The Importance of Knowing Industry Trends
Trends do not only refer to funny sounds and catchy music on social media. In the various business sectors worldwide, industry trends exist (and evolve) to help company owners understand and beat the competition. The same applies to the home appliance industry. If you own a household appliances industry business, you must always stay aware of rising appliance industry trends.
Trend awareness is the best way to identify new competition in the marketplace. It also allows you to see gaps in the same market and ensures that you sustainably grow your business.
8 Top Appliance Industry Trends for 2024
The consumer appliances industry is already trend-heavy in 2024. An appliance industry analysis revealed that the following trends are the ones to watch:
1. Smart Appliances and Interoperability
Smart home appliances are here to stay. Around 38% of homes in the U.S. have at least one smart appliance and this trend will skyrocket in 2024. Smart appliances allow homeowners and families to live a connected lifestyle within their homes. The interoperability of smart appliances makes a house function like a technological unit.
Homeowners can control their appliances via an app using Wi-Fi and Bluetooth. This means that if they want to, they can get dinner started while driving home from work. The home appliance industry is constantly working towards refining smart appliances and interoperability to appeal to more consumers.
2. Reduced Brand Loyalty
Brand loyalty is not what it used to be. Consumers switch brands at will, instead of only buying from one supplier. This is because sometimes an appliance from a lesser-known brand is immediately available when a well-known one is not.
And, often, an unfamiliar brand is simply much more affordable than a favorite one. Appliance businesses must offer a variety of brands that cater to different budgets.
3. Millennial Market Increase
Everyone is talking about the impact of Gen Z on the global economy. However, Millennials are at the forefront of buying new homes and filling them with smart appliances. People born between 1980 and 1998 continue to buy more homes in the U.S. than any other generation.
And, because Millennial families tend to be smaller, they have more money to splurge on upscale smart appliances. This trend proves that appliance companies must cater to the product demands of Millennial customers while offering a seamless digital buying experience.
4. Rise of the Marketplace
Regardless of the brand, 63% of consumers want to buy directly from the brand. But this excludes washing machines, fridges, and other large appliances. When buying these, consumers prefer online platforms like Amazon.
This trend mainly exists because these platforms sell large appliances at lower prices. They also offer comparison options because they host different brands. To make the most of this trend, create a highly functional website to punt your smaller smart appliances. Your website must also meet customer demand and offer targeted marketing.
5. Renewed Focus on Sustainability
Sustainability has long since ceased to be just another buzzword. Instead, sustainability must form part of any industry, including home appliances. Some consumers exclusively buy sustainable appliances to align with a greener lifestyle. Gen Z tends to stop buying from brands if they do not have a clear sustainability plan. The best way to appeal to this demographic is to implement ESG (environmental, social, and governance) strategies within your business.
6. Cross-Industry Collaboration
You can increase the value of your products with a cross-collaboration strategy. This trend is huge for many brands teaming up with washing powder brands and healthy eating startups to promote washing machines, refrigerators, stoves, air fryers, and more. By cross-collaborating with a trusted brand, you can increase brand loyalty in your business and expand your target audience.
7. Omnichannel and D2C Sales
More and more consumers are choosing to shop online. It is a trend that has been growing since the unexpected pandemic that threw economies into limbo in early 2020. As an appliance retailer, you must maximize your D2C (direct-to-customer) sales by using social media and other online channels. Furthermore, your business must have an omnichannel offering that includes online marketplaces, in-app buying, shoppable posts on social media, and live streams.
8. A Variety of Smart Products
Sometimes, the easiest way to stay on trend is to offer something other retailers do not. For instance, if many customers rave about your energy-efficient chest freezers, stock up on them. If you are the only retailer in your area selling green dishwashers, highlight this in your marketing campaigns. The wider the variety of your products, the more conversions you will get. This trend has guided many appliance businesses to stock the right products at the right time, increasing sales almost overnight.
Home Appliance Market Analysis and Forecast
Trends and other factors continue to shape the home appliance market of the future. The household appliances market in the U.S. is worth $58.33 billion as of 2023 and will explode in value by 2030 as homeowners’ disposable income grows. Experts believe the compound annual growth rate (CAGR) will be 7.1%.
A major factor in this exponential growth is the speedy pace of urbanization. To keep up with this, retailers focus on having products in stock and combatting labor shortages stemming from the pandemic. Moreover, bigger and better technologies ensure smarter appliances, driving market growth. As manufacturers introduce newer and more efficient appliances, consumer demand will propel this industry growth even more in search of sustainability, style, and functionality.
How Consumer Behavior is Expected to Change in the Home Appliance Industry
As trends change and evolve, so does consumer behavior. It is expected that consumer behavior will shift in the following ways:
Shifts in Purchasing Habits and Priorities
During the pandemic, people in the U.S. and worldwide lacked common comforts like eating out and traveling. So, to make up for this, they searched for products and appliances to make their home life more interesting. This trend reversed when restrictions were eased, with consumers instantly spending less. But the kicker is that they started spending more on fewer items. So, instead of buying four premium appliances, they would buy one or two with the functionality of four.
This shift in buying habits is still ongoing, albeit at a slower pace. Consumers are also looking for high-end features with their appliances that will continue to drive performance. They want appliances and smart products that are easy to use and will make their lives easier too.
Influence of Health and Wellness Trends
The pandemic also made people more aware of their health. Therefore, they are still interested in smart appliances that monitor health and well-being and collect data. As time passes, interest in these types of appliances will only increase.
For instance, consumers already love smart refrigerators that provide ideas for healthy eating. They also queue to buy smart ovens that automatically adjust cooking settings based on preference. The focus on mental and emotional well-being will continue to grow, with consumers looking for smart appliances that create a calming, meditative environment.
Importance of Brand Reputation and Trust
Consumer behavior has also shifted towards a preference to buy from reputable and trusted brands. Since consumers in 2024 are less inclined to buy on impulse, retailers must ensure that they transparently motivate purchases. Additionally, consumers want appliances that will last, that offer several functions and will be an upgrade to their existing products. And they will only buy these appliances from retailers they trust.
What is the Future of the Appliance Industry?
So, what does this all mean for the future of the appliance industry over the next 5 to 10 years? It means the U.S. appliance industry must do more to appeal to consumers. Currently, the Asia-Pacific region dominates the home appliances market. It is also the fastest-growing home appliance market.
For the U.S. market to get to the same level, retailers must work towards positive market share. They (and you) can only do this by appealing to the right consumer demographic, offering a personalized customer experience, and importantly, providing high-quality products.
Podium Can Help You Market and Sell Appliances Faster
At Podium, we know how crucial it is to compete with (and exceed) the best. This is why we designed our all-in-one lead management and communication platform in such a way that it gives home appliance businesses the edge over their competitors. With our textable review invites, you will get more reviews and, as a result, more leads and sales.
Our Website Leads feature allows you to direct lead information to your Podium Inbox. Meanwhile, our Marketing Text feature initiates two-way conversations (in bulk, if you wish, to stay connected with prospects and customers. Podium also offers an automated text feature that lets potential customers know you will contact them soon after an inquiry. Once you’ve converted those leads, they can pay for their purchases using our Tap to Pay platform.
Discover the Podium solution for yourself by requesting a demo or more information.
