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Once again IFA 2023 was the place to be seen for all technology brands and not just those from the CE category. With the show sold out across 26 halls covering 130,000 sqm of exhibition space, filled by 2059 brands from 48 countries, there is no other show that competes. IFA 2023 affirmed its position as the de facto CE showcase, forecasted to host 180,000 visitors from 144 countries over 5 days.

The fact that we have witnessed all markets contract in every category, shrinking by an average of 7% and in particular CE which is down 12.4% globally. The EU market outlook is looking increasingly positive at a more palatable contraction of 4.5% year on year. No doubt this is making the rest of the world a bigger problem for those whose presence is not as prevalent in the EU market, compared to other brands. The economic reality is that the globe is in a  Polycrises, a simultaneous occurrence of several negative global events such as war, extreme weather events, food and energy Inflation which is compounded by increased Interest rates and social unease, unsurprisingly stops people from spending. Therefore the need for a brand to increase its voice rather than remain silent is critical and to do this with a new perspective. Doing so through a new lens that better understands the pain points consumers are experiencing and appeals to the user’s pleasure points. Perhaps achieved through ethical practices, practical time and cost-saving innovations that help ease the pain on a macro level, rather than add to the global situation. That’s why IFA as a cultural hub, is so much more than an exhibition, its place is essential to the industry as the centre stage for the globe’s CE brands not just to brag but to demonstrate how to solve the problems we share as we coexist on this planet. Making IFA a core ingredient in the evolution of the consumer electronics industry.

All brands, big and small, were in attendance with 350 of those 3059 brands being CE startups from across the globe. These included all manner of concepts and categories and there were several robotic floor care startups displaying and showcasing, however, one that caught my imagination was Dreame’s Revolutionary Flagship Robotic Vacuum L20 Ultra with Industry First AI-Driven Mop Extend™. Which is definitely worth a look. However one of my most memorable chats was with the haircare brand SharkNinja and its ultra compact SpeedStyle hairdryer. The irony is, as a follically challenged man, I’ve not owned a hairdryer for 30 years yet I was enthralled by its functionality, design and huge potential consumer appeal, it’s going to be a Christmas wish list essential item.

The themes were consistent across every manufacturer and focussed on Sustainability – Renewables – Connected by AI and  Premium. Let’s start with the latter as while aspiring to be a premium brand is admirable there, in relative terms, there can only ever be a few brands who genuinely sit in the category otherwise it defeats the terminology of ‘premium’. It’s down to the consumer’s perception of what constitutes premium based on how much they are prepared to pay for your products and brand. What you and I may think of as being premium may well not be the view of others and is likely to vary greatly, depending on whether you’re Gen Z or Gen X.

These generations and to be fair, everyone now, wants quality as standard and brought to them at a reasonable price, as well as being produced ethically in all aspects including the manner in which those products are brought to market. Whilst GfK expects the global CE market to still be in the red by the end of this year, the trend is for consumers to replace appliances, as home tech becomes increasingly more innovative, making even those devices and appliances of five years ago look exceptionally dated in look and functionality. Today many want technology which most now consider commonplace in the home, not luxury or the unattainable.

Almost all appliance brands included smart connectivity in their product line-ups presented at IFA 2023, which enables you at a basic level of connectivity, to control your appliance from your phone, hub or television. Personalisation is the next step in the development of your smart home where you can not only change the panels and the lighting of your cooling appliances such as the LG MoodUP Instaview Freezer but also create your own wash program and save it as your personal wash cycle as LG have also done as part of their wider LG THINQ UP 2.0 concept. Taking cooking to new levels of perfection as Haier has done with the ID series featuring a unique style and the exclusive Bionicook technology. With the ID Series, you can not only view what’s cooking in your oven with its built-in camera but also see it on your phone or TV and the built-in screen on the oven’s facia. It’s opening up the options for personalisation in your home tech to meet the needs of the household to a unique level of personal satisfaction.

Combine this with AI, assisting in noting your trends on laundry, cooking and cleaning, which enables it to update the software on your connected appliances as you would update the apps on your phone or tablet. The AI functionality improves the efficiency of, for example, a more effective wash cycle so that it uses less energy while still giving you a great wash thanks to the connectivity and the hOn app which allows users to get the most out of their Candy Machine. Increasing innovation and enhancing sustainability credentials which for many brands also extends throughout the entire product, and not just its materials. With almost all brands now adopting a policy where a percentage of all products are made utilising recycled materials and not just its packaging. At the forefront of this message was both LG and Samsung who were championing this throughout their product categories. Taking the initiative a step further, linking these credentials into the aspirational brand qualities, which many consumers are now looking for in a true premium brand.

So what’s different this year is that people are asking more questions and drilling down on the specifics. While 74% said they will search online before buying, search data also shows sustained growth in terms containing questions — up 25% compared to the past three years during the same period — and searches for “which is best” and “where to buy” continue to garner momentum in the shopping category on Google Trends. Those searching online, we know like to shop in-store when it is a considered purchase. So make sure you feature on that where to buy ist.

Whilst the wealth of bands at IFA 2023 were vast, you could not miss one brand in particular whose branding adorned the neck of almost everyone with its very clever lanyard sponsorship. That brand was Hisense who was this year, IFA’s headline sponsor and gave the opening keynote delivered by its Global President,  Fisher Yu whom also announced the brand’s sponsorship of the Euro 2024 Football tournament due to be held in Germany. When you are a brand that not only makes TV but also appliances and applications, it’s easier to integrate your devices and with VIDAA at the heart of the ecosystem, Hisense products and its fellow brand stable mates can integrate via the VIDAA interface making the TV in your home, the hub of the household that connects your smart home ecosystem. Making the screen the focus of your living space where you control your appliances around the house via your Smart TV. With ViDAA now in 180 countries and connected to 22 million devices, the task for Hisense is perhaps slightly easier than it may be for other brands in the CE sector. Coupled with the shift from content to services the next step is how to monetize this conversion and its integration with responsive and predictive AI, to further enhance the user’s experience and lifestyle. Easier done when you own the platform and make the devices it connects to.

It’s fair to say that the outlook for retailers is exciting with increasingly more innovation in all categories and an enhanced social responsibility tone that now takes on many more subject matters. These include AI and sustainability which are now common parlance in the sales approach by brands to their target consumers, old and new. For those amongst us who ignore the trends that come out of IFA, do so at some risk, as these trends will inevitably become standard messaging across every category and brand within the year, not the distant future. It’s crucial for the success of all within the industry to embrace, understand and develop these trends to create meaningful consumer conversations.

To read the published article written by Dan Todaro, Managing Director please visit ERT