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Point of Sales Tracking

COVID-19: Rely on hard facts to steer through turbulent times

This crisis is impacting your business in many and unexpected ways. With a constantly evolving situation, now more than ever, you need reliable, accurate and timely data to inform your tactical decision-making. We want to help you tune into the key business intelligence fast, so that you can stay abreast of the present dynamics and take corrective action effectively. 

During the crisis we are offering a flexible subscription to our weekly insights from our Point of Sales, Distribution and Supply Chain panels to help you make the right decisions. 

Click here for more information

Base your tactical and strategic decisions on facts

Rely on actual sales data from retailer and reseller

Retailers and manufacturers are under constant pressure to develop products and services that maximize sales and profit, and keep customers returning.

Your success relies on having the most up-to-date retail sales data to understand which technical consumer goods products are performing well in the market – and which are not. You need to know what is selling, where, when and at what price point. This knowledge gives you control to respond with both tactical and strategic decisions that will drive commercial growth and increase return on investment.

Our Point of Sales (POS) Tracking helps you measure your market share and brand performance and benchmark it against your competition. We have built the world’s largest retail panel, and track products and deliver insights based on actual sales data from both retailer and reseller. 

I truly believe that it would be impossible to succeed in our business without the GfK Point of Sales Tracking data.

Heiko Erhard, Head of Sales, Marketing Strategy & Planning, Sony

Flexible delivery frequency to fit your business goals

You can choose to have our POS insights delivered weekly, monthly or less frequently, depending on your business goals.  Looking at the tracking from a strategic perspective, with our quarterly or monthly POS insights you can size markets, identify patterns, monitor channel dynamics and develop a detailed understanding of global and local market trends from the “big picture” macro level down to an individual product level. This allows you to optimize your product assortment, distribution and pricing strategy.
 

GfK’s weekly data helps us to adjust forecasts and promotions rapidly, and to plan for crucial sales periods. It allows us to act based on what feels like live data, giving us increased visibility to maximize our business.

Andrew Line, Head of Consumer PC & Visuals 4P, Lenovo UK and Ireland
The weekly delivery is ideal for tactical decision making. Week-by-week you receive sell-out insights for your own and competing products across all relevant channels, online and offline on single item level. This helps you understand promotional effectiveness, improve retail negotiations, steer your activities, monitor critical launches, and exploit seasonal peaks such as Black Friday.

The app is extremely practical and offers a great mobile port of call to quickly get an overview. It will be used a lot.

Michael Struve, Corporate Planning, Panasonic Germany

Access weekly sales insights anytime, anywhere with our app

To allow sales teams to act as fast as possible on the weekly POS insights they receive, we have developed our GfK Performance Pulse app. 

Use your smartphone to monitor weekly sell-out activity, track your strongest competitor, measure price developments, maximize the impact of marketing campaigns, and evaluate launch performance and promotions on-the-go. Treat it as an early warning system to let your sales teams respond immediately and remain competitive.

 

Click on the video on the right for a preview of GfK Performance Pulse.

Below we list the product categories that we track on our panel. The number of products covered across the globe is extensive, yet not all are tracked in every country and at every frequency. For further information on availability in your country of interest, please contact us.

Telecom

  • telecom hardware

    • audio conferencing systems
    • corded and cordless phones
    • core wearables
    • fax machines
    • health and fitness tracker
    • mobile broadband cards/sticks/routers
    • mobile enhancements
    • mobile phone headsets
    • PC/office headsets
    • single answering machines
    • smart phones and mobile phones
    • smart watches
    • telephone systems
    • voice radio devices
    • VoIP phones
    • webbooks/tablets
    • wrist sport computer

  • telecom tariffs/contracts: mobile and broadband tariffs
Information technology

  • IT hardware

    • deskbound computers
    • displays
    • e-books
    • electronic assistants
    • image displays
    • media tablets
    • midrange systems
    • notebooks and mobile computers
    • PDA navigation
    • server
    • small organizing solutions
    • translators

  • software

    • business and home productivity
    • networking, communication and organizing solutions
    • utilities

