Consumer goods

Stefano Armandi

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Since 2013 Stefano Armandi has been responsible for the preparation of studies and consulting projects at Interconnection Consulting. He is an expert in market intelligence and the international economy, especially in the development of forecast models. Stefano Armandi previously worked for many years as a company consultant, before doing research and teaching at the International University Vienna. Stefano Armandi studied Economics at the University of Rome and completed a PhD Programme in Political Science at the Catholic University of Milan.

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Case Study Strollers

IC News

As stroller market shrinks, parents look for innovative solutions at reasonable prices

For the second year in a row, the European strollers market have decreased by -0,9% in 2019 as a recent study by Interconnection Consulting shows. Interconnection predicts that the market will loose on average -1,8% units per year until 2023, in part due to a strong decline in 2020 in part offset by an increase in 2021. Only in France and Northern Europe, the study recognized an increase in quantity sold, while the German and Spanish markets declined for the first time in the last 5 years and the UK market failed to rebound after a sluggish 2018.

 

Parents more sensitive to prices as competition intensifies

Average prices  failed to grow in 2019 for the first time since the 2010 crisis. Parents have become more sensitive to price differences in the high-end premium segment as competition to gain shares in this segment has increased in the last 3 years. The high-end segment (>1000) lost  shares again in 2019 in part due to the impact of second-hand market, while shares of strollers in the medium-range (250€-500€) have now reached 33,7% quantity shares.  The temporary fall in demand caused by the COVID-19 crisis is forcing producers to offer one-off sales in the first part of 2020. As a consequence, total turnover is expected to fall below 800 million Euros in the next 3 years.

Lighter, cabin-proofed stroller on the rise…  before and after COVID-19

The rise of ultra-light compact in the last few years has been astonishing and more companies are now offering this type of solution. Interconnection expects this segment to grow further in the long-term by taking shares from both compact and buggies, but the COVID19 crisis could reduce their  demand until  travel restrictions are lifted. “This crisis have been put a lot of pressure on the strollers industry in the first half of 2020 and has the potential to modify parents’ approach to mobility and their consumer preferences”.  Comfort is the product group with the largest share (42,8%) and overperformed in 2018, reflecting also the rising shares of multi-travel systems.

COVID19 favors the long-term rise of online sales

Growing trend for online sales set forth and this channel have now reached a market share of 25,8%. Their growth rate is expected to rise even stronger  in 2020, as the off-line channel has been heavily impacted by the current crisis in some countries were forced to restructure due to financial problems. Especially, sales through boutiques and mass market will keep declining in the next 3 years.  Market concentration have been decreasing in the last few years as some newcomers have gained shares and the trend has been confirmed in 2019 with the top 10 companies controlling now 35% of the total market. Three of the largest companies are Artsana, Britax and Dorel.

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Parents ready to pay more, while units sold keep falling a bit

The rise of more expensive type of seats (i-Size and Extended Convertibles) keep driving the overall value growth (+0,2% in 2019), but the new study by Interconnection predicts that the market will lose on average -1,1% units per year until 2023. Demand for safety seats have been relatively less impacted by the COVID-19 crisis than for stroller, but still  the aggregated market in the 7 major European markets is still forecasted to fall by 4-4% in 2020.

„Economy and premium segments are increasingly diverging in terms of product characteristics” explains Dr. Stefano Armandi, the author of the study.  Some parents are attracted to multi-year seats as an opportunity to buy only one seat per child and save money in the long-run. At the same, product innovations affecting the high-end segment, as i-Size and spinning and rotative seats, are becoming increasingly popular in the last 2 years.  For example, i-Size seats in the categories 0/0+ and 0+/1 cover now respectively 37,4% and 44,2% of each group’s shares and are already above that level in the medium and premium segment.

 

Multi-stage seats more popular in Southern Europe

In 2019 downward fall in quantity is mainly due to the negative performances of the Italian, Spanish and UK markets, where in the first 2 markets the rise of extended is reducing overall quantity, while in UK due to a mix of lower life births and economic uncertainty. The two biggest market, France and Germany, kept growing in 2019, but quantity sold will fall in 2020 due to the COVID-19 crisis.

