Consumer Technology & Durables Outlook 2024 - PDF 4

OUTLOOK 2024
Consumer Tech
& Durables
Business landscape
2024 continues to see consumers

battling with economic challenges,
but there are opportunities for
pockets of growth. By maintaining
a laser-focus on the right target
audiences, and creating offers that
address those people’s specific
needs, aspirations and pain points,
brands can attract an increased
share of consumer spending, even in
a tough global market.
2 Consumer Tech & Durables – Outlook 2024

Business landscape
01
Business landscape
This year could receive countries around the shopper confidence is
a boost from a number globe (including India, improving, although still
of big events taking Brazil and United States) at historically low levels.
place. On the social side, are set to hold elections This improvement shows
the Summer Olympics this year. The run- regional variation, with
and Euro 2024 soccer up to these may well consumers in China and
tournament both have the see optimistic market USA showing only small
power to boost spending, conditions as incumbent gains, compared to the
as fans’ euphoria meets governments seek to win average across all OECD
with the marketing voters with economic countries.
and sales promotions stimuli.
surrounding these types
With economic indicators
of major sporting events.
such as inflation and
On the political side, eight
job markets continuing
of the 10 most populous
to stabilize in 2024,

Business landscape
According to the World Economic expectations of low inflation. South Asia,

Forum’s survey of chief economists, East Asia & Pacific and Central Asia are
Europe is the region that most the regions most expected to show good
economists fear will see weak economic economic growth.
growth and high inflation this year,
followed by North America. China shows
an interesting dynamic, with universal
Consumer confidence indexes have improved but remain historically low.
USA Europe area China OECD
96.9 96.2 93.0 96.2

Nov 22
Oct 22 (China)
vs
97.1 98.1 Nov 23

Oct 23 (China) 93.3 98.0
Historical Average = 100
Source: OECD; Consumer Confidence: Amplitude adjusted, https://data.oecd.org/leadind/consumer-confidence-index-cci.htm

Business landscape
Chief Economists
Chief Economist Survey | Expectation for growth/inflation in 2024 | January 2024
expect weakest
growth in Europe 77% / 13%
Europe 16% / 17%
Central Asia
43% / 13% 31% / 0%
USA China
39% / 25%
MENA
7% / 19%
Expect weak economic growth South Asia 15% / 4%
Percentage pt chg from Sept report East Asia & Pacific
30% / 26%
35% / 36%
Latin America Sub-Saharan Africa
Worsening USA 25
Expectation
MENA 18
Europe 0
Improving -1 South Asia

Expectation -2 East Asia & Pacific
-12 Sub-Saharan Africa Expect weak economic growth
-15 China Expect high inflation
-16 Central Asia
-20 LATAM
Source: World Economic Forum Chief Economist Survey, Chief Economists Outlook: World Economic Forum (weforum.org)

Consumer Tech & Durables – 2023 dynamics
02
Consumer Tech & Durables
– 2023 dynamics
2.1 Full year performance 2023
Consumer Tech & Durables saw sales with Türkiye, where high inflation and
revenue of $813 billion last year, which is weakened local currency are driving
-2.9% down on 2022. consumers to convert their cash into
goods.
Middle East & Africa saw strong growth,
but with different trends within this Latin America and Eastern Europe stayed
region. The Kingdom of Saudi Arabia relatively stable, but Developed Asia,
(KSA) and United Arab Emirates (UAE) Emerging Asia and China were hit by
are delivering strong performance due to significant falls in 2023 sales revenue.
positive consumer mood. This contrasts

Decline across regions after saturation - only Middle East/Africa outperforms
Consumer Tech & Durable

$65bn - 0.4%
Sales Value USD (NSP)
Eastern Europe $259bn - 5.0%
Jan - Dec 2023 vs 2022 China
$199 bn - 1.4%
Western Europe
$95bn - 7.1%
Global (excl. NA) Developed Asia
Turnover $ 813 bn $55bn + 0.8%

Latin America $57bn + 7.8%
$82bn - 5.5%
Growth rate -2.9% Middle East & Africa
Emerging Asia wo CN
Source: GfK Market Intelligence: Sales Tracking, International Coverage (excl. North America), Sales revenue growth 2023 vs 2022�CE includes Multifunctional Technical Devices
and SDA includes Personal Diagnostics
There’s a similar variation in performance across sectors.
▪ Globally, only Photo delivered strong revenue growth last year, driven by
consumers’ renewed focus on travel and out-of-home activities.
▪ Small Domestic Appliances (SDA) just tipped the scale at +1.2% growth – a faster
return to positive figures compared to some sectors, due to comparatively higher
product innovation and lower price point.
▪ Telecom was very nearly stable, helped by relatively short replacement cycles on
products such as smartphones, as well as more 5G models being sold.
▪ In MDA, sales were focused on energy efficient models, driven by rising electricity
bills and Europe’s mandatory labelling for energy efficiency.
▪ Products within Office, Information Tech (IT) and Consumer Electronics (TV/audio)
suffered the greatest drop in sales revenue compared to 2022. However, compared
to the pre-pandemic benchmark, IT sector revenue is higher now, whereas
consumer electronic sector revenue is not – indicating a shift in sector structure
within the Tech & Durables market.

