IFA 2023 was the occasion for GFK experts to present the recent sector trends. According to the company’s data, Tech and Durables products (T&D) are recording a negative trend. The sector closed the first six months of 2023 with a value decline by -6.3% to 390 billion US dollars compared to the same period last year. Looking ahead to the full year results, GfK forecasts value change of -3.4 percent overall, due to ongoing market saturation and slowing demand.

«Within the overall sale – commented Nevin Francis, GfK expert for the T&D industry -, traditional retail regained market share, while online rebalanced after a surge in share during peak sales months. 35 percent of global T&D sales were made online in the first half of 2023, down 5 percent from last year. While this slight drop does not disrupt the long-standing trend toward omnichannel retail, it does make the need for an omnichannel strategy more important than ever.»

Looking at specific segments data, GfK reveils that revenues declined by -12% for Consumer Electronics, by 5% for Major Domestic Appliance and by 1% for Small Domestic Appliances. Even Telecom and IT devices recorded a fall in value, respectevely by 5 and 12%.

First day for IFA 2023, the consumer electronics and home appliances exhibition, that stars today in Berlin and will last on September 5th. Olivier Merlin, managing director of the event expressed his satisfaction for the new edition. «IFA for 2023 is completely sold out – he said -. It’s now 130,000 square meters, and every square centimeter of the Messe Berlin will be used».

Merlin confirmed the participation of 2.059 exhibitors from 44 countries. Additionally, he is projecting 180,000 visitors from 144 countries.

«The show will be fully packed – Merlin added -. That means we will see a lot of exciting innovations from the most significant industry players on the planet, such as Samsung, LG, Honor, Hisense, Sony, Siemens, Bosch, Vestel, Miele and many more. Honor and Hisense will deliver this year’s keynotes, and we expect Honor to unveil its latest foldable phone technology on Sep 1 at 10 a.m. local time, during the “Unfold Tomorrow” keynote».

After a record 2021 for the consumer technology sector, the Italian market continues to record a positive trend but we can see the first signs of a slowdown. According to GfK surveys, sales grew by 0.7% and the overall market value reached 6.4 billion euros in the first five months of the year. If we compare the data with the pre-pandemic period we can, however, we note a very strong growth (+18.7%) compared to the same period in 2019.

The very positive performance of the Consumer Electronics sector (+30.9%), which includes decoders (+248%) and above all TVs (+31.6%), is driving the growth of the market; the latter, favored by the demand linked to the switch-off, generate 13.7% of the total value of the Italian market. If we exclude them, the market would show a negative trend compared to last year (-2.9%).

Analyzing the other sectors, we record a slightly negative trend for Major Domestic Appliances (-0.5%) and Small Domestic Appliances (-0.8%), while Telephony shows a slight growth (+0.7%) and is confirmed as the most important sector by turnover with a weight of 34% on the total.

On-line sales performed better than sales in physical stores (+5.2% compared to -0.8%) and continue to grow in terms of weight, reaching 25.7% of the total turnover generated, against 24,6% of the period January-May 2021 and 24.2% of the total for the year 2021.

Samsung Electronics reported financial results for the fourth quarter and the fiscal year 2021. Regarding the fourth quarter, the company recorded KRW 76.57 trillion in consolidated revenue, and KRW 13.87 trillion in operating profit. For the full year, it reported KRW 279.6 trillion in revenue, a new historic high and KRW 51.63 trillion in operating profit.

The fourth quarter revenue growth was driven mainly by the finished product businesses, with expanded sales of premium smartphones, including foldable phones, as well as TVs and home appliances. Operating profit declined from the previous quarter due to a special bonus payment to employees, but rose from a year earlier, driven by the semiconductor businesses.

