2024 looks like a better year than 2023 for the global consumer technology and durables (T&D) market, according to NIQ-GfK experts, as inflation eases, consumer confidence rises and major sporting events such as the Paris Olympics and the European Football Championship in Germany trigger demand.
At the mid-year point, most segments are showing steady growth, and the market overall is slowly recovering, albeit still in negative territory.
From January to June 2024, the global T&D market recorded a slight decrease in revenue of 0.6% to US$395 billion compared to the same period last year, and this trend is forecast to continue, with stable revenue of -0.1% for the full year 2024.
Omnichannel remains king
Inflation and high prices continue to be a top concern of consumers worldwide, according to the GfK Consumer Life study, and the NIQ Consumer Outlook report 2024 shows well over half (57%) of global consumers are prepared to switch stores to manage costs.
“Omnichannel retailing remains popular, with 36% of total global T&D sales made online in the first half of 2024 – an increase of 0.4% from last year. But consumer behaviour is changing, driven by price concerns and a desire for best value for money. The global T&D market must keep pace to achieve long-term, sustainable growth,” GfK insights expert for the T&D industry, Nevin Francis said.
Importance of promotions
“Price-conscious consumers are increasingly looking for value for money. As a result, the 15 promotional weeks in a year, such as the mid-year promotion and Black Friday already account for 34% of annual T&D revenue,” Francis said.
“Retailers and manufacturers must balance the demand for premiumisation with a good price-performance ratio, while focusing on their unique selling proposition. To find that sweet spot, they need to know their target group better than ever before.”
Signs of recovery for appliances
GfK panel data shows the small domestic appliances (SDA) and major domestic appliances (MDA) categories are regaining momentum and starting to recover with revenue down slightly 1% and 2% respectively.
The home appliances sectoris being driven by three key consumer desires: sustainability, simplification and AI-powered intelligence.
As personalised features and AI assistants make household tasks more efficient and easier, demand for related devices such as smart ovens and cookers (up 30% year-over-year in revenue from January 2024 to June 2024) has noticeably increased.
Convenience-oriented appliances such as robot vacuum cleaners and fully automatic espresso machines, up 9% and 7% respectively and more environmentally friendly products such as A-labelled washing machines, up 39% in Europe, have gained ground.