Increases in most sectors in the German TCG market

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The German technical consumer goods market grew by 3 percent in Q2 2016, compared to the same period in 2015. The total value of the market was 13.2 billion euro. The telecommunications sector performed well, rising by 11.3 percent. Other sectors – small domestic appliances, major domestic appliances and consumer electronics – also rose. The photography sector registered the largest fall, down by 16.2 percent, compared to Q2 2015. We report the GfK Temax data for the different segments.

GERMANY: TECHNICAL CONSUMER GOODS
SALES VALUE BY CATEGORY
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Major domestic appliances
In Q2 2016, the 5.2 percent growth in the MDA sector was driven by the cooling products, washing machines and tumble dryers segments. Appliances with high energy efficiency ratings (A+++) and models with larger drum capacities continued to be in high demand. Demand for freezers, hoods, dishwashers, cooking products, and built-in hobs rose – all by around 3 percent. Only the microwaves segment registered a small fall in demand.

Small domestic appliances
Growth of 4.6 percent was recorded in the SDA sector in Q2 2016, compared to Q2 2015, with revenue of 998 million euro. The air treatment products category improved by more than 100 percent, compared to the same period in 2015. Also, double-digit increases were recorded in segments including light therapy lamps, vacuum cleaners, and deep fryers. Falls were observed in the food preparation equipment, hair dryers, hair styling products, and hair clippers categories. In particular, sales of juicers/pressers and kitchen scales declined by around 10 percent.

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Consumer electronics
The German CE market registered a healthy rise of 8.1 percent in Q2 2016, compared with the same quarter in 2015. The market for TVs reported double-digit growth. This was mainly driven by the Uefa Euro 2016 football championship, and 55-inch (and larger) TV sets were in significant demand. Products in the audio segment – loudspeakers, amplifiers, receivers and tuners – also recorded double-digit increases.

Photography
The German photografy sector continued its decline in Q2 2016, falling by 16.2 percent, compared to Q2 2015. This result was driven by the sector’s largest segment – digital still cameras – which declined by 18.6 percent. The only growth in the sector came from the subsegment of compact system camera lenses. Sales of accessories (photo bags, memory cards, and rechargeable batteries) declined the least in Q2 2016 – down by 3.2 percent, compared to Q2 2015.

Information technology
In Q2 2016, the IT sector declined – down by 3.3 percent, compared to the same quarter in 2015. Visual cams and pointing devices grew by around 15 percent, while the monitors, keying devices, and storage products categories all registered single-digit growth. Saturation in the demand for mediatablets resulted in a fall of 2.4 percent, compared to Q2 2015. Other mobile computing segments showed a similar negative sales trend, although media books and computing tablets products still grew by double digits.

Telecommunications
Compared to Q2 2015, the TC sector grew by 11.3 percent in Q2 2016. The smart and mobile phones segment registered growth of 5.2 percent, and smartphones with enhanced functions continued to perform well. Devices in the price range 150-200 euro doubled their market share. Sales of core wearables increased by 97.3 percent, compared to Q2 2015. The main drivers in this segment were the health and fitness trackers (HFT) manufactured by mainstream producers.

Office equipment and consumables
In Q2 2016, the OE sector grew by 3.5 percent, compared to Q2 2015. Data and video projector sales increased by 32.9 percent, mainly due to the Uefa Euro 2016 football championship. Lettering machines also recorded double-digit growth. Sales of scanners, multifunctional devices (MFDs) and inkjet cartridges grew moderately in Q2 2016.

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