Signs of stabilization for Consumer Tech & Durables overall, but wide
variation across sectors
Sales Value USD (NSP) in % / growth rate YoY in % B2C Retailer Market Year To Date: Jan – Dec 2023
Consumer Electronics
(TV/Audio)
Office
9% -9.1%
-10.3 2% 20%
Major Domestic
Information Technologies 14%
Appliances incl. Aircon
-9.2
813Bil. USD (-2.9%) -1.7%
1% Total sales value USD and
Growth YTD 2023
Photo 9%
+11.4% Telecom
44% -0.6%
Small Domestic Appliances
+1.2%
Source: GfK Market Intelligence: Sales Tracking, International Coverage (excl. North America), Sales revenue growth 2023 vs 2022CE includes Multifunctional Technical
Devices and SDA includes Personal Diagnostics
2.2. Stabilization in Q4 2023

After successive improvements quarter (+5.9% Q4 2023 vs Q4 2022), MDA
by quarter, the final three months (+4.9%) and SDA (+4.7%), which more
of last year saw Consumer Tech & than counterbalanced the tougher
Durables finally flip into positive growth situation felt by IT, office, and consumer
(+2.3% compared to Q4 2022). This electronics.
was driven by demand within telecom

Promising dynamic for Consumer Tech & Durables market in Q4 2023
TCG total | Period: January 2023 – Dec 2023 | Value growth USD +/-%
Global inflation
rate (OECD)
-9.7 Q1 2023 +8.6

Sales Value growth USD +/-%
-2.7 Q2 2023 +6.5

Global (excl. NA)
$813bn -1.4 Q3 2023 +6.2
2.3 Q4 2023 +5.4

-2.9% (Nov2023)
Jan - Dec 2023
Source: GfK Market Intelligence: Sales Tracking, International Coverage (excl. North America)

Consumer Tech & Durables – Outlook 2024
03
Consumer Tech & Durables
– outlook 2024
Based on current market dynamics, short replacement cycles, such as
we assess Consumer Tech & Durables smartphones, will now be coming ready
revenue will grow around 1% for the full for replacing - boosting opportunities
year 2024. This is a good improvement on for brands. Additionally, small-ticket
the -2.9% seen last year, but still a highly products that exert less pressure
challenging landscape in which brands on consumers’ budgets, such as IT
will be competing hard for a share of accessories, are also likely to be popular.
growth.
GfK anticipates that demand will be

highest in the telecom and small domestic
appliance sectors. Products bought
during lockdowns that have relatively

Consumer Tech & Durables – Outlook 2024
In general, we expect shoppers to lean For manufacturers and retailers, it is

toward well-thought-out purchases, due critical to understand the multiple factors
to a continued focus on the heightened that their target audiences see as being
cost of living. Aspirational purchases most important to them as an individual,
are still on the cards, given that 39% of based on their specific needs, ideals,
people say it is important to indulge or lifestyle, and situation. Equally critical
pamper themselves on a regular basis. is accurately to assess the price point at
However, these will be the result of which the offer tips from being worth the
consumers carefully weighing the value money in the eyes of each target group,
that they expect to receive against the to being out of reach.
level of spend.
This year sees consumer sentiment slowly improving, although still

weighted towards caution:
“I am better off financially 28% Jan 2024,

now than a year ago” from 26% in Jan 2023
“I am worse off financially 34% Jan 2024,

now than a year ago” from 39% in Jan 2023
Source: NIQ Consumer Outlook January 2024

Where the opportunities lie
04
Where the
opportunities lie
2024 is all about producing the best duration to cover 15 weeks of the year –
value for consumers at the right price, up from 11 weeks in 2019 (*Christmas,
as manufacturers and retailers compete New Year, Black Friday, Cyber Monday,
harder than ever to win the battle for 618 and Double-11, Apple event, Prime
mental and physical availability. Days).
With money-conscious consumers However, competing on price eats into

continuing to shop around and weigh up margins and risks getting sucked into
every purchase, it can be tempting for price races.
brands to discount prices to drive volume
of sales. We saw this last year, with the
top seven annual promotional events*
including brand events increasing in

An alternative is focusing on innovation to help performance in pace with consumers’ changing

stand out from your competitors. By adapting lifestyles that is more important. Indeed, history
products or services to fit the needs of specific shows that brands that continually invest in
customer segments, companies can diversify innovation perform better over the course of
their revenue streams and fuel growth. market downturns. As we head into a stabilizing
landscape, we see incremental innovation that
Innovation does not have to be about radical or
pinpoints specific audiences’ needs as a key
big changes. It is often the incremental progress
factor in uncovering new pockets of demand.
that steadily adds features, convenience, and
"With ongoing high levels of economic

caution, consumers have a very clear
idea of what they want from the brands
they interact with. If they are not
replacing or upgrading existing products,
then consumers are on the lookout for
products that help them lead happier and
healthier lives. Brands need to maintain
a laser-focus on precisely how their
products can align with those aims."
Sheila Kurniadi, gfkconsult

Your roadmap to maximizing 2024 pockets of growth
4.1 Maximize the value; the highly relevant benefits

delivered to the target buyer
With consumer spend on tech goods still fragile, but there are target groups
gradually improving, there is opportunity that are buying higher-end items when
now for brands to refocus on higher- these present greater relevance and
end products that offer consumers an value, in return for the extra money
improved user experience, and attain spent.
greater margin. Consumer confidence is
53% For me the most important thing is that it

offers good value for money
Source: GfK Consumer Life 2023
Last year, premium brands took 3 in every A key element in this is the role played by
10 dollars that consumers spent on tech brand strength. Strong brands typically
and durables. They also maintained their enjoy higher levels of consumer trust
year-on-year sales revenue, performing and loyalty. This can play in their favor
far better in this respect than entry- when consumers are weighing the benefit
level brands and marginally better than versus risk of buying a higher-priced item.
standard brands.
42% I only buy products or services from a

