Beyond the Product: How Servitization is Shaping the Future of Consumer Appliances

Servitization as a strategic shift in the appliance industry enhances customer experience by offering integrated services alongside products. This shift drives revenue diversification through recurring service income and strengthens brand loyalty by fostering ongoing customer relationships. Overall, servitization helps companies build long-term value and differentiate in a competitive market.

Key Findings

Servitization as a Strategic Shift

Companies in the hardware sector, particularly in appliances, are increasingly adopting servitizationto counter shrinking profit margins and enhance customer relationships. Servitizationprovides continuous engagement, offering value-added services and generating recurring revenue streams. Margins in services can range from 20-50%.

Customer Experience Enhancement

Servitizationfocuses on improving customer experience through personalized, convenient, and continuous services. Ongoing interactions foster loyalty and long-term customer relationships.

Revenue Diversification, Premiumization, and Expanding Market Appeal

Shifting to a recurring revenue model allows companies to stabilize income and open opportunities for upselling. Unique service packages help companies stand out in a competitive market. Broadening a company’s appeal to a wider consumer segment helps capture an expanded market.

Improved Product Lifecycle Management and R&D Efficiency

Servitizationaids in extending product lifecycles and improving sustainability. Reduces downtime through IoT and data analytics. It encourages longer product lifespans and waste reduction through services like refurbishment and predictive maintenance.

Strengthened Brand Loyalty and Competitive Moat

Ongoing services help build trust, retain customers, and promote brand advocacy. High-quality services make it harder for customers to switch to competitors. Satisfied customers are more likely to recommend the brand, driving organic growth.

The Beyond the Product: How Servitization is Shaping the Future of Consumer Appliances global briefing offers a comprehensive guide to the retail sales data, allowing you to identify the sectors driving growth. The report also identifies the leading companies/brands and offers strategic analysis of key factors influencing the competitive landscape - be it new product developments, technological innovations, economic/lifestyle influences, distribution or pricing issues. Additionally, trade statistics and producer’s shares will answer questions on where appliances are produced and where they are being exported to, how quickly these units are moving, which companies are producing how much, and whether all categories are behaving in the same way. Collectively, this gives a complete view in both marketing and production planning strategies. Forecasts illustrate how the market is set to change.

Product coverage: Major Appliances, Small Appliances.

Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

• Get a detailed picture of the Consumer Appliances market
• Pinpoint growth sectors and identify factors driving change
• Understand the competitive environment, the market’s major players and leading brands
• Use five-year forecasts to assess how the market is predicted to develop.