Trends that drive consumer durables market in 2021

The year 2020 altered the lives of people and reshaped the business landscape. Consumer durables industry caters to essential necessities of life and companies have tapped into changing consumer sentiments by being more responsive and providing innovative solutions to deal with expectations. Over the last decade, the Consumer durables sector has grown at a gentle rate, marking the scope of prospects. This provides the industry with an excellent opportunity to create sustainable markets and tap into both urban and rural markets within the country. Last year saw a big increase in ecommerce demand from tier two and tier three towns, considering the pandemic. Brands also are moving toward a more customer-centric approach like never by spotting a customer’s emotional need and understanding its rationale. Certain trends within the consumer durables industry are likely to be the ‘new normal’ in current times:

Specialisation in health and eco-friendly products
Consumers are likely to prioritise health going forward. The pandemic has led to widespread health awareness with an immediate correlation to safety, health, and hygiene, making products like water purifiers and water heaters even more important. Also, with increased awareness round the environment, there is a greater focus on energy-efficient and eco-friendly products to assist reduce the carbon footprint.

Digital integration will prevail
Social distancing has boosted online transactions. Consumers are likely to continue this pattern and continue to use digital means to learn more about products. The emergence of more ecommerce channels has also provided convenience with quick delivery, more offerings and the ability for price comparison. Mapping the customer digital journey to create personalised experiences will be key.

Tech products help shape the future
Consumers are looking for products that are more technologically advanced, simple to use and easily accessible. The emergence of AI and IoT driven products has upped the scale and quality of communication between devices and humans with intelligent technology. This year, we will see technologies, such as robotics, AI, IoT and AR-VR moving to the forefront. The technology we're already accustomed to has paved the way for us to further innovate; and future technologies will have the potential to change our lives even more.

Agility will be fundamental to success
Life is constantly changing, driving the need for businesses to become more agile and adapt to change across functions – production, supply chain, marketing, sales, etc. There is growing recognition of its transformational benefits and its ability to bring flexibility to business quickly. The pandemic has highlighted the need for companies to be more agile. For example, a supply chain strategy that made sense before COVID-19 may no longer be applicable. Disruption to the supply chain brought several businesses in the country to a grinding halt. The need to be flexible, create the right business culture, and put customers first, while remaining profitable, will be the key to success. The important lesson is to deploy a combination of strategy and agility to weather strong currents.

Customers are keen to purchase products that support hygiene and health. The exposure to global technologies and lifestyle has created a perception shift, and consumer durables are no longer viewed as utility products, but rather an extension of one’s personality. Consumers today are aware and equipped with information that helps them understand how opting for more efficient technologies can result in better usability. They seek products that enable both comfort and convenience and don’t hesitate to purchase at a higher cost if it adds value to their lives. Increasing electrification of rural areas and wide usability of online sales are also aiding this growing demand. Every crisis is an opportunity for unexpected growth and learning, and the pandemic has encouraged more companies to reinvent and evolve.