  • IT accessories/components

    • cables
    • communication cards, devices
    • computer housings
    • ergonomic accessories
    • gaming and leisure devices, keyboards
    • graphic cards and boxes
    • graphic tablets
    • HDD-drives (internal and external)
    • keying devices
    • mainboards
    • media devices, gateways, HDD
    • memory modules
    • modems
    • multidisc drives
    • multimedia devices
    • network attached storage (NAS)
    • pointing devices
    • processors
    • racks and housings
    • security devices
    • solid state drives
    • sound cards and boxes
    • storage housings
    • stylus pens
    • tablets keyboards
    • TV tuner, TV- and video cards
    • UPS
    • visual cams

  • storage media

    • blank video tapes
    • CD-R/CD-RW/DVD recordables
    • HD recording media
    • memory cards and USB memories

Office and stationery
  • office hardware
    • 3D printers
    • binding systems
    • business ink
    • data/video projectors
    • desk/pocket calculators
    • document shredders
    • inkjet and laser printers and MFDs
    • lettering machines
    • projection screens
    • document scanners
    • small photo printers
  • office consumables
    • inkjet and laser cartridges
    • paper: coated inkjet, laser, thermal, office
    • printable business cards
    • tapes lettering machines
  • office organization
    • book covers
    • display books
    • dividers
    • exercise book protectors
    • folders
    • letter trays
    • lever arch files
    • multipart folders
    • perforators
    • pockets
    • ring binder
    • staplers
    • suspension filling systems
    • total filling products
  • office supplies
    • adhesive tapes
    • diaries
    • envelopes
    • greeting cards
    • labels
    • manifolds
    • notebooks and pads
    • office adhesives
    • papers
    • pencil cases
    • school backpack
    • school paper
    • self-stick notes
  • writing instruments
    • pens: ball point, coloring felt, fountain, OHP
    • pencils: coloring, graphite, mechanical
    • cartridges for fountain pens
    • compasses
    • correction products
    • crayons
    • drawing accessories
    • highlighters, markers
    • polymer leads/mechanical refills
    • refills for roller balls
    • roller balls
    • scissors
    • whiteboard

     

Consumer electronics and photo
  • TV/video
    • 3D accessories
    • camcorders and action cams
    • CRT-TV
    • digital TV accessories
    • digital TV subscriptions
    • drones
    • portable TV
    • panel TV/flat TV (LCD TV/plasma TV)
    • set top boxes
    • TV mounts
    • video player/recorder total
    • video viewing (DVD and VOD)
    • videogames hardware
  • static audio
    • amplifiers, tuner and receiver
    • audio home systems
    • CD player/recorder total
    • hifi loudspeakers
    • sound bars
    • turntables
  • portable audio
    • CD players
    • dictation machines
    • docking and mini-speakers
    • portable media player
    • table top radio devices
  • audio/video accessories
    • audio accessories
    • cables and connectors
    • energy monitors
    • extended service protection
    • headphones
    • leisure GPS
    • microphones
    • portable media player accessories
    • universal remote controls
    • video power packs
  • in car electronics
    • audio
    • navigation
    • speakers
    • vision
  • batteries
    • battery chargers and power packs
    • batteries: dry, rechargeable, specialist
    • torches
  • photo
    • all imaging accessories
    • binoculars
    • converters
    • digital cameras
    • flashguns
    • image frames
    • imaging device bags
    • interchangeable lenses
    • tripods
    • underwater housings

     

