Small Appliances and The Web: A Budding Relationship

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Small Appliances and The Web: A Budding Relationship
Quarters 2 & 3, 2011

Small Appliances and The Web: A Budding Relationship
By Perry James, The NPD Group, Inc.

T
        echnology and the Internet are over-
        whelming forces in our lives, and
        they play an increasing role in the
way consumers make purchases and pur-
chase decisions. The small appliance indus-
try is not immune to this trend. Eight per-
cent of units, and 12 percent of dollar sales,
in the 12 months ending September 2011
were purchased through online channels.
  More than half of small appliance con-
sumers did some kind of pre-purchase prod-

About Housewares MarketWatch
  Housewares MarketWatch reports
both point-of-sale (POS) and consumer
data from NPD databases. The quarterly
data covers various product categories
within the divisions of Small Appliances
and Non-electric Housewares.
   The information contained on the              uct research. The Internet’s role in small        adopted this purchasing vehicle more for
following pages is offered as a snapshot         appliance sales starts well before the pur-       some categories than others. Looking at
of a category’s performance, both from           chase, when consumers are looking for             the impact of the Internet by sub-industry,
the retailer (POS) and consumer                  information to help them decide which             41 percent of all small appliance website
perspectives. The POS data covers the            product is right for them. Fourteen percent       sales are home environment appliances.
retail channels of mass/national chains,         of items sold in the 12 months ending             Website sales represent nearly 10 percent of
department stores, specialty stores and          September 2011, and 26 percent of dollar          small kitchen electrics unit sales, 8 percent
drug stores (personal care and home              sales, were researched online first.              of home environment and 7 percent of per-
environment only). Each issue of                                                                   sonal care appliance sales.
Housewares MarketWatch will feature                 Overall, websites are the most popular
several categories from the Small                resource, followed by store visits and friend         At the category level, more than 20 per-
Appliances and Housewares divisions.             or family recommendation. Across all small        cent of stand mixers, breadmakers and vacu-
                                                 appliance categories, retailer websites are the   um sealers sold between October 2010 and
  Complete data on a category can be
purchased by visiting NPD’s website at           most popular online resource for pre-pur-         September 2011 were purchased online, but
www.npd.com.See the Data and                     chase research, with product review websites      robotic vacuums take the top spot with 40
Methodology section on page 8 for an             a close second. Social networks and blogs         percent of unit sales coming from website
explanation of how the data is compiled.         are utilized for small appliance pre-purchase     sales. The most popular online resources
                                                 research, but only for 1 percent of sales in      for robotic vacuum pre-purchase research
                                                 the 12 months ending September 2011.              were product review websites, representing
                                                                                                   15 percent of sales.
                                                   Although online is important for most
                                                 small appliance categories, consumers have                                continued on page 14
Small Appliances and The Web: A Budding Relationship
Small Appliances: KITCHEN ELECTRICS
MARKET SIZE
QUARTER TWO • 2011                                                              DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                                        Unit Volume Share
                                                                                               6 months ending — June 2011
              ET
            RK L
        M AO TA

                                                                                 STAND MIXERS • AGE OF BUYER
          T

                                                                      Percentage purchased by age of buyer versus census
        25,386
                                         T R LT Y &

                                                                                                                                                STAND MIXERS
                                       EC A G
                             GE P/

                                     EL ECI IN

                                               S
                          RA RE

                                       SP OOK

                                                                                                                                                CENSUS (PERCENT OF POPULATION)

                                                                                                            20.2%
                                            IC
                        VE P

                                         C
                      BE OOD

                                                                                                                                                             17.8%
                                                                                                                                       17.5%
                        F

                                                                                                                             17.0%
                                                                                                                     16.3%

                                                                                                                                                  16.1%
                                       13,312

                                                                                                                                                                                                            14.7%
                                                                                                                                                                          14.0%
                       12,074
                                                              13.6%

                                                                                                                                                                                  13.2%
                                                                                              11.6%

                                                                                                                                                                                                 11.6%
                                                                        8.9%

                                                                                      7.4%

Source: Consumer Tracking Service

                           WAFFLE
                           IRONS
                                                             13 – 17                  18 – 24               25 – 34          35 – 44              45 – 54                  55 – 64               65 years +
          ■ 28% of waffle irons sold in                       years                    years                 years            years                years                    years
            Q2’11 were traditional style,             Source: Consumer Tracking Service
            rather than Belgian.
           Source: Retail Tracking Service                                            ESPRESSO MAKERS • REGION
                                                                               Percentage purchased in region versus census
                                                                                                                              24.5%

