Marketing Process: Page 7 of 8
In contrast to FMCG products, consumer durables are usually high price-ticket items that consumers expect to last for a given length of time. The market can be further split in to two sectors:
- Consumer Electronics: TV’s, gaming consoles, laptops, tablets and so on
- ConsumerAppliances:Food processors, hair dryers, stoves, fridges and so on
The life expectancy of most electrical items is three years+, so brands may produce complementary consumables such as printer ink; battery chargers, dust filters, vacuum bags and so on.
This strategy generates addition sales with traditionally, high profit margins, and keep the consumer in the brand for the lifetime of the main product.
You can see from the chart above that every sector of the durables goods market is increasing, with the exception of landline-based telephones.
So, consumer durables is a growth market and, with half the UK population owning most of these items, the competitive intensity will be concentrated on market penetration and building consumer loyalty.