Entertainment
  • books
  • games: PC games software, videogames software
  • music: CD, DVD
  • video: DVDs and Blu-ray, video on demand
Major and small domestic appliances
  • white goods
    • cooking
    • cooling/refrigerators
    • dishwashers
    • drink chillers
    • freezers
    • hobs built-in/built-under, freestanding
    • hoods
    • kimchi refrigerators
    • microwave ovens
    • steam ovens
    • tumble dryers
    • washing machines
    • water dispenser
    • wine cabinets
  • air conditioning
  • home comfort
    • air treatment
    • cylinder vacuum cleaners
    • electrical heating
    • fans
    • garment steamer
    • irons
    • sewing machines
    • steam cleaners
    • steam ironing presses
    • vacuum cleaner bags
    • vacuum cleaners
    • window cleaners
  • beverages
    • espresso machines
    • filter coffee makers
    • hot beverage makers
    • kettles
    • milk frothers
    • personal draught systems
    • soda maker
    • tea makers
    • thermos pots/jar pots (electrical)
  • cooking
    • bread makers
    • deep fryers
    • electrical cooking pots
    • food steamers
    • fun cooking
    • household articles
    • kitchenware
    • mini/maxi ovens
    • multi-cookers
    • sandwich/waffle makers/contact grills
    • toasters
  • kitchen appliances
    • barbecues outdoor/gas grills
    • can openers
    • coffee grinders
    • egg cookers
    • electric knives, slicers
    • food preparation
    • graters
    • hand blenders and attachments
    • hand mixers
    • ice cream makers
    • juice extractors and citrus presses
    • kitchen machines and food processors
    • kitchen scales
    • knives
    • liquidizers
    • meat mincers
    • pressure cookers
    • raclettes
    • rice cookers
    • sandwich toasters
    • sorbet makers
    • steam cookers
    • yoghurt makers
  • personal care
    • balneo therapy
    • body care
    • dental care
    • electric blankets
    • electric cosmetics
    • electric stimulation
    • facial care
    • facial steamers/saunas
    • female depilation
    • hair care (hair clippers, hairdryers, hair stylers)
    • light therapy
    • massage, massage appliances
    • men's shavers, shaving/trimming/epilation
  • personal diagnostics/therapy
    • blood pressure monitors
    • personal scales
    • thermometers
  • baby care
    • bottle warmers and sterilizers
    • bottles and teats
    • breast feeding
    • car seats
    • cookers
    • diapers
    • monitors
    • soothers
    • strollers
    • tableware
    • teethers
    • high chairs
  • consumables
    • coffee caps/pads
    • refills
    • shaver accessories
    • syrups
    • water filters

     

Automotive aftermarket
  • car spare parts
    • car bulbs, filters, lighting, rims
    • car tires
    • exhaust repair
    • motorcycle tires
    • spark plugs/glow plugs
    • starter batteries
    • truck tires
    • wiper blades
  • car accessories
    • drive technology
    • garage door drives
    • gate opener
    • starter battery chargers
  • car chemicals
    • antifreeze
    • car air fresheners
    • car care
    • car fillers and repair
    • contact spray/rust releasers
    • de-icers
    • engine oil and treatments
    • greases
    • motorcycle engine oil
    • paint care products
    • rust treatments
    • screen wash
    • special cleaners
    • technical lubricants

     

DIY and home improvement
  • tools/machines
    • cylinder locks
    • electric angle grinders
    • electric basic sanders
    • electric belt sanders
    • electric benchtop tools
    • electric mini tools
    • electric circular saws
    • electric detail sanders
    • electric drills
    • electric hammer drills
    • electric handheld power tools
    • electric heat guns
    • electric jig saws
    • electric multi cutters
    • electric multifunctional tools
    • electric multi sanders
    • electric paint rollers
    • electric planers
    • electric power files
    • electric random orbit sanders
    • electric rotary hammers
    • electric routers (PT)
    • electric scrapers
    • electric screw drivers
    • electric special saws
    • electric spray guns
    • electric tackers
    • electricity generators
    • gas bottles
    • locks, padlocks and safes
    • measuring tools (digital detectors, electronic measuring, levelling devices, range finders)
    • power tool accessories
    • welding systems
    • workbenches
  • decorative/renovation
    • adhesive accessories
    • aerosol paints
    • bases/tinting
    • cement
    • coatings
    • decorative effects, garden preserver, plaster, tools
    • DIY adhesives, adhesive tapes
    • draught excluders
    • emulsions
    • equalizing plaster
    • facade panels
    • fillers
    • humidity absorbers
    • insulation
    • masonry
    • metal paints
    • mortar/cement
    • paint/varnish removers
    • paint brushes
    • painting aids
    • primers/undercoats
    • PU foam
    • renovation cleaners
    • roofing tiles
    • sealants
    • sealers waterproofing
    • specialist paints
    • tile adhesives
    • tile grout
    • tiles
    • trim paints
    • varnish
    • wallcoverings
    • wall decorating fixing
    • wood: dyes, fillers, repair, treatment, care products, oils, paints, stains
    • wooden floor renovation
  • light and building
    • alarms
    • alert detectors
    • circuit breakers
    • lamps: compact fluorescent lamps, discharge, fluorescent, halogen, LED, incandescent
    • distribution board cabinets
    • door-communication
    • field distributors
    • frames for switch programs
    • home inverters, home smoke alarms
    • industrial plugs and sockets
    • intruder security
    • inverter batteries
    • KNX power supplier and area/line coupler
    • light bulbs
    • luminaries
    • main circuit breakers
    • movement detectors
    • portable sockets and plugs
    • residual current devices
    • sockets
    • switch programs
    • table luminaire
    • time switches
    • trunking systems
    • tubular drives
    • waterproof luminaries
  • personal protective equipment
    • professional eye protection
    • professional hearing protection
    • professional helmets
    • professional PPE gloves
    • professional respiratory protection

