Research by NielsenIQ BASES Research Shows that Durable Goods Purchases Spiked During COVID Pandemic
CHICAGO, Jan. 27, 2022 /PRNewswire/ — Today, NielsenIQ released its new global report on the global durable goods sector titled, An Inside Look into the 2021 Global Consumer Durable Goods Spike. The report sheds new light on the strong state, globally, of the consumer durable goods sector, and the consumer forces driving sales in 2021, and how the sector can retain its momentum.
NielsenIQ BASES explores the rapidly growing durable goods sector, specifically in Brazil, India, Germany, and the US. The report states that many durable goods manufacturers experienced an unexpected surge of sales during the pandemic, while overall 70% of businesses experienced a negative impact because of the pandemic. Globally, in the first-half of 2021, sales of small and large appliances increased over the same period in the prior year, with 84% of consumers stating that they have made a durable goods purchase since the onset of the global COVID 19 pandemic. Of those buyers, 40% said their durable goods purchases were made directly in response to the COVID pandemic, and 10% of buyers said they would not have purchased these items in the next six months if were not for the pandemic.
The report notes that consumers across the globe would be willing to look at new business models, including product-oriented product service systems, or pay a fee to use the product. The report looks at several business models that consumer would be willing to explore with upcoming durable goods purchases:
- Product automation: an appliance that will automatically adjust its settings/ program. For example, a dishwasher that selects the temperature and length of the program based on analyzing the level of dirt on the dishes, or a microwave that will select the time needed to heat automatically based the type of food, or a hairdryer that automatically adjusts the heat depending on the hair type/ air temperature
- Product lease: an appliance that is leased and will be replaced with newer models after a specified time frame allowing you to always have the latest features/technology and ensuring expert recycling/ refurbishment of the old device
- Subscription service: an appliance that orders supplies when they run low. For example, a fridge that orders groceries, or an electric toothbrush that orders new heads
- Personalized services: a personal care appliance that collects and analyzes data and recommends products and connects you to a community of consumers and professionals. For example, a hair dryer that analyzes your hair type and recommends the best shampoo to use. It also connects you to consumers and professionals for advice and tips specifically for your hair type
- Pay Per Use Features: A device/appliance where you can activate features on a month-by-month basis. For example, a TV that can temporarily activate additional functions such as picture mode, or a PC that can activate additional memory for a limited time.
“Our research showed a surprisingly robust consumer goods market, particularly when other industries are struggling through the pandemic,” said Bethany Streitmatter, Vice President, NielsenIQ BASES. “What our research shows is that for the durable consumer goods sector to continue to grow, they will have to innovate and embrace disruptive business models, that use new technologies, to bring new services to, and gain additional revenue from their customers.”
The report shows how main drivers to try a new business model differs across geography, however the ability to “try new things” is a common interest among consumers in Brazil, India, Germany, and the USA. Also in the US, Brazil and Germany, convenience and personalization are consistently among the top three drivers consumers say will get them to try a new business model. A pay per use feature could be popular in Brazil, however unique to India are concerns about strong customer support. A few key points include:
- Among the business models explored, subscription services coupled to durable appliances is not the most intriguing idea
- Education of the added benefits and their value is crucial to convince consumers to try a new product
- Good customer support is especially important for consumers in Brazil and India
- Transparent and flexible contracts are important to address hesitation in developed countries to commit to a service or product for long period of time
The report also shows in detail, how companies are starting to implement these new business models. For example:
- P&G, though its Oral B brand, is using new technologies to offer additional services to its customers.
- Electrolux is piloting a leasing/pay-per-use plan for a new vacuum model
NielsenIQ BASES is a leader in helping companies build brands through innovation, renovation, strategy, and go-to-market optimisation, and is a trusted partner globally, and across industries. BASES helps maximise brand success end-to-end through advanced predictive analytics, behavioural science, proprietary databases, expert advice, and agile, digital technology platform.
For more information, visit NielsenIQ.com.
For media queries: Peter Tulupman
[email protected] +1 718-909-8363
SOURCE NielsenIQ BASES