The T&C Durables (T&D) industry is on the cusp of a revolution in 2024, driven by a toxic cocktail of inflation, price-conscious consumers, and a desperate pursuit of premiumization. The writing is on the wall: retailers and manufacturers who fail to adapt will be left in the dustbin of history.
As inflation continues to wreak havoc, consumers are voting with their wallets, ditching flagging brands in favor of more affordable alternatives. According to a GfK study, 57 percent of consumers worldwide are ready to abandon their favorite brands in the quest for a better value for money.
But the winds of change are not limited to budget-conscious shoppers alone. Omnichannel retailing remains the reigning champ, with 36 percent of total global T&D sales happening online – up 0.4 percent from last year. Yet, it’s a precarious balancing act: while online sales skyrocket, in-store experiences continue to lag, threatening the very existence of brick-and-mortar empires.
The battle for supremacy is being waged on multiple fronts, with Eastern Europe and the Middle East showing signs of life in the first half of the year. The likes of Temu, a Chinese e-commerce upstart, have made headlines by cracking the top spot in European electronics sales.
Meanwhile, in the heart of the developed world, the IT sector is holding steady, fueled by premiumization and an insatiable demand for more – more RAM, more memory, and more processing power. It’s a numbers game, and those who fail to deliver will be left behind.
But for those willing to adapt, the future looks bright. AI-powered intelligence is making inroads, simplifying household chores and making once-complex tasks a cinch. As consumers cozy up to smart ovens and robotic vacuum cleaners, the industry is poised to reap the rewards.
It’s not all sunshine, however. The B2B market is stuck in the doldrums, with revenues down 6 percent year-on-year in the first half of the year. But even there, beacons of hope flicker in the form of AR/VR glasses, which have achieved a stunning 80 percent growth rate in just a few short months.
In a world gone mad, it’s survival of the fittest – those who dare to challenge the status quo, those who refuse to be priced out of the market, and those who understand that premiumization is a never-ending game.