The Asia Pacific market for Technical Consumer Goods (TCG) faced challenges in 2022 due to the impact of the global economic situation, with inflation being a major concern. However, GfK predicts that 2023 will be a stable year with revenue growth driven by value-seeking consumers. Brands and manufacturers need to focus on inventory management and pricing pressure to achieve a competitive advantage.
To stand out in the market, brands should prioritize agility in production cycles and innovation in product offerings and marketing. This will lead to the creation of smart devices and premiumization of product offerings. The Indian and Southeast Asian markets, particularly Malaysia, Indonesia, and Vietnam, continue to offer opportunities with stronger growth, following the loosening of lockdown restrictions.
Sales of photo products are expected to grow with the post-pandemic tourism recovery, especially in Singapore and Malaysia. The gaming industry is also expected to see growth in 2023, with Southeast Asia displaying strong potential as a market. Online channels continue to outperform offline ones for IT products and office equipment sales in Emerging Asia.
Sustainability is a key trend in the TCG sector, with environmentally-minded consumers prioritizing it. Brands can charge more for being environmentally conscious, and communicating sustainability actions is essential to connect with such consumers.
In conclusion, brands and manufacturers can take advantage of the opportunities and favorable external forces in 2023, including a tourism recovery in the post-pandemic world, a decrease in transportation and shipping costs, and the opening of the Chinese economy. By focusing on product innovation and differentiation, brands can increase their profits in the Asia Pacific TCG market.
19 April 2023
