Norbert Herzog, Global Strategic Insights GfK, explains that the consumer is the origin and centre of trends that drive the markets. Consumers are looking for rich and exciting experiences allowing sales of premium/high performance products. Coupling this with the expectations of fully connected customers leads to plentiful opportunities for retailers and manufacturers when delivering on these with innovations.
The global market for Major Domestic Appliances (MDA) and Small Domestic Appliances (SDA) amounted to €262bn in 2018 – growth of 3% over the previous year.
Emerging Asia has seen massive growth in SDA with a hike of over 20% in 2018.
Simplification is a key theme, with 43% of people saying they are prepared to pay more for products that make their lives easier. To this end, robot vacuum cleaners saw 35% sales value growth between 2017 and 2018, as opposed to 17% growth for the vacuum cleaner market as a whole.
16% of MDAs are smart now, up from 4% in 2015. Sales of smart SDAs rose from 1% – 10% penetration from 2015 to 2018.
Norbert Herzog also echoed the earlier GfK adage of “I. Want. It. Now.” – the catch phrase for 2019.
Channel evolution: 38% of global respondents said they want shops and services to be available at all times. 48% of people say their smartphone or tablet is fast becoming their most important shopping tool.
Herzog explained that the China market is crucial for key players, and fluctuations in this sector have an effect on the global market. The developing economies are maturing, from a production economy to a significant global player. China again is the home to an increasing number of global home appliance brands. Major Chinese MDA brands are strengthening their footprint via acquisitions with significant impact on Europe.