trusted brand
Source: GfK Consumer Life 2023

However, the importance that consumers much worse than entry level or standard
place on brand changes depending on brands last year. Consumers are less
the product in question. To successfully emotionally attached to products such
persuade consumers towards products as washing machine or dishwasher,
that offer greater value, but at a higher compared to a smartphone. When buying
price, it is critical to tailor the marketing an appliance, their focus is more on
communication correctly between brand functions such as energy efficiency and
image and product value offering. performance – and this makes it more
likely that they will consider lower- or
In telecoms, consumer electronics
non-premium brands that offer similar
(including photo), and SDA, premium
feature sets. Other effects play a role
brands hold a significant share of sales
as well. For example, lower income
and were more resilient in maintaining
groups are starting to come back to the
their sales revenue last year than entry
markets having postponed non-essential
level brands. In these sectors, consumers
purchases during recent difficult years.
continue to prefer brands with flagship
These groups are likely to choose entry
products that generate trust in quality
level or standard brands that offer
and performance – and are willing to pay
sufficient feature sets at a lower price.
more for that.
By contrast, MDA stands out as the

sector that saw premium brands perform
Diverse dynamics visible in price bands across sectors

Global, YTD December 2023 / Key Technical Consumer Goods product groups
Total Telecom CE + Photo IT + OE MDA SDA

Sales USD 16% 12% 15% 16% 21%
29% 24% 28% 30% 27%
Share in % 33% 34%
47% 38% 43% 72% 46%

69%
Premium:
Brands with price
6%
indexof >150** 1% 1% 0% 2% 1% 0%
-1% 0% Standard: -2%
-3%
Brands with price -7% -7%
-9% index of 75<=150** -10% -10% -9%
-12%
Entry:
Sales USD
Value Growth % Brands with price
YoY index of <=75**
Source: GfK Market Intelligence: Sales Tracking Retailer Market, International Coverage (excl. North America), USD (NSP) Value & growth.

4.2 Focus your ‘value’ messaging on 4 enduring factors

that consumers rate highly
2023 saw an ongoing trend of the ▪ Convenience, time saving, making
best performing products being those life simpler
that deliver targeted and relevant
▪ Hygiene, health and wellness
improvements around four enduring
consumer demands: ▪ Performance
▪ Sustainability
Select premium features sales increased/ declined slower than the

category average
+38%
Hot Air Fryer +29% +26%
35% >-256GB
Storage NVMe
+18%
+75* Screen Bluetooth
French Door
Espresso Steam Refrigerator +12%
+13%
Full Auto Function
Wet & Dry
Vaccum
+4% Integrated +5% Refresh rate
3%
Global (ex. NA)

Cleaner Hood -1%
>-120 hz 0%
+1% 3%
-5%
0% -6%
-2%
-3%
+4%
Gaming
Jan-Dec 2023
Category
Total -4%
-11% -10%
Sales Value USD Growth YoY %
premium segment example vs category total
-13%
Vaccum Hot Bev Fryer Built -In Washing Refrigerator TV Smart Mobile PC Monitor Internal Computer
Cleaner Maker Hob Machine Phone SSD Keyboard
Source: GfK Market Intelligence Tracking Retailer Market Sales Value USD growth rate YoY Global excl North America and India, Greece
NVME =Non-volatile memory express
Convenience. Simplifying people’s lives

People continue to want products that close to four times the price of standard
offer greater convenience or help them versions (smart robot vacuums averaged
optimize their time, with 41% stating $397 selling price in Jan-Nov 2023,
they are willing to pay more for products compared to $149 for non-smart ones).
that make their lives easier. The use case for smart robot vacuums
has become so strong that 95% of the
The prime example of this is smart robot
value assortment is now smart.
vacuum cleaners. These have cracked
the mass market even though they cost

Smart TVs too offer similar convenience,

with innovations (such as entering
multiple streaming platforms and smart
application) that are designed to maintain
25%
TVs as the hub of home entertainment
and connectivity, thereby encouraging
premium purchase. Likewise, thermostat
controls, intruder security and security
of total vacuum cameras have crossed the chasm of
cleaners sold today are skepticism in EU14 countries where
robot vacuum cleaners 2/3rd of volume sold are smart products
which can be controlled using an app
on the smartphone. Smart domestic
appliances, such as smart dishwashers
and washing machines, are also moving
closer to mass market take-up.
22%
of total lawn mowers
are robot lawn mowers
11%
of total vacuum
handsticks sold have
dry-and-wet function
Source: GfK Market Intelligence, sales tracking, global

Share of sales of smart products

Addressing the barriers is essential to cross the chasm into mass market
EU14 countries | Sales Units % Visual Cams
| Jan-Nov 2023 Door Intruder Security
Communication 57% Thermostat Control
41% 69%
Dishwashers PTV
32% Mass Mar 78%
ket
28% 79% Robot
31% Movement Vacuum Cleaners
Washing Machine Detector
26% 89%
Personal Scales
25%
13% Mini Bluetooth Speaker
Air Treatment
Decorative
Luminaires
Watertimer
SM
8%
5% 8%
Early Adopter 3%
CH
A
Market Dental Care

LED Lamps
Source: GfK Market Intelligence: Sales Tracking, Period : Jan-Nov 2023 Smart Connect is based on App and Voice control and only includes diagnostics for MDA
categories. Countries :EU14
Cordless products are another prime example of the popularity of convenience. Cordless models continue to
outperform their category average across products including vacuum cleaners, power tools and lawn mowers, as well
as keyboards, mice, headphones, and hair stylers.
Bluetooth keyboards +23%

Revenue growth,
Jan - Dec 2023 Bluetooth mice +14%
(US$):
Wireless headband headphones

(Driven by fashion trend more than convenience trend) +29%
Source: GfK Market Intelligence, sales tracking, global

Performance & connectivity:

