Slide 1: State of Consumer Technology and Durables Webinar
State of Consumer Technology and Durables Webinar Unlocking growth in 2024+ GfK Global Strategic Insights September 28th, 2023 © GfK 1
Slide 2: Today's presenters
Today’s presenters Namrata Gotarne Ines Haaga Global Strategic Insights Director Global Strategic Insights Director Q3 2023 © GfK 2
Slide 3: Big Picture: Consumer Tech and Durables
Big Picture: Consumer Tech and Durables Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 3
Slide 4: Global Tech and Durables growth stabilizes in 2023 after the pandemic boom
Global Tech and Durables growth stabilizes in 2023 after the pandemic boom driven by @home trends Pre - Covid Core Covid Restriction Fade-out Normalization 40% Global (ex. North America) Consumer Tech & Durables $390 billion -4% -15% Sales Value USD -17% Growth rate +/- % -23% Jan 19 Feb 20 Mar 21 M
Slide 5: Total market remains slightly up compared to 2019 in revenue
Total market remains slightly up compared to 2019 in revenue, thanks to IT and SDA while CE remains weak compared to others 21% 2023 vs 2022 2023 vs 2019 16% Global (ex. North America) Consumer Tech and Durables 3% 4% 1% $390 billion -1% Jan 23 – Jun 23 -6% -5% -5% Growth +/- % -10% -12% -14% Consum
Slide 6: Asia is declining in USD due to currency volatility while Middle East is growing
Asia is declining in USD due to currency volatility while Middle East is growing compared to the decline seen in other regions Global Eastern Europe (ex. North America) +0.5% Developed Asia Consumer Tech and Durables Western Europe -11.4% -6.2% $390 billion China -6.3% -7.8% Middle East & Africa Jan
Slide 7: Severe impact of war in Ukraine on consumer confidence
Severe impact of war in Ukraine on consumer confidence Consumer Confidence OECD Index Euro Area (CCI) United States China Amplitude adjusted, Long-term Average = 100, Jan 14 – Aug 23 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: OECD; Consumer Confidence: Amplitude adjusted, Long-term av
Slide 8: What will consumers look for in 2024 and beyond?
What will consumers look for in 2024 and beyond? Value for Money Experience Increased relevance of promotions Tailored experience and Individualism Growth Drivers Convenience Sustainability Making lives easier Sustainable products and services Q3 2023 GfK State of Consumer Technology and Durables We
Slide 9: Value for Money
Value for Money Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 9
Slide 10: Price sensitivity amongst consumers increases during the current economic climate
„ Price sensitivity amongst consumers increases during the current economic climate and rising household costs Value for money Price is the most important factor in my purchasing decisions” 45% Global respondents agree (Top2 box) Source: GfK Consumer Life 2023, International Coverage Q3 2023 GfK Sta
Slide 11: How will retailers react? By offering financial support and competitive prices
How will retailers react? | By offering financial support and competitive prices 67% 62% 61% of retailers will have high of retailers plan to of retailers or very high strategic invest in ecosystems to focus on AI & ML to focus on offer payment offer additional services plan better and improve optio
Slide 12: Promotional events: rising relevance and duration
Promotional events: rising relevance and duration Top 7 promotional events that matter 33% Number of weeks increase since pre pandemic for Top 7 promotional events 11 weeks (2019) TCG Sales: Event % of year in 15 weeks 2022-23 MAT (2023) Source: GfK Market Intelligence: Sales Tracking, International
Slide 13: Consumers will look for high quality products that add value to their lives
„ Consumers will look for high quality products that add value to their lives Value for money I prefer to own fewer but higher quality items (clothes, technology products, etc.)” 47% Global respondents agree (Top2 box) Source: GfK Consumer Life 2023 Q3 2023 GfK State of Consumer Technology and Durab
Slide 14: Promotions are no longer only about price cuts
Promotions are no longer only about price cuts | Consumers are timing their purchases to grab a better deal +299% Premium +70-inch >=120hrz Refresh Rate +265% Robot segments TVs +216% +206% growth during >=512GB Storage Black Friday 2022 +120% +117% +97% +92% TV Smartphone Monitor Vacuum cleaner Sou
Slide 15: Promotions also drive premiumization
Promotions also drive premiumization | Premium brands grew the most during Prime Day week 24% 17% 37% EU5 T&D Online W28 23 Sales EUR share % Sales EUR Value 42% 21% Growth % -9% W28 23 vs W28 22 Entry:Brands with Standard:Brands with Premium: Brands with price index of <=75** price index of 75<=150