                                                                                                                                                ESPRESSO MAKERS
                       ESPRESSO                                                                                                                 CENSUS (PERCENT OF POPULATION)
                        MAKERS
                                                                                                                                      19.3%

                                                                                                                                                                                                    18.6%
                ■ Nearly 19% of espresso
                                                                                                                                                                 15.9%

                                                                                                                                                                                                             15.7%
                                                                                                        15.5%

                  makers sold in Q2’11
                                                                                      13.6%

                  were POD Machines.
                                                                                                11.9%

                                                                                                                                                                         11.4%

           Source: Retail Tracking Service
                                                                               9.3%

                                                                                                                                                                                  9.1%
                                                                                                                                                                                          7.1%
                                                                                                                     6.7%
                                                                                                                    6.5%

                                                                                                                                                      5.9%

                           ELECTRIC
                                                                      4.8%

                                                                                                                                               3.2%

                           SKILLETS
                                                            1.0%

  ■ The top 3 reasons consumers purchased
    a specific brand of electric skillet were
    the price, it was a brand they trust and it               New               Middle        East North West North            South           East South West South Mountain                            Pacific
    was recommended by friends/family.                      England             Atlantic       Central    Central             Atlantic          Central    Central
      Source: Consumer Tracking Service               Source: Consumer Tracking Service

Source: The NPD Group                                                                 2
Small Appliances and The Web: A Budding Relationship
Small Appliances: KITCHEN ELECTRICS
MARKET SIZE
QUARTER THREE • 2011                                                   DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                            Unit Volume Share
                                                                                6 months ending — September 2011
             ET
           RK L
       M AO TA
         T

                                                                      ELECTRIC CAN OPENERS • INCOME
       27,326                                                        Percentage purchased by income versus census
                          GE P/

                                                                        21.9%
                                      TR G
                       RA RE

                                           S
                                    EC IN
                                        IC

                                                                                                                                  ELECTRIC CAN OPENERS
                                  EL OOK
                     VE P
                   BE OOD

                                                                                                                                  CENSUS (PERCENT OF POPULATION)
                                    C

                                                     18.1%
                     F

                                  14,138

                                                                                           15.4%
                                                                                                   15.1%

                                                                                                           14.8%
                     13,188

                                                                                14.3%

                                                                                                                                                                    14.1%
                                                                                                                                                    13.2%
                                                                                                                   13.0%

                                                                                                                                  11.1%

                                                                                                                                            10.2%

                                                                                                                                                                                   9.7%
                                                              9.4%

                                                                                                                           8.9%

                                                                                                                                                             7.6%
Source: Consumer Tracking Service

                                                                                                                                                                            3.1%
            COFFEE GRINDERS
                                                       Under           $15,000 –        $30,000 –          $45,000 –       $60,000 –        $75,000 –       $100,000 –      $150,000 +
                                                      $15,000           29,999           44,999             59,999          74,999           99,999          149,999
        ■ 16% of coffee grinders sold in       Source: Consumer Tracking Service
          Q3’11 were burr grinders.
                                                                           TEA MAKERS • BUYER GENDER
         Source: Retail Tracking Service
                                                             Percentage purchased by buyer gender versus census
                                                                                                                                  TEA MAKERS
                                                                                                                                  CENSUS (PERCENT OF POPULATION)
          FOOD PROCESSORS                                                                                                                 56.3%
                                                                                                                                                                    50.9%
                                                                                                   49.1%
         ■ 40% of food processors sold
                                                                      43.7%
           in Q3’11 were blender/
           mixer/chopper systems.
         Source: Retail Tracking Service

               ICE CREAM/
             YOGURT MAKERS
    ■ The top 3 reasons consumers
      purchased a specific brand of ice
      cream/yogurt maker were the price,
      it was a brand they trust and it was
      recommended by friends/family.                                                Male                                                              Female
     Source: Consumer Tracking Service         Source: Consumer Tracking Service

                                                                          3                                                Source: The NPD Group
Small Appliances and The Web: A Budding Relationship
Small Appliances: PERSONAL CARE
MARKET SIZE
QUARTER TWO • 2011                                                              DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                                    Unit Volume Share
                                                                                           6 months ending — June 2011

                                                              CURLING IRONS/BRUSHES • AGE OF BUYER
             ET
           RK L
       M AO TA

                                                                      Percentage purchased by age of buyer versus census
         T

                                            CA HE ME
                                              RE R
                                         AL OT HO

                                                                                                                                         CURLING IRONS/BRUSHES
                                       ON , & E,

       61,323
                                    RS TH R
                           NG /

                                                                                                                                         CENSUS (PERCENT OF POPULATION)
                                  PE EAL L CA
                         MI RE
                      OO CA