     

Gardening
  • axes and accessories
  • electrical grass shears
  • electrical and petrol grass trimmers
  • fertilizers indoor/outdoor
  • garden boots/hooves
  • garden gloves
  • garden hand lawn mowers
  • garden hand tools
  • garden watering
  • growing media
  • hand lawn mowers
  • high pressure cleaners
  • houseplants care
  • insecticides
  • lawn seeds
  • outdoor BBQ
  • plant auxiliary products, protection
  • pool care chemicals, cleaners
  • powered blow vacs
  • powered chain saws
  • powered hedge trimmers
  • powered lawn mowers
  • powered pumps
  • powered scarifiers
  • powered shredders
  • softening salt for domestic water
  • soil conditioners
  • vegetables and flowers seeds
  • water timer
  • wild bird food
  • garden hand shears
  • garden pruning saws
  • garden structures
Furniture, housewares and sanitary equipment
  • furniture
    • bedroom furniture: beds, bedsteads, box-spring/upholstery beds
    • kitchen furniture
    • mattresses, pillows
    • seasonal decoration
  • houseware
    • accessories tableware
    • bakeware
    • breakfast
    • carpets textile stain removers
    • cloth dryers
    • coffee/tableware, dinnerware, drinkware
    • drain cleaner
    • floor cleaning
    • floor cleaning detergents
    • food preservation boxes
    • garbage bags
    • household cleaning products, disinfectant
    • household cloths
    • household hooks
    • insect screens
    • ironing boards
    • ladders
    • ovenware
    • pans, pots
    • pressure cookers
    • scourers
    • textile dyeing detergents
    • thermos spots (non-electrical)
    • toilet cleaning products
    • waste bins
    • working gloves (houseware)
  • sanitary/solar/heating
    • bath tub
    • bathroom accessories
    • electrical water heaters
    • faucets
    • flushing systems
    • gas heater, gas water heaters
    • programmable thermostats
    • sanitary products
    • showers, shower accessories
    • taps

     

Optics
  • optics
    • contact lenses
    • fit audit
    • lens care products
    • spectacle frames, lenses
    • sun glasses
  • hearing devices
Fashion and lifestyle

  • bags and cases

    • bags
    • beauty cases, business cases
    • golf stand/cart bag
    • notebook carriers, notebook cases
    • PMP cases
    • suitcases

  • clothing

    • bed linen, bedding
    • bras
    • golf gloves
    • home textiles
    • jeans
    • legwear
    • lingerie
    • nightwear
    • pants
    • sportswear
    • suits
    • swimwear
    • T-shirts

  • luxury goods

    • body treatment
    • deodorants
    • eye make-up, treatment
    • facial make-up, treatment
    • fashion jewelery
    • fragrances
    • hair dye
    • lip make-up, treatment
    • nail make-up
    • shaving products
    • wrist watches

  • sports*

    • back protectors
    • bicycle bags
    • bikes
    • driver (golf club)
    • e-bikes
    • golf: balls, club set, drivers, fairway woods, hybrids, irons, putters, shoes, wear, wedges
    • personal accessories
    • shoes
    • ski, ski boots
    • snowboards, snowboard boots
    • sport helmets winter
    • sport shoes: aerobic/fitness, football/rugby, kids, leisure, multi-sport/cross-training, outdoor, running/walking, utility (golf)

* POS information for sports in select countries is handled by our partner, The NPD Group

