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KUALA LUMPUR, NIQ-GfK experts forecasted that 2024 will be a better year for the global Consumer Tech and Durables (TandD) compared to last year, with stable revenue expected for the full year.
At the mid-year point, most TandD segments are showing steady growth, and the market overall is slowly recovering due to easing of inflation and omnichannel growth that drive modest gains, albeit still in negative territory.
The global TandD market recorded a slight decrease of 0.6 per cent in revenue to US$395 billion in the first half of this year compared to the same period last year, according to a statement. (US$1=RM4.36)
Inflation and high prices continue to be a top concern of consumers worldwide according to GfK Consumer Life study, and based on NIQ Consumer Outlook report 2024, 57 per cent of global consumers are prepared to switch stores to manage costs.
GfK insights expert for TandD industry, Nevin Francis said that omnichannel retailing remains popular, with 36 per cent of total global TandD sales made
online in the first half of 2024, an increase of 0.4 per cent from last year.
Furthermore, the progress of Chinese online retailers in Europe is quite notable in the same period, which saw Chinese e-commerce retailer Temu, ranked second in terms of order volume for computers and electronics, and according to NielsenIQ’s Foxintelligence, 77 per cent of German Temu shoppers in the last 60 days were repeat buyers.
Looking at regional differences, consumer spending caution varies depending on purchasing power and local price levels. While Western Europe and Developed Asia experienced year-on-year revenue declines in the first half of this year with one per cent and nine per cent respectively, Eastern Europe and the Middle East grew to four per cent and eight per cent, respectively along with Emerging Asia.
GfK panel data also shows that the Telecom and Photo categories are back in the black in the first half of 2024, while other TandD categories such as Consumer Electronics, Information Technology (IT), Small
Domestic Appliances, and Major Domestic Appliances are regaining momentum and starting to recover.
Growth in the home appliances sector is being driven by three key consumer desires, namely sustainability, simplification and artificial intelligence (AI)-powered intelligence, as the demand for related devices such as smart ovens and cookers has noticeably increased with 30 per cent year-over-year in revenue for the first half of the year.
In the IT sector, on the other hand, it is still all about premiumisation, especially more memory in devices. In laptops, 16 gigabytes (GB) RAM is becoming the new standard, with sales volume up three percent in the first half of 2024 compared to the same period last year, replacing older models.
In contrast to the business-to-consumer (B2C) market, which is slowly recovering, the business-to-business (B2B) market is still stuck in the red, according to GfK’s distribution panel, with revenues down six per cent year-over-year in the first half of this year.
Source: BERNAM
A News Agency
