The consumer electronics market is highly driven by the desire of consumers for advance and innovative technologies to assists them carry out their daily chores in hassle-free ways. Electronic devices have exceedingly penetrated worldwide and are available with a broad range of consumer good items.
Ongoing innovations in consumer goods in response to the fast evolving consumer preference are creating challenges for consumer electronics producers. For instance, wider screen size televisions are gaining popularity, whereas, miniaturization of electrical components is also gaining traction to offer sleeker and slimmer television models.
According to the report by the European Commission (EC) published in 2020, miniaturization has significant impact on the digital world and is taking over the electronics industry in Europe. This increasing demand for miniaturization is expected to emerge as a new trend in the consumer electronics industry in the coming years.
Efforts undertaken by market players to promote their products have resulted in expanding the global consumer electronics market in the last few years.
Innovations in the Consumer Electronics Industry
Consumer-friendly products are emerging as a highly lucrative segment owing to their greater convenience. Companies operating in the industry are therefore emphasizing on developing high performance and convenient-to-use devices with multiple features, to cater to the increasing demand advanced consumer electronics.
For instance, Samsung, one of the leading electronic companies, has launched its new smart tablet named, Galaxy Tab Active3 in 2020. The tablet is equipped with a novel touch sensitivity feature that allows the user to operate it, using fingers with gloves-on.
Therefore there is high focus on making technologies simpler. As a result, leading manufacturers are highly reliant on research and development activities to enhance their product portfolio and improve designs of existing consumer goods to offer built-in features such as Bluetooth, Wi-fi connectivity, and voice assistance to deliver higher usage convenience.
For instance, Deutsche Telekom, a German electronic manufacturing company, launched “Hallo Magenta,” named smart speakers in 2019, which has two voice assistant systems in it, Magenta and Alexa. Thus, inclination towards these smart devices and ongoing technological advancement are likely to spur the growth of the consumer electronic market.
Increasing Demand for Household Products
The introduction of innovative household products in the market is expected to boost product consumption. For instance, LG has introduced its new ultra-thin Rollable OLED television in 2019, which can be rolled up when not in need.
Also, the advent of a new work-from-home trend amid the COVID-19 outbreak has led to a rise in the demand for various household computing devices and peripherals resulting in the growth of the electronic household segment. As per a result of LG electronics, the percentage total revenue share of monitors has increased from 17% to 23% and likewise, the percentage share of total revenue for notebook and tablets increased from 20% to 29% in the second half of 2020
Emergence of E-commerce Driving Growth
Lockdown implemented across the globe amid pandemic has shifted the consumer preference to the use of e-commerce websites. Some of the key manufacturers operating in the industry have used this opportunity to strengthen their market presence through e-commerce.
For instance, Samsung announced the launch of a new series of televisions The Frame 2020 and 10 new Smart TV models on e-commerce platforms such as Amazon and Flipkart in June 2020. The Frame 2020 was made available on Flipkart, while the novel online range of Smart TV was slated to be launched under the ‘Wondertainment’ campaign on Amazon and ‘Get More from TV’ campaign on Flipkart.
Such campaigns undertaken by leading names in the industry will pave way for others to join the bandwagon. Thanks to increasing focus on strengthening online presence, consumer electronics industry will have ample scope for navigating through unforeseen challenges.