Where Consumers Shop for Consumer Appliances

Delivery

This report comes in PPT.

Key Findings

E-commerce dominance is bringing an inevitable shift

The pandemic has accelerated the channel shift from physical to online retail. With consumers valuing access to a wider product assortment and price comparison, competition is becoming fiercer. For consumer appliances, the e-commerce channel could soon be dominant in developed economies.

Physical retail betting on services

To resist the shift to e-commerce, physical stores are innovating. They have implemented innovative in-store services strategies, such as extended warranty options, store payment plans, an interactive experience and professional consultation from staff. Easy-access pick-up locations are also available to drive online traffic back to physical stores.

Retailers focusing on appliances

Capitalising on consumers’ interest in making their homes more comfortable, major retailers are actively promoting appliances. Ikea launched a smart air purifier and the Matter ready smart speaker in its push towards appliances. E-commerce giants from China are increasing their partnerships with appliance brands to make the online purchase of major appliances frictionless through free shipping and free returns.

Strong inflationary impact on the supply chain

Historic analysis has shown that high inflationary environments have a long-term impact on the appliances industry. High commodity prices and materials shortages will push up appliance prices. Retailers will be forced to change their inventory strategies to prepare for unpredictable consumer demand.