Consumer electronics bets on rebound after weak 2023 sales

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For high tech and durable products, 2024 should be the year of a slight recovery after a mediocre and disappointing 2023. This is the forecast that the Gfk experts present in view of the CES in Las Vegas, the most important event in the world dedicated to consumer electronics and digital solutions. So after a weak 2023 which should end with -3% in value compared to 2022 due to double-digit inflation, the uncertainties brought by two local conflicts and a saturated market after the rush to purchase in the Covid years, we now confide in a technical rebound. Also on a global level, the 2023 turnover will still remain above pre-Covid levels thanks above all to the growth of the IT & Office and small household appliances sectors which recorded performances well above the 2019 revenues, with a +16% and a +21% respectively %. Consumer electronics, however, remained weak. According to the international Gfk consumer life survey, in 2023 price was an increasingly important factor in consumer purchasing decisions. So retailers and manufacturers responded by extending promotional periods and offering more products at discounted prices while consumers had the opportunity to purchase products with higher features that they would not have been able to afford at normal prices. Alongside these more price-sensitive segments, consumers with higher incomes and more resistant to the crisis also remained on the market. As a result, premium products continued to perform above average over the past year.

So in the world

As regards the different geographical areas, the market that achieved the best performance, in terms of value in the first 10 months of 2023, was the African one with a +7% while the Chinese one, marked by deflation, the real estate crisis and the poor customer confidence recorded -6%. This divergence could increase in 2024, as GDP continues to grow in emerging areas such as India, while China and the United States are expected to slow compared to 2023. «After two years of decline, we expect that in 2024 the global consumer technology market will return to being positive even if to a lesser extent – explains Ines Haaga, Gfk expert for the Tech & Durables sector -. According to our forecasts in 2024 growth will be driven by the following trends and innovations. Almost four years after the start of the pandemic, product replacement cycles will begin, particularly for rapidly evolving categories such as smartphones and laptops. Consequently, in 2024 the Telecom sector is expected to grow, with a greater propensity towards high-end devices”.

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