With intense competition within the consumer appliances and electronics space, companies must find ways to differentiate themselves. Euromonitor International walked the halls of CES and identified key trends for appliances and electronics brands to help them navigate amidst a weak economic climate.
Importance of brand partnership
Successful brand partnerships address key consumer trends, attracting and retaining customers. Sustainability and connectivity remain key areas of investment, and wellness has emerged as a driving trend accelerated by the pandemic. Brand partnerships can creatively and efficiently improve sustainable practices, enhance the functionality of connected devices, and support consumer wellness, effectively driving sales through value-add differentiation. At CES 2023, key players showcased innovative partnerships in these trends, demonstrating the value of collaboration in developing solutions to increasingly complex global issues.
Top three trends
- Sustainability
Integrating sustainable practices into daily life is a priority for the majority of consumers globally. A significant percentage of consumers frequently take action to reduce their environmental impact by reducing consumption of unsustainable goods, managing energy usage, appropriately disposing of waste, and purchasing sustainably-produced items.
- Connectivity
Across all markets, the smart appliance ownership rate is relatively low with less than 30% of consumers reporting owning an appliance in 2022. In emerging markets, consumers are more reliant on mobile devices as, for many, their smartphones are their only computing devices. Most smart ecosystems developed by appliance manufacturers have positioned the smartphone as central to their IoT strategy. Consequently, respondents in emerging markets are more inclined to buy smart appliances compared to those in developed markets with access to a wide range of devices like laptops, tablets, and even smart TVs.
- Wellness
During the pandemic, consumers increased their online activity due to work-from-home policies and restrictions on in-person activities, contributing to general daily stress and digital fatigue. The number of consumers who reported that internet usage adds a great deal to their daily stress levels rose by 23% between 2019 and 2022, demonstrating the pandemic’s impact on mental health.
Brand partnership examples addressing top trends
Sustainability: Panasonic partners with ERI, Redwood Materials, and MRM to reduce waste
Source: Panasonic
At CES 2023, Panasonic announced the brand’s Take Back for Tomorrow programme, developed in partnership with ERI, Redwood Materials, and MRM. Consumers based in the US can ship and recycle old shavers and trimmers through the Panasonic MultiShape website, reducing the number of devices that will end up in landfill due to inadequate recycling systems. ERI recycles the used personal care devices, Redwood Materials recycles and remanufactures metals to be used in Panasonic’s EV batteries, and MRM manages the programme, advancing Panasonic towards a more circular supply chain.
Connectivity: TCL partners with Samba TV to bring the next generation of smart TVs
Source: Samba TV
At CES 2023, TV content analytics firm Samba TV and TCL announced their partnership in developing smart TVs with advanced artificial intelligence in a multi-year agreement. The key highlighted feature is the Smart Screen, which provides real-time information on actors, soundtracks, products on-screen, and viewing recommendations to users. Through this multi-year partnership, TCL hopes to stand out through differentiated smart TV features, potentially increasing sales and market share for TCL in the premium TV market.
Wellness: Labrador Systems partners with Amazon to provide at-home assistive care
Source: Labrador Systems
The Labrador Retriever is a personal robot that assists in moving items throughout the home to enhance accessibility for older adults and users with mobility limitations. At CES 2023, Amazon’s Echo Show 10 was installed on the robot, allowing users to remotely control and engage with technology using the voice assistant and HD smart display, enhancing the robot’s functionality and ease of use. Labrador Systems selected Alexa as it allows the robot to access a whole ecosystem of devices and platforms through the voice assistant, expanding the capabilities of the future smart home.
Conclusion
Moving forward, appliances and electronics manufacturers will continue to drive sales by offering products and systems that address key consumer trends: sustainability, connectivity, and wellness. Brand partnerships can be an effective strategy to achieve unexpected synergies while developing products and systems that support consumer health and wellness, provide enhanced energy efficiency, and offer value-add smart features.
Fior further insight, read our report Consumer Electronics and Appliances Brand Partnerships Address Key Trends: CES 2023.