2023 will be marked by stability, with revenue growth driven by value-hungry consumers, according to market research firm GFK.
In 2022, the Asia Pacific Technical Consumer Goods (TCG) market faced multiple challenges, due to the global economic situation, such as rising inflation and costs. Despite these difficulties, the region’s relative stability presents opportunities for growth in 2023.
Research suggests that, to gain a competitive advantage in the face of these challenges, TCG brands and manufacturers must focus on inventory management, pricing pressure, agility in production cycles, innovation in product offerings and marketing. They should prioritise the development of smart devices and the “premiumisation” of product offerings to ensure sustainable growth.
GFK reports that the Indian and Southeast Asian markets, especially Malaysia, Indonesia and Vietnam, are expected to continue to show strong growth. Sales of photo and gaming products have increased in these regions, alongside the post-pandemic recovery in tourism.
The gaming industry has been a major beneficiary of the pandemic, with the lockdowns creating new gamers.
Online sales continue to grow across all sectors in emerging Asia, with online channels outperforming offline ones for IT products and office equipment.
Sustainability is a crucial trend in the TCG sector, and communicating sustainability is essential to connect with environmentally minded consumers. Brands can also charge more for being green, which resonates with consumers who prioritise sustainability.
Looking ahead, brands and manufacturers can benefit from more opportunities and favourable external forces in 2023.
The tourism recovery post-pandemic, a decrease in transportation and shipping costs and the opening of the Chinese economy will enable growth, with product innovation and differentiation, leading to higher profits.
