, adoption will be rapid and it will become a huge market.
──What areas are U.S. media particularly interested in?
The smartphone market continues to grow, so interest remains high and it's headline-worthy. Competitors to Apple are drawing attention.
──The keyword "Disrupt" (disruptive innovation) stood out in many keynote speeches and panel discussions by U.S. executives.
Compared to Japan, U.S. executives seem to have a heightened sense of crisis. For example, Cisco Systems CEO John Chambers stated that if companies don't move quickly on this technology trend, only about 40% of Fortune 500 companies will survive over the next decade. For instance, in the U.S., services like Uber (a ride-hailing service using a smartphone app) and Airbnb (a sharing platform where travelers can stay in spare rooms offered by private homes) emerged one after another—services that didn't even exist a few years ago. Even in the massive manufacturing sector of the automotive industry, Tesla suddenly raised funds in Silicon Valley and started making electric vehicles. If young people have money, they'll buy a Tesla. Such startling services, backed by innovation and technology, keep appearing one after another. Therefore, even the leaders of companies called giants are sensitive to environmental changes driven by disruption and are trying to embrace them. This high level of awareness was evident in many statements by U.S. executives at CES. (Interviewer: Naoki Mori)
Disrupt Facing U.S. Corporate Executives
CES is a place where you get showered with presentations from the heads of massive U.S. corporations.
CES, hosted by the Consumer Technology Association (CTA), is literally the world's largest consumer electronics show. Simultaneously, it's an invaluable venue where one can get up close to presentations by executives from America's leading giant corporations. Sony, Samsung, Toyota, Intel, Qualcomm, Cisco Systems, Comcast, Ford... Here, keynote speeches and panel discussions by the heads of world-leading companies offer insights into how the rapid development of IT, technology, and digital—including IoT—is impacting their industries and where it's heading.
Following IoT, the next most striking keyword was "Disrupt." Disrupt describes the phenomenon where entirely different industries or ambitious startups suddenly appear in the market, disrupting and transforming existing markets to establish new market rules. Thanks to the utilization of technology, especially digital, and the well-established ecosystem for startups to emerge and grow, this environment continuously gives birth to Disrupters – players who disrupt the market.
2015 CES TOPICS
This year saw a record 3,600 exhibitors. Over the four-day event, 170,000 people visited from around the world. The venue, exceeding 2 million square meters, was filled with excitement exploring the potential of next-generation technology.
Companies unveiled products and services aimed at practical IoT implementation, suggesting significant changes to people's lives within a few years. Samsung CEO Yoon Boo-keun announced in his keynote speech, "By 2020, all our products will be IoT-enabled."
This year, automobiles emerged as a major star at CES. The exhibition space for automotive displays reached a record high, with Mercedes-Benz, Ford, Audi, BMW, and others showcasing cutting-edge smart car technologies like autonomous driving. Collaboration with electronics and telecommunications companies was also prominent.
Wearable devices appeared in a wide variety of forms, primarily in the healthcare sector, including bands, watches, and glasses. Users will be able to monitor everything from their heart rate to the location of their keys. For companies, this opens up possibilities for timely marketing activities that penetrate the minutiae of consumers' private lives.
The television category, a perennial CES staple, remains strong. This year, companies collectively launched ultra-high-definition devices like 4K models. Competition for dominance in smart TV operating system platforms is expected to intensify going forward.
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Author
Keiko Tsuyama
He has conducted extensive reporting on U.S. society and economy, interviewing figures such as Facebook founder Mark Zuckerberg. His publications include Mobile Shift: New Business Strategies for "Smartphones × Social Media" (co-authored).
Naoki Mori
Dentsu Inc.
After working in optical equipment marketing, market research firms, and internet ventures, joined Dentsu Inc. in 2009. Engaged in developing solutions utilizing digital & technology, producing the AR (augmented reality) app "SCAN IT!", the event-digital fusion platform "Social_Box", and "SOCIAL_MARATHON". Further handled business and innovation support through digital & technology. Recently, he has been working on projects supporting UI/UX design based on management and business strategy, as well as business innovation through internet business models. Serves as an executive committee member (Mobile Committee Chair) for the Japan Advertisers Association's Web Advertising Research Group. Author of "Mobile Shift" (ASCII Media Works, co-authored) and other works. Recipient of awards including ADFEST (INTERACTIVE Silver, among others), Spikes Asia (PR Grand Prix), and the Good Design Award. Frequent speaker at events including ad:tech Tokyo.