Travel and tourism
  • car rental
  • destination
  • flight only
  • packaged tours
  • travel insurance
Toys and games
  • action figures
  • arts and crafts
  • building sets
  • child/youth electronics
  • dolls
  • games and puzzles
  • infant/pre-school toys
  • outdoor & sports toys
  • plush toys
  • toys vehicles

POS information for toys and games in select countries is handled by our partner, The NPD Group

Musical instruments
  • brass wind instruments
  • guitars acoustic, bass, electric
  • keyboards
  • percussion
  • stringed instruments
  • wood wind instruments
Success Stories
  • How Lenovo uses Weekly POS data to adjust forecasts and promotions rapidly, and maximize crucial sales periods

    How Lenovo uses Weekly POS data to adjust forecasts and promotions rapidly, and maximize crucial sales periods

    13.11.2019

    Mastering tactical business decision making with GfK’s weekly data

    The client

    With its products sold in more than 180 markets, Lenovo is one of the world's largest personal computer (PC) vendors.

    The challenge

    The company operates in a fluid, fast-moving and highly competitive marketplace. The PC market is increasingly driven by promotions, product launches and seasonal sales activities. As product life cycles shorten, consumer behavior is becoming increasingly volatile and unpredictable, making campaign planning ever-more challenging.

    The approach

    Lenovo’s UK Consumer PC team rely on GfK’s Weekly POS data to evaluate their campaign performance, evaluate and guide launches, and maximize seasonal sales activities. Lenovo not only has access to their own sell-out data, but for their competitors too, across all channels, right down to SKU level.

    The outcome

    Andrew Line, Head of Consumer VP & Visuals 4P, Lenovo, explains how Lenovo has come to rely upon the Weekly POS data: “GfK’s weekly data helps us to make key business decisions with full confidence and agility. With weekly data, we are better informed to adjust forecasts and promotions rapidly and to plan for crucial sales periods. It allows us to act based on what feels like live data, capturing the core of our fluid and fast-moving market. Overall, weekly data gives us increased visibility to plan our business.”

    Click here to download our success story

    Learn more about GfK Point of Sales Tracking.

  • Supporting a smartphone manufacturer’s new sales channel strategy

    Supporting a smartphone manufacturer’s new sales channel strategy

    23.08.2017

    Our insights helped our client define the right strategic mix of products, pricing and distribution strategy for its launch into a competitive market.

    Situation

    Our client was planning to strengthen its channel strategy by selling directly through retailers, in addition to its existing distribution partnerships with Brazil’s network operators. It needed to define an optimal product, distribution and price mix to ensure that its new approach to the market would be a success.

    Approach

    Drawing on our global technology industry experience, we aided the client in outlining the best combination of channels, products and pricing for its retail launch. The manufacturer could view our point of sales data about the Brazilian smartphone market on a custom dashboard, allowing executives to make informed strategic decisions. We based our analysis not only on historical market information, but also on forecasts of future market growth and trends.

    Outcome

    Our research yielded the following insights:

    • Place:Our client received data about price classes and competitors for each distribution channel, including online and traditional stores. It gained insight into regional differences in market size as well as in product availability, prices and competitors.
    • Prices:The information allowed the company to monitor how price classes evolve after a major shift in the currency exchange rate, as well as to track the top-selling products for each price tier.
    • Products:The smartphone maker obtained accurate data about the average price of a specific combination of product features and how competitors position their product mix across price classes.
    • Promotions:The information enabled the client to evaluate the performance of the most heavily promoted products and how price promotions historically affected competitors’ volumes.

     

    Click here to download our success story (short version)

    Click here to download our success story (long version)

  • Monthly reports help electronics retailer grow market share

    Monthly reports help electronics retailer grow market share

    24.06.2016

    Our point of sales data enables eXtra to align product availability with market demand, as well as optimize its product as sortment, distribution and pricing strategy.

    Situation

    Our point of sales solutions keep retailers and manufacturers around the world up-to-date on which products are selling, where, when and at what price. Because eXtra is the largest supplier of consumer electronics and home appliances in Saudi Arabia, we wanted to establish a mutually beneficial relationship with the company.

    Approach

    Since 2013, eXtra has been sharing its point of sales data with us in exchange for a set of standard and customized monthly GfK retail reports. Where some retailers seek payment for such data, our partner believes that the benefit of our services is valuable compensation.

