After the good performance of 2021 (+12%), this year is recording a deceleration for the consumer tech and durables segment. According to GfK, in the first two months of the year, revenue already declined by 3 percent compared to the same period last year. These are GfK’s findings ahead of the international TCG Summit in Vienna.
«Against the backdrop of a weakening market, it is now even more important for retailers and manufacturers to identify growth potential and secure their margins – says Ines Haaga, GfK expert for technical consumer goods -. Companies must adapt to consumer product preferences to continue to be successful in 2022.»
Among the most important drivers, we still see premiumization and simplification products. According to Gfk experts consumers often choose innovative solutions and devices that promise improved features or additional functions. These include robot vacuum cleaners with docking and charging stations, which started 2022 with a 182 percent increase in revenue compared to the same period last year. Ultra-thin notebooks less than 18 millimeters thick (plus 7 percent) and TVs with a screen diagonal larger than 65 inches (plus 13 percent) also saw above-average growth despite their higher price point, outperforming the cheaper entry-level models.
Simplification and multifuntionality are other two leading trade. The simplification trend is evident across smart home products, among others. Home automation products saw an overall growth of 15 percent in seven EU countries from January to February 2022. These include, for example, smart thermostats for automatic temperature control, motion sensors and smoke or fire detectors that improve home safety.
Another product category benefiting from the simplification trend is household appliances that are multifunctional. Electric cooking pots including a rice cooking function, washer-dryers or mini ovens with a steam or air-frying function recorded above-average growth rates in the first two months of 2022 and improved their market position enormously compared to the same period of the previous year.