The consumer electronics business is like a roller coaster ride. After a slight downturn in 2020, Corona is heating up sales considerably. Then sales collapse. The industry is now aiming for normalization.
After a slump in sales last year, the consumer electronics and household technology industry is expecting better business again. The companies that are represented at the electronics trade fair IFA are increasingly relying on environmentally friendly solutions and devices that can be used much longer than today.
Longer Life Cycles
The trend towards sustainability also goes back to European specifications for replaceable batteries and devices that are easier to repair, said the head of the consumer audio business of the electronics group Harman, Carsten Olesen, the German Press Agency. “In the long term, product lifecycles will be much longer than they are today.” The industry will have to find a way to refresh the devices with upgrade packages. This also requires a modular design of the technology, in which individual parts can be easily exchanged. With today’s networked electronics, the software can be updated via the Internet anyway.
The IFA, which opens its doors to visitors on Friday (September 1st), has set up a central place for this mega-topic on the exhibition grounds. In the “Sustainability Village” everything revolves around green innovations and new sustainability solutions. Sustainability is also a priority in the networked home: In the “House of Smart Living”, the industry associations VDE, ZVEH and ZVEI show how energy can be saved with the help of building automation and what contribution electrification, digitization and modern building technology can make to a climate-neutral future .
Sustainability as a purchase criterion
A study by the market researcher GfK shows how much sustainability has become a purchase criterion: According to it, energy efficiency is even a purchase decision in some segments: This applies to around 64 percent of refrigerator buyers. At the same time, durability, repairability and guarantees are important factors that appeal to consumers. Offering these at affordable prices could become a key success strategy for the future, GfK announced.
Just in time for the start of the IFA, the Dutch smartphone manufacturer Fairphone demonstrated what sustainability can look like in concrete terms. The new Fairphone 5 is completely modular. Not only can the battery be replaced without any tools, but ten other spare parts can also be changed. For example, the wide-angle and ultra-wide-angle cameras are available as individual modules.
At the same time, the manufacturer has improved its suitability for everyday use. Although the device is not completely dust and waterproof like smartphones from Apple, Samsung & Co., it can withstand a rain shower or other splash water (protection class IP55). The Dutch also focus on sustainability when it comes to software. Fairphone guarantees at least five operating system upgrades after Android 13, so the Fairphone 5 is secured until at least 2031. Fairphone grants a 5-year warranty on the hardware.
However, the Fairphone 5 example also shows the other side of the coin. The company pays well for the improvements over the previous models. The new model now costs just under 700 euros, 120 euros more than the Fairphone 4. Fairphone is thus following the trend that consumers buy a new smartphone less often, but are then willing to spend more money on the new device. With other manufacturers of top-of-the-range devices with faster chips and better cameras, such as Apple or Samsung, the prices are often even above the 1000 euro threshold.
More exhibitors than 2022
The industry cannot rely on customers having the financial leeway to buy expensive gadgets. “2023 is also a year full of challenges such as inflation, saturated markets, lower demand and unfortunately still the war in Ukraine,” said Sara Warnecke, Managing Director of the IFA organizer gfu Consumer & Home Electronics. At the start of the technology show, she said there were still opportunities for positive developments – despite the current decline in sales and the negative influences. “We are convinced that the IFA will once again live up to its role as the world’s most important platform for consumer electronics and home appliances and, with its convincing mix, will once again prove itself to be a sustainable driver of growth and innovation.”
For the fair itself, at least this year, the concept is working. The IFA Berlin, Europe’s largest trade fair for consumer electronics and household technology, is starting with significantly more exhibitors than in 2022. According to the gfu, the trade fair is fully booked this year.
Source: Stern
