Value Centricity and growth drivers in the Consumer Goods Industry
The technology sector has always been in a state of transition. Factors such as value centricity are more important in encouraging consumers to buy a product. Long-term value, for example, is a key criterion in times of high inflationary pressure, and one that many people look for when making a new purchase.
Consumers therefore no longer focus solely on the price of purchase. They are also considering factors such as operational costs, durability, repairability, and energy efficiency, which affect the operating costs of the product throughout its use. And it is precisely those goods that combine cost efficiency and high performance that are currently attracting consumer interest. This shows a shift towards more conscious and sustainable purchasing decisions.
Value as growth driver for the industry
Previously considered to be niche segments, the current focus on value can offer real growth opportunities. Let us look at these areas:
Energy-Efficient and Eco-Friendly Products: In a market responding to both financial and ecological aspects, products that require fewer resources to operate are gaining in importance. Consumers feel they have a double benefit here: the cost of living in this category is falling and at the same time they are acting in an eco-conscious manner. Rising sales of energy-efficient home appliances in regions with high energy costs exemplifies this trend.
Health and Wellness Tech: As awareness of personal and mental health and well-being grows, products focusing on these aspects are becoming increasingly popular – such as fitness trackers, smart health monitors, and wellness apps. This is in line with a value-based approach, as consumers see these purchases as long-term investments in their health and quality of life.
Individualism: Individualism and aspirational design remain decisive purchasing factors. But with a new focus. Consumers are more reluctant to spend money than in previous years. As a result, considerations for new purchases are more selective. They are focusing on products or services they can use to treat themselves. And which are of immense importance to them as individuals or within a niche group. Examples are digital content creation, gaming, fitness, cooking, photography, and more. If it directly improves an experience of an activity that is important to them, consumers are willing to invest in more powerful, high-quality products.
Strategic focus for industry players
It is crucial for brands to adapt to these changing consumer preferences. Focusing on the long-term value of a product can have an impact on both the actual product development and the storytelling in marketing. And the customer base can change to attract a more discerning consumer group. Companies that take all these factors into account could gain a competitive advantage.
Read the full story on the Mega-trends shaping Consumer Tech & Durables sales in 2024+A
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