The New Normal: The Rise of Affordable Flagship Products

Key findings

A change in consumers’ attitudes towards spending

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.

Consumers unwilling to comprise on features switch to lower cost alternatives

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.

E-commerce helps affordable brands gain acceptance

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.

Best-for-value products to drive total consumer electronics growth

The rapid development of e-commerce has put greater pressure on prices. Seeking best-for-value options is made easier due to information transparency.

Companies are not immune to the affordable flagship trend

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”.