Looking ahead to 2023, GfK Market Intelligence has forecasted long-term trends that will provide tailwinds for IT storage and peripherals. These trends include a focus on performance, simplification, premium features, and durability.
The demand for IT accessories and peripherals in India is expected to remain resilient, according to GfK Market Intelligence. The pandemic has stimulated demand for such products, as businesses and households adapted to enable remote working.
According to GfK Market Intelligence – Offline Retail Tracking for pointing devices covering eight cities and 19 state groupings within cities having >50,000 population, the pandemic has unleashed potential for future growth. What’s promising is that IT devices such as PCs still have less than 10 percent estimated penetration in India.
“In CY 2021, the IT device market saw record demand, and the momentum continued in CY 2022 with offline PC sales increasing by 27 percent compared to CY 2019. Several factors, including the growing importance of IT devices among the middle-class section, hybrid work culture, and enhanced awareness among the younger generation, have contributed to favorable market trends.” Anant Jain, Head of Market Intelligence – India, GfK said.
EMERGING THEMES DRIVING GROWTH
The Technical Consumer Goods industry has observed some emerging themes that have influenced its growth, including performance, simplification, premium, and durability. Consumers are increasingly seeking devices that can keep up with their fast-paced lifestyles and simplify the user experience.
Overall, the IT accessories and peripherals market is poised for growth as consumers continue to prioritize these key trends. Manufacturers who can offer products that meet these demands are likely to see success in the years ahead.
RISE IN SALES OF COMPUTER PERIPHERALS
Consumers are no longer interested in only traditional IT peripherals, especially mice and keypads. The market for products with advanced features like cordless, Bluetooth, and programmable mouse keys is constantly expanding, especially owing to the rise in Gen Z users. The emphasis on the design of computer mice is becoming a popular trend, with honeycomb design mice and those with 5 or more keys growing in popularity.
Trends reveal the mix for computer mice with 5 or more keys, etc. has grown from a 2% mix in Q1 2022 to a 4% mix in Q4 2022 in offline retail. Additionally, we witness a growing focus on Programmable keys, portability, Bluetooth connectivity, and thinness in the computer mouse category. Premium features and ergonomic design in a computer mouse can result in a higher revenue share for brands.
On the other hand, compact keyboards with Bluetooth & RGB backlighting continue to flourish in the market with Bluetooth keyboards and tenkeyless (TKL) keyboards contributing significantly to the overall market growth. This can be attributed to the enhanced user experience that it offers.
MARKET MOVEMENT WITH INTERESTING ZONAL TRENDS
The Indian market for computer mice and keyboard devices is seeing interesting zonal trends in terms of volume contribution. The West Zone emerges as the biggest market, with a contribution of nearly 30% in CY2022, closely followed by the North.
The South Zone has also witnessed growth, with its volume contribution increasing from 20% in Q1 2022 to 22% in Q4 2022 in the keyboard category, and from 20% in Q1 2022 to 24% in Q4 2022 in the computer mice category.
Meanwhile, the East Zone has a modest volume contribution of 18% in CY2022, which has remained stable and flat for mice over the quarters, while in the keyboard category, the East Zone contributes 21% in CY2022. These zonal trends indicate that businesses can benefit by focusing on specific regions to capture the growing demand for IT accessories and peripherals.
THE GAMING WORLD IS CHANGING THE MARKET DYNAMICS
The gaming sector has also seen enormous expansion during the pandemic, with 74% of surveyed urban Indians having played video games on a personal computer at least once, and 88% having played games on smartphones and tablets according to the GfK Consumer Life 2022 Report.
A CAUTIOUSLY OPTIMISTIC OUTLOOK
Although macroeconomic uncertainty is likely to impact growth during 2023, businesses adapting to new working models are expected to support demand, and consumers are still willing to pay more for high-performance products, premium features, and products that simplify their lives.
The growth of gaming and the rise of the Metaverse are expected to open new segments of demand for IT accessories and peripherals.
In summary, manufacturers and retailers are advised to focus on developing high-performance products with premium features that simplify customers’ lives and meet their evolving needs.