As in 2018, Group 1 and Backless kept loosing shares, while Extended Convertibles are best performer. Despite a positive growth of +0,4%, first sign of a stabilizing trend for 1/2/3 started to emerge in 2019, while 2/3 keep growing benefitting from the fall of backless solutions. Group 0/0+ and Group 0+/1 have been falling in 2019 in total, but performances diverged a bit in each countries. Infant seats in Nordics and O+/1 in Germany are still growing, while both are losing strongly in Spain and Italy (due to Extended).  This trend will keep shaping markets in Europe for the next 3 years, with O+/1 loosing less than 0/0+ on average.

 

Product innovation as key for growing in shares

All price segments above 100€ kept growing again in 2019, but firms are offering bigger discounts in the early months of 2020 and this will lead to a short-term fall in average price. Still, the trend towards higher average prices will resume in the next 3 years.

‘Online only’ channel reached 21,7% in 2019 and will benefit from the COVID-19 crisis, taking shares away from boutiques and mass market. Also chain specialized dealers with their online shops will be able to defend their market shares and stabilize around 38,5%.This is also the main channel in most countries, with the exception of France.

As some of the main producers have been successfully introducing new innovative models, market concentration raised a bit in 2019 reaching a combined share of 70,3% for the top 10 companies. Among the Top 5, there are Team-Tex (Nania Group), Dorel and Britax, Cibex/Goodbaby and Allison Baby.

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Air Pollution Awareness Spikes the Growth for Air Purifiers

Over 600,000 air purifiers will be sold in Europe in 2018, representing a market increase of 5.8% in value. The sector has been benefiting from the population’s growing awareness that air pollution has detrimental effects on one’s health.

 

The East Growing Faster than the West

All of the individual markets (Germany, Great Britain, Poland, the Benelux region, and France) were able to generate positive growth in 2018. The German market for air purifiers is the largest within the European Union, with a share of 30.9% of the markets analyzed. The German market grew by 5.7% in 2017, benefiting not only from the overall growth of the German economy but also from the population’s high degree of awareness for proper air quality in the home. France, the second-largest market (28.7%), is similarly attentive to the issue, as can be seen in its high growth figures (+6.9%). Poland is the country with the strongest growth (7.1%), due largely to a rise in disposable income and comparatively high levels of pollution. “You can basically say that the Eastern European countries are growing faster than those in the West because the awareness of the problem is still relatively new,” explains Neva Kubicki, author of the study. The Benelux region saw a gain in volume of 3.0% over the previous year and is expected to do even better in the near future. Interconnection is forecasting an annual growth of 4.8% through 2021. Even Great Britain, in spite of its Brexit woes, will manage a 3.0% growth this year. However, such growth is expected to ebb away in the upcoming years. The forecast for annual average growth in the next few years is a mere 0.6%.

 

Filters in Demand Across Europe

Filter-based air purifiers are the leaders in all the markets analyzed. The reason is this product group’s very good price-performance ratio. In Germany, filter-based products garner 72% of the market. Air purifiers with a combined filter are popular especially in the Benelux region and Great Britain. This product group is more expensive than the filter systems, but the longevity and the air quality of this segment are higher than with conventional units. Kubicki sees this as a reason for this segment’s positive growth rates in the future. Overall, portable units, with a market share of 55.7%, are the dominant group not only in terms of volume compared to installed air purifiers, which provide the entire house with fresh air. Most air purifiers are employed in the residential sector, which maintains a market share of 83.4%.

 

Market Concentration Increasing

The top ten companies lay claims to 37.5% of the market, corresponding to an increase in concentration of 3.2%. The leading companies are Philips, Electrolux, Dyson, Bonaire, BlueAir, IQ Air, Sharp, and Winix.

 

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Leading Companies trust in Interconnection Consulting

Admonter

At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)

ELK

The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)

Epson

EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

T.Murakami (Brand Management, Seiko Epson Corporation)

Gaulhofer

I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)

Kontron

The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool ZAIS has become indispensable for many Austrian temporary staffing providers for fast and correct sales management decisions. A tailor-made online cockpit provides comprehensive monthly figures and data on temporary work and the labor market in Austria, while at the same time impressing with its overview and intuitive user guidance. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)

Salamander

Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)

Sodexo

When developing new market strategies, Interconnection is a trusted source we always come back to. Christian Frey (Marketing Manager CS DACH)

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