December 2014 turned out to be not just nervous, but somehow explosive; each next day heated up the atmosphere more and more, increasing rumors, fears and uncertainty about the future. What will the exchange rate be, how much will the equipment cost tomorrow, how will sellers and buyers behave?This concentration of events and market fluctuations led to the fact that the heads of many of the world's largest companies visited Moscow in November-December. We tried to talk to everyone. Almost everyone willingly shared with us their views on what was happening. Whether it’s a coincidence or not, Italian manufacturers of household appliances have become the most outspoken. Their balanced view of the problem and deep understanding of the ongoing processes allowed us to go through this period of time more calmly and look forward with a certain optimism.
Interviewed by Galina SIZIKOVA.
Paolo LIOY, General Director for Eastern Europe and Central Asia, Whirlpool.
Marco FALASCHETTI, Marketing Director of Indesit Company in Russia.
Marco GARBUGLIA, Marketing Director of Elica in Russia.
Kirill BURMISTROV, head of marketing department at Faber.
Daniel MARTINEZ, Director of Business Development at Smeg.
Tatiana PECHALINA, head of marketing department at Candy HooverGroup.
Ilya KOMARTSOV, director of Zigmund&Shtain.
Vladimir ELISEEV, director of the wholesale department of Mie.
WHAT DOES THIS YEAR TAKE AWAY?
“BT”: What are the results of 2014 in your company: were you able to implement all your plans? Does the volume of equipment sales in the Russian Federation correspond to the expected volume?
P. LIOY, Whirlpool: Globally, the year ended positively for corporations around the world. In North America, Whirlpool is traditionally the #1 brand in the major appliance category. In Europe, the situation is somewhat different for us, the competition is tougher, however, our positions in the TOP-3 are preserved. In Russia, compared to last year, we are seeing an increase in sales volumes. Of course, this does not mean that we have achieved all our goals. But overall the year went well. As before, we rely on the quality and functionality of our products, for which the buyer appreciates our brand.
M. GARBUGLIA, Elica: 2014 was not an easy year for the market, which underwent key changes not without the participation of geopolitical events, which certainly influenced companies that import 100% of their products. In any case, it was a very interesting year for Elica in Russia. We have a team with new business ideas that have already allowed us to achieve positive results, despite the period of instability experienced by the market.
K. BURMISTROV, Faber: At the moment we can say that we have implemented almost all the plans that were outlined. Sales volume is slightly different from our expectations at the beginning of the year. But, firstly, forecasts very rarely coincide 100% with the real situation. And secondly, the result is different for the better.
M. FALASCHETTI,Indesit: 2014 was a transitional stage for us. We have become part of a large corporation - Whirlpool, which undoubtedly opens up new opportunities for us and, it seems to us, will strengthen our position in the market. The company underwent some organizational changes and throughout the year we worked to maintain the profitability of the business, which was under attack due to the unstable economic situation. We achieved our goal and maintained our leading position. Today we are ready for a large-scale launch of new products in 2015. Their development was another ambitious task, which, it seems to us, we accomplished “perfectly.” We are proud of the results of our work and are confident in the success of our new products in the coming year.
T. PECHALINA, Candy: In general, we can say that this year was not bad for us. There are some minor difficulties in some segments, but we are working on them. Considering that the market for large household appliances as a whole is showing negative dynamics, our results against this background allow us to make optimistic forecasts for the next year.
I. KOMARTSOV, Zigmund & Shtain: We managed to implement most of the tasks. The range has been significantly expanded, becoming more modern. We expect the full effect of this work in 2015. There are several more interesting projects in the pipeline in certain categories of equipment.
D. MARTINETS, Smeg: Under the circumstances presented, on the whole we are pleased with how things are going. Of course, not everything that was planned has been implemented, but the results are positive. Sometimes we had to change our plans due to changes in the market situation, especially with regard to sales in regions where it became more difficult to work. There is a certain slowdown in growth rates, but in Moscow our sales have increased noticeably.
V. ELISEEV, Mie: We have not yet summed up the final results for the year, but on the whole I can say that they are positive. Firstly, we have significantly expanded our product line, as planned last year. Secondly, we have made improvements to equipment models that have been on sale for a long time, and we have increased the network of service centers. Today, our appliances can be seen in almost all large chain stores of household appliances, and they are presented in a wider range compared to previous years. This year we opened three MIE brand stores, and pre-crisis plans were to open ten more stores next year. Sales volume in 2014 generally met our expectations, which cannot be said about exchange rates.
“BT”: Have prices for equipment changed significantly this year and how has this affected its sales?
T. PECHALINA, Candy: Yes, we adjusted the prices, but not much. We always try to be in the middle price segment with a price index of 100%.
K. BURMISTROV, Faber: Prices for our products, of course, changed throughout the year. I would like to note that not only in the direction of increase. We managed to reduce prices for some models thanks to production optimization and the use of new materials. On average, prices in euros for our equipment have increased by 4% this year. This change did not have a negative effect on sales, which allowed us to achieve our goals.
M. FALASCHETTI,Indesit: Pricing, of course, strongly depends on the economic situation in the country. Due to the instability of exchange rates, we increased prices throughout the year - to a lesser extent for local production, and to a greater extent for imported products.
D. MARTINETS, Smeg: As for prices, they are in euros, so, of course, the price tag in rubles depends on the exchange rate.
P. LIOY, Whirlpool: As a rule, we determine our pricing policy once a year, but in 2014, and this was the same for most players in the market, the price tag was updated several times. The cost of our products depends 60-70% on what is produced outside the Russian market, because all of it (with the exception of microwave ovens) is assembled in Europe. Therefore, in conditions of volatility and instability of exchange rates, we must be more flexible and able to quickly respond to changes in the external environment.
I. KOMARTSOV, Zigmund&Shtain: Prices change in accordance with the euro exchange rate, because... We are a European company that carries out procurement activities abroad and is forced to follow changes in exchange rates.
V. ELISEEV, Mie: We sell Italian equipment, and Italy is the European Union. Of course, the rise in the euro exchange rate cannot but affect the price of our equipment.
WHAT ARE RUSSIANS BUYING?