Consumer demand is also continuing In the home appliances sectors, 25% of
around higher-end products that deliver sales revenue across MDA and SDA now
enhanced performance in areas such as comes from smart appliances – and sales
capacity, speed, connectivity. revenue from these grew +3% last year
compared to the total market -1%.
Home appliances market has seen multiple major pushes of smart

appliances – resulting in every 4th dollar spent on connected appliances.
Global (ex. North America) | Home Appliances (MDA/SDA) | Share % and growth rate
+/-% of smart appliances
“Connectivity” “Smart” COVID push “Smart

& AI”
25%
Sales Value USD
24% 24%
20%
19%
17% Smart grows (+3%)
14% despite weak
total market (-1%)
8%
4%
1%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Share of smart appliances %

Further opportunities be run remotely, reducing monitors, for example,

for home appliances lie the need for expensive increased their year-on-
in evolving their smart in-person home visits by year revenue by +4.3%
functionality to deliver repair staff. last year, while monitors
ever more of that user- overall dropped -8.0%
This example also
specific customization – - and this is despite
illustrates how two
especially around features gaming monitors being,
trends can interplay –
such as automatically on average, around 65 US
with better performance
changing their own dollars more expensive.
also delivering greater
settings to save energy, Similarly, gaming mobile
convenience for the
and therefore money, PCs were more resilient
consumer.
based on the individual in the face of market
user’s lifestyle patterns. Other areas seeing higher decline than mobile PCs
This would mean, for growth of performance in general, dropping just
example, refrigerators products within the -3.4% compared to total
that recognize when you category are those aimed category -13.1% - despite
are out of the house and at specialist groups, costing 1,105 US dollars
automatically reduce such as gamers or those on average, compared to
the compressor activity; producing video and the category average of
or appliances that allow digital content. Gaming 799 US dollars.
maintenance analytics to
Health, hygiene & well-being

The importance of health & fitness for preventative to being treatment focused.
consumers has increased significantly. Similarly, some consumers focus on
Globally, people now rank health & physical well-being and nutrition,
fitness as their 4th most important whereas certain others would be
personal value out of a total of 57 listed focusing on mental well-being.
values – up 8 places since 2019.
Consumers continue to place importance
This trend was originally heightened on a more holistic approach to well-
during the pandemic but continues being, and this is now an integral part of
to be highly relevant today. People's their mindsets and aspirations around
approaches vary from being more how they wish to live.

“I actively look for products/services for a healthy lifestyle”

Regions’ ranking of this statement, from a given list of 47 attitudes to life:
#26
Central Eastern Europe
(PL, RU)
#20
#18 Western Europe
(BE, DE, ES, FR, IT, UK)
North America
(NA, CA) #30
Developed Asia
(AU, JP, KR)
#14
Latin America
#12 #9
(AR, BR, MX)
META
Developing Asia
(SA, AE, ZA)
(CN, IN, ID)
Source: GfK Consumer Life 2023, based on % agreeing (top 2 boxes)
Products that enable consumers to live most strongly in the wearables market,
a healthier lifestyle are outperforming where products in the last few years
their category, with examples including have transitioned from fitness trackers to
hot air fryers (+38% revenue growth smart & health trackers.
vs. fryers overall at +35%) and washing
These innovative products offer a new
machines with steam function (+5%
level of convenience and accuracy,
growth, vs. category overall -2%).
allowing consumers to track aspects like
Greater consumer focus on health and sleep, blood pressure etc. right from their
wellbeing is also driving consumers pockets or wrists.
toward smart- or AI-driven products that
enable closer monitoring of health and
enhance performance. This can be seen

The health metrics which can be tracked in wearables is increasing
Total Core Wearables Sales Value USD (Share of sales / Growth 2023 vs 2022)
Heart Rate Sensor Sleeping Tracking Blood Oxygen Sensor
92% 91% 75%

+6% +8% +7%
ECG (Electrical Blood Pressure EDA (Electro

Cardiogram) Sensor Derma Activity)
48% 17% 28%
+15% +11% +71%
Source: Market Intelligence Sales Tracking. Period: Jan-Dec 2023 vs PY Sales Value USD growth
Sustainability
Sustainability is a core, long-term such as recycled and recyclable materials
opportunity that has evolved to unite two and packaging, but also the wider
deep-rooted consumer aspirations: to concepts of energy and water efficiency,
protect our planet, and to save money. ‘circular economy’ business models,
refurbished products, food miles and
For consumers, sustainability claims now
more.
encompasses not just basic credentials

“I feel guilty doing something that is not environmentally friendly”

Regions’ ranking of this statement, from a given list of 47 attitudes to life:
#25
Central Eastern Europe
(PL, RU)
#19
#28 Western Europe
(BE, DE, ES, FR, IT, UK)
North America
(NA, CA) #24
Developed Asia
(AU, JP, KR)
#13
Latin America
#24 #20
(AR, BR, MX)
META
Developing Asia
(SA, AE, ZA)
(CN, IN, ID)
Source: GfK Consumer Life 2023, based on % agreeing (top 2 boxes)
When it comes to reducing consumption in last 12 months, with growing demand

and waste, energy efficiency is perhaps in areas such as telecom. There is also
one of the best opportunities for increasing opportunity in MDA.
technology brands. For MDA categories,
In the UK, for example, 25% of
for example, energy austerity is clearly
smartphone buyers chose a refurbished
pushing consumers towards buying best-
or second-hand model last year - up
in-class labeled appliances to save energy
from 19% in 2021. Most of these cited
in the long run.
finance as the primary motivation for
Refurbished goods too are an their choice. Buyers under 35 years old,
exciting avenue for brands, appealing however, while still driven primarily by
simultaneously to those most concerned price, are more likely to mention impact
about climate change and those most on the environment (9%) as a reason
concerned about the cost-of-living. to buy refurb or secondhand phone.
Currently, this is a “nice to have,” rather
Globally, 27% of shoppers purchased
than a key incentive.
something second hand instead of new

