Current data from Nielsen indicates that the domestic electronics market is experiencing a period of structural changes. While brick-and-mortar stores saw a year-on-year decline of almost five percent in April, online purchases continue to strengthen. The online segment grew by approximately two percent, reflecting consumers' increasing efforts to save money and seek out the best deals.
Consumers are currently much more cautious when purchasing technology. Instead of large investments in televisions or high-end smartphones, demand is growing primarily for small household appliances. Products that save households time and increase daily comfort, such as robotic vacuum cleaners, air fryers, coffee makers, or various types of kitchen aids, are becoming increasingly popular.
Smartphones: Pragmatism prevails
The change in purchasing behavior is also evident in the mobile phone segment. According to data from operator Vodafone, Czechs are approaching the selection of a new device much more pragmatically. The main criteria are price, functionality, and overall utility. An interesting trend is the shortening of the usage period for a single device.
“While ten years ago, Czechs used one phone for an average of about five years, today it is approximately three years,” states Vodafone's statistics.
Despite the overall market slowdown, some retailers, such as the PLANEO chain, report growth in the higher single digits for smartphones and televisions. However, a clearly perceived benefit or technological innovation is a prerequisite for a purchase for the customer.
Showrooming and discount hunting
The purchasing process is increasingly divided between physical stores and e-shops. People use brick-and-mortar branches to view and try out goods, but then complete the order online, where they can more easily compare prices. The purchase planning phase has also significantly lengthened.
“We see that people are much more concerned about timing their purchases and actively waiting for promotional offers,” explains Dominik Dolejš, Marketing Director at PLANEO. Consumers are willing to pay extra only if the technology brings demonstrable energy or time savings.
Overall, the electronics market is stabilizing after fluctuations caused by the pandemic and high inflation. Factors such as energy efficiency and product longevity, which previously did not play such a crucial role, are now coming to the forefront.