“BT”: Which equipment from your range was in high demand this year?
What is this connected with, in your opinion?
T. PECHALINA,Candy: Built-in appliances sold well. This year we expanded our model range, improved distribution and made smart price positioning. And this market segment is also showing growth. Washing machines showed negative dynamics at the beginning of the year, but thanks to our efforts, growth in this segment can be observed since August. Sales of vacuum cleaners that we produce under the Hoover brand also showed good results.
P. LIOY, Whirlpool: There are three product segments that have seen strong sales growth this year. The first category is top-load washing machines, where we are the traditional global market leader. The second large segment for which demand is growing in the industry as a whole is built-in technology. And the third segment of Whirlpool products, which sells well in Russia, is a solution for small apartments and young families - compact front-loading washing machines.
K. BURMISTROV, Faber: Considering that our company produces only kitchen hoods, it is not difficult to answer your question. If we delve a little deeper into the details, the most popular were built-in models in the middle price segment. This is due both to the general interest of consumers in built-in household appliances, and to the fact that we offer really interesting solutions for embedding into kitchen furniture at an affordable price.
M. GARBUGLIA, Elica: The best-selling products are still built-in hoods, which are intended mainly for kitchen manufacturers. The Elica brand icon, the OM hood, is undoubtedly popular, but other design innovations do not go unnoticed. Sales volumes of products in the low and medium price categories have reached good levels this year, while sales of premium segment hoods, in turn, remain stable.
M. FALASCHETTI,Indesit: The balance of sales was maintained among all categories of equipment without serious fluctuations. The only thing worth mentioning separately is the new series of Indesit Innex washing machines. The new product quickly gained recognition among both our partners and customers. We managed to achieve amazing results, exceeding the planned sales targets for this line of washing machines, even without any advertising investments.
D. MARTINETS, Smeg: This year, in the market as a whole, not just ours, the market for built-in appliances has grown, but sales of free-standing washing machines, refrigerators, and dishwashers have decreased. Our strong point has always been and remains retro-style technology. Russians especially love this style, as it allows you to create a truly cozy kitchen. In addition, our devices match well with each other in color, style, and fittings. The choice is large. For example, our popular retro-style refrigerators can be combined with built-in or free-standing appliances so that you get a single ensemble from the set of items that you need.
I. KOMARTSOV, Zigmund&Shtain: Firstly, this is the “slimline” line with a width of 45 cm, which we specialize in. We are known as a serious player in this segment. In addition, our “classic” line has a number of unique positions, and accordingly, it is extremely in demand. Next year we expect a surge in demand for other new products that we will introduce at the end of the year.
V. ELISEEV, Mie: We have three clear leaders in sales in each product category. Among steamers, this is definitely the MIE Deluxe; the next “successful” model, I would call the vacuum cleaner with an aqua filter and separator MIE Ecologico. Among ironing systems I would like to highlight MIE Milano. I can’t call it a hit, after all, this is not a product for the general consumer, but in the luxury segment Milano is indeed a very popular ironing system. The demand for multifunctional products has increased sharply. Nowadays, everyone is more willing to buy a steamer with the function of a steam cleaner and a steam generator than just a steamer and a steam cleaner separately. I think this is not only due to the crisis, although buying a multifunctional device will cost much less than two devices separately. This is due to the saving of space in the apartment and the reluctance to spend a lot of time searching and purchasing.
AND WHAT WAITS FOR US?
“BT”: Have your company’s plans for the next year been adjusted during 2014? Do you plan to introduce new products to the Russian market next year? What price range will they be in?
M. FALASCHETTI, Indesit: We are planning a large-scale update of products in the Hotpoint-Ariston line of washing machines and refrigerators with the No Frost system. Our company will present innovative products with updated designs and a set of unique characteristics. We believe that this will strengthen the brand image. It is worth noting that the Indesit brand will also introduce new products in the refrigeration category next year.
K. BURMISTROV, Faber: Of course, our plans were adjusted. The situation not only in the world, but also in the consumer goods market is changing quite quickly. We must comply with the changes taking place. The coming year does not promise to be easy. Only active work, including on yourself, can lead to success even in the most difficult conditions. We presented new products this year and are going to launch new models next year. Since our assortment includes all price categories of products, from budget models to premium ones, new products will be presented evenly in all categories.
T. PECHALINA, Candy: Yes, we are planning. There will be many new products. In addition to regular appliance models, next year we plan to sell a new line of large household appliances that can be controlled via Wi-Fi. This is a complete line, and not just one model - washing machine, dishwasher, oven, hob, extractor hood, refrigerator. That is, all kitchen appliances can be controlled remotely. At the same time, the price for these models will be in the middle segment, and, accordingly, the equipment will be accessible to everyone.
D. MARTINETS, Smeg: We plan to present a number of new products, some of which we have already shown at the FURNITURE 2014 exhibition, which was held at the Expocenter in November. Our new models represent not only a retro style, but also a slightly different concept: they fit into lighter kitchens compared to the Baroque style - kitchens that are more of a Victorian style. And the technology will therefore be more voluminous. At the same time, we will offer our consumers new compact devices in almost all series. In March we will present wine refrigerators 45 and 60 cm wide, made in classic aesthetics. Side-by-side refrigerators with two and four doors, 70 and 90 cm wide will also be available for sale. In April, we plan to enter the market of our premium small appliances: toasters, which are already on sale, will be added to kettles, blenders and planetary mixers.
I. KOMARTSOV, Zigmund&Shtain: We are a flexible company and do not make rigid plans. There is a general line that we follow, adapting to the market. Our strategy has always been adaptive, unlike the clumsy monsters. We plan to present new products both in the mass segment to conquer the market, given the not-so-good market situation, and in the “boutique” segment, which is native to us and shows the level of “advancement” of the brand.
P. LIOY, Whirlpool: Yes, we are planning a number of new products: an updated line of built-in appliances, a fundamentally new range of refrigerators, as well as the next generation of washing machines and dryers. In addition, since December 2014, the Indesit and Hotpoint-Ariston brands began to belong to Whirlpool. We are now legally one company, although in 2015 new products from all these brands will be on store shelves, which means that the buyer will find the right solution at the right price and functionality.