Sector Breakouts
05
Sector Breakouts

Sector Breakouts
Small Domestic Appliances
Consumer Tech &

Durables globally
= -2.9%
SDA globally
2023 vs 2022
= +1%
sales value
growth
overview: SDA in advanced economies
= 0%
SDA in emerging economies
= +2%
There are a few stable trends which are of products increase. It also includes
always influencing the small domestic multifunctional appliances which offer
appliances market. great value for money features by doing
more for the price of one.
One is convenience and consumers
looking for products to help simplify their
lives. This includes smart and connected
appliances, where the benefit delivered
to the user grows as the ecosystem

Sector Breakouts
Sales value growth:

Robot vacuums with dry
extraction docking stations
+44%
95%
+55%
Sales value share of robot

vacuum cleaners sold today
are 'smart' versions
Sales value growth: Robot vacuums
with wet and dry extraction
docking stations
The second key trend for SDA is health, to lead healthier lives, eat right and
hygiene, and well-being, with several reduce the effort of cleaning.
products assisting consumers’ aspiration
+39% sales value growth: Hot air fryers
Third is the aspect of aspirational and these groups having affinity for products
need-based purchase drivers. On the that generate aspiration, as well as
aspirational side, we have a growing priced affordably. On the need-based
middle class around the globe, as well side, external aspects such as effects of
as increasing purchase weight of the pollution and climate change which are
older Gen Z (current age 12-27) and of driving demand for products such as air
Millennials (current ages 28-43) – with coolers, electric fans, and heaters.

Sector Breakouts
heat wave drove sales growth of

2023 +41% for electric fans in LATAM
On top of this is the aspect of performance and sustainability. High performance

products which offer a new design or form factor drive interest.
7% Hair stylers
overall grew +7%,
but models with hot air
technology grew +16% 16%
Consumers are also beginning to purchase criterion, due to the potential it

observe the sustainability aspects offers to save money in the long term.
which differentiate one SDA product
Critically in SDA, these trends don’t
from another. For example, CoffeeB
exist in isolation for consumers. There
revolutionizing coffee pods/pads
is a considerable interplay among them,
packaging by making coffee balls which
and consumers tend to purchase some
can be crushed in a machine instead
products over others because they check
of using paper or recyclable plastic
more than one box.
packaging.
However, the sustainability aspect within

SDA does not yet carry the same degree
of influence as it does in MDA products,
where energy efficiency is a crucial

Sector Breakouts
Major Domestic Appliances
Consumer Tech &

-2.9% Durables globally = -2.9%
-2% MDA globally = -2%
MDA in advanced
-4% economies = -4%
MDA in emerging
0% economies = 0%

Sector Breakouts
MDA market - promising dynamic seen in Q3 & Q4 2023
MDA9 | Period: January 2023 – Dec 2023 | Value growth USD +/-%
Inflation global
(OECD)
-9.3 Q1 2023 +8.6

Sales Value growth USD +/-%
-3.1 Q2 2023 +6.5

Global (excl. NA)
$126bn -0.9 Q3 2023 +6.2
3.8 Q4 2023 +5.4

-2.4%
Jan - Dec 2023

Sector Breakouts
For MDA, the two key retailers since March 1st, together in their homes,
market drivers are energy 2024. Given this energy this industry push behind
efficiency and connected label regulation, the trend smart appliances is very
appliances. towards better labels can likely to continue in 2024.
only continue.
In Europe, the success Looking at the brand
of best-in-class energy Smart MDA keep landscape, Chinese
labeled products outpacing the market year brands will continue to
continues. A-labelled after year as more and grow in 2024 by offering
washing machines more smart categories feature-rich, good value-
reached a record growth leave their niches to enter for-money products.
of +64% sales review mass market. For example, This poses challenges for
(US $) and even the small Europe and Middle East established consumer
segment of A-labelled saw revenue from sales brands. A forward-looking
refrigerators managed to of dishwashers grew by innovation pipeline,
increase by +50%. 25%, driven by smart strong supply chains,
dishwashers – with this collaborative retailer
This year will be critical
smart category going from relationships, and both
in monitoring major
niche to mass market in tactical and strategic
developments and sales
just 3 years. marketing strategies are
impacts around the EU
more important than ever
energy labeling initiative, Given the ecosystem
in the face of increased
with F and G labels (17% benefits that consumers
competition of challenger
of Europe’s MDA4 market will experience as
brands.
as at Dec23) no longer more and more smart
allowed to be shipped to appliances start working
“For the first time in 2 years, the last months of 2023

saw significant growth in the MDA market. This feeds
the expectation for a clearly better year this year. It could
all be quite promising, but the weakness of construction
markets will impact the built-In and kitchen appliances
markets particularly – so, overall, I only expect a small
growth between 0% to 1% for the full year 2024.”
Norbert Herzog,
Head of Global Strategic
Insights - GfK

Sector Breakouts
Consumer Electronics + Photo
2023 vs 2022 sales value growth overview:
Consumer Tech & Durables globally -2.9%
-7% CE + Photo globally
CE + Photo in advanced economies -8%
-6% CE + Photo in emerging economies
Last year saw significant polarization in category performance across the consumer
electronics & photo sector.

