Home appliances revolutionize home life. We now offer seamless connectivity and advanced automation for convenience and efficiency. With advancements in smart technology, we expect to see more and more appliances seamlessly integrated into interconnected homes, offering unprecedented automation and customization.
More and more manufacturers and consumers are turning to home appliances that can reduce energy and water waste. The new generation of consumers is very environmentally friendly and more concerned about the issues of the planet.
With over 30 years of experience working with electronics, mobile, and appliances and researching current trends, I believe that two key technologies are likely to increasingly shape the future of consumer electronics. a) Combination of AI and IOT, b) Brushless Direct Current Motor (BLDC)
Most smart devices are based on a combination of AI and IoT technologies. Such technology allows consumers to easily communicate with their devices remotely. You can automatically turn on your home's lights and air conditioner before you get home, or adjust the speed of your smart fan at night according to your customized settings. All these features are thanks to modern technology.
Brushless DC motors ultimately save even more energy. These motors are brushless, so they utilize maximum power without wasting energy in the form of heat. Therefore, it provides more output than traditional home appliances.
Gesture control and voice activation are also the way forward.
From large appliances to small appliances, consumers are looking for smart devices that provide a smooth and easy user experience. From smart fans to mixer grinders and coffee machines to body care appliances, AI is being integrated into many devices to provide consumers with scalable and personalized experiences.
As awareness of environmental issues increases, it is essential that technology starts focusing on energy efficient and sustainable home appliances. Energy Star rated home appliances consume less electricity and emit less greenhouse gases. There have been significant advances in the materials and design of home appliances. However, more attention needs to be paid to reducing the environmental impact of disposal and manufacturing.
The smart appliances trend is only gaining momentum as technology advances and startups continue to disrupt industries with innovative products. Big companies will follow suit, and smart appliances will eventually become a staple in homes around the world. For tech-savvy individuals, working couples with busy schedules, and small families, smart appliances can provide valuable assistance without the need to hire expensive support.
The ultimate vision is a fully automated home, where smart home appliances work together seamlessly to independently manage household chores and daily tasks, revolutionizing our lives. From managing energy consumption to optimizing cooking processes, these innovative devices increase convenience and efficiency. The era of smart home appliances promises a future where household chores are easier to manage, giving us more opportunities to enjoy life to the fullest.
Premiumization is a trend that is gaining momentum globally, be it in housing, automotive, appliances, mobile, electronics or any product category. A certain percentage of users are willing to pay extra for a better experience, convenience, connectivity, and energy efficiency. Not only will new markets grow as newer, more energy-efficient products emerge, but there will also be strong replacement markets for older appliances.
In the long term, premiumization can be a difficult strategy to sustain forever, so be careful.
Industry players will need to debate between sustainability and technology leadership strategies in the consumer electronics market. Sustainability is more than just a buzzword. It is everyone's responsibility to protect our planet for future generations. Therefore, many manufacturers keep this in mind when designing their products, and consumers prefer to buy sustainable products due to increased awareness.
Sustainability is no longer an option for companies that want continued access to markets. Many countries require manufacturers to comply with carbon regulations. This is done to prevent companies from outsourcing their carbon footprint.
The EU's Carbon Border Adjustment Mechanism (CBAM), which comes into force in 2026, will require importers into the EU to purchase certificates that cover the same level of emissions costs as EU manufacturers.
But strangely, the appliance industry is still primarily focused on selling hardware. Service, as understood in this industry, typically means maintenance, repair, or replacement of equipment.
I think we need to seriously reconsider this relationship. They need to focus on the specific services consumers want, such as personalized health and enhanced experiences. Investing in services requires a different mindset and business model. You can build an entire ecosystem of partners, delivery systems, and payment systems. For premium products, services are typically offered through subscription-based plans with recurring payments and service via a mobile app, rather than a one-time sale. The new generation is already accustomed to such models through mobile phones.
The service also has the unique advantage of being highly profitable and continuous. No one looks forward to their next appliance repair.
While many brands operate and sell under one global brand name, some organizations have multiple brands under their umbrella. There are no right or wrong answers. It depends on the situation, strategic direction, and tactics used in the field to allow the company to maximize the profits of the chosen direction.
For now, brands and new entrants in the lower to mid-range categories will need to re-strategize, targeting smaller towns as well, with an initial push through online channels.
Competition from unorganized players is always a major challenge for consumer durables brands. In this particular category, after online growth, gray players often offer lower-cost alternatives imported from other countries with untested quality standards. These companies undermine companies that adhere to quality standards. Such products pose significant hazards and risks.
Overall, the next few years look good, but margins will remain under pressure and inflationary pressures could slow premiumization growth.
(The author is NIRANJAN GIDWANI, Consultant Director | UAE Superbrand Council Member | Charter Member TIE Dubai | HBR Advisory Council; the views expressed in this article are his own)