Department store| The 5 most profitable trends in the electricity industry

The major home appliance industry continues to evolve to keep pace with changing consumer needs。Department storeUnderstanding that factors such as new appliances, innovative technologies, new brands that are constantly entering the market, new contemporary interior and design trends, or the latest channels through which consumers choose to browse and shop are all playing a role in shaping the industry。

In 2023, the global sales of large home appliances exceeded 6.With 6.8 billion units, the market is more competitive than ever, and retailers need to keep up with these trends to secure market share。Without the right approach, it's easy to see these trends as challenges to overcome。In this article, we will explore how large appliance retailers are shifting their mindset and observing upcoming trends。By staying on top of industry trends and adjusting their strategies accordingly, major appliance retailers have the opportunity to increase brand awareness, win loyal customers, increase profits and expand into new markets。Trends in the industry come and go, so which trends have a temporary impact on the market and which trends are long-term？

Smart devices and interoperability

The demand for smart home appliances has grown dramatically over the past few years。But why is it growing so fast？There are a number of reasons for this increase, including the impact of the COVID-19 pandemic worldwide and stay-at-home guidance from governments around the world, which in turn has led many families to have more disposable income due to less travel and socializing。With the global population continuing to grow rapidly, and millennials now starting to enter the property market, there has also been a huge leap forward in home building - but we'll get into that in more detail later...

As consumers spend more and more time in their home environment, they are also increasingly looking to incorporate more comfort and luxury into their homes, and often want to live a more connected lifestyle with the help of smart technology and home appliances。

The global chip shortage is also increasing the demand for smart appliances (to learn more about how this affects the large appliance market, click here)。Semiconductor manufacturers simply can no longer keep up with retailers and consumers' demand for chips。Chips are no longer just for laptops and cars, they are also needed for all kinds of devices, including smart appliances such as ovens, washing machines and refrigerators。This demand for chips has led to an inventory shortage of smart appliances, which are in greater demand than ever before。

For consumers who install these devices, interoperability is key to ensuring greater effectiveness and functionality within the home。The ability to connect a large number of smart devices and control them through a simple platform or app is exactly what consumers are looking for。Innovative features such as Bluetooth and WiFi syncing are just some examples of how retailers and brands are integrating smart technology into their devices。

When providing this information to consumers, retailers need to include these specific information details about interoperability and technology features on their product listing pages to help attract customers to the latest technology and encourage purchases。

Growth in the millennial market

This generation is increasing its market share in the large home appliance industry。why？As they begin to climb the property ladder across the globe。According to new research, the Department Store found that more millennials (those born between 1980 and 1998) are now buying homes than any other generation, and their share of the home-buying market will only continue to grow。What's more, while millennials are starting to buy new homes, they are also considered to be the generation buying homes so they can have pets。Traditionally, people buy homes to start a family, but a growing number of landlords refusing to house tenants with pets, coupled with the increasing cost of pet deposits, has led millennials to buy instead of rent, all in an effort to house their furry friends。It's called the "DINKY" concept - double revenue, no kids - and it presents a very lucrative opportunity for retailers in the big appliance space。This generation may be more willing to spend their disposable income on their families。For example, a full-time working millennial couple with a house and a dog typically has fewer mouths to feed and more money to spend on big-ticket items like large household appliances。

To capture this trend, retailers need to analyze millennials' preferred shopping channels and sales behaviors and adapt their marketing strategies accordingly to successfully target and engage potential buyers。But retailers need to keep in mind the fact that they are appealing to a digital-native demographic with higher expectations for an omnichannel customer experience。This means that regardless of which channel consumers choose, retailers need to ensure a smooth, seamless and consistent experience。

Rise of market

When it comes to buying directly from a brand or using a marketplace platform, 88% of consumers would prefer to buy directly from a brand if given the choice。However, fewer and fewer consumers are choosing to buy directly from brands when buying refrigerators, washing machines, etc。Instead, consumers are choosing to take advantage of sites like Amazon and Best Buy。Large appliances are Amazon's most profitable category。The latest figures show that large appliances top the list of earners, with Amazon sellers earning the highest average monthly income at £364,000。This trend is due to a variety of factors, such as the fact that marketplaces tend to offer products at a slightly lower cost compared to brands' own websites。Amazon, for example, has some of the cheapest prices on the market for major appliances - it's such a huge global company that it has the ability to sell a lot of products at lower prices and still be able to make a profit。The company has also invested heavily in data tracking technology, so it has always been able to ensure that its prices are lower than market competitors。It also means that the market can offer cheaper and better after-sales service for the products it sells to attract consumers。

