In contrast to the encouraging results in those sectors, however, the telecommunications market, office equipment and consumables lost ground.
The German technical consumer goods market continued on its growth path for the fourth time in a row, expanding by 4.0% year-on-year. This means that the economic recovery is being reflected in the market for technical consumer goods.
With superb sales growth of 14.4% and a total market volume of €2.77 billion, the information technology segment supported the strong result of the GfK TEMAX for the third quarter of 2010. One in every two euros is generated from sales of mobile computers, which enjoyed double-digit growth in the third quarter. Desktop PCs recorded even stronger growth. Due to falling prices, consumers are showing particular interest in all-in-one computers, which integrate all of the relevant technology into the monitor.
The product groups of monitors, workstations and servers also developed positively, benefiting in particular from sales with business customers. Companies are investing again thanks to the relaxation of the economic situation, as well as the fact that changing over to new operating systems often requires the purchase of new equipment.
The market for small domestic appliances has picked up substantially. Following moderate growth in the previous quarter, this sub-market expanded by 7.5% to €643 million. In many areas, there is an observable trend towards trading-up in favour of particularly well-equipped products. These command higher average prices, hence resulting in rising sales. The highest-selling product groups are coffee and espresso machines, and in particular coffee pad machines and espresso capsule systems. In the vacuum cleaner segment, appliances with low energy consumption, wet-dry cleaners and robotic cleaners are benefiting from this trend in particular. Among kitchen appliances, the markets for larger and higher-quality products such as food processors and kitchen machines are growing.
Major domestic appliances have picked up once again: following stagnation in the second quarter of 2010, the segment recorded growth of 4.1% in the third quarter and total sales of €1.9 billion. The best-selling product group - refrigerators - is showing a substantial improvement, particularly among built-in appliances. Energy-efficient products are proving a key growth driver. There is also rising demand for energy-saving A++ appliances with two doors and freezer compartments with no-frost functions. Washing machines and dishwashers saw only moderate growth. By contrast, the market for tumble driers recorded a double-digit increase. This was also due to energy efficiency and innovative heat pump technology.
The photographics market enjoyed solid growth of 3.5% in the third quarter, generating a sales volume of €623 million. The largest product group, digital cameras - which account for almost three-quarters of all spending in the photographics segment - continued to experience moderate growth. This was primarily due to lower average prices and sustained demand. System cameras - compact cameras with interchangeable lenses - contributed to growth. As a result, the interchangeable lens product group continued to develop positively. Meanwhile, sales figures and volumes for fixed-lens cameras remained stable due to new features such as 3D imaging and video functions and integrated GPS positioning. The positive sentiment on the market was also reflected in the success of the world's largest photographics trade fair, Photokina, which was held in Cologne in late September.
The consumer electronics market grew only slightly by 0.9% to €2.4 billion. Flat-screen TVs remained in demand even following the Football World Cup, with this product group accounting for every second euro spent on consumer electronics. Moderate growth contributed to the positive overall development. In particular, functions such as Internet access, LED-backlighting, 3D-readiness, triple tuners and Full-HD-readiness are helping to keep prices stable. More than 50 000 new 3D televisions were sold in Germany in the first nine months of the year. There was high consumer demand for Blu-ray players, often including those that can play 3D movies. Although there is still a lack of available content in this area, customers are optimistic that this will change in the near future.
The telecommunications segment generated sales of €939 million in the third quarter, a decrease of 4.1%. The first nine months as a whole saw stagnation, with growth totalling 1.4%. However, the key product groups of mobile and smartphones recorded positive sales development in this period thanks to the massive demand for smartphones. In particular, consumers are interested in devices with touchscreens and open operating systems. In the area of mobile phones, products without flip or slide mechanisms - known as candy bar designs on account of their appearance - are in demand. These two trends will define the Christmas business in mobile and smartphones.
Traditional fixed-line telephones repeated the growth recorded in the previous quarter thanks to the demand for cordless phones.
The office equipment and consumables segment contracted by 6.1% in the third quarter, generating a market volume of €1.1 billion. However, the picture is a mixed one. The best-selling product group, printer cartridges, again posted significantly lower sales. By contrast, in the aftermath of the Football World Cup, data and video projectors saw double-digit growth thanks to more favourable prices and the demand for LED technology. Inkjet printers (excluding photo printers) also recorded growth, driven in particular by demand for multifunctional devices. Laser printers saw similar development. The market for inkjet printers is being buoyed in particular by business and A3 models. In the scanner product group, meanwhile, there was growth in sales of document and film scanners.
With sales growth of 4.0%, the market for technical consumer goods showed continued robust growth in the third quarter of 2010, thus continuing the positive development in the year to date. Growth of 3.6% was recorded in the first nine months. GfK Retail and Technology expects the German market for technical consumer goods to close 2010 positively thanks to the traditionally strong Christmas period and a wide range of new products.
GfK TEMAX is an index developed by GfK Retail and Technology to track the technical consumer goods markets. The findings are based on regular surveys carried out by the retail panel of GfK Retail and Technology. The retail panel comprises data from over 340 000 retailers around the world. Since February 2009, GfK Retail and Technology has also collected data for the GfK TEMAX internationally in more than 30 countries, including extensive overall markets for Technical Consumer Goods in different countries for the first time. All reports and press releases are available at www.gfktemax.com.
*Exchange rate: €1/R9.50
The GfK Association was established in 1934 as a non-profit organization for the promotion of market research. Its membership consists of approximately 600 companies and individuals. The purpose of the Association is to develop innovative research methods in close cooperation with academic institutions, to promote the training and further education of market researchers, to observe the structures and developments in society, the economy and politics that play a key role in private consumption, and to research their effects on consumers. Survey results are made available to the membership. The GfK Association is a shareholder in GfK SE.
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