Top 5 key trends in 2022
By Nirupam Sahay, ED and CEO, Lighting and Consumer Durables
Surya Roshni
There is hardly any industry that the pandemic hasn’t adversely impacted over the last two years. Whether it be the travel, manufacturing, or hospitality industry, every industry has been facing turbulent times over the last two years. One major challenge during such volatile times was handling the supply chain disruptions. As we function in a truly global economy, manufacturing any product depends on sourcing done from different locations and its transportation to multiple markets. Apart from manufacturing and supply chain issues, the overall demand was also at an all-time low during this period.
But as life started returning to normal, the demand for Consumer Durables like multifunctional Fans, LED and Smart Lighting, and Home Appliances came back on track. The revival of demand in the last festive season resulted in double-digit growth. This pent-up demand due to increased work from home or hybrid working, better sustainable solutions, etc., will most likely bring the Consumer Durables industry into high growth and good profitability in 2022. Let’s look at some of the significant trends that will be the key focus for the year 2022:
Increase in Automation in Products: Current times have forced many individuals to spend more time at home, and manage their work commitments remotely. Now consumers are more interested in investing in technologically advanced products, including Smart Home Appliances and Smart Lighting. As a manufacturer, it is essential to understand that energy consumption is bound to increase; hence consumers will be looking for more energy-efficient products in the long run.
Affordable Pricing: Several people lost their jobs and had their wages cut as an aftermath of the pandemic, and many are still suffering. Consumer Durables firms will need to focus on cost innovation to build high-quality and Value for Money products. The era of need-based buying with no compromise on quality will dominate many industries in the next few years.
Eco-friendly products: Demand for Home Appliances, lighting solutions, etc. will increase due to improved electricity supplies and the rising incomes in rural India. While the Government is focussing on the rural markets and making them self-sufficient, it still comes with a lot of challenges. Though an evolving energy landscape has opened up many opportunities, products that can work with limited resources would be required by rural consumers. Rural market demand can be met by more eco-friendly and sustainable living solutions.
Make in India/Atmanirbhar Bharat Initiatives: One aspect of the global economy that was evident during the pandemic was our dependence on imports & exports. With the increased Government focus on “Make in India” and “Atmanirbhar Bharat” initiatives, one can expect many Consumer Durable products to be produced indigenously. Consumer Durables manufacturers will be looking for self-sufficient production and innovation techniques in the coming years. Production capacity is expected to increase dramatically with further help from the central and state Governments.
The Digital Transformation: Almost all brands are investing in various digital marketing initiatives. The digital revolution is dramatic and will keep evolving. Right from market research to product launches, brand campaigns to creating consumer awareness, almost everything has become an online experience. With a quarterly growth of 3.79% in internet users, it suggests that digital services will reach more and more consumers directly. Many businesses came up with creative ideas in 2020-21, including self-service videos, especially when people’s movement was restricted. Brands are more likely to keep the digital experience continued during the pandemic as restrictions become the new normal.
The year 2021 was tough indeed, with partial to complete lockdowns, physical & emotional distress, and hurting economies. Though demand picked up during the festive season, the continued challenges of increased costs and disrupted supply chains were major hurdles for manufacturers. The pandemic may have defined the “New Normal” for many; the Indian Consumer Durables market is expected to witness a paradigm shift in the months to come. Only the brands that are proactive in leveraging these trends will reap long-term benefits.