M. GARBUGLIA, Elica: In April of this year, Elica presented a completely new range of products on the occasion of the Eurocucina exhibition. Today we work in Russia with three catalogues, one of which is presented only in the kitchen segment. You can find all Premium line products there. This approach best allows us to control the distribution system and maintain stable margins for our partners.
Elica is already actively working on restyling its product range for next year. The segment of decorative hoods continues to grow, primarily in the mid-low price category. We plan to introduce new models both under the JetAir brand and under the Elica brand. And for the first time in Russia, Elica will launch new induction panels for the kitchen, which will be connected to kitchen hoods via the Wi-Fi system. These products will contribute to a significant expansion of the company’s field of activity and are designed exclusively for the premium consumer segment.
V. ELISEEV, Mie: Now everyone who sells foreign products on the Russian market has taken a wait-and-see attitude. And we are no exception. Some plans may have to be postponed, but it’s too early to talk about it. If the purchasing power of Russians continues to fall, we will be forced to expand the model range in the middle segment, but if the market stabilizes, we will be true to our long-standing strategy and will continue to increase the range in all promising areas with an emphasis on the premium class.
GREAT RUSSIA
“BT”: At the moment, where are sales more active: in Moscow and St. Petersburg or in the regions? Is there a decline in purchasing power among the population?
P. LIOY, Whirlpool: Over the past 20 years, the market in Russia has been developing according to a sinusoid, but nevertheless it is growing every year by an average of 10-15%, the dynamics are positive. Of course, Moscow and St. Petersburg are engines of growth, but the consumer is equally important to us everywhere: both in the center and in the regions of the Russian Federation. And if we talk about the purchasing power of Russians in the current situation, we understand that the overall positive trend may change. But we are optimistic about the future, also thanks to the acquisition of Indesit.
M. GARBUGLIA, Elica: Moscow and St. Petersburg are undoubtedly the key ones, here there are clients not only with higher purchasing power than in the regions, but also with constantly changing tastes and preferences. However, Russia is not only Moscow and million-plus cities. Elica invests in agency and distribution networks through which we are represented in the regions. But this task is not an easy one, especially during periods of fluctuating demand that is observed in the market.
K. BURMISTROV, Faber: Moscow and St. Petersburg are still in first place. At the same time, in some regions there is a noticeable trend towards an increase in the share of sales. For example, the southern federal district may soon emerge, if not in first place, then in the top three. No, there is no decline in purchasing power among the population. On the contrary, people began to spend more. This is due to various factors, ranging from seasonality of demand to high volatility of the ruble exchange rate. This will not last long, and next year purchasing power will decrease, but it is too early to talk about this.
M. FALASCHETTI, Indesit: On average, the purchasing power of the population is the same throughout the country. Russian consumers are demanding and, as a rule, give their preference to modern and high-tech products, and, of course, there is an obvious tendency to develop sales in big cities, but there is also a good indicator in the regions. The structure of our company allows us to cover the entire territory of Russia. If we talk about a decrease in purchasing power, then, as you understand, this very much depends on the situation in the economy. Separately, I would like to say about the growth trend in online sales. We are paying special attention to what we believe is an attractive distribution channel.
D. MARTINETS, Smeg: Our main task is not large sales volumes, but a careful selection of partners. It is important for us that our partners match the quality of their services with the quality of the brand, present our products well and understand our pricing policy well. This applies not only to furniture showrooms, but also to boutiques, as well as chain stores. We are also opening our own mono-brand stores. They are already operating in St. Petersburg, Makhachkala, and Syktyvkar. There are plans to open such outlets in other cities.
T. PECHALINA, Sandy: Moscow and St. Petersburg - a large share in sales. But people are also buying in the regions. Especially now, online sales are growing strongly in the regions. Due to the current economic situation, many are trying to spend money to avoid its depreciation.
I. KOMARTSOV, Zigmund & Shtain: Of course, we do not live on another planet and receive “reports from the front” every day, i.e. feedback from clients and news from partners. Therefore, we are well aware of what is happening in our market and understand what we will have to work with in the near future. We are represented in almost all regions of the Russian Federation, as well as in Belarus and Kazakhstan, so fluctuations in demand in one region are covered by opposite waves in other regions. Essentially, Russia is a set of local markets with its own rules of the game and factors influencing the market, therefore, if you completely cover the territory, the risk is reduced.
V. ELISEEV, Mie: Moscow is still in the lead, but every year the regions are increasingly showing interest in our technology. As a result, we have already opened a number of branded stores in the regions. Regarding the second question, the dilemma is that with the growth of foreign currencies, the salaries of our consumers in rubles remain the same and, accordingly, their purchasing power does not correlate with these changes in the market. The decline in sales is already being felt in comparison with last year, but it is difficult to call it a disaster yet. I think that those who need our equipment will still buy it, especially since tomorrow it will be even more expensive.
WE ARE ALL IN THE ONE BOAT
"BT": Do you plan to increase prices for your products? What will the growth be like? Could it happen that technology will become “unaffordable” for most Russians?
P. LIOY, Whirlpool: I repeat, as for all market participants, a lot now depends on the cost of production and the dynamics of exchange rates. Therefore, objectively, in the current situation, price adjustments occur more often than before, under more stable external conditions. But all equipment manufacturers are now in this situation. We are all in the same boat, including our customers. Just like them, every day we open the news and look at exchange rates. However, we are confident that Russian consumers will always be able to find a solution in our assortment that they can afford.
T. PECHALINA,Candy: We plan to be in the market. PositioningCandy is a middle price segment, so in any case, we will have a price index of 100%. Most likely, the average price of equipment on the market will increase, and prices for our products will rise. But, despite this, our models will always be affordable for most Russians.
M. FALASCHETTI, Indesit: Yes, now all suppliers are increasing prices for products and, starting in January, this will become noticeable for end buyers. In general, this difficult moment opens up interesting opportunities and prospects for us. The Indesit brand will be able to offer the best price on the market while maintaining high quality standards, while Hotpoint-Ariston will offer the most advanced design solutions and the latest technology, but definitely at very competitive prices.