                                    H RA

                                                                                                       17.9%
                    GR AIR

                                                                                                                                                  17.8%
                                                                                                                                 17.5%
                                      O

                                                                                                                                          16.6%
                                                                                                               16.3%
                     H

                                                                                                                         15.8%

                                                                                                                                                                                           14.7%
                     30,184         31,139

                                                                                                                                                             13.5%

                                                                                                                                                                     13.2%
                                                                                   12.9%

                                                                                                                                                                                 12.9%
                                                                                           11.6%
                                                              10.4%

                                                                        8.9%

Source: Consumer Tracking Service

                 MEN’S
            ELECTRIC SHAVERS
                                                              13 – 17              18 – 24              25 – 34          35 – 44          45 – 54            55 – 64            65 years +
       ■ 25% of men’s electric shavers                         years                years                years            years            years              years
         sold in Q2’11 were wet & dry.
                                                       Source: Consumer Tracking Service
          Source: Retail Tracking Service
                                                          WOMEN’S ELECTRIC SHAVERS • HOUSEHOLD SIZE
                                                                Percentage purchased by household size versus census
                                                                                                                                         WOMEN’S ELECTRIC SHAVERS
                      GARMENT                                                                                                            CENSUS (PERCENT OF POPULATION)
                        CARE                                                                           26.4%
                                                                                                                                              25.7%

     ■ Handheld garment steamers                                                           21.9%                                                          22.1%
                                                                                                                       21.9%                                                             21.5%
       accounted for 4% of garment
                                                                                                                                 19.5%                                   19.5%
       care items sold in Q2’11.
     Source: Consumer Tracking Service

                                                              10.9%        10.5%
          ORAL CARE
      REPLACEMENT PARTS
     ■ The top 3 reasons consumers
       purchased a specific brand of oral
       care replacement parts were that it
       was a brand they currently own, a                               Single                        Two                  Three                    Four                         Five or
       brand they trust and price.                                    Member                       Members               Members                  Members                    More Members
     Source: Consumer Tracking Service                 Source: Consumer Tracking Service

Source: The NPD Group                                                           4
Small Appliances and The Web: A Budding Relationship
Small Appliances: PERSONAL CARE
MARKET SIZE
QUARTER THREE • 2011                                                        DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                                Unit Volume Share
                                                                                    6 months ending — September 2011
             ET
           RK L
       M AO TA
         T

                                                                               HAIRDRYERS • AGE OF BUYER
                                           CA HE ME
       57,231                                                      Percentage purchased by age of buyer versus census
                                             RE R
                                        AL OT HO
                                      ON , & E,
                          NG /

                                   RS TH R

                                                                                                                                                    HAIRDRYERS
                        MI RE

                                 PE EAL L CA
                     OO CA

                                                                                                                                                    CENSUS (PERCENT OF POPULATION)
                                   H RA
                   GR AIR

                                     O

                                                                                                                                   19.3%
                    H

                                                                                                                                                        19.5%
                                                                                                            18.4%

                                                                                                                                                                 17.8%
                                                                                                                                           17.5%
                    28,488         28,743

                                                                                                                      16.3%

                                                                                                                                                                                                                  14.7%
                                                                                                                                                                                             13.2%
                                                                                                                                                                                 13.0%
                                                                               12.2%

                                                                                            11.6%
                                                                     8.9%

                                                                                                                                                                                                         8.9%
Source: Consumer Tracking Service
                                                            8.7%

                HOME HAIR
                 CLIPPERS

         ■ More than half of home hair
           clippers sold in Q3’11 had
                                                             13 – 17            18 – 24                      25 – 34                35 – 44                 45 – 54               55 – 64                65 years +
           20 or more pieces.                                 years              years                        years                  years                   years                 years
         Source: Retail Tracking Service              Source: Consumer Tracking Service
                                                                               SEWING MACHINES • INCOME
                                                                          Percentage purchased by income versus census
                                                                            26.5%

              SHOWERHEADS
                                                                                                                                                    SEWING MACHINES
                                                                                                                                                    CENSUS (PERCENT OF POPULATION)
         ■ More than 60% of
                                                                                                    18.1%

           showerheads sold in Q3’11
           were handheld.
                                                                                                              15.1%
                                                                                    14.3%

                                                                                                                                                                                                 14.1%
                                                                                                                                                                         13.2%

         Source: Retail Tracking Service
                                                                                                                                  13.0%

                                                                                                                                                                                         12.3%
                                                                                                                          12.0%

