The electronics industry discovers thrift

Berlin Whether it’s size, sound or image quality, manufacturers of televisions, household appliances and audio systems outdo each other with superlatives every year at the Ifa electronics trade fair. In view of the energy crisis, however, many companies are currently focusing on a different topic: it’s about sustainability – above all consumption.

For example, Grundig has the motto “A future without fear of ecology”, Miele guides visitors through a “Sustainability Alley”, and Samsung formulates the claim of becoming the “number one brand for energy efficiency”. The trade fair is greener than ever.

The marketing is not surprising. Awareness of climate change has been growing for several years, and now the war in Ukraine is driving up energy prices. “Sustainability has clearly come to the fore, especially for large manufacturers of household appliances,” says Alexander Dehmel, industry expert at market researcher GfK.

In fact, consumers are increasingly turning to energy-efficient products. However, it is not certain that household power consumption will fall in the long term – after all, networking means that there are always new devices that are plugged into the socket. They can also be seen at the Ifa, which starts on Friday.

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The Corona boom ends for the electronics industry

For the industry, the marketing of sustainability is a hope. During the coronavirus pandemic, consumers bought notebooks and screens, televisions and gaming consoles, freezers and juicers to prepare for life in lockdown. Sales of such technical consumer goods grew by a total of around 17 percent to USD 1.4 trillion in 2020 and 2021, as determined by GfK.

However, in the face of great economic uncertainty, many consumers are keeping their cash together. Electronics industry business is likely to contract this year — albeit to levels higher than pre-pandemic levels. There are currently opportunities especially for products that reduce consumption and thus costs, explained Sara Warneke, head of the Ifa organizer GFU.

Energy efficiency is not a new topic for manufacturers of household appliances, emphasizes Volker Klodwig, head of BSH Germany. Market research by the Bosch subsidiary shows that many customers pay close attention to consumption. “Anyone who cannot keep up here has a substantial competitive disadvantage.” The current discussion about energy prices only provides an additional boost.

In fact, buying behavior is changing – at least when it comes to household appliances such as refrigerators, washing machines and dishwashers that run frequently and for long periods. While seven percent of the products sold achieved the new energy efficiency class A in the first half of 2021, today it is already 14 percent, as determined by GfK. “The revised energy label has a major impact,” emphasizes market researcher Dehmel.

Booth of the Bosch subsidiary BSH at the IFA

The manufacturers of household appliances are therefore developing technologies that reduce consumption – with new series, the cycles last several years. There are washing machines that use algorithms to determine the most efficient washing program, refrigerators that use water mist to keep food fresher for longer, and energy management systems that start devices when the solar cells on the roof are delivering a lot of electricity.

In some cases, however, simple measures do the trick. Many people are not even aware of how easy it can be to save energy,” says Axel Kniehl, Marketing and Sales Director of the Miele Group. The household appliance manufacturer, who sees itself as a pioneer in sustainability, is therefore introducing an overview in its app that shows the consumption of the networked devices.

If the customers agree, they should receive energy-saving tips in the app in the future. You could then, for example, wash your laundry at a lower temperature or wash the dishes with the eco-program – this has only rarely been used so far. Networking gives manufacturers real-time insights.

Sale even without Ifa

The energy crisis could mean a breakthrough into the mass market for digital home technology, known in industry jargon as “smart home”. In a survey by the IT association Bitkom, for example, 25 percent of Germans said they would use digitally upgraded radiator thermostats – last year it was 17 percent.

“Smart home technologies can make a very concrete contribution to using less heating energy and electricity,” said Bitkom President Achim Berg. The manager is committed to state subsidies: “A reduction in VAT for energy-saving technologies would be a sensible measure to focus on the devices.”

However, the demand is already high. Electronics manufacturer Tado, which sells a system for controlling heating, is experiencing record demand. The production volume for the entire year has been sold, says co-founder Christian Deilmann. That’s why the start-up is already cutting back on marketing – it can’t sell any more at the moment anyway.

More: Apple apparently secures trademark rights for data glasses – is a market launch imminent?

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