Quarters 2 & 3, 2012 The Small Appliance Spend is Getting ... · set and looking toward premium...

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spending with more of an investment mind-set and looking toward premium products.

Average prices during the 12 monthsending September 2012 increased for 36 of50 small appliance categories and 15 ofthem saw double-digit increases. Byindustry, home environment cate-gories are benefiting most from thepremium products being offeredwith a 21 percent increase in aver-age selling price. Kitchen electricsfollow with a 10 percent increaseand the average selling price of per-sonal care appliances grew by 2 percentcompared to the 12 months endingSeptember 2011. All of this spendinggrowth is helping to drive a market that isrelatively flat in terms of unit sales.

Premium Segment GrowsFocusing on the premium segment

(products with average selling prices that are50 percent or more above the category

average), the portion of the market thatthese products represent, in terms of unitsales, has grown by as much as six sharepoints since last year depending on the cate-gory. According to NPD’s Retail TrackingService, the most significant increases

occurred within coffee/espresso makers,juice extractors, hairsetters, food processors,specialty cleaning and hand/stick vacuums.The category average for these productsrange from $26 to $95; they are not themost or least expensive categories, but they do lean toward the upper end of themiddle.

About Housewares MarketWatchHousewares MarketWatch reports

both point-of-sale (POS) and consumerdata from NPD databases. The quarterlydata covers various product categorieswithin the divisions of Small Appliancesand Non-electric Housewares.

The information contained on the following pages is offered as a snapshotof a category’s performance, both fromthe retailer (POS) and consumer perspectives. The POS data covers theretail channels of mass/national chains,department stores, specialty stores anddrug stores (personal care and homeenvironment only). Each issue ofHousewares MarketWatch will featureseveral categories from the SmallAppliances and Housewares divisions.

Complete data on a category can bepurchased by visiting NPD’s website atwww.npd.com.See the Data andMethodology section on page 14 for anexplanation of how the data is compiled.

The average price spent on small appli-ances increased nearly 12 percent inthe 12 months ending September

2012, according to NPD’s ConsumerTracking Service. It’s no secret that theeconomy has been a challenge over the pastfew years and consumer spending had takena downturn. The marketplace is still in astate of flux, but consumers appear to haveshifted their focus slightly, from not spend-ing at all or looking for the lowest price, to

Quarters 2 & 3, 2012

The Small Appliance Spend is Getting BiggerBy Debra Mednick, The NPD Group, Inc.

Average prices during the 12 monthsending September 2012 increased for 36 of 50 small appliance categories and15 of them saw double-digit increases.

■ The top purchase motivators behindslow cooker purchases in Q2’12were price, brand and value.

SLOW COOKERS

■ 4% of all waffle irons sold inQ2’12 were novelty shapes.

WAFFLE IRONS

■ 82% of breadmakers soldin Q2’12 had 6 or morebread settings.

Source: Consumer Tracking Service

Source: Retail Tracking Service


BREADMAKERS

Source: The NPD Group 2

MARKET SIZEQUARTER TWO • 2012UNIT VOLUME IN THOUSANDS

Small Appliances: KITCHEN ELECTRICSTO

TAL

MARKET

FOOD PR

EP/

BEVER

AGE COOKIN

G & SP

ECIA

LTY

ELECT

RICS


28,164

12,496

15,668

HAND MIXERS • BUYER GENDERPercentage purchased by panel member gender

DEMOGRAPHIC ANALYSISUnit Volume Share

6 months ending — June 2012


VACUUM SEALERS • AGEPercentage purchased by panel member age


10.6 %

33.5 %

FEMALE

MALE

66.5 %

Under 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

19.2 %

12.7 %

17.2 %

26.6 %

13.7 %

TOTA

LMARKE

TFO

OD PREP

/

BEVER

AGE COOKIN

G & SP

ECIA

LTY

ELECT

RICS


29,028

12,783

16,245

■ The top purchase motivators behindtoaster oven purchases in Q3’12were price, value and brand.

TOASTEROVENS

■ 46% of Q3’12 dollar salescame from juice extractorswith just one speed.

JUICE EXTRACTORS

■ 6-9 speed models account for52% of all hand mixer dollarsales in Q3’12 .




