Dublin, Oct. 11, 2024 (GLOBE NEWSWIRE) -- The "Beyond the Product: How Servitization is Shaping the Future of Consumer Appliances" report has been added to ResearchAndMarkets.com's offering.
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.
Companies Featured:
- Apple
- Electrolux
- Haier
- LG
- Panasonic
- Rolls-Royce
- Samsung
Key Topics Covered:
Executive summary
- An immense opportunity for product focused companies struggling with narrowing margins
- The opportunities to enhance a company's competitive moat are numerous through servitization
What is servitization and why is it important?
- Servitization is the key to enhancing customer relationships and standing out in the market
- The market opportunity for servitization is immense
- What is servitization?
- Numerous companies in other industries have benefited from implementing servitization
- Case study: How Rolls-Royce aligned its vendor-customer incentive structure
Importance of servitization in appliances
- Apple Inc has shown how services can help keep profit margins high
Importance of servitization in appliances: servitization value propositions
- It will enable companies to enhance customer experiences and diversify revenue streams
Importance of servitization in appliances: enhance customer experience through services
- Services enhances a customer's experience, increasing brand loyalty
Importance of servitization in appliances: revenue diversification & premiumization opportunity
- This shift will enable companies to upsell their services and predict future revenues
Importance of servitization in appliances: improved product lifecycle management & R&D efficiency
- Improved l ifecycle management aids appliance firms with climate regulations
Importance of servitization in appliances: strengthened brand loyalty & competitive moat
- A strong competitive moat will be needed as replacement cycles continue to shrink
Importance of servitization in appliances: market expansion & capturing adjacent markets
- Servitization enables brands to broaden their appeal to a wider consumer segment
Importance of servitization in appliances: obstacles to success
- The biggest obstacle to success is a consumer's perception of appliance services
- Subscription fatigue will likely be another significant obstacle
Servitization in appliances case studies
- Companies have introduced numerous service models, with varying levels of success
Servitization in appliances case studies: LG
- LG, unveiled its plan to transform into a service oriented "smart life solution" company
- LG's take on servitization with ThinQ UP 2.0 has already seen a significant uptake in Korea
- LG provides subscription services in Korea that offers access to a host of O2O services
Servitization in appliances case studies: Haier
- The "Three-Winged Bird" brand was developed to exemplify Haier vision of the smart home
Servitization in appliances case studies: Electrolux
- Levande , Electrolux Group's subscription program aims to reduce e-waste
Servitization in appliances case studies: Panasonic
- Panasonic's foodable helps create value and overcoming a "Why Panasonic" question
Servitization in appliances case studies: Samsung
- A smart kitchen platform that offers personalized recipes and meal planning
Conclusion
- Transitioning from one-off sales to recurring revenues can help maximize shareholder value
- Opportunities for growth through servitization are numerous
- Evolution of servitization in the appliances industry
For more information about this report visit https://www.researchandmarkets.com/r/6368ip
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