M. GARBUGLIA, Elica: Elica’s prices in Russia have always been set in rubles, and it will remain so, despite the instability of the ruble against the euro. Over the past 12 months, the ruble exchange rate has weakened significantly against the European currency, but at the same time we have changed our prices once and minimally. Currently, we are planning to increase prices in December 2014 - January 2015, but we are not talking about monthly price changes to cover the fall in the ruble exchange rate.
K. BURMISTROV, Faber: Like most manufacturers, the cost of our products is significantly affected by the euro exchange rate. Therefore, prices will definitely have to increase. For our part, we will try to minimize this increase so that it does not scare away consumers. It is difficult to imagine a situation where technology is “unaffordable” for most Russians. The advantage of a wide range is that a buyer with any income level can choose an option that suits his pocket and suits him functionally and aesthetically.
D. MARTINETS, Smeg: The price in rubles depends on the euro exchange rate in the Russian Federation. As for the development itself, we are definitely not going to make the equipment cheaper; on the contrary, we want to make it more technologically advanced and premium. For example, most of our ovens will have a Pizza function.
Our strategy is to go up and produce premium equipment. That's why we add a variety of accessories to our new home appliance models and increase their functionality, while ensuring, of course, an excellent appearance.
I. KOMARTSOV, Zigmund & Shtain: As already mentioned, if the ruble weakens, we are forced to increase prices to ensure uninterrupted supply. Everything will depend on exchange rates. If they fall against the ruble, then the prices for our equipment will go down. The market for household appliances is adjacent to both the real estate market and the kitchen furniture market. We see the situation happening in these markets and can guess what we will face in the near future. Of course, demand may decrease, but it will never drop to zero. The market does not die completely, so there is always the opportunity to fight for your place in it, convincing the buyer.
V. ELISEEV, Mie: Yes, we are forced to increase prices for products, but we are trying to minimize this increase by optimizing work. As I already said, we will adapt to the consumer capabilities of our customers; with our mobility this will not be so difficult.
WILL THE FACTORIES BE BUILT?
BT: Are you going to expand/open production in Russia to minimize costs?
P. LIOY, Whirlpool: Next year we will be ready to talk about localizing production. There are such plans, but we are not disclosing them yet. In addition to this, as I already said, the acquisition of Indesit automatically gives us localization of production in Russia, ready-made operating factories.
M. FALASCHETTI, Indesit: Now is not the best time to invest, especially in production capacity, since the market for household appliances is likely to decline in 2015. But perhaps this will be important to talk about in the future.
T. PECHALINA, Candy: We have our own production of washing machines and refrigerators in Kirov. That's enough for now.
M. GARBUGLIA, Elica: At the moment, Elica sells in Russia hoods produced by our factories in Italy, Germany, Poland and China. We do not plan to change our production structure, but we do not exclude the possibility of cooperation with local enterprises for special product categories.
K. BURMISTROV, Faber: Faber factories are located in eight countries on three continents. We currently have no plans to expand production. Minimizing costs in our company occurs through the use of new materials and new production technologies.
D. MARTINETS, Smeg: We have no plans to open our own production in Russia. Made in Italy is our distinctive feature, our credo. We received offers, for example, to produce washing machines in Russia, but we did not dare. Although it is possible to produce high-quality goods in both China and the Russian Federation, and in these countries many manufacturers make high-quality equipment, we did not change the place of production.
I. KOMARTSOV, Zigmund&Shtain: Local production (as well as production in general) does not always mean minimizing costs. To do this, there are other ways to make the best offer on the market. Therefore, in the near future we are considering Russian production only in the category of kitchen sinks, a project for which started quite recently.
V. ELISEEV, Mie: We are an exclusively trading company. If manufacturers of high-quality modern ironing equipment appear in Russia, we will be happy to consider the possibility of cooperation with them.
ARE DARK TIMES COMING?
“BT”: Do you think that in business terms 2015 will be easier and more fruitful than 2014, or will we face more difficult times?
T. PECHALINA, Candy: 2015 will definitely not be an easier year. The CBT market will not grow, except for certain segments. Accordingly, efforts will have to be made in order to maintain positions, and, moreover, improve them. This is what we will be working on next year.
M. GARBUGLIA, Elica: Now it is difficult to make any forecasts. Of course, we expect demand on the market to decline in the first half of the coming year, but it will recover by the second half. Obviously, much will depend on the economic situation in the country. For Elica, 2014 was a year of great change. Positive feedback from our clients gives us hope that 2015 will not only reinforce them, but also increase them.
K. BURMISTROV, Faber: As they say, times are always difficult, and 2015 will be no exception. Given the slowdown in economic growth and the challenging political climate for business, next year will be more challenging. But fruitfulness directly depends on our work with you. It is possible to work unproductively in greenhouse conditions. Difficulties, in turn, encourage more active work, which ultimately leads to a positive result.
M. FALASCHETTI,Indesit: 2015 will be a difficult year for all manufacturers of household appliances. I don’t remember easy times in this industry; usually every year is characterized by certain difficulties and trials. However, as already mentioned, we believe that the main opportunities open up precisely during a crisis, and only for those who know how to act correctly and react quickly.
P. LIOY, Whirlpool: Of course, this will be a difficult and poorly predictable year for the market as a whole. But the challenging macroeconomic environment is the same for all competitors. If we work well and offer solutions that are the best in terms of functional and technical indicators, then they will definitely find their buyer. In each of our new lines, we make sure to show new technological capabilities - not only the discoveries of marketers (which in itself is secondary), but the best-in-class functionality and build quality. All of our products planned for 2015 feature improved technologies compared to previous generations. For more than a hundred years of existence on the market, having survived different times and crises, Whirlpool has consistently relied on itself and its strengths. This is probably why we always look into the future with optimism, because we try to create the necessary prerequisites for it today.
D. MARTINETS, Smeg: Of course, we want and hope that the company's sales plans will be fulfilled and the market situation will be favorable.
I. KOMARTSOV, Zigmund & Shtain: Everything speaks of difficulties. But we are not afraid of them; This is not the first crisis we have experienced, so we know what we need to do. In addition, the Chinese character for “crisis” has two meanings, the second of which means “opportunity.” A crisis is always a time to reassess tactical and strategic plans and search for new development opportunities, which is what we are going to do in the near future. Speed of response to change and adaptability are now at the forefront of achieving success.