HAND MIXERS

Source: The NPD Group3

MARKET SIZEQUARTER THREE • 2012UNIT VOLUME IN THOUSANDS

Small Appliances: KITCHEN ELECTRICS

DEEP FRYERS • GENDERPercentage purchased by panel member gender


6 months ending — September 2012


BREADMAKERS • HOUSEHOLD SIZEPercentage purchased by household size


48.2 %

51.8 %

Single Member

Two Members

Three Members

Four Members

Five or More Members

12.2 %

34.3 %

18.9 %

9.0 %

25.6 %

FEMALE

MALE

■ The top purchase motivatorsbehind hairdryer purchasesin Q2’12 were price, valueand features.

HAIRDRYERS

■ Multi-purpose trimmersaccounted for 37% of all men’strimmer dollar sales in Q2’12.

MEN’S TRIMMERS

■ 17% of all women’s electricshavers sold in Q2’12were triple head/foil.




WOMEN’SELECTRICSHAVERS



Small Appliances: PERSONAL CARETO

TAL

MARKET

HAIR CA

RE/

GROOMING ORAL C

ARE, HOME

HEALTH

, & O

THER

PERSO

NAL CARE


54,525

24,153

30,372

HOME HAIR CLIPPERS • GENDERPercentage purchased by panel member gender




LIGHTED MIRRORS • REGIONPercentage purchased in region


NORTHEAST

CENTRAL

SOUTH

WEST

47 %

53 %

15.9 %

24.5 %19.4 %

40.2 %

FEMALE

MALE

■ The top purchase motivatorsbehind home health and wellnesspurchases in Q3’12 were price,ease of use and value.

HOME HEALTH & WELLNESS

■ 56% of all hairsetters soldin Q3’12 had 20 rollers.

HAIRSETTERS

■ Body fat monitor scalesaccounted for 26% ofQ3’12 dollar sales.




BATH SCALES



Small Appliances: PERSONAL CARETO

TAL

MARKET

HAIR CA

RE/

GROOMING


50,709

21,557

29,152

ORAL CARE,

HOME

HEALTH

, & O

THER

PERSO

NAL CARE

CURLING IRONS/STYLERS • REGIONPercentage purchased in region




ORAL CARE APPLIANCES • INCOMEPercentage purchased by household income


11.4 %

NORTHEAST

CENTRAL

SOUTH

WEST

14.7 %

22.6 %

20.8 %

41.8 %

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000– 149,999

$150,000 +

13.1 %

21.3 %

5.8 %

14.2 %

8.8 %

11.8 %

13.6 %



Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)


TOTA

LMARKE

T

29,678

■ 20% of air purifiers/humidifiers sold inQ2’12 were vaporizers.


AIR PURIFIERS/HUMIDIFIERS

■ The top purchase motivators behind airpurifier/humidifier purchases in Q2’12were price, brand and features.


AIR PURIFIERS/HUMIDIFIERS

FANS • HOUSEHOLD SIZEPercentage purchased by household size




FANS • REGIONPercentage purchased in region


19.7 %

14.0 %

30.3 %

18.0 % 17.9 %

NORTHEAST

CENTRAL

SOUTH

WEST

18.3 %

37.5 %

19.9 %

24.3 %

Single Member

Two Members

Three Members

Four Members




Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)

■ More than a quarter of all room ACssold in Q3’12 did not have remotecontrols.


ROOM AIRCONDITIONERS

■ The top purchase motivators behindroom air conditioner purchases in Q3’12were price, Energy Star/energyefficiency and brand.


ROOM AIRCONDITIONERS


TOTA

LMARKE

T

26,636

NORTHEAST

CENTRAL

SOUTH

WEST

DEHUMIDIFIERS • REGIONPercentage purchased in region




DEHUMIDIFIERS • AGEPercentage purchased by panel member age


36.9 %

27.6 %30.5 %

4.9 %

5.7 %

9.9 %

12.2 %

23.8 %24.9 %

23.5 %

Under 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +



Small Appliances: FLOOR CARE

■ 9% of all non-electric carpet sweeperssold in Q2’12 have 4 corner brushes.


NON-ELECTRIC CARPET SWEEPERS

■ The top purchase motivators behindnon-electric carpet sweeperpurchases in Q2’12 were price,brand and ease of use.


NON-ELECTRICCARPET SWEEPERS


TOTA

LMARKE

T

8,240

CANISTER VACUUMS • AGEPercentage purchased by panel member age




CANISTER VACUUMS • INCOMEPercentage purchased by household income


5.6 %

3.9 %

Under 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000– 149,999

$150,000 +

8.9 %

10.7 %

29.0 %

15.5 %

16.4 %

15.9 %

11.8 %

12.0 %

21.2 %

17.3 %

17.6 %

14.1 %



Small Appliances: FLOOR CARE

■ 24% of specialty cleaning dollars camefrom robotic products in Q3’12.


