Delivery
This report comes in PPT.
Key Findings
Supply problems and higher energy prices add to inflation
The Eurozone is forecast to face higher inflationary pressures over 2022-2023, largely due to rises in energy prices and potential energy supply disruptions from Russia. Any energy supply disruptions would place more pressure on the profit margins of businesses.
Pinching pennies to fight inflation
Reusing old parts and designs, removing accessories and offering affordable models are some of the measures manufacturers are adopting to ease inflationary pressures and avoid increasing prices.
Exploring new business models
Manufacturers are pivoting their businesses towards services and accessories, which offer higher margins, instead of raising prices.
Adding more features to justify increases in prices
Businesses need to continue to grow their revenues and maintain margins, and will be reluctant to absorb cost increases. Adding more features or new technology can help to mask the increase in product selling prices.
Scope
Key takeaways
Supply problems and higher energy prices add to inflation
Commodity price growth eases, but challenges in the energy sector remain
Higher energy costs could accelerate price growth for manufactured goods
Key risks for inflation in 2022 and 2023
Reusing parts to keep cost low and supply chain robustness
Upselling accessories and services
Adding more features to justify increase in price
Flexible payments to stretch the dollar
Introduce a new supplier for competition
Affordable flagships to drive sales
Right-sizing the company
Examining the effectiveness of the cost management measures
Consumer Electronics
Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.