V. ELISEEV, Mie: It’s not up to us, but we can already say that this year is unlikely to be easy. You need to be optimistic and believe that every cloud has a silver lining. Difficulties make us stronger and force us to work better and more efficiently.
Google Glass - smart glasses from the search giant. They became available in mid-2014. The only reason this technology has not yet become popular is the price. If you want to buy smart glasses from Google, you will have to spend $1,500.
But don't discount smart glasses. Once upon a time, not everyone could afford cell phones either. Titans like Microsoft and Sony are working on their own devices. This means that in the near future you will be able to watch videos of cats during your morning jog.
Automation is one of the main problems that modern technologies solve. Although most of the processes happen automatically these days, there are some things we have to do manually. For example, adding information to your phone contacts list. You probably won’t have to do this yourself any time soon.
RelateIQ is already working on technology that will create a contact based on information about your current contact list, inbox, messages. In the end, all you need to do is say the person's name. All information will appear on your phone.
3. Wearable electronics
Smart glasses and watches are devices that connect us with the outside world. But there are also technologies that connect us with our body. They are being developed by large scientific institutes, corporations and small companies. We are talking about headphones that measure heart rate, lenses that track blood sugar levels, and NFC technology.
As soon as developers are able to make such gadgets available, the market will be filled with various implants that will read important information in real time and display it on the same smart glasses.
4. Smart home
This technology has already become a reality. Refrigerators tell you which food is low, and you can control your oven using your smartphone.
In the future, the oven will learn to heat up food while you're driving home, and the refrigerator will order the groceries itself. At this time, you will be able to focus on more important matters.
5. Virtual reality
Oculus Rift, HTC Vive and PlayStation VR are a completely new gaming experience. Of course, science fiction writers have been flirting with the topic for a long time, but who has thought about it seriously?
Game publishers and developers are spending multi-million dollar budgets to bring us new virtual reality experiences. VR devices have room to grow: they are bulky and have a lot of wires, but a start has been made. Soon we will be able to go anywhere on the planet without leaving home.
6. Holographic images
Remember the holographic interfaces in Star Wars and Minority Report? Now such technology no longer seems like something fantastic.
The applications of holographic projections are not only limited to games and media. Imagine contact lenses that project an image onto the retina of the eye. People with vision problems will be able to see better without surgery.
7. Neurointerface
A similar neural interface has long existed and has been successfully used in medicine. Quadriplegics - people with complete paralysis of the body - talk through a neural interface using a computer.
Of course, the technology is far from perfect. However, with the development of neurotechnology, a paralyzed person will be able to return to society and live a full life.
Food delivery using a universal service The globalization of the Internet has reached incredible proportions. You can access the Internet almost anywhere on the planet, and if Elon Musk’s large-scale project is successful, the Internet will be available everywhere.
It's no surprise that services like Uber are popping up. This is a taxi that you can call in almost any country using a mobile application. Recently, Uber has also started delivering food. Soon there will be even more universal services.
9. Digital distribution
The world is changing rapidly. Some 15 years ago, we could not even imagine that we would no longer have to store stacks of discs with music, films and games in our home. Steam and online cinemas have replaced going to the store for us. Instead of a new album from your favorite band, it’s easier to buy a subscription to a music service at a similar price and get access to the entire discography.
Of course, digital distribution has not reached its apogee, and many continue to use physical media, but there are fewer and fewer such people.
10. Robots
Robotics has come a long way over the past 10 years. Of course, more than a dozen years will pass before the appearance of terminators, but machines capable of shouldering hard and monotonous work on their titanium shoulders will appear in the near future. For example, thanks to Boston Dynamics.
Solar panels are an environmentally friendly source of renewable energy It is almost certain that within the next 30 years we will completely switch from fossil fuels to renewable energy sources. Oil and gas will eventually run out, but solar and wind energy will not. In addition, solar panels are much more environmentally friendly.
In Israel, they have already tested a road that will charge an electric car while driving. Apple this year patented technology that will allow you to charge your smartphone over Wi-Fi. If engineers are unable to create sufficiently capacious batteries, then they will have to make sure that they do not discharge at all.
Constantly growing volumes of Internet traffic set the pace of development for mobile networks. Messengers, video calls, 4K video and streaming services require new data transmission technologies, so the emergence of 5G Internet in the near future is inevitable.
14. Artificial Intelligence
Creating a full-fledged one is only a matter of time. This will be a turning point in the development of human civilization, after which the world will change forever.
In fact, artificial intelligence no longer seems out of reach, especially with the rapid pace of development of neural networks. Machine learning has already reached a high level and is capable of many things, including writing scripts, books and songs.
Of course, the programs do not work as well as we would like, but the neural network is an excellent example that we are moving in the right direction.
15. Graphene
In 2004, the first sheet of graphene was released. Since then, scientists have been trying to find a way to mass produce the material.
Graphene is a versatile material with exceptional properties. It can be used in almost all areas of our lives. High-speed data transfer, filters for water purification and even an unbreakable smartphone case are all graphene. When the production of this material is put on stream, another industrial revolution awaits us.
What will the technologies of the future be like, and what will the world around us be like in the next 20 years? Technology continues to evolve rapidly, changing the world today. 20 years ago, no one imagined that everyone would have a smartphone with an Internet connection.
Very soon, technology will reach such a level that it will be able to radically change our understanding of ourselves and the ways we interact with the world around us. Curious? Then let's look beyond the unknown. Here are 25 technologies that are much closer than you think.
25. You will gain access to all your accounts using your brain fingerprint.
Photo: Allan Ajifo/Wikipedia Commons.com
We all know that passwords are far from being completely secure. Even using other methods such as fingerprint or facial recognition cannot protect your data from hacking. However, researchers began to study “brain fingerprints”. The idea is that the waves emitted by our brain are unique and can be used as a kind of password. In the future, you won't have to enter your password again, you will be able to use your brainprint.
