When purchasing white goods, consumers worldwide agree—less is more. Indeed, a growing share of consumers rank durability, efficiency, and affordability as more important than advanced or connected features. When disposable income declines, the shift becomes even more pronounced; consumers are increasingly cautious about spending and selective about which features they prioritize. Likewise, consumers are replacing existing models less frequently than they have in the past. These trends and other purchasing behaviors point to potential OEM growth areas, according to McKinsey’s analysis of survey results (see sidebar, “About the annual McKinsey Global State of White Goods Survey”).
In particular, survey responses linked to age demographics signal an emerging market for the leading-edge connectivity features that Gen Z and millennial consumers value and have come to expect. And most consumers, irrespective of their age, expect to engage with brands online, presenting brands with an important opportunity—to connect with both new and loyal consumers and amplify interactions throughout their buying journey. Critically, the survey shows, companies may be missing opportunities in aftermarket services: chances not only to tap into potential new revenue streams but also to interact with consumers after the point of purchase—the phase in the buying journey best suited to building consumer confidence, satisfaction, and brand loyalty.
Yes, consumers have grown more cost-conscious and practical amid shifting macroeconomic conditions. But they remain brand loyal and are willing to pay a premium for products that they trust will provide the greatest value in the long run—durable, energy-efficient, user-friendly products that are also affordable. This enduring consumer loyalty underpins each key takeaway from the latest survey results and highlights the opportunities that OEMs have to build on its foundation. By offering connectivity features that add value (as defined by the consumers most invested in connectivity), expanding D2C online interactions, and further penetrating aftermarket services, brands create more touchpoints—to nurture existing relationships, forge new ones, boost revenues, and enable their portfolios to both shape and be shaped by evolving consumer priorities.