Another key advantage of using the marketplace to buy large appliances is that they can be better compared to other products on the site。If you are a consumer who wants to buy a washing machine, if you visit the Whirlpool website, you can only browse the brand's product range。However, if you go to Best Buy to buy a washing machine, the site will show you not only Whirlpool washing machines, but also a ton of other brands。This allows the marketplace to offer true comparisons across brands and product ranges, giving consumers more choice and facilitating greater purchases。

In response to this trend, retailers can add more features to their websites, such as comparison buttons, to allow consumers to compare products across sites and models。However, they also need to remember that personalization plays an important role here。Retailers should ensure that the products they offer for comparison are relevant to consumers' needs and Browning history, as this is what the market excels at。Providing appropriately targeted information and offers designed to appeal are just some of the ways retailers achieve this。But that's not all - major appliance retailers also need to consider reducing any friction that may exist in the purchase path。Retailers can allay consumer concerns that may discourage purchases by providing detailed information about returns and guarantees, among other things, and ensuring that the information is consistent and easy to find across channels。

Refocus on sustainability

Now that the trend toward bacteria and cleanliness triggered by the global pandemic is beginning to fade, consumers are turning their attention back to sustainability。Sustainability remains an important consideration for consumers, with 32% of consumers highly engaged in adopting a more sustainable lifestyle and 28% having stopped buying certain products due to ethical or environmental concerns。Gen Z are acting more sustainably than any other group - they are buying 50 percent less and 45 percent have stopped buying certain brands because of ethical or sustainability concerns。The research shows that consumers clearly want to do their part to ensure a more sustainable planet for future generations。However, as far as the large appliance industry is concerned, there are some interesting findings around appliance efficiency。While it is true that consumers are looking for more energy-efficient appliances, the greater appeal of energy-efficient appliances is not the reduction of emissions, but the reduction of energy costs。 A recent Morning Consult poll found that 76 percent of respondents said they considered energy efficiency when purchasing appliances and cited saving on electricity bills as the primary reason for doing so。At the same time, only 46 percent of respondents said that reducing greenhouse gas emissions associated with their consumption has a significant impact when considering the energy efficiency of appliances。However, the reason why the final consumer chooses to buy energy-efficient appliances over conventional appliances is not important。The result is that demand for them is high and will only continue to grow, so both retailers and brands need to make sure they redouble their efforts to capture market share。Consumers expect to see information such as EPC ratings on product pages。But retailers can go beyond best practices at the product level to ensure they also leverage best-in-class ESG (Environmental, social and governance) strategies to support a healthy and sustainable planet。

Cross-industry cooperation

More and more retailers are signing M&A deals to increase the value of their products, and the same applies to large appliance retailers。Tovala, for example, is a smart oven and meal kit service startup that wants to help consumers cook a wider variety of healthy meals。Consumers who buy one of the ovens and sign up for a meal plan can choose from a range of meals each week and then simply scan and cook。This is a perfect example of how retailers can engage in cross-industry collaborations that lead to great benefits, such as increased product value, which in turn increases overall sales。This shift to greater collaboration presents significant opportunities for major appliance retailers。This is a win-win situation for all parties involved, as each partner can show their collaboration on certain products to consumers online。Presenting this information directly to consumers may encourage potential customers to complete the purchase because the brand is offering more than just the product itself, they are up-selling through other industries or companies。

It's not just collaboration between products that is increasing, more and more retailers are also choosing to share data。Cross-industry data collaboration is driving innovation across industries。Major appliance brands seeking to develop new products require input and information from multiple sources。The Department Store noted that a recent research paper on cross-sector partnerships found that many of these sources extend not only beyond the boundaries of the organization, but also beyond the industry of the organization。In manufacturing, for example, companies are using artificial intelligence to manage supply chain disruptions。Using data from outside sources on weather, strikes, civil unrest, and other factors, they can get a comprehensive picture of supply chain issues, thereby reducing risk early on。Major appliance retailers will benefit greatly from this cross-industry data collaboration, as it means they can set more accurate expectations for customers and increase brand loyalty。