Regional reports:

The 2023 picture

2023 has seen consumers continuing at a muted level of spending. Our full-year forecast for Consumer Tech & Durables (T&D) globally is for a slight decline in sales revenue (US dollars), compared to 2022 – currently tracking at -3.4%.

While nearly all T&D sectors will show some degree of decline this year, this is slowing compared to last year. The indications are that demand is starting to recover and that 2024, played wisely, presents opportunity for a wide-spread return to positive growth.

Stabilization, not normalization

Many shoppers are delaying their T&D purchases until they see an attractive price deal or inspirational product innovation. Until then, they are taking lower-cost options, such as buying product accessories, rather than replacing the product itself. Black Friday 2023 is likely to see discounts at levels beyond prior years, due to consumers holding their purchases for these events and retailers wishing to clear higher-than-average levels of old stock.

What will drive consumer spend in 2024+?

  • 1. Product lifetime costs
    Alongside a product’s price, shoppers are also considering the operational costs across its full lifetime – it’s durability, repairability, energy use - together with its green credentials. The crucial question for manufacturers and retailers is: which factor takes the lead for consumers when buying specific types of products. 

  • 2. Making life easier
    Robotic, multifunctional, smart, and cordless products that are easy to use and make lives more convenient still outperform the category average this year. Further opportunities lie in smart functionality that includes AI that will automatically change appliance settings to save energy, based on the individual user’s lifestyle.

  • 3. Individualism and the tailored experience
    Individualism and aspirational design continue to be purchase drivers, but “solutions looking for a problem” are out. People are keeping their ‘treat myself’ spend for products designed specifically for them as an individual or niche group. Examples include digital content creation, gaming, fitness, cooking, photography, and more. 

  • 4. Environment and sustainability.

    71% of people around the world see “Global climate change / global warming” as a very or extremely serious issue. This affects consumer spending in two ways: 

    1. Needs-based purchases to combat climate issues, such as electric fans, air purifiers and air conditioners.
    2. Values-based purchases that support products and brands that are eco-friendly.  

    By 2030, we estimate that 50% of consumers globally will be “eco-active shoppers”, wielding a potential spend of >$1,000 billion on FMCG and >$700 billion on consumer tech & durables.

Planning for 2024+

With brands in the middle of budget planning for 2024, our top recommendations to drive growth are:

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