The CE businesses reached KRW 15.35 trillion in consolidated revenue and KRW 0.7 trillion in operating profit for the fourth quarter of 2021. The overall TV market grew quarter-on-quarter due to year-end seasonality, but decreased year-on-year due to fading effects of pent-up demand. The Visual Display Business saw strong sales of its premium and lifestyle products, but recorded slightly lower operating profit quarter-on-quarter due to rising costs, including for logistics. The Digital Appliances Business saw slow market growth in 4Q due to fading pent-up demand, in addition to a continued rise in material and logistics costs. However, Samsung achieved better profits compared to the previous quarter, thanks to an improved product mix and operational efficiency.
In the first quarter, market demand is expected to decrease year-on-year for both TVs and home appliances and high material and logistics costs are expected to persist for home appliances.

The company will continue its focus on premium and lifestyle product sales and improved operational efficiency. The Visual Display Business plans to expand premium product sales with promotional activities such as those associated with regional sporting events. It will also focus on sales of its Lifestyle category, including The Freestyle, a new product announced at CES 2022. The Digital Appliances Business aims to further expand its Bespoke lineup in global markets and enhance online sales.

«In 2022, while market uncertainties are projected to remain, Samsung expects stronger demand for premium and super large TVs – the company explains -. In addition to its continued focus on premium and lifestyle TVs, it plans to offer an improved home entertainment experience, with various services and the Smart Hub, optimized for in-home activities. The company expects a sluggish market for home appliances, but expects demand to edge up for new-category lifestyle products. Samsung plans to further expand its Bespoke lineup and continue to launch new-category products that reflect changing consumer needs.»

According to GfK, the global consumer electronics market (excluding North America) achieved sales growth of 42.8 billion dollar in the first half of 2021, recording an increase of 18%. This trend has been continuing since the last year, prompted by lockdowns and a greater focus on entertainment at home. Consumers continue to place value on premium and better-quality equipment. Working from home, meanwhile, is driving the demand for headphones and mobile stereo headsets.

«The upward trend in the demand for consumer electronics is continuing apace in 2021 – commented Jan Lorbach, GfK expert in Consumer Electronics -. In particular, this is fueled by the strong demand for devices with better features. That said, retailers and the wider industry will have to be prepared for demand to stagnate in the second half of the year if pandemic-related restrictions are relaxed or not reintroduced. At this point, vacations and other leisure activities will take up a greater proportion of household budgets, which will mean less money spent elsewhere, especially on consumer electronics.»

Analysing the segments, Gfk underlined that the global TV market excluding North America achieved sales of 33 billion dollar from January to June 2021, recording a growth of 18% compared to the same period in 2020, which included the first lockdown. The growth drivers continue to be larger displays and more expensive devices with better features

The trend toward premium products is also evident in sales of peripheral devices such as soundbars with Dolby Atmos/DTS:X functionality. Global sales of such devices have more than doubled, to 311 million dollar, compared to the first half of 2020. By contrast, devices without this functionality saw growth of 7% in the period from January to June 2021 but are still slightly above the pre-pandemic level.
Finally, headphones and mobile stereo headsets in the first half of 2021 rose by 26% percent to a total of 6.6 billion dollar. In particular headphones without any wires or cables saw an above-average 40% increase in sales to 4.5 billion dollar.

The pandemic evolution will not stop CES that has prepared an advanced 2021 digital edition, taking place from January 11 to 14.  CES® 2021 will digitally convene businesses, thought leaders, policymakers, media and the broader tech community to launch products, build brands and form partnerships. News about technology innovators, the latest product launches, and global brands and startup will be protagonist as usual. Verizon Chairman and CEO Hans Vestberg will deliver the CES 2021 kickoff keynote address, discussing 5G as the framework of the 21st century, the essential tech of the present and accelerated tech of the future to move our global community forward, such as telemedicine, tele-education and more. Among the main subjects discussed during the digital sessions and conferences, we find the Power of AI: “we might have broken machine learning with unexpectedly erratic purchasing habits in 2020 – they say from CES organization – but AI has played a supreme role in revolutionizing productivity, improving safety, and making the world more accessible.» Trends shaping the future of the fan experience will be discussed in a special session for a provocative discussion around the forces of technology and fan behavior shifts that are having a monumental impact on the future of sports. A digital conference, instead, will be dedicated to the next generation television in focus: with the advent of 8K Ultra HD and NEXTGEN TV, a revolution in TV is coming, and with it will come advanced display technologies giving consumers a taste of truly immersive viewing experiences. How are consumer expectations going to change and how are leading manufacturers aiming to meet — and even exceed — those expectations? 5G and the tech trends of the future will be of course among the other subjects discussed by important speakers.   

