22 February,2023-Hyderabad: Technical Consumer Goods (TCG) saw value growth of 29% from January to December 2022 compared to the same period in 2021, according to GfK, a global leader in the market and consumer intelligence.
GfK Market Intelligence Offline Sales Tracking for Jan – Dec 2022 vs 2021 reveals that from smartphones to refrigerators and air conditioners, the premium products category grew up to 9 times faster than the entire segment in 2022.
Nikhil Mathur, Managing Director – India at GfK, said, “Indian consumers are motivated by the value-led approach, in which product innovation, customer experience, and premium features will continue to drive sales for the premium category growth in 2023.”
While smartphone sales saw 35% value growth, for devices costing more than Rs 30,000 registered 94% value growth in 2022 compared to last year. Premium panel television sales (ultra-HD models with screens larger than 55 inches) registered 95% value growth, while the category clocked 11% value growth.
According to gfknewron Consumer Survey 2022, within major domestic appliances, the replacement cycle for Washing Machines and Refrigerators has reduced, with consumers moving towards upgradation in 2022
The value growth for small domestic appliances, such as those used for food preparation, water purifiers, electric water heaters, and air conditioners, on the other hand, was 37% overall, and 54% for the premium segment.
It is important to understand that consumer confidence varies by age, income, and market, with certain groups more optimistic about their future than others. This highlights the need for brands and retailers to personalize communications when targeting different demographics. For instance, millennials may be more open to a value-add strategy that nudges them into more premium categories.
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