    Outcome

    eXtra uses our reports to align product availability with the expected market demand, as well as to optimize its product assortment, distribution and pricing strategy. The reports address the needs of a broad range of stakeholders at eXtra, including managers, buyers and the marketing team. It helps them to set clear strategies for commercial growth, negotiate with suppliers and increase return on investment. With accurate and granular retail sales data, our partner has a good understanding of how products and services are performing in the market as well as a clear view of local and global trends.

    Click here to download our success story (short version)

    Click here to download our success story (long version)

Join Us

We collect POS data from retailers, resellers and distributors to adapt to changing market landscapes. And, we are continuously looking for new retail partners.

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Latest insights

Here you can find the latest insights for Point of Sales Tracking. View all insights

    • 01/31/18
    • Technology
    • Point of Sales Tracking
    • South Africa
    • English

    What the tech is going on? The latest global trends and what to look out for in 2018

    We’re underway with 2018 and if you’re at all interested in tech, you’ve probably already read about the latest developments in the market. However, you might want to take a look at what we have in stall for you. Using our world-renowned point of sales insights, we‘ve put together a guide to the major trends from last year and what to watch out for in the months to come.

    Are smartphones really still setting records?

    They may have been around for a while, but these devices are still having a massive impact on today’s tech industry. Last year, manufacturers sold a whopping 1.460 billion smartphones at an average price of USD 323, with demand in Emerging Asia and Eastern Europe boosting sales in this market. Meanwhile, consumers in North America, Western Europe and Developed Asia are purchasing premium models with improved features such as larger screens, better processing power and longer battery life. In countries like Russia and India, the sales of cheaper smartphones are gaining importance. Feature phones are not over the hill either. These products are proving to be particularly popular among the elderly in developed markets.

    Have tablets hit their peak?

    The increase in tablet sales and the drop in demand for PCs were big stories in the tech world a few years ago, but it seems tablets have hit their peak. Retail channel sales of media tablets fell globally by 18% in 2017 when compared to the previous year (Jan-Oct). This was due to a severe decline in emerging markets, where these products account for 34% of the demand for computers (desktops, laptops and tablet computers). While tablets are still popular and often the go-to device for media consumption on the go, the steady rise of this product group appears to have come to a stop. This trend overlaps with the resurgence of personal computer sales, predominately ultra-thin notebooks. Driven by Western Europe and APAC, these products account for 10% of the global retail demand (excluding North America).

    TV and the smart home

    Consumers are looking for bigger TVs, especially in China, where it’s expected they will push the average screen size to 54.1 inches by 2020. But these products are not only getting bigger, they are getting smarter – 68% of all TVs sold are now “smart”. The idea of the smart home will continue to grow in other areas too. Smart appliances and Internet of Things devices are experiencing triple digit growth rates as people are starting to buy into the industry vision for the connected home. That’s especially true in the United States, which – despite consumer skepticism – remains the largest market for smart devices.

    The reality of virtual reality

    For virtual reality, consumers are still waiting for the must have content and applications to arrive. However, given recent announcements from leading entertainment studios, such as VR storytelling in films and the broadcasting of sports matches in VR, this is likely to change in 2018. It’s also expected that stand alone and untethered devices will come into play, for example the Oculus Go. Meanwhile, the market is split between cheap VR head mounts where users can use their smartphones and more expensive head mounted displays for gaming. Due to weak sales of head mounted devices in 2017, this category has shown only moderate volume growth year-on-year with +2% in units. Nevertheless, a 19% increase in value indicates that the market is heading towards devices that are more sophisticated. In fact, their sales share increased from 17% in 2016 to 27% in 2017.* Another fascinating insight is that the main sales channel for premium devices is not online anymore, but the real world, i.e. offline retail stores. For VR, it appears the immediate real-life experience of the technology is an important factor in turning buyers on to virtual reality. In Europe in 2017, 50% of sales for head mounted displays came from offline outlets (compared to 39% in 2016).* *GfK POS data 10 European Countries 2016, 2017 Arndt Polifke is the Global Director of Telecom at GfK. To share your thoughts, please email arndt.polifke@gfk.com or leave a comment below.
    • 03/23/20
    • Retail
    • Technology
    • Distribution and Supply Chain Management
    • Point of Sales Tracking
    • Global
    • English