24. The boundaries of our interaction with the world will be significantly expanded
photo: Kippelboy/Wikipedia Commons.com
The way we perceive and interact with the world has already changed thanks to smartphones, cameras and games like Pokemon Go. Moreover, in the future, computers will be built into contact lenses, which will provide additional information about your surroundings. The way you interact with restaurants, movie theaters, and the people around you will change radically. You will be able to receive personalized messages and any necessary information.
23. We will have a more effective cure for cancer
photo: Wikipedia Commons.com
Research into the treatment of cancer has been going on for a long time, but we still have not learned how to treat it. However, in the future we will have drugs that will completely cure the disease, or transfer the disease to a stage where it is not dangerous. Today, quite a lot of similar methods are already used to treat the disease, such as immunotherapy.
22. Batteries will last longer
photo: Kristoferb/Wikipedia Commons.com
Let's face it: the batteries we use today are terrible. Their capabilities do not keep pace with computer technology. Fortunately, experts are already developing new technologies that will create batteries that can stay charged longer. Soon the need to charge your phone twice a day will disappear.
21. All information will be stored in cloud storages
Photo: George Thomas/flickr
We are already faced with the fact that cloud technologies have become commonplace in everyday life. However, as they become more popular, cloud storage will become the only storage location that replaces computer memory. It is quite possible that one day this is where we will store our human memories.
20. Drones will deliver packages directly to your door
Photo: Frankhöffner/Wikipedia Commons.com
Amazon has already delivered its first package using a drone. Other delivery services are also adopting this method. Once drones become more powerful and can carry heavy cargo, they will become the only method for delivering packages to your home.
19. A $1,000 computer will have the computing power of the human brain.
Photo: Zephyris/ en.wikipedia.org
The days when man was considered the most intelligent creature on Earth are coming to an end. Many futurists and scientists predict the invention of a $1,000 computer whose computing power will be comparable to that of the human brain. It seems that this will not happen soon, but scientists predict such an invention by 2025.
18. We will see more complex architecture
Photo: Pixabay.com
Architecture will also change radically in the future. We can already see this happening in Dubai. Spiral skyscrapers, indoor parks, invisible buildings, forts that provide protection from natural disasters, green power plants - all this will become a reality.
17. We will get rid of obesity with a pill
Photo: PIxabay.com
We've all heard of dietary supplements and diet pills, but they don't work. However, scientists and researchers are making progress towards creating a real pill that will change the way the body processes fat. Essentially, this will cause obesity to disappear as such.
16. A movie in the cinema will turn into your own story from the subconscious
Photo: Wikipedia Commons.com
The cinema and movie watching experience have not changed since it first appeared. This is passive observation of what is happening on the screen. However, very soon you will be able to wear a special headset that will scan your emotions and brain waves. This will allow you to control the plot, as well as change it with the help of your thoughts and feelings.
15. Fast planes that can reach any destination in just 4 hours
Photo: Spaceaero2/Wikipedia Commons.com
The Concorde was an old luxury aircraft, and its latest modification, the Mach2, allowed it to reach high speeds and quickly transport people around the world. This will become commonplace in the future. Each plane will be able to fly you to your destination in 4 hours or even faster, which will make our world even smaller than it already is. At the moment, such aircraft are just being developed.
14. Our phones will be much thinner
Photo: Superdiddly/Wikipedia Commons.com
Each of us hates it when we drop our phone, its screen breaks, or the gadget itself becomes unusable. Very soon, most smartphones will be a thin piece of glass that will act as both a computer and a display. Such a smartphone will be very durable, flexible and less likely to break if you drop it.
13. Medical diagnosis can be made using a smartphone 
Photo: PROHealth Gauge/flickr
Today, if you feel unwell, you should go to the clinic and see a doctor. However, within our lifetime there will be applications that can diagnose diseases and prescribe treatment for various diseases.
12. Artificial leather with tactile function will be used for prosthetics
Photo: Wikipedia Commons.com
We've all seen this in Star Wars. Luke's hand is cut off and it is replaced with an artificial hand that imitates a human one. Medical droid 2-1B checks to see if there is a reaction to the injection, and Luke's fingers react as if they were alive. Believe it or not, this science fiction is about to become reality. We already have prosthetics with the ability to touch, and very soon they will look like a human hand.
11. Ride the Hypertrain from San Francisco to Los Angeles in just 30 minutes
Photo: Camilo Sanchez/Wikipedia Commons.com
The vacuum hypertrain was first proposed by Tesla CEO Elon Musk. Essentially, it is a magnetic capsule moving inside a pipe installed underground, carrying passengers at crazy speed from one place to another. Musk, for example, claimed that he could transport passengers from San Francisco to Los Angeles in just 30 minutes. This technology may become commonplace in the future as it is cheaper, more reliable and more efficient than current modes of transportation.
10. We will gain a better understanding of dark matter and our universe. 
Photo: Wikipedia Commons.com
Despite the fact that we know about the existence of dark matter, we have not been able to uncover all its secrets. However, some believe that within the next 10 years we will be closer to understanding this mystery. Knowledge about the structure of dark matter will radically change our physical understanding of the world and help us understand how our universe works.
9. Human colonies will appear on the Moon
Photo: Wikipedia Commons.com
We have already been to the Moon and realized that it is not at all interesting there. Why should we colonize it? Many scientists believe that colonizing the Moon will be the first step in the subsequent colonization of Mars. NASA believes that colonization of the Moon will be possible by 2010.
8. Some of us will become fully digitally immersed.
Photo: digitalbob8/flickr
Scientists and researchers are trying to find a way to download a person's mind and consciousness onto a computer. Some even believe they will be able to do this within the next 30 years. Of course, there are many obstacles, such as lack of necessary technology or insufficient knowledge of how our brains function. But if scientists succeed, some of us will be able to move completely into virtual reality.
7. Organs will be grown in scientific laboratories
Photo: Wikipedia Commons.com
Technologies for artificially growing organs are now at the initial stage of research. Scientists have already managed to grow a human heart that beats like a living one. In the future, the ability to order a new organ and have it transplanted into your body may become common practice, and organ donation will become a thing of the past forever.
