According to the State of Consumer Outlook 2023 study by GfK, sales in the technology and consumer durables sectors fell 5% in LATAM in the first half of 2022, compared to the same period in 2021
Santiago – December, 2022 – in decision makers Technology and Consumer Durables Sector They look to the fourth quarter of 2022 and the arrival of 2023, and according to GfK analysis that includes the Latin American region, it is clear that they are going to navigate a period of greatest uncertaintyThat’s why they advise to be cautious or act bravely.
on the one hand, continuous supply chain disruption It seems likely that this would add cost, complexity and make availability of products difficult. Others, an economic downturnDriven by inflationary pressures and geopolitical factors – including the conflict between Russia and Ukraine – will contribute to increasing the cost of living in many regions of the world, which affect consumer confidence,
In the fields of consumer technology and durable goods, it means a Slowdown in demand and slow down in price riseIncreased from a saturation level following advance purchases made during 2021.
The GfK report states that the key strategies brands and retailers can adopt to overcome the uncertainty and win are:
- Adapt the supply chain model to reflect the current turmoil.
- Focus on products that offer convenience and combat financial pressures.
- Adjust product, price and brand positioning to the “new normal”.
- Leverage data and information to stay on top of volatile market trends.
For most of 2021, restrictions on travel, social gathering, and working outside the home continued due to the COVID-19 pandemic. As a result, Consumers invested in improving their experience at home Through devices for entertainment or to work remotely and even to eat. Against this backdrop, revenue in the consumer technology and durable goods sector soared with global sales value growth of 12.2%.
In early 2022, the consumer technology and durables market looked set to rise in value and decline in volume, but current supply and demand challenges have significantly dampened performance. In fact, in the first half of 2022, Total value of sales in consumer technology and durable goods declined 5.5% compared to the same period in 2021 on the world average.
A slowdown in sales in USD was observed worldwide, for example, with sales values expected to decrease by 5% so far in 2022 versus 2021 in Latin America, although some emerging regions such as Asia continue to grow.
The technology and consumer durables sector is facing problems, as are its consumers. As detailed in this report, these forecasts of continued upheaval will require Business decision makers invest and optimize key business strategies across the supply chain, pricing and brand engagement. Looking into the last months of 2022 and throughout 2023, GfK has five recommendations for manufacturers and retailers:
- Identify opportunities by sector: Different regions have different levels of inflation, supply chain problems, and declining consumer confidence, so they should create new opportunities for growth.
- Mitigate supply chain dependency risks: Develop supply partnerships to spread risk, or leverage tools, such as predictive demand analysis, to optimize inventory management.
- Customize products per opportunity portfolio: The cost of living crisis could erode consumer confidence. Retailers should bet on new products that help save money or are innovative high performers with added value for the consumer.
- offer a mix of productsBrands and retailers should prioritize these growth areas and look for creative ways to add value to value-conscious shoppers.
- Make data available to work teams: Amidst the ups and downs, companies must arm themselves with the right data and information to refine product mix and buyer segmentation based on the current market.
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