    Webinar: How COVID-19 is impacting distribution markets globally

    Join our expert to go through the hard facts and insights on how the crisis has impacted, and is continuing to impact, distribution markets for tech and durables worldwide
    • 02/24/20
    • Retail
    • Technology
    • Point of Sales Tracking
    • Trends and Forecasting
    • TEMAX
    • Global
    • English

    Coronavirus impact on the tech market

    The epidemic of SARS-CoV-2, otherwise known as coronavirus (COVID-19), is already affecting retail and technology markets. The coronavirus impact on the tech market has already begun with major brands such as Apple and Nissan reporting knock-on effects due to their supply chain and production dependency on China. How fast and how great of an extent can we expect to see similar impacts expand across industries? The timing of when the outbreak can be brought under control will heavily determine the severity of market disruptions.

    Coronavirus (COVID-19) impact on the tech market is a global issue

    Most major manufacturers rely on parts or production capacities from China, but China’s workforce and manufacturing capability have been hit hard. China has more than 75,000 people infected with COVID-19 as of Feb 20th, majority of the workforce is staying home. Blue-collar workers are just now cautiously returning to their manufacturing sites after being away for some weeks while office employees are preferring to compensate by working from home. The coronavirus impact on the tech market is putting a huge pressure not only on the global supply chain but also on the retail and service industries. While some manufacturers and retailers are able to live off their stocks for a certain time, the scarcity of available products will become an issue very soon. This is especially so for the tech industries even with manufacturing capacities in China starting to produce again. The question is whether consumers will be willing to postpone purchases of out-of-stock items or whether they will consider an alternative product that is available right away. Although some companies are already making plans to diversify their sourcing, the supply impact will be unavoidable in the short term. Countries neighboring China might benefit economically from these supply chain and production moves, especially those with strong manufacturing and tech footprint.

    Consumer attitudes towards price and immediacy

    Naturally, price becomes a greater factor at times of short supply and is something consumers are very sensitive to. Globally, 44% of shoppers say they have increased how often they compare prices across different stores compared to a year ago, with older age groups being extra prone to this. At the same time, 61% of the consumers point to the price as the most important driver when choosing the final product. The effects of elevated pricing due to reduced supply and product availability can range from consumers delaying a purchase to choosing an alternative product on stock, or even not purchasing a product at all. If it’s a case of postponed demand, this can be satisfied in the following quarters, if there is enough capacity on the manufacturer side. The more negative scenario might be that these postponed purchases will not materialize at all, which will lead to a significant market decline and lost sales opportunities. The consumer expectation for immediacy is core to these developments especially when it comes to certain consumer segments who highly value immediacy in their purchases – some even at the expense of quality. Globally, 31% specifically say they are “willing to settle for an inferior product or service if it’s available when I need it”. Added to this, 22% in Western Europe say they really need the shops and services they use to be available at all times. All of this can negatively impact retailers’ and manufacturers’ turnover.

    What are the signs that manufacturers and retailers should watch for?

    Risk mitigation and management during disruption like this coronavirus impact on the tech market depends on being able to spot the early changes in buying behavior. The following considerations are important signs to watch for when it comes to navigating through these turbulent times:
      1. Are consumers postponing big-ticket purchases such as TVs or fridges?
      2. Are there significant changes in the competitors’ performance?
      3. Which sectors and product groups are hit first (or the hardest) by the drying supply chain?
      4. What are the changes to online vs offline share of the market as consumers choose to stay at home and avoid contact with crowds (e.g. in China and rest of Asia)?
      5. What effects will postponing launches have on key markets?
    The lack of responsiveness to such disruptive challenges usually comes at a high price. Quick availability of granular data can provide businesses with timely insights to stay on top of these questions and react fast with informed decisions. Data in this blog is from the following reports: GfK Consumer Life 2019, GfK Consumer Insights Engine 2019 and GfK Future Buy 2019.

    Want to spot early changes in buying behavior?

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    • 02/11/20
    • Retail
    • Technology
    • Point of Sales Tracking
    • Global
    • English

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