IFA, gfu and GfK have inaugurated IFA 2020 Special Edition, an edition that is both physical and digital. Under the slogan, “technology is back”, IFA, gfu and GfK have opened the IFA 2020 Special Edition expressing their confidence in the technology industry, ready to recover from the disruptions and economic uncertainties associated with the pandemic.

An edition, that of this year, both physical and digital: the IFA Xtended Space platform has been added to the traditional appointments, created specifically to allow people to follow the important appointment remotely. Jens Heithecker, IFA Berlin Executive Director, stressed the symbolic significance of this year’s Berlin appointment: «When it comes to doing business, nothing is better than personal relationships. This is why having IFA 2020 as an event in real life is an important sign. It is a symbol to show that together we can look beyond the pandemic and its aftermath. There is a normality ahead, and now it is up to the industry, retailers, media and consumers to build and shape the “normal” that it will emerge.»

«Due to the Covid-19 pandemic – emphasizes Kai Hillebrandt, chairman of the supervisory board of gfu Consumer & Home Electronics GmbH, organizer of IFA – IFA should be organized as a small event, but we can already see that this year special edition is set to be a success. Together with our partner Messe Berlin we have built a digital platform that offers both virtual experiences and meaningful real-life ones. The numerous new products presentations here at IFA will give important impetus to the market precisely when it is most needed, in the period preceding the moment with the highest turnover in the global consumer electronics and household appliances sector.»
Peter Feld, CEO of GfK presented the new “gfknewron” business platform, designed to help the industry make the right business decisions: «We live in a world of disruption, acceleration and data overload. This is why companies need to be able to identify the right signal from noise – faster than ever – and also why we radically transformed GfK to become a technology company. “gfknewron” is GfK’s proprietary AI-based software platform, which provides quick and actionable advice based on reliable data.»

GfK and gfu Consumer & Home Electronics GmbH provided information on how the global consumer electronics and home appliances market developed during the first half of 2020. The data showed that the value of the global consumer electronics market (TCG), excluding North America and South Africa, fell to 306 billion euro during retail closures due to the Covid-19 outbreak.
GfK’s panel market recorded a 5.8% decline for global TCG sales for the first half of 2020 (H1 2020). However, compared to other sectors, this was a relatively small decline as this market benefited from the opportunity to meet “internal” needs and a trend towards digitization during the lockdown.

Next week will be the IFA 2020 week. Despite all the difficulties of this year, the event organization wanted to renew its presence in a new format conceived to held the Fair in a safe way. The Special Edition will take place in Berlin from September 3 to 5 with keynotes, press conferences, conventions and product exhibitions attended by international brands, companies from the mobility sector and start-ups.
«In our discussions with industry, retailers and media representatives – said Dirk Koslowski, IFA Director we could sense the excitement about the upcoming show. It is our ability and our strong will to help the industry and trade to present new products and innovations and reach consumers. As a long-standing trade fair organizer, we are convinced that our concept of the IFA 2020 Special Edition will enable all partners a successful and safe participation.»
Among the exhibitors in the event areas IFA NEXT meets SHIFT Mobility and the IFA Global Press Conference have confirmed their participation: Ataraina / Creative Technology, AVM, Bissell, Bleu Jour, BSH, ECOVACS, GN Hearing, Haier, HONOR, Huawei, JVC Kenwood, Miele, Neato Robotics, Qualcomm, Realme, Satisfyer, Schneider electric, Shelly/ Allterco, TCL, TP-Link, TUYA, Wessel-Werk. The currently designed IFA 2020 Special Edition – consisting of a physical event that focuses on B2B functions: As a meeting point for industry and trade in the IFA Business and Meeting Lounges, IFA NEXT meets SHIFT Mobility with cross-sector innovations and IFA Global Markets for the sourcing of components using global supply chains. While these parts of the event are aimed at trade visitors, media representatives can experience the latest products and services, press briefings and IFA keynotes exclusively at the IFA Global Press Conferences.

