Products that offer premium features without the high price tags are becoming popular. What are the factors driving this trend and how are companies like Apple and Samsung affected?
The COVID-19 pandemic has negatively impacted global finances and consumer sentiment. As the world slowly transitions to the “new normal”, consumers are no longer obsessed with having the greatest and latest.
Affordable brands offering competitive specs are good alternatives for those consumers unwilling to downgrade in terms of technical features. Premium brands, including Samsung, have launched lower cost models to seek growth in the mass market.
Emerging brands have better prospects through competing in the online channel. The pandemic has further accelerated growth in e-commerce across various consumer electronics categories.
The rapid development of e-commerce has put greater pressure on prices. Seeking best-for-value options is made easier due to information transparency.
As sales of consumer electronics reach saturation, growth will be mainly driven by upgraders rather than early adopters. These consumers are not willing to pay a premium just for “bragging rights”.
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