1© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Global Market

Trends – TCG (Technical Consumer Goods)

IFA Global Press Conference

2019-04-26

Friedemann Stöckle

2© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

GfK Market Insights

1. Global Market Trends TCG(Technical Consumer Goods)

Helicopter view on innovations in

Technical Consumer Goods

2. Smart Home Crossing the chasm – Well-crafted individual

solutions within a common ecosystem possess a

tangible opportunity.

3. Consumer Electronics including Smart Phones / IT

Today and tomorrow: How the consumer sets the

bar for innovation

4. Home AppliancesMajor and Small Appliances

Emerging trends: From consumer needs to global

trend opportunities

3© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Source: GfK Point of Sales Tracking and total market estimation incl. North America, based on a fixed currency exchange rate

Global market for technical consumer goods

Telecom

Major Domestic

Appliances

IT incl. Office

Products

Small Domestic

Appliances

Consumer

Electronics

incl. Photo

8% 8% 9%

15% 15% 15%

16% 16% 15%

17% 17% 17%

43% 44% 44%

2017 2018 2019 (forecast)

+7% +3% +1% Sales value growth

±0%

+3%

-3%

+2%

+7%

Sales value total

€ 1,052 bn2019 (forecast)

4© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

The Consumer

5© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

I feel like I am in more control

than ever before when

choosing the best

products to buy.

“

65%Global respondents agreeing

Source: GfK FutureBuy 2018

“

6© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Delivering on the experience of

borderless shopping is an opportunity

I. Want. It. Now.

7© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

5 key themes drive the technical consumer goods market

Performance PremiumBorderless

shopping

Rich experiences

High-end product

features

Aspirational

products for “me”

Premium price

Everywhere and

anytime

Mobile shopping

on the rise

Developing

economies

… are maturing

Markets are

shifting

Simplification

Connected

devices simplify

Voice assisted

Rich experiences delivered through

Impactfulfrom production to innovation

8© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

100

130

112

138125

162

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

World 25 EU Countries New Models in 25 EU Ctr.

+13

+24

Consumers choose innovative products

Premium is paid for new models with an upward trend

* Source: GfK POS Panels worldwide; North America excluded. All audited TCG Products | ** New models = max 24 months old

Global Price Index* – 2009 = 100%

Europe

12% above

World

Average

Consumers choose in

Europe in 2018 even

more new high-end

models

New

models**

25% above

World

Average

9© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

100

130

125

162

81

167

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

World New Models in 25 EU Ctr. New Models in CN

Products in China transform to highly innovative up-market

models

* Source: GfK POS Panels worldwide; North America excluded. All audited TCG Products | ** New models = max 24 months old

Global Price Index* – 2009 = 100%

High innovation rate

and upmarket trends

are observed in China

in all technical

consumer goods

10© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

The Innovation Cycle

11© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Sales in 2018: Shares* in value by year of product launch

PRJ 74495 - RG 5346496 - RP 35812156 - ID 553023275

Consumer

Electronics

11

49

33

Telecom

8

48

43

Information

Technology

6

51

40

Major Domestic

Appliances

Small Domestic

Appliances

23

36

15

19

32

17

20182017

2016

2015

Before 2015

Innovation rates in CE, Telco, IT extremely high

Life cycles of home appliances are longer

* Source: GfK POS Panels worldwide; North America excluded.

Year of

product launch

12© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26PRJ 74495 - RG 5346496 - RP 35835096 - ID 553196881

Total*

10

50

34

25 Ctr. Europe

5

50

43

ASIA Middle East /Africa LATAM

15

48

30

13

54

27

8

57

28

20182017

2016

2015

Before 2015

PTV show extremely high innovation shares in Europe

PTV sales in 2018: Shares* in value by year of product launch

* Source: GfK POS Panels worldwide; North America excluded.

Year of

product launch

13© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26PRJ 74495 - RG 5346496 - RP 35835096 - ID 553196882

25

34

15

24

27

11

26

39

18

22

27

12

18

30

11

20182017

2016

2015

Before 2015

For refrigerators, Asia is leading with new models

Refrigerators sales in 2018: Shares* in value by year of product launch

* Source: GfK POS Panels worldwide; North America excluded.

Total* 25 Ctr. Europe ASIA Middle East /Africa LATAM

Year of

product launch

14© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

25 Ctr. Europe | Value shares* selected product groups

PRJ 74495 - RG 5346496 - RP 35864485 - ID 553362694

PTV/FLAT

>= 800 EUR

500 < 800 EUR

2010 2014 2018

28

35

22

31

23

35

514 434 459

Product launch

2018 only

2018

24

39

505

High-end in Europe on the rise – esp. through innovative

products in all product categories

* Source: GfK POS Panels Europe 25 countries

Ø Price

Smart /

Mobile-Phones 19 1619

13

23

154 222 315 363Ø Price

Vacuum

Cleaners 9262

103 116 143 204Ø Price

3

15© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Innovation …focus on performance,

simplification, and

premium

Consumer …is in control

Products …permanently used – some many

times every day

Innovation Empowers Markets

Global

TCG

Markets

… with smart benefitsconnected and voice assisted

products create new benefits

… empowers markets value creation for consumers,

retailers and manufacturers

… centricityand wants it “now”

16© GfK 2019 | IFA Global Press Conference | Global TCG Market Trends | 2019-04-26

Thank you.

Friedemann.Stoeckle@GfK.com | www.GfK.com | TEMAX.GfK.com