Unveiling the Rise of Premiumization in Consumer Tech and Durables
The consumer tech and durables market is witnessing a notable transformation, as highlighted by insights from GfK Offline Market Intelligence POS Retail Tracking. This evolution is marked by the increasing influence of premiumization in several product categories, reflecting changing consumer preferences.
Refrigerators: A Cool Surge in Premium Segments
The Side-by-side refrigerators which includes 2 Doors, 3 Doors, 3 Doors French Ref, and 4+ Doors, has experienced a noteworthy shift. In Jan-Aug 2019, this segment contributed 14% in terms of value. Fast forward to Jan-Aug 2023, and its value contribution has surged to 19%. This trend underscores the growing inclination of consumers towards advanced and feature-rich refrigerator options.
Bigger and Better: The Panel Television Evolution
The premiumization trend extends to the Panel Television category. Over 65-inch displays have become the new preference for consumers, marking a significant rise from 5% in Jan-Aug 2019 to an impressive 14% in Jan-Aug 2023 in terms of value contribution. The shift towards larger and more feature-packed TVs reflects the desire for an enhanced viewing experience.
Smartphones: More Storage, More Value
Smartphones have not been left untouched by the premiumization wave. Consumers are opting for devices with ample storage, with a notable surge in the value contribution of smartphones boasting more than 256GB of storage. In Jan-Aug 2019, this category represented a mere 4% of the market, but by Jan-Aug 2023, it has surged to 18%. This underscores the demand for smartphones capable of accommodating extensive data and applications.
Consistent Preference for Premium and Feature-rich Products
Consumer preferences for premium and feature-rich products have remained consistent, even during the challenging years of the COVID-19 pandemic. This enduring trend is indicative of a fundamental shift in the way consumers perceive and select durable products. The desire for advanced technology, enhanced features, and premium experiences appears to be a lasting preference.
Festive Season Anticipation
As we approach the festive season, the momentum of premiumization is expected to persist and possibly intensify. Consumers are likely to seek out top-tier options in various durable categories to elevate their overall experience.
In conclusion, the consumer tech and durables market is experiencing a notable shift towards premium and feature-rich products. Refrigerators, televisions, and smartphones are at the forefront of this transformation, with consumers seeking enhanced features and capabilities. As the festive season approaches, the premiumization trend is set to continue, reaffirming the enduring appeal of premium and advanced products in the market.
Soumya Chatterjee, TCG Market Expert- India, GfK- an NIQ Company