6. Soldiers will have armor like Iron Man
Photo: Wikipedia Commons.com
While it won't look exactly like the armor worn by Iron Man in the comics, many soldiers will receive special gear reminiscent of Iron Man's suit to be better protected in battle. Suits will also greatly increase their capabilities. Such a program, called TALOS, is currently being developed in the US military.
5. Almost all devices will run on solar energy
Photo: Wikipedia Commons.com
Although coal, oil and gas are the main sources of energy in much of the world, solar energy is quickly becoming more powerful, cheaper and more efficient than hydrocarbons. As solar energy conversion technology matures, it will overtake coal, oil and gas as the world's leading energy source.
4. Some will be able to use jetpacks as a means of transportation.
Photo: Seg9585/Wikipedia Commons.com
For a long time, jetpacks remained a dream that existed only in science fiction films and novels. However, last year a working jetpack was invented. As technology advances, it could become a way to travel for future generations.
3. Our clothes will be washed by themselves
Photo: J Jana/Wikipedia Commons.com
The day is not far off when we no longer have to wash our clothes in the washing machine and dry them in the clothes dryer. Thanks to nanofiber and self-cleaning technology, our clothes will clean themselves when exposed to solar energy.
2. Nanotechnology will cure disease and give people new opportunities
Photo: CSIRO/Wikipedia Commons.com
Nanotechnology is the concept of creating computers at the nanoscale that are no larger than one billionth of a meter. This means that researchers must create them almost at the atomic level. With this in mind, nanotechnology will make it possible to find cancer cells, treat diseases and act as a doctor inside the human body. Nanotechnology can also create a new layer of protection for our skin and place sensors around the world to detect problems early.
1. The new generation will be very developed intellectually and genetically advanced
Photo: Paul Inkles/flickr
The CRISPR technology for editing the genomes of higher organisms, invented today, allows scientists to quickly make changes to the human genome. It is now only a matter of time before doctors are able to give parents the opportunity to remove problems found in the child's DNA. This will also allow the formation of generations with better genetic data, significantly different from those of the previous one.
Technologies
The world is improving every day, inventing and discovering something new, and without these advances we would not have come this far.
Scientists, researchers, developers and designers from all over the world are trying to implement things that will simplify our lives and make it more interesting.
Here are some technologies future , which raise our lives to a completely different level.
New technologies of the future
1. Biorefrigerators
A Russian designer has come up with a concept for a refrigerator called the "Bio Robot Refrigerator" that cools food using biopolymer gel. There are no shelves, compartments or doors - you simply insert the food into the gel.
The idea was proposed by Yuri Dmitriev for the competition Electrolux Design Lab. The refrigerator uses only 8 percent of the home's energy for the control panel and requires no energy for actual cooling.
Biopolymer refrigerator gel uses light generated at cold temperatures to preserve food. The gel itself is odorless and non-sticky, and the refrigerator can be mounted on the wall or ceiling.
2. Ultra-fast 5G Internet from drones with solar panels
Google is working on solar-powered drones that deliver super-fast internet in a project called Project Skybender. In theory drones will provide Internet services 40 times faster than 4G networks, allowing gigabytes of data to be transferred per second.
The project involves the use of millimeter waves to provide the service, since the existing spectrum for mobile communications is too full.
However, these waves have a shorter range than the 4G mobile signal. Google is working on this problem, and if all technical problems can be solved, the Internet of unprecedented speed may soon appear.
3. 5D disks for eternal storage of terabytes of data
Researchers have created a 5D disk that records data in 5 dimensions that lasts for billions of years. It can store 360 terabytes of data and withstand temperatures up to 1000 degrees.
The files on the disk are made of three layers of nanodots. The five dimensions of the disk refer to the size and orientation of the points, as well as their position within the three dimensions. As light passes through the disk, the dots change the polarization of the light, which is read by the microscope and polarizer.
The Southampton team behind the disc was able to record the Universal Declaration of Human Rights, Newton's Optics, Magna Carta and the Bible on disc. In a few years, such a disk will no longer be an experiment, but will become the norm for data storage.
4. Injection of oxygen particles
Scientists from Boston Children's Hospital have developed microparticles filled with oxygen that can be injected into the bloodstream, allowing you to live even if you can't breathe.
The microparticles consist of a single layer of lipid capsules that surround a small bubble of oxygen. The 2-4 micrometer capsules are suspended in a liquid that controls their size, as larger bubbles can be dangerous.
When administered, the capsules encounter red blood cells and transfer oxygen. Thanks to this method, it was possible to introduce 70 percent of oxygen into the blood.
5. Underwater transport tunnels
Norway plans to build the world's first underwater floating bridges at a depth of 30 meters underwater using large pipes wide enough for two lanes.
Considering the difficulties of moving across the terrain, Norway decided to work on creating underwater bridges. The project, which has already cost $25 billion, is expected to be completed in 2035.
Other factors still need to be taken into account, such as the influence of wind, waves and strong currents on the bridge.
6. Bioluminescent trees
The development team decided to create bioluminescent trees using an enzyme found in some jellyfish and fireflies.
Such trees will be able to illuminate the streets and help passersby see better at night. A small version of the project has already been developed in the form of a plant that glows in the dark. The next step will be trees to light the streets.
7. Roll-up TVs
LG has developed a prototype TV that can be rolled up like a roll of paper.
The TV uses organic polymer LED technology to reduce the thickness of the screen.
Besides LG, other major electronics manufacturers such as Samsung, Sony And Mitsubishi are working to make screens more flexible and portable.
Future technology development
8. Bionic lens for lightRxhuman vision
Canadian doctor intends to conduct clinical testing "bionic lenses" that improve 100% vision by 3 times with an 8-minute painless operation.
The new lens will be available by 2017, enhancing the natural lens of the eye. During the operation, a syringe inserts a lens containing saline into the eye, and after 10 seconds, the folded lens straightens and is positioned over the natural lens, completely correcting vision.
9. Spray clothing
Spanish designer Manel Torres invented the world's first spray-on clothing. You can apply the spray to any part of the body, then remove it, rinse and wear again.
The spray is made from special fibers mixed with polymers that give the fabric elasticity and durability. This technology will allow designers to create unique items of clothing with original designs.
