GfK, gfu, and IFA: Dazzling new partnership to bring expert market insights
These three expert organisations will collaborate even more strongly to offer regular information on market developments and trends in the consumer electronics and home appliances industry. Leveraging their expertise and resources, the new partnership will deliver interesting insights, current market figures, consumer trends, and more to industry professionals.
To kick off this partnership, the organisations are taking closer look at the current outlook on the market in 2023 with a focus on global retail trends in consumer technology and durables. After two years of pandemic-induced "cocooning" that fuelled growth in consumer goods, the industry is now facing several challenges.
According to the latest white paper, several factors have influenced consumer behaviour in recent years, with rising food prices, energy supplies, and fuel costs being significant contributors to the overall cost-of-living crisis. These factors, combined with the war in Ukraine, have resulted in stagnation in real incomes and dampened consumer sentiment.
Furthermore, after the peak sales in 2020 and 2021, the tech and durables sectors experienced a decline of -8.4% in value growth in 2022, indicating a saturation of the market as consumers made major and minor purchases during the pandemic. As a result, manufacturers and retailers can expect challenging growth prospects within the next 12 months. The market is projected to stabilise at low levels, with a dynamic value growth of -0.4% in 2023 compared to the previous year.
Despite these challenges, the partnership data suggests early indicators of positive change on the horizon. Some regions are experiencing a gradual stabilisation in consumer prices and a minor easing of inflationary pressures since December 2022. Economic forecasts for 2023 vary across regions. In Europe, 100% of chief economists predict weak economic growth, while the United States has 91% of economists predicting the same. In contrast, South Asia and the Middle East and North Africa show lower percentages, with only 15% and 30% of economists predicting weak growth, respectively.
What does this mean for brands operating in the consumer technology and durables sectors? According to Jan Lorbach, Senior Director Strategic Insights at GfK, while the industry faces significant challenges, there are still opportunities for growth.
Lorbach suggests that brands should focus on insight-led strategies to capitalise on these opportunities. In particular, there is a growing demand for the "affordable premium" tier, where consumers seek products that balance price-sensitivity with increased user convenience, performance, and sustainability. This trend will be especially pronounced during key promotional periods for the technology industry.
There is a growing demand for the "affordable premium" tier, where consumers seek products that balance price-sensitivity with increased user convenience, performance, and sustainability
The partnership between GfK, gfu, and IFA Management aims to provide manufacturers and retailers in the consumer electronics and home appliances industry with valuable information and analysis to navigate these challenging market conditions. By staying informed about market developments, consumer trends, and emerging opportunities, industry professionals can make informed decisions and adapt their strategies to thrive in an evolving marketplace. GfK, gfu, and IFA are well-positioned to be trusted sources of market intelligence for the consumer technology and durables industry.