Sector Breakouts
Consumer Electronics & Photo: global poly-crises create significant

polarization within the sector
Vision and Audio
8.5
CE/MTG/Photo
Sales Revenue USD
4.7
-7%
Jan-Dec 2023 vs. Jan-Dec 2022
-3.1
Polarization
-9.3
-11.1
PTV Home Portable Cinema Digital

Audio Audio Audio Cameras
Jan - Dec 2023 vs. Jan - Dec 2022

Source: Market Intelligence Sales Tracking. Period: Jan-Dec 2023 vs 2022. Home Audio = AHS excl. HT, Trad Loudspeaker, Radio Devices. Portable Audio = Mini/Bluetooth
Speaker, Headphones+ Mob. St. Headsets. Cinema Audio = Home Theater, Soundbase/bar
In Photo, there was a surge in purchases Unlike the saturated TV market, the
of high-end devices at around the audio category still offers room for
$2,500 US dollar mark. These premium growth. Innovation in audio headphones
purchases by a core buyer group more allows for tailored choices based
than counter-balanced the overall decline on usage scenarios: daily use, sport,
in demand of the mass consumers, enjoyment, or office. Soundbars have
putting Photo at the forefront of the yet to capture much of the market,
premiumization trend. especially as TVs become more
premium, maintaining focus on sound
The TV market faces a continuing
quality. Home audio is evolving with the
challenge from saturation. Revenues hit
increasing prevalence of home assistants,
all-time lows in May/June, with lingering
potentially leading consumers back to
demand not translating into sustained
audio brands, although this may not fully
growth. The regions showing resilience
offset losses from platform providers."
include Emerging Asia, and particularly
India.

Sector Breakouts
Looking ahead to 2024, positive factors As the industry grapples with changing
such as international sports events, consumer behaviors, competition is
baseline effects, and perceived inflation intensifying, with emerging brands
normalization may provide some relief. In making significant gains. Promotions
addition, we are seeing premiumization remain crucial, particularly in the face of
trends continue to buck the trend of economic challenges, emphasizing the
eroding prices, with displays that offer importance of pricing strategies tailored
better quality gaining traction. to regional dynamics.
IT + Office
-2.9% Consumer Tech &

Durables globally
-10% 2023 vs 2022

-9%
sales value
IT + Office in IT + Office
emerging growth overview
globally
economies
-8% IT + Office in
advanced economies

Sector Breakouts
IT hardware
IT hardware devices, such as mobile PCs (-13%), media

tablets (-3%) and monitors (-8%), recorded decline in
sales revenue in 2023. This was partly due to ongoing
adjustment after high sales throughout 2020 and 2021.
While media tablets and monitors saw single digit drops,

sales of mobile PCs sales dropped more sharply. We
should keep in mind, however, that mobile PC is the most
expensive category in total tech and durable market.
It has an average selling price at around $800, which is
around double that of other major categories on the T&D
market. This means consumers need to perceive real
value before making a purchase decision for mobile PCs.
According to gfknewron Consumer, consumers’ current

replacement cycle for mobile PC’s ranges between 5-6
years. This points to a new purchase wave triggering
from around 2025 to replace ones bought in 2020-2021.
Until then, performance driven, higher-spec devices

aimed at targeted groups, such as gamers or digital
content producers, are expected to continue
outperforming other segments. Added to that, large
sized media tablets (display of 9” and larger) are still
driving strong sales in emerging regions such as Eastern
Europe/Middle East, Latin America, and Emerging Asia.
Consumers are still willing to equip their personal

computing environment, as proven by the +4% increase
in volume of monitors sold in 2023 – but the total
amount they spent on those sales dropped. Brands must
drill into the aspirations and needs of their target groups
and link these with highly relevant enhancements and
innovative technology such as AI. Marketing that centers
on how these products solve the pain points and unlock
the aspirations of specific audiences can nudge buyers
into a higher price range – thereby drawing out greater
growth opportunities from existing demand.

Sector Breakouts
IT sector: higher income consumers have increased over the years, Mobile
PC shows the highest portion of confident consumers
Shoppers by buyer income, Jan – Dec 2023 across 18 countries*
Products included: PTV. Mobile Phone, Washing Machine, Mobile
Computing, Media Tablet
Income
TV 12%
Smartphone 13%
Washing Machine 10%

Low
Mobile PC 9%
22%
20%
Media Tablet 10%
17% 21% Medium
Low
19%
Medium
10%
High
9% 26% 26%
8%
8%
12% 34% 26%
High
24%
40% Prefer
35% 26% not to say
29%
32%
Source: gfknewron Consumer. Countries: Austria, Belgium, Brazil, Chile, France, Germany, Great Britain, Greece, India, Italy, Japan, Netherlands, Poland, Portugal, Russian
Federation, Spain, Switzerland, Turkey. Product Group: PTV. Mobile Phone, Washing Machine, Mobile Computing, Media Tablet

Sector Breakouts
IT accessories & storage

Accessories in general if hybrid work formats home infrastructure
are expected to do well continue to be popular. such as (PBX) routers
this year, continuing the and repeaters.
Thanks to their lower
positive performance of
selling prices, consumers The outlook for SSDs
2023. Most are still seeing
continue to see buying a also continues positive.
sales revenue above the
new keyboard, mouse, or Following high unit
pre-pandemic 2019 level,
headset as an affordable growth last year, but
indicating a high installed
way to improve their at strongly decreasing
base following the work-,
home office set up, when prices, manufacturers
study- and entertain- from
a new main device might cut production to drive
home trend. And, with
feel outside their budget. up prices from around
replacement cycles likely
Additionally, the new Q4 2023. This will have
to kick in from this year,
WiFi standard entering a positive impact on
we expect IT accessories
the market is likely to revenue and overall
overall to feel a positive
boost sales of smart- expectations for SSDs
stimulus – especially
stay positive.
Office
For Office, the picture is mixed. Inkjet from decline during the pandemic (also
MFD devices were the winner of the due to people working from home, so
pandemic but decreased in 2023 (also businesses did not invest) but they could
due to the success in previous years). return to growth in 2023.
Laser MFD on the other hand did suffer

Sector Breakouts
Telecom
Consumer Tech &

Durables
-2.9% globally
-1% Telecom
globally
Telecom in
+1% advanced
economies
-1% Telecom in
emerging
economies
For the full year 2023, the global It’s not just in the half-year comparisons
smartphone market was stable, with a that we see significant differences. On
slight increase in revenue of +0.1 percent a regional level, too, there were highly
overall compared to 2022. However, divergent performances with European
demand was notably better towards the regions delivering strong revenue
end of the year, with revenue for the last growth, while developing regions
six months up +4.2 percent year-on-year. struggled.

