GfK- an NIQ Company, has released insights into the consumer durables sector for the period of January to October 2023 compared to the same period in 2022. GfK Market Intelligence, POS Offline Retail Tracking reveals a 9 percent surge in value for smartphones. However, the data also notes a marginal 2 percent decline in volume. The overall impact of this volume decrease, however, is mitigated by 11 percent growth in the Average Selling Price (ASP).
This combination of metrics highlights a trend within the smartphone market, showcasing the sector’s resilience and ability to maintain value growth despite a slight dip in volume.
Commenting on these findings, Anant Jain – Head of Customer Success Management, India GfK – an NIQ Company, stated, “The industry’s expansion can be credited to a noticeable consumer inclination toward premium products spanning diverse categories.
Lower-town segments are significantly shaping this trend by seeking convenient tech and durable products to enhance their overall lifestyle comfort. The decrease in Average Selling Prices (ASPs) during the festive season has resulted in a comprehensive upswing in sales this year, underscoring the dynamic evolution of consumer preferences.”
Major Domestic Appliances (MDA) and Small Domestic Appliances (SDA) exhibited varied growth rates. Cooling products, conversely, experienced a shift with a 6 percent reduction in volume and a 4 percent decrease in value leading to a category average selling price increase by 2 percent.
At the same time, the Air conditioner category proved to be a beacon of positivity, showcasing a robust 10 percent growth in volume, a commendable 12 percent rise in value from Jan to October 2023 compared to the same period in 2022. In the realm of washing machines, a minor 2 percent decline in volume was accompanied by a marginal 0.5 percent decrease in value reflecting around 2 percent increase in industry ASP compared to the same period.
Microwave ovens faced headwinds, experiencing a 7 percent dip in volume as well as value with almost flat industry ASP. Meanwhile, dishwashers exhibited growth in both volume (3 percent) and value (9 percent), along with an increased ASP of 6 percent during the same period.
Within the Consumer Electronics sector, the domain of audio home systems, in particular, revealed a narrative characterized by a 3 percent increase in volume juxtaposed with a corresponding 3 percent decrease in value.
This paradoxical scenario was further accentuated by a noteworthy decline in Average Selling Price (ASP) at -6 percent. Meanwhile, Panel Television category experienced a 2 percent growth in volume, but this positive trajectory was counterbalanced by a substantial 7 percent contraction in value due to an increased mix of smaller size PTV sale as compared to previous period.
The categories of desk computing, mobile computing, and media tablets underwent fluctuations in volume, value, and ASP over the specified period, highlighting the inherent dynamism within these segments of the consumer electronics market.
These findings shed light on the ever-evolving landscape of consumer preferences and market dynamics, offering valuable insights for industry stakeholders and enthusiasts alike who seek to navigate and understand the multifaceted nature of the consumer electronics sector.