Slide 1: State of Consumer Technology and Durables Webinar
State of Consumer Technology and Durables Webinar Gearing up for Q4 and beyond Namrata Gotarne, Diane Gahl September 28, 2022
Slide 2: Today's presenters
Namrata Gotarne Global Strategic Insights Director Tech and Durables Today’s presenters Diane Gahl Global Director Marketing & Consumer Intelligence 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 2
Slide 3: New edition just released: The State of Consumer Technology and Durables Report
New edition just released: The State of Consumer Technology and Durables Report www.gfk.com/the-state-of-consumer-technology-and-durables-report 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 3
Slide 4: Agenda
Agenda 1 Tech and Durables sales performance 2 Consumer behavior in the new normal 3 Key strategies for the months ahead 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 4
Slide 5: H1 2022 decelerates across all sectors compared to higher baseline of 2021
H1 2022 decelerates across all sectors compared to higher baseline of 2021 Sales value USD (NSP) | Growth rate YoY | B2C Retailer Market | YTD: Jan – Jun 2022 10% Office 2% Consumer electronics -8.5% -6.7% 15% 21% Information technologies -5.2% 413Bil. USD Major domestic appliances incl. aircon Phot
Slide 6: Value trend remains higher than pre pandemic whereas volume decelerates strongly
Value trend remains higher than pre pandemic whereas volume decelerates strongly Sales value T&D | Growth % Sales volume T&D | Growth % Q1 2022 Q2 2022 Q1 2022 Q2 2022 14% 4% 2022 vs. 2021 2022 vs. 2019 -4% -1% -7% -5% -6% -7% Source: GfK Market Intelligence: Sales Tracking, International Coverage (
Slide 7: Deceleration continues especially in Europe and China
Deceleration continues especially in Europe and China, while market still operates on high sales levels Sales value USD (NSP) | YTD June 2022 vs 2021 Western Europe Eastern Europe Kazakhstan/Russia $97bn -11% -4% $14bn $15bn +1% Global (excl. NA) Developed Asia $45bn -11% Turnover Growth rate $413bn
Slide 8: Worst price hikes are over and commodity costs start to moderate
Worst price hikes are over and commodity costs start to moderate on high levels Price increase July 22 vs July 21 Shipping delays Lead time +63 days Palladium Crude oil Lithium European factories China → US vs. 80 days -19% +34% +434% do not produce the Jul ’22 in Dec’ 21 total product line of brand
Slide 9: Decelerating demand stabilizes average prices even with high inflation
Decelerating demand stabilizes average prices even with high inflation Global price development | TCG average price/unit growth +/-% vs Jan 20 Stable average price despite Price increases inflationary pressure Rising inflation 29 26 +8.3% Baseline 13 expectation IMF Jan 20 8 2022 globally 5 2020 202
Slide 10: How are consumers behaving in the "new normal"?
How are consumers 2 behaving in the “new normal”? Consumer attitudes and purchase drivers 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 10
Slide 11: Consumer confidence is in decline across the globe
Consumer confidence is in decline across the globe USA Euro area China OECD 99.9 102.1 July 21 102.9 100.3 vs. 95.9 95.4 July 22 91.6 96.5 Source: OECD; Consumer Confidence: Amplitude adjusted, Long-term average = 100, Jan 2008 – June 2022; China: only May 2022 data available 9/28/2022 GfK State of
Slide 12: 43% of consumers think it is a good time to wait with purchases
43% of consumers think it is a good time to wait with purchases + 3.4 ppts vs. 2020 Source: GfK Consumer Life 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 12
Slide 13: Consumer behavior transformed tech and durables markets during the pandemic
Consumer behavior transformed tech and durables markets during the pandemic Technical Consumer Goods | Sales value USD (NSP) 24% 34% 50% 76% 66% Of consumers will increase online shopping Jan 19 – Jun 19 Jan 22 – Jun 22 Online retail Traditional retail Source : GfK Consumer Life 2022, GfK Market Int
Slide 14: Key strategies for the months ahead and 2023
Key strategies for the 3 months ahead and 2023 Innovation is crucial to endure and grow in these uncertain times 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 14
Slide 15: Growth of premium after financial crisis of 2008 & during the pandemic
Growth of premium after financial crisis of 2008 & during the pandemic Continued polarization between entry and premium brands Key Technical Consumer Goods product groups EU3 | 2007-2010 Global | 2019-2022 Sales share in USD 14% 9% 16% 10% 24% 18% 25% 21% Premium: Brands with price index of >1501 77
Slide 16: 2008/2020 crisis: Innovation and investment in the right segments continue to catalyze growth
2008/2020 crisis: Innovation and investment in the right segments continue to catalyze growth for winning brands Indexed value share of new products Winning brands Losing brands Recession COVID-19 First year 298 140 Baseline : 123 Baseline : 118 2008 104 100 100 97 2020 99 100 100 79 2005 2008 2009
Slide 17: Innovation: Key to grow and succeed
Innovation: Key to grow and succeed 01 02 Premiumization Sustainability 03 04 Omnichannel Price and promotions 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 17
Slide 18: Focus on the innovative products that add value to consumer's lives
Focus on the innovative products that add value to consumer’s lives Premium segments continue growing where overall categories decelerate Premium segment Robot vacuums example vs. w. dirt extraction category total docking station Global (ex. NA) | +78% Sales value growth USD YoY | Jan– June 2022 +75
