Delhi/Mumbai- 22nd November 2024: NielsenIQ (NIQ), the world’s leading consumer intelligence company, has released its State of Tech & Durables (T&D) Report powered by GfK intelligence. According to the report, the Tech & Durables market showed improved dynamics in 2024.
The first three quarters of 2024 (Jan-Sep) presented a mixed picture for the Global Tech & Durables (T&D) market. As consumers moved from cautious to intentional spending – sales value growth turned positive for smartphones, while all other sectors experienced negative growth, leading to the overall market being flat over previous year.
In contrast, the Indian T&D offline retail market registered a 10% value growth (YoY, Jan-Sep 2024), while volumes remained flat. Consumers have increasingly gravitated toward products offering convenience, connectivity, and sustainability. The flat volume growth, however, signals a significant shift toward premium, feature-rich products providing more than just basic functionality.
“The Indian T&D market remains strong, driven by consumers’ demand for higher-end products with sustainable features,” said Anant Jain, Head of Customer Success – Tech & Durables, NielsenIQ. “This growth is fueled by the shift toward connected, feature-rich appliances and smartphones, with a clear preference for products that offer both convenience and long-term value. The festive period also contributed to this growth, with more consumers timing their purchases to benefit from promotions and special offers.”
Source: NielsenIQ-GfK T&D Market Intelligence, Offline Retail Sales – Jan-Sep’24 vs Jan-Sep’23
The Indian growth story continues in Q3’2024 (July-September)
In Q3 2024, the offline retail market for Tech & Durables saw a 6% value growth, driven largely by the appliance sector. Telecom, the largest contributing category, recorded 7% value growth in Q3 2024 compared to Q3 2023. This uptick signals that consumers are opting for more expensive, feature-rich, and 5G-enabled smartphones. The IT category witnessed 5% volume growth and 2% value growth in Q3 2024. Consumer electronics also posted both volume and value growth during this period.
The large format retail channels saw significant traction in Q3’24, contributing 37% to the overall T&D market.
Source: NielsenIQ-GfK T&D Market Intelligence, Offline Retail Sales – Jul-Sep’24 vs Jul-Sep’23
Smaller cities driving growth
Smaller cities are emerging as key growth engines for India’s T&D market. In Q3’24, Town Class 3 witnessed a 9% YoY value growth, surpassing Town Class 1 (6%) and Town Class 2 (5%) cities. Town Class 4 and above also showed a 3% value growth, where media tablets grew by a whopping 90% in Q3’24.
Factors such as rising incomes, greater internet penetration and increased aspirations are driving consumers in these cities to spend more on everything from essential goods to premium products. For brands aiming to expand, tapping into this growing demand is not just an opportunity but a necessity to stay competitive in India’s dynamic market.