Consumers want more premium products

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According to a GfK Consumer Life study, premium features are the most important driver at the present moment. People prefer buy less but choosing high-quality products, especially in those sectors that are already saturated. Different are the reasons behind this trend, but the most evident is the desire of upgrading the most of the devices, thanks to a growing purchasing power.
«Consumers – GfK experts explain – are upgrading their devices and flagship models are well in demand.»
Many examples demonstrate the consumer’s focus on premium products. For TVs, premium features such as 50+inch sizes and OLED turn a negative volume market into a value growth market. Further prominent examples are audio devices equipped with Dolby Atmos or DTS-X sound technology as well as high performance headphones and headsets above 150 euro selling price.
But examples are many also in the home appliances sectors, because consumers express a growing desire to invest in the place to live, as reflected by the increase of value segments in household appliances. «Multifunctional appliances – GfK continues – with premium price (for example washdryer, hobs with integrated hoods or combi-steam ovens) are strong in demand and spark value growth. Also lifestyle plays a role, especially for small domestic appliances, when consumers are willing to spend more than 300 euros for a rechargeable handstick vacuum cleaner or a robot.»
Information Technology does not make exception, recording an increasing sales of gaming PCs resulting in elevated prices and growing premium segments. But also non-gaming PCs/notebooks pick up in selling price and drive the market value again.
«Overall – the GfK experts conclude – it becomes evident that this overarching premium trend originates in consumers choosing for value segments offering more performance, convenience, quality or similar. While this drives prices up as a mix effect, like-for-like products usually are still experiencing price pressure. Consequently, permanent innovations justify the premium price which consumers are willing to pay in 2018.»

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