Sector Breakouts
Smartphone market revenue trend by region 2023

vs. 2022:
+3.9% -5.9%
Central & Eastern Europe Emerging Asia (w/o China)
+2.0% -3.7%
Western Europe Latin America
+1.1% +0.6%
Middle East & Africa China
Globally, the average price paid for a new phones, with the increased price of
smartphone once again increased slightly purchase rationalized by keeping their
in 2023 – up by 34 US dollars to 389 US device longer before exchanging it.
dollars. This premiumization is driven by
consumers wanting higher performance

Sector Breakouts
Smartphones: premiumisation seen across most regions.

The range above 900USD is contributing the most.
Jan-Dec 2023, YoY, Sales Units total +/-%
-16
WEU 1
18
6
CEE incl CIS 8
24
-12
MEA 14
22
-13
LATAM 13
13
-8
DEVELOPED ASIA -4
21
-26
EMERGING ASIA
-1
wo China, India
5
-6
China 9
8
-6
India 44
27
Below 600USD Above 600USD Above 900USD
Source: Market Intelligence Sales Tracking. Smartphones, International Coverage (excl. North America), Period: Jan-Dec
2023 vs 2022.
Overall, 5G models accounted for 81% This premium trend is expected to

of sales revenue last year (up from 75% continue, possibly boosted by the
in 2022), while share of smartphones integration of Generative AI, which
with more than 512 GB of storage could generate demand beyond regular
grew by 9 percentage points, and those replacement cycles.
with wireless fast charging grew by 5
percentage points.

Key Take-Aways + Recommendations
06
Key Take-Aways +
Recommendations
Although 2024 will continue to be challenging, current market dynamics point to full
year growth in the region of +1% for Consumer Tech & Durables overall.

Brand perception
Brand strength continues to play a part need. This allows them to charge a
in driving margins, especially during higher price, since consumers will
challenging times. In a year when value- balance a level of premium against their
consciousness is even higher on the greater perceived trust in the brand and
agenda of consumers, they will wait for expectations of quality.
promotions or look for channels that
GfK sees brand perception as a function
offer optimal value for money before
of 4 elements: mental availability, brand
making key purchases. This, of course,
attachment, brand knowledge, and brand
does not offer the manufacturer or
experience. The more knowledge that a
retailer the best margin.
brand gains on these elements, driven by
This is where brand perception plays a the most robust and up to date data, the
key role. Strong brands generate positive better poised it will be to influence and
perceptions among shoppers that go increase its brand perception.
beyond merely meeting the core category
Mental Availability
If the brand easily comes to mind at the moment of purchase
Brand Attachment
How strong people‘s emotional connection is to the brand
Brand Knowledge
What people think about brand, its values and products
Brand Experience
Recency, quality & consistency of consumer experience

Promotions
Promotions will continue to play an with brands wanting to drive sales,

important role. Last year, 34% of all but needing to protect margins. We
Consumer Tech and Durable revenue therefore anticipate more moderation in
came from seven promotional events. the size of discount offered, or perhaps
Additionally, the spread of promotions different assortments being targeted
is increasing, with those seven events for different promotion periods. China
covering an additional 4 weeks last may be different, as drops in demand in
year compared to 2019, and also more that country could point towards some
promotional events falling outside Q4. brands being more aggressive in their
discounting than others.
Where we do expect to see change this
year is in the intensity of discounting,
Increased relevance of promotional events
TCG Sales: Event % of full year revenue in 2023
Increased duration of
top 7 promotional events
Top 7 promotional
events that matter
11 weeks
34% (2019)
+5ppts vs 2019
15 weeks
(2023)
Source: GfK Market Intelligence: Sales Tracking, International Coverage (excl. North America) - Weekly POS panel.
All weekly tracked categories across all weekly tracked countries; MAT=Moving annual total.
Period week 1 2022 – week 29 2023 with average considered for week 1-29; Christmas, New year (W50-2), BF, CyberMonday (W46-48), 618 ^ 11.11 (W 24,44,55), Apple
event (W39,40), Prime Day (W28,41)

Channels
Physical availability continues to be all sales consistent at 36% of total market

about omnichannel. Consumers expect revenue for Consumer Tech & Durables
brand experience to be seamless and over the last three years.
consistent across their growing number
of touchpoints, both digital and physical.
Online and offline sales have now
stabilized in terms of share, with internet
E-commerce vs traditional retail dynamics stable on post-COVID level
TCG: Online Western Europe
Share: 36.1
39%
39%
Growth: -2.7% 41%
39%
China
Eastern Europe
49%
42%
50%
40%
YTD 2023 45% Developed Asia
39%
45% 22%
YTD 2022 39%
23%
LATAM
YTD 2021 22%
37% Middle East & Africa
19%
YTD 2020 37% 19%
Emerging Asia
39% 16%
8%
34% 16%
8%
15%
11%
9%
Source: GfK Market Intelligence: Sales Tracking, International Coverage (excl. North America), USD (NSP) Value & growth 2023 vs 2022, CE incl. Multifunctional Technical
Devices, SDA incl. Personal Diagnostics

