The global household appliance market is being transformed by five major trends; increased consumer power, digitalization, sustainability, global scale and the growing global middle class.
Greater consumer awareness and access to information on prices, offers, product characteristics and consumer reviews online, via social media and through mobile access, increasingly empowers consumers. 93% of consumers say online reviews impact their purchase decisions and 63% of consumers are willing to pay up to 15% more for a better experience. This makes developing products that offer outstanding consumer experiences more important than ever to allow premium pricing and greater competitiveness.
Spending more time at home has meant that people place even more value on high-quality appliances with relevant features and benefits. Another trend is that consumers are increasingly choosing brands with a purpose that they feel matches their own values.
Digitalization enhances consumer power, while enabling increasingly advanced products, and greater productivity and flexibility in industrial operations.
During the coronavirus pandemic, consumers have become more digital and online purchases have grown.
Sustainability is becoming more important for consumers, with two-thirds of global consumers willing to pay more for sustainable goods. Authorities around the world are also putting increasing demands on manufacturers to develop and offer more sustainable products, such as product energy efficiency requirements.
The industry is consolidating into a handful of global actors as global scale is required due to the increasing pace of innovation and investment requirements.
Growing middle class
The expanding global middle class drives market growth in Africa, the Middle East, Eastern Europe, Latin America and Southeast Asia. Emerging markets represent a potential universe of over 6 billion consumers.