Slide 19: Focus on relevant tech and durables buyer groups
Focus on relevant tech and durables buyer groups High spec premium and brand enthusiasts share in purchases remains constant High spec Brand premium Brand Digitally Low value enthusiasts Pragmatics agnostic digitals receptive traditionals Store seekers I want a feature-rich device from a I’m not int
Slide 20: Consider category dynamics
Consider category dynamics Target group sizes High spec premium Brand enthusiasts of per product category 22% 21% 20% 17% 16% 15% 13% 13% 13%13% High spec Brand premium enthusiasts Smartphones Tablets TVs Waching Vacum cleaner machines Source: gfknewron Consumer Intelligence 9/28/2022 GfK State of C
Slide 21: Focus on offering the right product mix
Focus on offering the right product mix Products that deliver value and ease consumers financial pressures Energy savings vs. 2019 Increased convenience vs. 2019 39% 43% Of consumers buy smart devices to save Of consumers buy smart devices that offer 41% energy costs ease of use, save time & efforts
Slide 22: Sustainability continues to be an important value for consumers
Sustainability continues to be an important value for consumers 73% 27% It is important that Purchased refurbished companies take products rather than new environmentally to both save money and responsible actions reduce environmental impact Source: GfK Consumer Life 2022 9/28/2022 GfK State of Cons
Slide 23: Despite inflation: Consumers in Germany buy sustainably
Despite inflation: Consumers in Germany buy sustainably GfK Sustainability Index: Only minor fluctuations despite inflation Consumer sentiment Germany | General vs sustainability Western Europe and Eastern Europe | index | April 22 vs. July 22 Old vs. new energy label avg prices in EUR General senti
Slide 24: "Instead of 'going public', you could say we're 'going purpose'."
“Instead of ‘going public’, you could say we’re ‘going purpose’. Earth is now our only shareholder.” Patagonia founder Yves Chouinard 9/28/2022 GfK State of Consumer Tech and Durables Webinar © GfK 25
Slide 25: Purpose as an essential driver for premium and volume
Purpose as an essential driver for premium and volume Fashion- Trust able What drives Brand Choice Endorse- ment Distinc- tiveness Relevance Value Pricing is notably different to what drives Brand Premium Innovation Values & Purpose Brand Brand Premium Choice Values & Purpose is Excellence Desirabil
Slide 26: Leverage next-gen digital innovation, in store and online
Leverage next-gen digital innovation, in store and online Enhance the right touch points to engage your multichannel audience Global online research channels Europe | Sales EUR 15% 61% Difference 21% 34% 11% Retailer Websites 18% 48% of consumers went +14 ppts online while actively researching on wh
Slide 27: Leverage next-gen digital innovation, in store and online
Leverage next-gen digital innovation, in store and online Enhance the right touch points to engage your multichannel audience China | Evolution of ‘online’ 43 37 15 18% 2015 2019 YTD 2022 of consumers globally 15% are inspired by social media advertisements to purchase a tech and durable product Exa
Slide 28: Innovate and invest to tap into the emerging markets potential
Innovate and invest to tap into the emerging markets potential Lower penetration rates and rebounding consumer confidence offers new growth opportunities Change in percentage of consumers who are confident they will be better off in 12 months | 2021 – 2022 Belgium Netherlands Russia -10 points -6 po
Slide 29: Innovate and invest to tap into the emerging markets potential
Innovate and invest to tap into the emerging markets potential Lower penetration rates and rebounding consumer confidence offers new growth opportunities Sales value H1 2022 and growth % Emerging Asia $50bn +15% Middle East & Africa +3% $26bn Source: GfK Consumer Life Global 2021 and 2022; GfK Marke
Slide 30: Rethink pricing and promotion to reflect new market dynamics
Rethink pricing and promotion to reflect new market dynamics Inventory clearance and decelerating demand led to increased price cuts TV unit share with price cut of more than 10% 35% 35% 27% 30% 25% +14 ppts vs. 2021 24% 24% Panel TVs Unit share with 18% 18% 16% price cut more than 10% 13% 12% 10% 9
Slide 31: Rethink pricing and promotion to reflect new market dynamics
Rethink pricing and promotion to reflect new market dynamics Key promotional events even more critical to drive demand in upcoming months APAC online channel (week of 18th June sales performance) APAC online channel H1 2022 10% Sales units Sales value Brands with 2022 vs. 2021 price index 117% Premi
Slide 32: Key takeaways
Key takeaways 01 02 03 04 05 Tap into premium Balance sustainability Fine-tune pricing and Drill down into data Invest in innovation opportunities and performance channel strategy With the landscape The evidence shows There are pockets of Consumers want The right promotion, changing so rapidly, that
Slide 33: Want a deeper view on what was presented in the webinar?
Want a deeper view on what was presented in the webinar? Our latest State of Consumer Technology and Durables Report draws on extensive research and expert insights to help you fine-tune your strategies and tactics for the months ahead. Make the most of Q4. Plan with precision in 2023. Download the
Slide 34: Thank you. Questions?
Thank you. Namrata Gotarne Questions? Global Strategic Insights Director Tech and Durables Diane Gahl Global Director Marketing & Consumer Intelligence