Click and collect is increasing in terms of Last year, social ecommerce accounted
absolute value, while social commerce for 27% of all ecommerce sales of SDA
could grow in certain regions like China, in China, up from 16.8% in 2022. Added
with particular relevance for select to that, in areas such as dental care,
categories like fashion and personal care. established global brands are being
challenged on social commerce sites by
For SDA, social e-commerce has
Chinese brands that are bringing in 41%
increased its share of all online sales
or more of their revenue from social
vs traditional online, and prices on this
ecommerce vs traditional ecommerce.
channel are close to traditional online.
Consumers
Consumer confidence is cautiously maximize the pockets of growth that do

improving, provided there are no further exist. That means knowing at a granular
surprises or shocks. Sentiment could level where and what to innovate to
be largely positive pre-elections as maximise your share of consumer
current governments concentrate on spending, tailored by region, audience,
delivering an optimistic outlook. That and product category. As we said at the
said, real wages are not increasing, and start: by maintaining a laser-focus on
employment churn remains high because the right target audiences, and creating
of technology changes and growth offers that address those people’s
declines forecasted by companies. This specific needs, aspirations and pain
will keep consumers relatively cautious in points, brands can drive revenue growth,
their spending behavior, throwing greater even in a tough global market.
importance on the role that innovation
will play in triggering consumers to make
a purchase.
With all sectors continuing to face

challenging conditions and a cautious
consumer landscape, it is more important
than ever to be able to unlock and

Contributors
Contributors
Norbert Herzog Jan Lorbach
Head of Global Strategic Global Strategic Insights at
Insights at NIQ GfK NIQ GfK
Sohjin Baek Frank Landeck

Global Strategic Insights at Global Head gfkconsult
NIQ GfK
Nevin Francis Ines Haaga

Global Strategic Insights at Global Strategic Insights at
NIQ GfK NIQ GfK

Separately, we set the standard.
Together, we raise the bar.
NielsenIQ and GfK together offer the Full View™

of consumer buying behavior.
We are proud to announce that the combination of NIQ and GfK is now complete, creating
the world’s preeminent consumer intelligence company.
We’re thrilled to come together as one company, but we’re most excited about what the Full
View™ can do for the industries we serve around the world. NielsenIQ and GfK together offer
the world’s most complete and clear view of consumer behavior.
Our combination is powered by more…
▪ More consumers, channels, categories and geographies

▪ More omnichannel coverage
▪ More actionable insights
▪ More innovative technology platforms
▪ More predictive analytics
▪ More expertise and thought leadership
▪ More opportunities for growth
▪ More opportunities to understand what people want

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OUTLOOK 2024

2024 continues to see consumers

2 Consumer Tech & Durables – Outlook 2024

3 Consumer Tech & Durables – Outlook 2024

According to the World Economic expectations of low inflation. South Asia,

Consumer confidence indexes have improved but remain historically low.

USA Europe area China OECD

96.9 96.2 93.0 96.2

97.1 98.1 Nov 23

Source: OECD; Consumer Confidence: Amplitude adjusted, https://data.oecd.org/leadind/consumer-confidence-index-cci.htm

4 Consumer Tech & Durables – Outlook 2024

Improving -1 South Asia

5 Consumer Tech & Durables – Outlook 2024

6 Consumer Tech & Durables – Outlook 2024

Decline across regions after saturation - only Middle East/Africa outperforms

Consumer Tech & Durable

Turnover $ 813 bn $55bn + 0.8%

There’s a similar variation in performance across sectors.

7 Consumer Tech & Durables – Outlook 2024

2.2. Stabilization in Q4 2023

8 Consumer Tech & Durables – Outlook 2024

Promising dynamic for Consumer Tech & Durables market in Q4 2023

-9.7 Q1 2023 +8.6

-2.7 Q2 2023 +6.5

$813bn -1.4 Q3 2023 +6.2

2.3 Q4 2023 +5.4

Jan - Dec 2023

9 Consumer Tech & Durables – Outlook 2024

GfK anticipates that demand will be

10 Consumer Tech & Durables – Outlook 2024

In general, we expect shoppers to lean For manufacturers and retailers, it is

This year sees consumer sentiment slowly improving, although still

“I am better oﬀ ﬁnancially 28% Jan 2024,

“I am worse oﬀ ﬁnancially 34% Jan 2024,

Source: NIQ Consumer Outlook January 2024

11 Consumer Tech & Durables – Outlook 2024

With money-conscious consumers However, competing on price eats into

12 Consumer Tech & Durables – Outlook 2024

An alternative is focusing on innovation to help performance in pace with consumers’ changing

"With ongoing high levels of economic

13 Consumer Tech & Durables – Outlook 2024

Your roadmap to maximizing 2024 pockets of growth

4.1 Maximize the value; the highly relevant benefits

53% For me the most important thing is that it

Source: GfK Consumer Life 2023

42% I only buy products or services from a

Source: GfK Consumer Life 2023

14 Consumer Tech & Durables – Outlook 2024

By contrast, MDA stands out as the

Diverse dynamics visible in price bands across sectors

Total Telecom CE + Photo IT + OE MDA SDA

47% 38% 43% 72% 46%

15 Consumer Tech & Durables – Outlook 2024

4.2 Focus your ‘value’ messaging on 4 enduring factors

Select premium features sales increased/ declined slower than the

Global (ex. NA)

Convenience. Simplifying people’s lives

16 Consumer Tech & Durables – Outlook 2024

Smart TVs too offer similar convenience,