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The highlights and key takeaways from this year’s event.
March 2024: Industry leaders, expert speakers, and panelists from all corners of the Technical Consumer Goods market convened in Berlin to share their most important insights and predictions for 2024 at the 10th annual TCG Summit, the premier international think tank for the TCG retail industry, showcasing GfK’s worldwide expertise.
As the sole insight partner for more than six years running, GfK played a pivotal role in ensuring the success of this event through the provision of key industry insights and data. Using advanced analytics and state-of-the-art platforms, GfK provides a holistic retail read and comprehensive consumer insights into the TCG market, facilitating a deep understanding of consumers’ buying behavior and the dynamics impacting markets, brands, and media trends.
This year, GfK’s Global Strategic Insights Director, Namrata Gotarne, delivered her highly anticipated keynote address: Impact and opportunities amidst value centric markets.
We asked Namrata for her take on this year’s event and a closer look at the key points of her presentation.
Which speakers or presentations were highlights for you from this year’s summit?
Vincent Gufflet, COO of Fnac Darty presented how they have effectively transformed their business model. I really liked how they have focused on driving sustainability behavior amongst their consumers by creating an ecosystem to scale their subscription services (for repairing devices and appliances). That was an excellent example of how to meet consumer expectations and at the same time create additional revenue streams.
Another highlight was Olivia Reid’s presentation about the impact of Generative AI on businesses and brands. Olivia, who is the Lead Strategist at Journey, focused on the future of AI enabling hyper-personalization and enhancing hyper-customization.
The rise of the value-centric customer was a key point of your talk. How is the notion of value changing for consumers in the electronics industry today?
In an uncertain economic environment, price sensitivity amongst consumers has increased, leading to more mindful shopping. Despite this price sensitivity, value continues to rule as consumers balance their money spent and value acquired. The perception of value, however, goes beyond price; consumers expect retailers and manufacturers to deliver value-based innovation as well as experiences that have a positive impact on consumers’ lives. So, products or services that are convenient, sustainable, or even something that might help them save costs in the long term.
How are TCG retailers adapting their strategies to adjust to evolving consumer behavior?
The pursuit of meeting consumers’ expectations of seamless shopping experiences continues; Omnichannel strategy still is at the forefront for all retailers. Varied paths are being followed to eventually offer the best of ‘phygital’ shopping across different regions. There is an increased focus on operations to offer convenience to consumers. This also enables them to optimize their costs. From implementing self-checkout kiosks to rethinking store formats and spaces to using stores as fulfillment centers. Retailers are also investing to either launch or revamp their loyalty programs to engage consumers to offer exclusive access and VIP perks during promotions.
You shared data showing that promotional events are becoming increasingly important to consumers. How can promotions be used to deliver value in 2024?
Promotional events have been used as an effective tool to drive sales and offer an ‘extra push’ to consumers to make purchases, drive demand and win cost-conscious consumers. This year, consumers are marking their calendars to schedule their purchases. Retailers and manufacturers need to ensure these promotions are tailored to consumer expectations to cultivate recurring consumer relationships. Thus, creating an opportunity to engage consumers and offering value that goes beyond price cuts. This includes: the right assortment, rich shopping experience, and a focus on quality of service like payment methods, installment options or simply faster delivery and an easy returns process.
How much of a priority is sustainability for consumers in the TCG industry?
The importance that consumers around the world place on sustainability has endured, regardless of the competing urgency of the pandemic and the current cost-of-living crisis. Nearly three-quarters of people around the world see “Global climate change / global warming” as a very or extremely serious issue. It has risen to be the #5 top consumer concern today. Consumers’ expectations here are expanding. To be perceived as genuinely eco-friendly, manufacturers and retailers are increasingly expected to be able to point to everything from the suppliers they work with to their products’ material, packaging, transportation, durability, and recyclability, to their support of environmental or humanitarian causes.
What were the key takeaways from the panel discussion following your keynote?
For me, I think there were two main takeaways. The first is that innovation has slowed down considerably in the TCG space. The major incremental innovation is happening within small domestic appliances, but everything else has kind of slowed down. We need the next iPhone moment to entice consumers to buy new products. The second point is that at the same time, innovation is happening — but it takes time. As Mehmet Ragip Balcioglu (CCO Arcelik ) mentioned there is a lot of time and money being invested into research into major appliances to offer higher efficiencies. To see final results, it will just take time.
In your opinion, what are some of the main trends that will shape notions of value and consumer behavior in the future?
Consumers are on the lookout for great or rich experiences from the products they purchase and the retailers they purchase from. They are looking for products and services that enable flexible living or cost savings in the long term or designed specifically for their unique needs. Clear use cases that deliver value for the extra money they will spend will be crucial. Quality of service is a well-known purchase driver which is now regaining its prominence while making purchase decisions or choosing a particular retailer to purchase from. It’s often overlooked and considered simple; the reality is, consumers are more likely to return to shop or purchase from a retailer in case such a positive experience was brought to life.
