The Western European market for Technical Consumer Goods increased its sales by 4% on a year-on-year basis. Almost all sectors surveyed in the GfK TEMAX Western Europe contributed to this strong result. Photography was the only sector that experienced a further severe decrease. On a country level, Germany, the UK, Portugal, and Greece were in good shape.
In the third quarter of 2014, the Western European market for Small Domestic Appliances achieved the highest growth of all the sectors, rising by 9.8%, up to €3.2bn. In particular, double-digit growth in Austria, Portugal, Germany, and the UK were responsible for this development. Alongside kitchen machines, electric toothbrushes and premium vacuum cleaners (such as rechargeable handhelds, robots, as well as bagged and bagless cylinder vacuum cleaners) double-digit growth is coming from various further product groups. Above average growth was generated in the personal care appliances segment. Hair dryers, hair styling products (hot air stylers, tongs), beard trimmers, 'multi-grooming kits', as well as laser/IPL appliances all showed a vivid upward trend. In addition, classic kitchen appliances such as kettles, toasters, and liquidisers showed positive results. Growth was also registered in further important markets such as entry-level espresso machines (fully automatic and single-serve), irons (traditional steam irons, generators), and men's shavers. Increases in the Western European Small Domestic Appliances market were apparent across a broad range of products.
With an increase of 5.4%, the Major Domestic Appliances market continued its growth trend in the third quarter of 2014. Between July and September, a sales volume of €8.2bn was generated. All countries except for Belgium contributed to that result, and all product groups recorded growth. In particular, a growing demand for dryers with heat pump technology was registered. However, prices - especially for built-in appliances - fell slightly, except in the UK and the Netherlands.
Compared to the same period of last year, the telecommunications market in Western Europe generated a sales increase of 5% in the third quarter of 2014. The total turnover amounted to €11bn between July and September. The market was mainly driven by Belgium, Portugal, and Greece with Germany and Spain also reporting strong growth. Smartphones experienced a decline in average prices and became more affordable. This presents a significant challenge for manufacturers and retailers, while consumers are benefitting. Retailers, however, are increasingly able to sell smarter and more expensive accessories with mobile devices. These include wireless chargers, smart cases, and headsets that provide excellent sound quality.
In the third quarter of 2014, the Western European market for Information Technology grew by 4.9%, up to €13.1bn. The positive development was driven by a cyclical replacement of Windows 7 products, and the end of the support period for Windows XP. Appliances, which combined mobility with appealing design, were especially sought after. While media tablets with big screens, tablet computers and ultra-mobile devices registered positive growth rates, media tablets with screen sizes below 8 inches faced market saturation for the first time.
In the third quarter of 2014, the Western European market for Consumer Electronics continued its positive development. Between July and September, the turnover amounted to €6.9bn, corresponding to an increase of 3.4%, compared to the same period last year. Indeed, it seems that consumers are rekindling their interest in Consumer Electronics. They sought out larger screens - above 50 inches, with excellent display quality (4k/UHD) and internet connection with their TV. Having access to new content - for example, American TV series, or the latest blockbuster movies via the internet - watching TV has returned to being in fashion with consumers. In addition, the audio segment also continued to grow as consumers wanted to have their music on smartphones and linked to hi-fi speakers at home.
The Office Equipment and Consumables market faced a slight fall of 0.8% in the third quarter of 2014. This was mainly caused by France's double-digit drop, while almost every other country surveyed in the GfK TEMAX Western Europe generated growth. Sales volume between July and September amounted to €3.6bn. In particular, returns in the printing hardware segment were disappointing with inkjet and laser single printers, as well as inkjet multifunctional devices (MFDs) under pressure. Only laser MFD colour printers continued the positive sales development. Many newly launched business ink products - with higher prices than in the traditional inkjet printing segment - gave hope for a fresh growth impulse in the coming months.
The photography product groups surveyed in the GfK TEMAX Western Europe recorded a double-digit fall of 14.9%, down to €1.4bn. This development was again reflected in all the countries surveyed. However, in the last month - around the time of the Photokina fair in Germany - an increasing demand for cameras was noted. This was apparent among the 'camera upgraders' and reflected stable, but slowly increasing prices. No other digital industry was able to show this. The market for compact system cameras (mirrorless, changeable lens cameras) also grew significantly. Further growth potential was also seen for cameras with larger sensors and 'travelzoom cameras', which registered stable returns.
* Photography includes cameras and accessories
The Western Europe Technical Consumer Goods market increased its sales in the third quarter of 2014, compared to the same period last year, and continued the positive growth trend. This was especially impressive, given the unstable economic environment.
Additionally, in almost every state of the European Union, results underperformed both the expectations and the forecasts of economic institutions and governments. Results of the GfK Consumer Climate survey for the third quarter of 2014 also showed that European consumers are not as optimistic as they were in June. However, the development of the GfK TEMAX Western Europe demonstrated that consumers still like to buy products. If the positive consumer mood continues in the last quarter, business around the Christmas season should be good.
Please note Telco figures are with non-subsidised prices from Q1 2013 onwards. Back data were reworked accordingly.
The survey
GfK TEMAX is an index developed by GfK to track the technical consumer goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK. The retail panel comprises data from over 425,000 retail outlets worldwide. Since 2009, GfK has also been compiling the GfK TEMAX index at international level in more than 30 countries. It is the first index that includes all of the markets for technical consumer goods in different countries.
GfK TEMAX Western Europe directly includes the following countries: Germany, Austria, Belgium, Spain, Netherlands, Portugal, Italy, France, Greece, UK and Sweden. All directly included country reports and press releases are available at www.gfktemax.com. Besides them, Denmark, Finland, Norway and Switzerland are represented by extrapolated data.
Source: GfK TEMAX
The GfK Association was established in 1934 as a non-profit organization for the promotion of market research. Its membership consists of approximately 600 companies and individuals. The purpose of the Association is to develop innovative research methods in close cooperation with academic institutions, to promote the training and further education of market researchers, to observe the structures and developments in society, the economy and politics that play a key role in private consumption, and to research their effects on consumers. Survey results are made available to the membership. The GfK Association is a shareholder in GfK SE.
Go to: http://www.gfk.com
