With CES 2024 having drawn to a close, we’re teeming with ideas about what 2024 and beyond will look like for the consumer electronics industry. Each year, new trends enter the mix. Some are in it for the long haul, while others fade out quickly.
In this blog, our team reviews the top trends we expect to see continue, as well as what some of those trends mean for our customers’ logistics partner needs.
Trends in Consumer Electronics in 2024
Increasing Demand for Consumer Electronics
Average income continues to rise while, at the same time, the cost for consumer electronics falls. As this happens, more people gain access to consumer electronics that may have once been considered luxury items. So long as this inverse relationship between income and cost persists, demand will continue to be high.
The Rise of the Internet of Things (IoT)
Every day, it seems like a new household appliance or system has become “smart.” The ability for consumers to interconnect devices, whether for home automation or appliance management, continues to grow in popularity.
More AI Integration
Last year may have felt like the year AI suddenly made its way into our lives, but it has been around for quite some time, just in quieter ways. We expect this to continue, as consumers demand even smarter devices with more personalized experiences.
Augmented Reality (AR) and Virtual Reality (VR) Product Market Growth
AR and VR have gained traction as capabilities have improved over the past several years. These technologies have wide-ranging applications, from gaming to more immersive experiences in education, healthcare, entertainment, and beyond.
Sustainability & Environmental Friendliness
Consumers become more aware of the human impact on the environment every day—and many have made a conscious effort to reduce their carbon footprint. That includes being eco-conscious when it comes to choosing which companies to purchase from. While some will still buy a new iPhone with each release, many choose to keep their devices for much longer, in part to reduce their own e-waste. These consumers will not be impressed with expensive products that have short lifecycles—rather, they will look for quality products that will last for as long as possible.
Smaller Products with More Customization
Big and bulky is out, while sleek and elegant is in. Today’s consumers want smaller smart devices and wearables that won’t clash with their fashion sense, fall out of pockets, or take two hands to hold onto. At the same time, personalization is in high demand, from unique color combinations to a la carte add-ons.
How Fulfillment & Logistics is Adapting as the Consumer Electronics Industry Evolves
Fast & Reliable Delivery. Growing demand for consumer electronics coupled with the rise of ecommerce means customers expect quick delivery. Fulfillment distribution centers must optimize their processes to ensure fast and reliable shipping.
Real-Time Tracking & Visibility. Especially with bigger ticket items, consumers expect real-time tracking and visibility of their orders. Logistics partners must have the ability to integrate these systems to provide accurate information on shipment statuses.
Learn more about our flexible technology solutions →
Eco-Friendliness. Sustainability expectations have made eco-friendly and flexible packaging more important than ever. Fulfillment distribution centers must have the ability to be flexible in how products are protected, stored, and presented. We see a growing need to be able to offer customers eco-friendly ("green") packing options for the storage and shipment of goods. For example, there is biodegradable plastic and paper stretch wrap, recycled void fill, etc. to support sustainability efforts. Finding a balance between adequate protection and needless waste is key.
Value Added Services. The landscape of consumer electronics is marked by rapid technological advancements that may require or benefit from software that take place stateside. In addition, as product lifecycles grow longer, there is more opportunity for refurbishment and resale of items. These services expand the lifecycle of products even further while, at the same time, offering an eco-friendly and wallet-friendly option to consumers. Consumer electronics companies that work with 3PLs that offer these value-added services will have an advantage over competitors who have this work done at separate facilities or not at all.
Learn more about Motivational’s value-added services →
Manufacturers in California, New York, and Minnesota are also beholden to additional “Right-to-Repair” requirements. In California, the latest state to enact a Right-to-Repair law, manufacturers must facilitate the diagnosis, maintenance, or repair of electronic appliance products priced above $50 for three to seven years after the product’s last manufacture date.
Personalized Pick & Pack. Customization and personalization require flexibility and adaptability in pick and pack fulfillment. For example, some 3PLs offer BYO ("Build Your Own") services where you can order a main unit with your choice of a variety of accessories. This has become popular in the sale of consumer electronics. Fulfillment centers may need to put new processes into place to ensure efficient and accurate handling of personalized orders.
Robust Reverse Logistics Options. Electronics often have a higher rate of returns than other industries, so working with a fulfillment center with robust reverse logistics solutions is key. As the item price increases, so do the expectations of consumers for a painless and efficient return process.
The ability to refurbish and repair items can save companies money by extending product lifecycle and minimizing losses. Working with a reverse logistics company that can also refurbish and repack your product for resale will help protect your bottom line.
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Regulatory Compliance. The consumer electronics industry is subject to a variety of regulations at the federal and state level, especially when it comes to the transportation and disposal of e-waste. Fulfillment centers must stay compliant with and be well educated in these regulations.
If you’re in the consumer electronics industry and need a new fulfillment partner, we’d love to talk! Reach out to us today to learn more about how we can help your growing business reach its full potential.
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