With health and safety as absolute priorities, IFA reinvents its annual show in the Covid era: a three-day event – from 3 to 5 September – with a tight limit on the number of attendees.
The Fair’s organization underlines its intention of supporting companies and sector operators in any way to face this new challenge all together and allow innovation to go on.
“Focused on IFA’s core functions, the IFA 2020 Special Edition supports brands, manufacturers, media and retailers to connect and celebrate innovation across consumer electronics and home appliances. – the Organization explains – IFA will host four stand-alone events: the IFA Global Press Conference for brands’ keynotes and press conferences; the sourcing show IFA Global Markets; the innovation platform IFA NEXT meets IFA SHIFT Mobility; and the IFA Business, Retail and Meeting Lounges.”
The invite-only event will put strict limits on the number of attendees and focus on IFA’s four global core functions, which are: an innovation showcase for brands; a platform for cutting-edge technologies, a sourcing event for OEMs and ODMs; a marketplace where retailers and brands can come together.
«After all the event cancellations during the past months – Jens Heithecker, the Executive Director of IFA Berlin, said – our industry urgently needs a platform where it can showcase its innovation, so that it can recover and rebound. The recovery of our industry starts here at IFA Berlin. While virtual events were useful, they were “missing the immediacy, hands-on experience and human connections that make events like IFA Berlin so incredibly useful.»
The concept for IFA 2020 was developed in close collaboration with public health authorities in Germany to ensure the health and safety of all participants. The organizers will make sure that social distancing, careful crowd control and other effective public hygiene measures are all in place. As a result, IFA 2020 will not be open to the public, but run as an invitation-only event.

This is a very significant year for Samsung Electronics that arrives to its 50th anniversary since it was founded. The occasion was celebrated with an event at Samsung Digital City, the Company’s headquarters in Suwon. More than 400 employees were present to commemorate the milestone, together with the Company’s executive team including Kinam Kim, Vice Chairman & CEO of Device Solutions (DS) Division, Hyunsuk Kim, President & CEO of Consumer Electronics (CE) Division, Dongjin Koh, President & CEO of IT & Mobile Communications (IM) Division.
Vice Chairman Jay Y. Lee, through a video message, extended his gratitude to all Samsung employees for their dedication over the past 50 years and emphasized the Company’s commitment to build upon its legacy and become a Centennial company.
«The past 50 years were only possible – said Vice Chairman Lee – thanks to the dedication and hard work of each and every one of you. Looking to the next 50 years, let’s free our imaginations and dream of an extraordinary future. Applying our new technologies, let’s build a healthier and happier future. By sharing and growing together we will become the very best in the world.»
Kinam Kim, Vice Chairman & CEO of DS Division, shared three key goals towards Samsung’s continued growth in the next chapter of the Company’s life.
«Unpredictable change, driven by material shifts in demographics and consumer behavior, – he noted – will be a hallmark of the next era of the technology industry. So to ensure our survival in the new era, we must pursue relentless self-innovation. We must never cease to learn, be bold and fearless in our pursuits and execute thoroughly when undertaking all our tasks.
By staying ahead of their needs and expectations and by finding ways to thrive in evolving markets, we can continue to ensure that customers are at the center of our business. Finally, Let us all work together to help Samsung continue to evolve into a company that contributes to a better world and stay a respected and beloved company for future generations. I ask that all of us not forget our responsibilities as good corporate citizens in the journey.»