Slide 16: Experience
Experience Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 16
Slide 17: Consumers continue to look for Individualism
„ Consumers continue to look for Individualism Experience & Individualism I like to buy products that can be tailored to my needs” 48% Global respondents agree Source: GfK Consumer Life 2023, global coverage Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 17
Slide 18: How will retailers react? By integrating new technologies as for example AR & VR
How will retailers react? | By integrating new technologies as for example AR & VR 32% Of Retailers see AR & VR as high AR & VR or very high ▪ To continue journey to a true investment omnichannel experience focus ▪ AI: For product research, personalization, recommendation GfK Retail (R)evolution 202
Slide 19: How will retailers react? By focusing on evolving store formats
How will retailers react? | By focusing on evolving store formats 67% of Retailers have a high or Evolving Store Formats very high investment focus on setting up themselves as ▪ Evolvement of Omnichannel center of a retail offerings to provide a true seamless ecosystem shopping experience ▪ Focus on
Slide 20: How will retailers react? By improving their operational excellence capabilities
How will retailers react? | By improving their operational excellence capabilities 77% of Retailers focus on educating and growing their workforce 73% of Retailers plan to Operational Excellence to meet consumers growing expectations: ▪ Focus on Workforce to enhance optimize their shopping experienc
Slide 21: Which products are in high demand?
Which products are in high demand? Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 21
Slide 22: Premium segments continue to outperform category sales
Premium segments continue to outperform category sales Hot Air Fryer Sales value growth +54% 48% USD | 2023 vs Wet & Dry >=256GB Storage 2022 | Jan-Jun 23 Vacuum Cleaner Steam Function Refresh Rate +75” Screen +18% YTD | Segment vs. +1% 1% >=120 hz +5% Category Growth -3% -6% -6% -2% -15% -13% Vacuu
Slide 23: Consumers focus on products which enhance their favorite activities: creator products
Consumers focus on products which enhance their favorite activities | Huge content creation markets enables growth of ‘creator products’ Sales value share USD | 2023 vs 2019 | Jan-Jun 23 YTD Sales value (USD) % out of category Content Creation CY 2019 1HY 2023 24.7bn 44% 32% 18% 13% 15% Forecasted s
Slide 24: Products supporting a nomadic lifestyle enjoy success
Consumers focus on products which enhance their favorite activities | Products supporting a nomadic lifestyle enjoy success Sales value growth USD | 2023 vs 2022 | Jan-Jun 23 YTD | Segment vs. Category Growth Nomadic 33% +31% Lifestyle Vertical Mice Bluetooth Headband 28% Bluetooth 15% Bluetooth +11
Slide 25: Sustainability
Sustainability Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 25
Slide 26: Why should retailers and manufacturers be sustainable? Consumers expect it
Why should retailers and manufacturers be sustainable? | Consumers expect it and plan to act in a sustainable way 46% of consumers take environmental protection into account when purchasing 73% of global consumers say it is important that companies take #1 environmental attitude environmentally resp
Slide 27: Why should retailers and manufacturers be sustainable? Governments and Institutions push for it
Why should retailers and manufacturers be sustainable? | Governments and Institutions push for it Number of recent sustainability and ESG-related regulations (final, proposed, or potential), guidance and incentives. Norway (1) Canada (3) UK (4) Germany (1) Switzerland (2) EU (9) Japan (1) ◼ Climate
Slide 28: The sustainability gap: awareness and trust remain a key challenge
The sustainability gap | For Manufacturers, awareness and trust remain a key challenge & opportunity 73% Say it is important that companies take environmentally friendly actions … but only … 57% of consumers perceive at least one of top brands* as being eco-friendly …while… 95% perceive at least one
Slide 29: The sustainability gap: Purpose is rising up the agenda
The sustainability gap | Purpose is rising up the agenda – but many retailers are yet to give it a focus % of retailers with high or very high focus on activities matching consumers’ sustainability values 65% 61% 37% 37% Second-life Repair Sustainable Sustainable products hubs practices products & s
Slide 30: Which topics can manufacturers and retailers focus on to drive their Sustainability efforts?
