What can appliance OEMs learn from Consumer Electronics industry strategies?

What can appliance manufacturers learn from the Consumer Electronics industry?

When you are looking for ways to push your appliance business forward, it is worth taking a look at adjacent industries and what OEMs are doing to overcome their obstacles. The pace of technology is accelerating, markets are converging, and Industry 4.0 is delivering a wide range of benefits through connectivity, smart automation and the Industrial Internet of Things.

Beyond this frontier, Industry 5.0 holds the promise of cognitive computing and machine learning working alongside human intelligence and resourcefulness. This new collaborative approach adds a personal, human touch, and will open the door to countless opportunities in manufacturing, as well as placing a greater emphasis on digital and green technologies.

As different manufacturing verticals evaluate the opportunities, there is a good chance you could spot something you can use. And the consumer electronics industry is one vertical that is likely to hold some answers for you.

In many ways, the appliances sector follows a similar trajectory to the consumer electronics industry. It tracks many of the same consumer trends, leverages the same innovations, and faces similar market forces. Appliance vendors also compete with the consumer electronics sector for:

Raw materials
Chipsets and electronic components
Supply chain prioritization

Share of consumer wallet

Many players in electronics and technology-based verticals are looking at an uncertain future. From component and packaging material shortages, to supply chain disruptions, the challenges faced by appliance vendors are felt across a wide range of industries. And the impact on the consumer electronics industry is greater than most.

Yet because consumer electronics shipment volumes are usually higher than those of appliances, with shorter product lifecycles, Consumer Electronics often takes priority within the supply chain. As a result, the challenges for appliance manufacturers have intensified. Yet, there are opportunities to embrace some of the strategies employed by players within the Consumer Electronics industry. Here are just some of the opportunities available to you.

Changing fortunes of Consumer Electronics vendors

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Many Consumer Electronics manufacturers have seen significant demand fluctuations for home and personal electronics, making planning and procurement difficult to handle. Combined with supply chain challenges, the result has been rising prices, reduced margins and the inability of many Consumer Electronics vendors to fulfil orders.

Main Common Challenges

01The premiumization opportunity

But there is still value growth in the market, as key Consumer Electronics vendors have recalibrated their marketing messaging, pushing more consumers towards their premium product ranges. As a result, consumer spend has moved in the direction of premium models. And that means higher profit margins.

Television manufacturers, for example, have been promoting features such as larger screen sizes, OLED TVs and higher resolution. For appliance manufacturers, this translates to features that save time, increase functionality, enable smart technology and elevate aesthetics.

02Raw material reallocation

Yet some vendors have handled the market challenges differently. Component shortages and distribution issues became such a problem that Apple cut production of its iPad and diverted chip inventory to iPhone production.

03Aesthetic improvements

Other leading Consumer Electronics brands have managed production by relying on older chip inventory and focusing on aesthetic improvements instead, rather than pushing technological developments.

04Channel diversification

Across the Consumer Electronics market, vendors are also focusing on expanding their distribution models. Many are experimenting with direct-to-consumer (D2C) e-commerce channels, and improving profit margins through this lucrative new revenue stream. For example, Dell has a long history of D2C success. Other prominent D2C success stories include Apple, Logitech, Panasonic, Bose, Nike and Tesla.

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Opportunities for the appliance industry

These, and so many more of our innovations have crossover potential for use within the appliance industry. And because Consumer Electronics products tend to have shorter lifecycles and faster product turnover when compared with appliances, we are effectively using consumer electronics as a test bed for your future R&D. We would love to hear about your challenges. If you have an issue or you want to explore how we could help you to drive quality, innovation, flexibility, or efficiency in your business, our experts are waiting to share their ideas and know-how with you.

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What can appliance manufacturers learn from tesa’s Consumer Electronics market knowledge?

Our research into Consumer Electronics product opportunities can drive your appliance advancements, giving you a fast track to innovation. These include innovations in bond and detach solutions, optically clear adhesives, and thermal transfer.

Our Consumer Electronics Solutions

01Strength when you need it, separation when you don’t

tesa® Bond & Detach products make it possible to attach components such as batteries and many other parts into smartphones. They remain securely in place until the end of a product’s life, then can be removed without any difficulty or residue.

For appliance manufacturers, this means simple and secure debonding during the entire product life cycle. tesa® Bond & Detach products can be used for temporary fixation during production processes or transportation, or to improve component recyclability at product end of life.

02For our partners, we make everything perfectly clear

Optically clear adhesive (OCA) is a major requirement for display applications, and we are developing new materials to support devices with foldable and curved-edge displays, as well as backside cushioning tape.

For appliance manufacturers, larger displays are being integrated into more devices than ever before. At the same time, new materials and application demands create new challenges for optically clear adhesives. Our comprehensive assortment is designed to provide solutions for all your requirements, delivering optical clarity, high transmission, low haze, high bonding strength, and easy lamination.

03Superior performance, even when things get heated

We develop products that provide superior thermal transfer performance, combined with excellent bonding properties. With ultrathin design, super strong bonding strength, and high breakdown voltage, they ensure Consumer Electronics devices continue to perform, even when under pressure.

Lessons to learn from Consumer Electronics:

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Focus marketing spend on promoting premium models
Develop aesthetic improvements when faced with insurmountable supply chain challenges
When necessary, divert raw material inventory and manufacturing efforts towards hero products, rather than limiting production across all SKUs equally

Explore opportunities for strengthening D2C distribution channels
Leverage innovations in tapes and adhesives to give you the technological edge

Opportunities for the appliance industry

We would love to hear about your challenges. If you have an issue or you want to explore how we could help you to drive quality, innovation, flexibility, or efficiency in your business, our experts are waiting to share their ideas and know-how with you.

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Future of appliance

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This is where tech is taking us, together

With our extensive experience in adhesive and tape technologies, we can support you across your entire product development process. We are ready and waiting to improve your competitive position.

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