10. Portraits obtained from DNA
Student Heather Duy-Hagborg creates 3D portraits from DNA found on cigarette butts and chewing gum on the street.
She enters the DNA sequences into a computer program that creates the appearance of a person from the sample. This process typically produces a 25-year-old version of the person. The model is then 3D printed with life-size portraits.
11. Shopping in virtual reality
One such store was opened at a train station in South Korea, where you can place an order by photographing the barcode, and your purchases will be delivered to your home.
Chain of stores Homeplus installed six screen doors with life-size images of shelves containing items you would buy in a supermarket. Under each item there is a barcode that can be scanned and sent using the app.
You can place an order at the station on your way to work, and the goods will be delivered to your home in the evening.
12. Self-driving cars
Expected that by 2020 there will be about 10 million driverless cars, which would reduce the number of deaths by 2,500 between 2014 and 2030.
Many car manufacturers have already started implementing some automated driving features in their vehicles.
There are also many companies trying to develop technology for self-driving cars, such as Google announcing a self-driving car prototype. A fully autonomous car is expected by 2019.
13. City under the dome
Construction underway in Dubai shopping center called "Mall of the World", covered with a retractable dome, which controls the climate inside and supplies air conditioning.
The complex will occupy an area of 4.46 km2 and will include a large beauty and health center, a cultural and entertainment district, hotels with 20 thousand rooms and much more. This will be the largest shopping center with an indoor theme park.
14. Artificial leaves that convert carbon dioxide and sunlight into fuel
Scientists have developed new solar cells that convert carbon dioxide in the atmosphere into fuel using the sun.
While there have been many attempts to convert carbon dioxide into something useful, this is the first time an actual method has been developed. Unlike other technologies that require noble metals such as silver, this method uses a tungsten-based material that is 20 times cheaper and 1,000 times faster.
These solar cells use carbon dioxide from the atmosphere to produce syngas, a mixture of hydrogen gas and carbon monoxide, which can be directly burned or converted into hydrocarbon fuels.
Technologies of the near future
15. Plasma force field that protects cars from accidents and collisions
Boeing has patented a method to create a plasma field by quickly heating air to quickly absorb shock waves.
The force field can be generated using lasers or microwave radiation. The plasma created is air heated to a higher temperature than the surrounding air, with a different density and composition. The company believes it will be able to reflect and absorb the energy generated by the explosion, protecting those inside the field.
If the technology can be brought to life, it will be a revolutionary development in the military field.
16. Floating cities
Floating ecopolois, named Lilypad, was proposed by architect Vincent Callebaut for future climate refugees as a long-term solution to rising sea levels. The city can accommodate 50,000 people using renewable energy.
Incredibly, but true, the appearance of smartphones was predicted back in the 70s of the last century; In 1982, the impact of the Internet on everyday life was assessed as “colossal.” Such correct forecasts belong to an expert in matters of globalization and a comprehensive assessment of future changes Ray Hammond- a world-famous futurologist. As part of the project “Experience Intel. Look Inside” Ray explained how our lives will change over the next 20 years.
People find it difficult to find words to name things that they will use decades from now. For example, the “projector” was originally called nothing more than a “magic lantern”, and the “refrigerator” was called an “ice box”. However, this does not prevent us from predicting and anticipating the very essence of technology, as well as what opportunities will be available to people with the invention of new devices, because the main thing is inside, not outside, both for humans and gadgets.
Hammond sees the foreseeable future within the framework of several megatrends that will radically affect human life:
Global population growth (from 7 to 9 billion)
“How will we feed and water so many people?” - the scientist asks. And then he offers a solution: “There will be enough food for everyone, because its production will become low-cost and efficient.” Also, according to the futurologist, earthlings use ordinary sea water to meet their needs, creating numerous high-performance desalination plants.
Renewable Energy
The wind and sun will share their inexhaustible energy with us to provide humanity with electricity. Literally by the end of the 21st century, such methods of generating energy will prevail over existing ones.
Globalism
A word that is viewed with caution by many, Ray predicts that it will significantly reduce the threat of terrorism and violence on Earth. Sounds unusual. Let's try to figure this out.
One of the components of globalism is education - increasingly better and more accessible in recent years. It is thanks to him that people can live a full and high-quality life, creating better conditions for the future of their children. As a result, there will be a dramatic reduction in the number of poor people, as well as wars and unrest.
The main idea is that progressive humanity should take care of countries that are isolated today from the world community, such as Africa and North Korea. According to Ray, the inclusion of these countries in the global life process will make life on the planet safe and comfortable for everyone, and this is precisely the main mission of developed countries. Otherwise, there will be exile countries in the world acting like Samoli.
Healthcare
Next, the speaker moved on to the topic of health, which is relevant at all times. Ray is one of the few people on Earth today whose DNA genome has been deciphered. Truly, a man from the future. In his opinion, medicine in the coming decades will become individual, responding to the needs of each individual person. Stem cells, genome decoding and nano-medicine will very soon have their say in increasing life expectancy. People who are now 20-30 years old, Hammond believes, thanks to innovative technologies, will live 30 years longer than they think.
Robots
The development of microprocessors used in many electronic devices around us is characterized by a periodic doubling of their performance. However, if quite recently it doubled every 2 years, now the process takes less than 12 months. This means that robots, by which Ray means various technical gadgets, can already do much faster, more accurately and efficiently the work on which a person spent so much effort and time. Is there a limit to such perfection and what will such singularity lead to? So far no one knows this. However, answering the question of what the familiar mobile phone or smartphone will turn into by 2030, the scientist pointed to his ear. For what? It is there that the chip will be located, which will not only act as a telephone, an organizer, it will become a kind of World Brain (Google, as it is called now), which will be man’s best friend, always ready to help, give advice, call and fulfill almost any desire of the owner . The profession of a translator may well sink into oblivion, because Maria (as Hammond named the chip in honor of his wife) will be able to translate from any language in real time. Just imagine how the boundaries and opportunities for every homo sapiens will expand. One glance at a person will be enough to find out almost all the information about him.
In 20 years they will succeed in solving many of humanity's problems, but will not be able to surpass people in the categories of creativity and intelligence.