GFK Briefing: How Technical Consumer Goods withstand crises￼
Alexander Dehmel, Head of Market Intelligence Germany and Austria at GfK, presented GFK’s recent research on the question: What impacts consumers in early 2022?
The studies indicate that there are a range of drivers that impact consumers. Among said drivers is the war in Ukraine, rising energy costs and supply shortages in fast-moving consumer goods, raw material and supply chain issues, as well as inflation reaching a long-time high and Covid, which still affects people and businesses, for example shortages of staff. Dehmel also argued that trust in the economy has dwindled. In general, the economy is facing a crisis, except for Technical Consumer Goods.
Dehmel explained that this sector has always grown in the past, 2022 is no exception. The Covid-19 crisis has led to an increase in electronic goods that is still lasting. Dehmel explained that retail has grown during the last year, with technical superstores and chains seeing handsome profits. His conclusion: in every crisis there is an opportunity. Brands which invest and innovate during a crisis are better off than brands that reduced their investments.
Dehmel’s explanation for the increased need of electronic goods during Covid-19: consumers stayed at home and wanted to improve their home with electronic goods. There are also other growing segments and products like the hot air fryer, hair styling products or hair dryers. Since the global situation has improved, more people were found to buy styling products. Even as issues arise, Dehmel sees opportunities for companies, if they invest in improvements that save energy, money and time for consumers.