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News Industry Viewpoint What’s on the menu this year at IFA? Sweet spots and sour spots – no it’s not a dish – it’s the technical consumer goods market. Hans-Joachim Kamp, Chairman of the Supervisory Board of gfu (Gesellschaft für Unterhaltungs- und Kommunikationselektronik) tells us how the market is performing as we arrive at IFA. Market analysts of gfu Consumer & Home Electronics expect 1.5% of worldwide growth in the Consumer Electronics segment for the year of 2015. This means an increase up to 790 billion Euros. Home Appliances will perform even stronger: Growth rates of 4% for the segment of large appliances and 4.5 percent for small electrical appliances are predicted. In Consumer nearly 27.5 billion Euros. In the market for Electric Appliances, Europe remains the growth driver. Which product categories are emerging as the most interesting for retailers, and why? We expect audio streaming devices, connected products for fitness, health and lifestyle as well as convenient products like vacuum cleaning robots benefit from their unique consulting expertise. Let’s look more closely at the TV market. What are the key trends? The 4k segment will continue to grow, including top-end ranges with HDR and extended gamut technologies. Also, curved screens will become even more popular. Smart TVs will benefit from advanced operating systems, higher computing power and, last, but not least, a wide range of new services. We expect audio streaming devices, connected products for fitness, health and lifestyle as well as convenient products like vacuum cleaning robots to be very successful Electronics, growth comes from the regions of Middle East and Africa, North America and the emerging markets of Asia. In Europe and the developed Asian countries, Consumer Electronics are expected to slightly decline. The market for consumer electronics products in Germany remains at a stable level of to be very successful. In a recent European survey, many consumers stated that they are willing to buy these innovative kinds of products within the next few months. This is also a great opportunity for skilled retail shops: Especially older customers who are not so familiar with setting up IP connections will strongly How will 4K TV evolve? What about content? Even TVs with smaller screen sizes from 40 “ on will provide 4k capabilities, so 4k will more and more become a common feature. 4k content will develop slowly, but steadily. Astra and Eutelsat, Europe’s leading Sat providers, have installed demo channels, Astra has even started a 4k shopping channel. 4k packed media based on the next generation of Bluray Discs are predicted to enter the market by the end of this year. And media networks like Netflix will continuously expand their range of 4k videos. Some are already predicting the onset of 8K TV later this decade. Isn’t that taking it too far? Where will the race for pixels end? From my point of view, 8k is not likely to enter the consumer market within the next decade (except perhaps the digital cinema). 8k technology addresses screen sizes far above convenient formats in normal living rooms. And 8k production is still a big challenge – in terms of technology as well as in terms of costs. The dynamics of the TV industry continue to change as China increasingly takes on importance. Where is that headed to your mind? China's growing TV market potential is a big challenge for many established brands from Japan and Korea. They will have to focus on their traditional strengths – such as product quality including superior usability and detailed knowledge of the local markets. Hans-Joachim Kamp Chairman of the supervisory board of gfu Why is IFA so successful do you think? With Consumer Electronics and Home Appliances, IFA combines the products of two industries that fit together perfectly. All the products shown at IFA can be found within the same stores and outlets. This makes IFA so attractive to trade organizations. At IFA 2015, they are expected generate an order volume of 4.25 billion Euros. Also, IFA takes place at the right time of the year, directly addressing the sales peaks during the holiday season. www.ifa-international.org IFA International • Monday 31 st August 2015 9