Which topics can manufacturers and retailers focus on to drive their Sustainability efforts? Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 30
Slide 31: Assortment: Eco-Products sell better
Assortment: Eco-Products sell better Washing Machines, Refrigerators, Freezers, Dishwashers Panelmarket Newly launched YTD 2023 31% Jan-Jun Total market YTD 2023 17% 8% A 13% 10% B Energy efficient home appliances will further gain C market share over next years, as newly launched D 16% 15% products
Slide 32: Clear message to consumers: Eco Claims convince consumers to buy
Clear message to consumers | Eco Claims convince consumers to buy Smartphones | Growth rate of “number of Eco Claims” | +/- % Sales Value -1 Total Eco package -29 No Eco Claims Eco -85 1 Eco Claim material Eco 3+ Eco Claims is the most substantially +++ 2 Eco Claims consumption growing segment – dem
Slide 33: Integrate Sustainability into wider context: Sustainability + Smart = USP
Integrate Sustainability into wider context | Sustainability + Smart = USP Energy Monitoring: Consumption Eco feedback on Connect Appliances program choice Dashboards into Ecosystem to (Dishwasher) save energy A great topic for Experience Stores – show benefits, educate consumers, get people into th
Slide 34: Convenience
Convenience Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 34
Slide 35: Main reasons to buy blur between on- and offline
“Main reasons to buy“ blur between on- and offline Prices & Promotions Can Touch the Free Delivery Stock Availability Product Convenience Ease of finding Knowledgeable Fast Delivery products Staff Range of products Online Exclusive Common Reasons Offline Exclusive Source: gfknewron Consumer | What a
Slide 36: How will retailers react? By developing omnichannel strategy
How will retailers react? | By developing omnichannel strategy 79% of Retailers believe Omnichannel Omnichannel retail format to have ▪ Introduce or optimize presence high or very high success across all channels to engage consumers ▪ Provide seamless shopping experiences across all touchpoints Sour
Slide 37: How will retailers react? By offering fast, convenient and flexible delivery options
How will retailers react? | By offering fast, convenient and flexible delivery options 86% of Retailers will have high or very high investment focus on Delivery to offer better Delivery service to consumers ▪ Quick or fast delivery ▪ Free delivery ▪ Option to schedule a delivery by selecting preferr
Slide 38: Consumers will spend more on products that simplify their lives
„ Consumers will spend more on products that simplify their lives and offer clear benefits even if it is long term Convenience I am prepared to pay more for products that make my life easier” 51% Global respondents agree Source: GfK Consumer Life 2023 Q3 2023 GfK State of Consumer Technology and Dur
Slide 39: Assortment: smart products become mainstream and innovative products sell better
Assortment: smart products become mainstream and innovative products sell better Air Treatment +7 ppts Smart Portfolio Increase Dishwashers (unit%) +25 ppts Innovative feature within which crossed the chasm robotic product categories revenue from 2019 to YTD 23 growth in YTD 23 vs. Movement Detector
Slide 40: Summary & Outlook
Summary & Outlook Q3 2023 GfK State of Consumer Technology and Durables Webinar © GfK 40
Slide 41: Value for money
Value for money Consumer segmentation to plan promotions with the right assortment & effective pricing is becoming increasingly important. Choice of retailer and brand will heavily depend on offer of financial services like buy now pay later and installment options. Q3 2023 GfK State of Consumer Tec
Slide 42: Experience & Individualism
Experience & Individualism Consumers look for products exactly fitting their requirements which is supporting growth of segments enhancing their personal activities. Technology as AI or AR/VR can improve personalization of purchase journey and thus support consumers’ quest for individualism. Q3 2023
Slide 43: Sustainable
Sustainable “Environmental Protection” as a value more important than ever for consumers with companies expected to act accordingly as well. Sustainable products outperform non-sustainable peers in 2023 and can contribute to growth in a challenging market environment. Q3 2023 GfK State of Consumer T
Slide 44: Convenience
Convenience Innovation and incremental development of services are important to gain competitive advantage and offer “differentiated value” to consumers. Innovative products that are easy to use, smart and work well within consumers home ecosystems will drive high margin growth. Q3 2023 GfK State of
Slide 45: Thank you
Thank you gfk.com © GfK 45