SPECIALTY CLEANING

■ The top purchase motivators behindspecialty cleaning purchases in Q3’12were price, features and value.


SPECIALTY CLEANING


TOTA

LMARKE

T

9,182

0

5

10

15

20

25

30

35

40

STICK VACUUMS • GENDERPercentage purchased by panel member gender




STICK VACUUMS • HOUSEHOLD SIZEPercentage purchased by household size


17.8 %

33.7 %

66.3 %

FEMALE

MALE

15.6 % 16.0 %

35.8 %

14.8 %

Single Member

Two Members

Three Members

Four Members




Housewares: NON-ELECTRIC

■ The top three purchase motivatorsbehind oven or microwavebakeware purchases in Q2’12 wereprice, value and easy to clean.

OVEN ORMICROWAVEBAKEWARE

■ 83% of Q2’12 flatware dollar salescame from multi-piece set sales.

FLATWARE

■ PTFE/PFOA free cookware accounted forjust over 2% of Q2’12 dollar sales.




COOKWARE


$544

,651

STOVETOPCOOKWAREDINNERWARECUTLERY BEVERAGEWARE OVEN ORMICROWAVEBAKEWARE FLATWARE

$265

,103

$187

,404

$187

,195

$162

,867

$152

,918

FLATWARE • HEAD OF HOUSEHOLD AGEPercentage purchased by age of the head of household




BEVERAGEWARE • GENDERPercentage purchased by head of household gender


8.4 %

14.6 %

85.4 %

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

19.0 %

7.3 %

17.6 %

23.5 %24.2 %

FEMALE

MALE

■ The top three purchasemotivators behind dinnerwarepurchases in Q3’12 wereprice, value and appearance.

DINNERWARE

■ 44% of Q3’12 dollar salescame from stemware.

BEVERAGEWARE

■ Cutting boards represented19% of Q3’12 dollar sales.




CUTLERY



Housewares: NON-ELECTRIC


$479

,418 STOVETOP

COOKWAREDINNERWARECUTLERY OVEN ORMICROWAVEBAKEWARE BEVERAGEWARE FLATWARE

$205

,131

$164

,539

$156

,995

$152

,673

$135

,052

STOVETOP COOKWARE • INCOMEPercentage purchased by household income




OVEN OR MICROWAVE BAKEWARE • REGIONPercentage purchased in region


0.9%

NORTHEAST

CENTRAL

SOUTH

WEST

16.7 %

20.8 %

20.7 %

41.8 %

Under$24,999

$25,000 –34,999

$35,000 –49,999

$50,000 –74,999

$75,000 –99,999

$100,000 –149,999

$150,000 –199,999

$200,000 +

45.3 %

9.6 % 10.6 %

14.8 %

8.1 %5.3 % 5.3 %

NORTHEAST

CENTRAL

SOUTH

WEST


Home: KITCHEN & DINING TEXTILES

■ 31% of all kitchen linens sold inQ3’12 were pattern/print


KITCHEN LINENS

■ The top purchase motivators behind tablelinen sales in Q2’12 were price, productappearance and the material/texture.


TABLE LINENS

KITCHEN RUG

KITCHEN TOWELS/DISHCLOTHS/SETS

POTHOLDER/OVEN MITT/SETS

KITCHEN LINENS • CATEGORY GROUPPercentage of unit volume share by category group




25.3%

57.4%

17.3%




2013

MARK YOUR CALENDAR!

to register:www.housewares.org/attend

TABLE LINENS • REGIONUnit volume share by region

21.9 %

46.4 %15.3 %

16.4 %

13

The motivation for a consumer to pur-chase a higher priced product, especially inchallenging economic times, is what is mostimportant to understand. Are they spendingmore on gifts? Are they looking for a littleluxury to add to their everyday? Are theymore informed about their purchases thanin the past? Are they investing in productsthat they perceive as better quality that maylast longer? Are they thinking about long-term savings?

The Baby Boomers, with their higherdisposable income and desire to simplify andenjoy life as they approach retirement, havea real impact on small appliance dollar sales.Consumers age 55 and up spend more perpurchase, on average, than any other agegroup buying small appliances in the 12months ending September 2012. The aver-age selling price of the products they arepurchasing increased by more than 17 per-cent this year.

Consumers are also more generous thisyear than last. According to NPD’sConsumer Tracking Service, small appliancepurchases intended as a gift for someoneelse have increased 14 percent and the aver-age price spent on those purchases hasincreased 7 percent. However, consumersare spending 8 percent more than last yearon small appliance products purchased forthemselves, so they aren’t entirely selfless.

