With customers becoming increasingly conscious about the performance of their devices, a trend towards high-end feature specifications is observable in smartphones, consumer electronics devices, home appliances and IT equipment.
Why performance matters?
On the consumer side, the expectation for rich experiences on their devices is growing. Share of respondents who strongly agree with “I value experiences more than possessions.” in the latest Consumer Life study increased to 45%. Processing-hungry applications are emerging and put pressure on the performance capabilities of the devices. These capabilities are becoming crucial for the seamless usage of the applications.
Game of Specs
4K resolution, bigger and better screens, superior front and rear cameras are a few of the key characteristics for a mobile device. 50”+ TV sets stood for 50% of the sales value in the first half of 2018 and grew significantly. The main technological advancements here are HDR & OLED, which are currently on the rise. The PC markets follow a similar trend to high performance, which is reflected, among others, in the growing value share of performance processors, 8+ GB RAM, solid state drives and full HD displays.
Within major domestic appliances big is beautiful. Capacity is the key-word that drives all major markets. This translates into increasingly larger loading capacities in washing machines, taller and wider refrigerators, as well as more spacious oven cavities.
Consumers perceive high performance products as a long-term investment with a long lifecycle, which does not outdate too quickly. The buyers associate these devices with superior experiences and higher quality.
Manufacturers are constantly on the rush
On the industry side, manufacturers are constantly on the rush for the 'next big thing' and operate in a fierce competitive environment. High-performing products demonstrate their ability to innovate and generate more awareness for the brand. In times of decreasing margins, high-end products can act as turnover stabilizer, especially in volatile markets.
This blog has been written by the Strategic Insights team.
You can learn more about the trends driving innovation, check out our other insights.