Online Sales IncreaseWhere a consumer purchases a small

appliance product may also have an impact.The average price spent on purchases madein a store increased 10 percent. But, onlinesales have increased 19 percent, average selling price foronline purchases isup 8 percent andproducts sold onlinehold a 40 percentpremium over prod-ucts purchased atbrick-and-mortar.The time spent going to a store and physi-cally holding a product may get a consumerto spend a little more in the moment, butthe convenience of every aspect of onlineshopping comes with a price or a willingnessto splurge on something they feel they aregetting at a good price.

Small appliance purchaserstend to spend more on averageif they place more importanceon product recommendation orbuy because the product isgreen/environmentally friendly,has an energy star/energy effi-ciency rating or has the latesttechnology. These consumersalso spent significantly morethan last year.

There is definitely a correla-tion between the level of prod-uct involvement and how mucha consumer is willing to spend.Consumers who research smallappliances before making a pur-chase spend double the price ofsomeone who does not do anypre-purchase research, on aver-age. The average selling pricehas increased more than 20 per-cent among those who did their

research based on friend or family recom-mendation and those who visited a store toask questions about the product, demon-strating the importance of word-of-mouthmarketing and merchandising.

The price war has not come to an end.Consumers are stilllooking for the lowestprice and best value,but many consumersare approaching thebattleground with adifferent set of tactics– focusing less on priceper item, and more on

what they get for their overall spending.

Debra Mednick is the executive directorand home industry analyst at The NPDGroup. These are the opinions of Mednick andNPD. For more information, contact DoraBrunette at 516-626-6190.

Source: The NPD Group

The motivation for a consumerto purchase a higher pricedproduct, especially in challengingeconomic times, is what is mostimportant to understand.

MARKETING TO MILLENNIALScontinued from page 1


ABOUT THE NPD GROUP, INC.

The NPD Group is the leadingprovider of reliable and comprehensiveconsumer and retail information for awide range of industries. Today, morethan 1,800 manufacturers retailers andservice companies rely on NPD to helpthem drive critical business decisions atthe global, national, and local marketlevels. NPD helps our clients to identifynew business opportunities and guideproduct development, marketing, sales,merchandising, and other functions.Information is available for the follow-ing industry sectors: automotive, beauty,commercial technology, consumer tech-nology, entertainment, fashion, foodand beverage, foodservice, home,office supplies, software, sports, toysand wireless. For more information,contact us or visithttp://www.npd.com/.

DATA AND METHODOLOGYNPD has a standard data model that is used

for all categories that incorporates both con-sumer and point-of-sale (POS) databases.These two data sources are highly comple-mentary and are used to support one another.Point-of-Sale (POS) databases are assembledfrom retailers' records of actual sales byproduct as collected at the cash register.

Consumer databases are developed usingonline purchase surveys completed by a large-scale rotating sample of consumers. Thesedata produce estimates of sales by product forthe total marketplace. Moreimportantly, the consumer sur-veys capture information abouteach purchase, such as buyerdemographics, the product'sintended use and other purchasemotivators.

CONSUMERMETHODOLOGY

The NPD online consumerpanel is comprised of pre-recruit-ed individuals who have agreed toparticipate in NPD online surveysand have completed a compre-hensive demographic question-naire. The use of an establishedonline panel assuresgood cooperation levelsand predictable demo-graphic balance amongpanelists.

Consumer panelistsare asked about theirrecent purchases in asurvey administered viathe Internet. Theresponding sample isdemographically weight-ed and projectedthrough a series of stepsto represent the U.S.population. Eachmonth, over 200,000individuals are selectedfrom the NPD onlineconsumer panel to par-ticipate in the appliance

study. Each month, over 30,000 U.S. house-holds are selected for the housewares andhome textiles studies.

POS METHODOLOGYNPD collects point-of-sale retailer data

from selected retailers. These data are theactual sales for the chain on an SKU-by-SKUbasis. The data are combined with data fromother retailers to produce reports on certaincategories by channel, where a sufficientnumber of retailers are cooperating andwhere sufficient market demand exists forthe database.

Deborah A. Teschke, Senior EditorDebra Mednick, Contributing EditorJanine Marshall-Bolton, Contributing EditorTom Goodman, DesignPublished by IHA

For more information, contact Debbie Teschke at 847-692-0110; [email protected]

6400 SHAFER COURT, STE. 650ROSEMONT, IL 60018 USATEL: 847-292-4200 FAX: 847-292-4211www.housewares.org

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