                                                                                                                                                    11.1%

                                                                                                                                                                11.1%

                                                                                                                                                                                                                  9.7%
                                                                   9.4%
                                                            7.9%

                                                                                                                                                                                                           6.5%

                BLOOD PRESSURE
                                                                                                                                             5.6%

                   MONITORS

     ■ The top 3 reason consumers
       purchased a specific brand of blood
       pressure monitor were the price,                        Under        $15,000 –               $30,000 –                 $45,000 –      $60,000 –           $75,000 –               $100,000 –       $150,000 +
       features and it was easy to use                        $15,000        29,999                  44,999                    59,999         74,999              99,999                  149,999
     Source: Consumer Tracking Service                Source: Consumer Tracking Service

                                                                              5                                                            Source: The NPD Group
Small Appliances and The Web: A Budding Relationship
Small Appliances: HOME ENVIRONMENT                                                                                              ( E X C L U D I N G VA C S )

MARKET SIZE
QUARTER TWO • 2011                                                 DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                               Unit Volume Share
                                                                                      6 months ending — June 2011
                        ET
                      RK L
                  M AO TA
                    T

                                                            WATER FILTRATION DEVICES • INCOME
                   28,212                                        Percentage purchased by income versus census
                                                                                                WATER FILTRATION DEVICES

                                                                     18.8%

                                                                                                                                                                                    18.7%
                                                                                                CENSUS (PERCENT OF POPULATION)

                                                                                                                    15.3%
                                                                                                         15.1%
                                                                              14.3%

                                                                                                                                                                                            14.1%
                                                                                                                                                                    13.2%
                                                                                                                            13.0%
                                                                                               12.6%

                                                                                                                                               11.1%

                                                                                                                                                          11.0%
                                                 10.3%

                                                                                                                                                                                                              9.7%
                                                          9.4%

                                                                                                                                        7.7%
Source: Consumer Tracking Service

                                                                                                                                                                                                      5.5%
                                                    Under             $15,000 –                $30,000 –             $45,000 –           $60,000 –            $75,000 –             $100,000 –        $150,000 +
                                                   $15,000             29,999                   44,999                59,999              74,999               99,999                149,999
                         FANS              Source: Consumer Tracking Service

                                                            WATER FILTRATION DEVICES • REGION
                                                                 Percentage purchased in region versus census

                                                                                                                                                                                                      20.0%
                                                                                                                                      19.3%

                                                                                                                                                         WATER FILTRATION
        ■ 25% of fans sold in Q2’11                                                                                                                      DEVICES
          were personal/clip fans.
                                                                                                                                                         CENSUS (PERCENT

                                                                                                                                                                                                              15.7%
         Source: Retail Tracking Service
                                                                                                 15.5%

                                                                                                                                                         OF POPULATION)
                                                                                                                              14.9%
                                                                                       14.8%
                                                                  14.2%
                                                                          13.6%

                                                                                                                                                                            11.4%
                                                                                                                                                                  10.6%

                                                                                                                                                                                        7.9%
                                                                                                             7.8%

                         FANS
                                                                                                                                                                                               7.1%
                                                                                                                    6.7%

                                                                                                                                                       5.9%
                                                                                                                                                5.8%
                                                         4.8%
                                                 4.1%

    ■ The top 3 reasons consumers
      purchased a specific brand of fan
      were the price, it was a good
      value and they liked the features.           New             Middle             East North West North                    South           East South West South Mountain                           Pacific
     Source: Consumer Tracking Service           England           Atlantic            Central    Central                     Atlantic          Central    Central
                                           Source: Consumer Tracking Service

Source: The NPD Group                                                     6
Small Appliances: HOME ENVIRONMENT                                                           ( E X C L U D I N G VA C S )

MARKET SIZE
QUARTER THREE • 2011                                              DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                   Unit Volume Share
                                                                       6 months ending — September 2011
                         ET
                       RK L
                   M AO TA
                     T

                                                                  DEHUMIDIFIERS • BUYER GENDER
                     27,161                            Percentage purchased by buyer gender versus census

                                                                                                        DEHUMIDIFIERS
                                                                                                        CENSUS (PERCENT OF POPULATION)
                                                              53.2%
                                                                                                                            50.9%
                                                                                  49.1%
                                                                                                           46.8%

Source: Consumer Tracking Service

                         WATER
                      FILTRATION                                         Male                                      Female
                        DEVICES
                                              Source: Consumer Tracking Service

                                                             DEHUMIDIFIERS • HOUSEHOLD SIZE
     ■ More than 25% of water filtration              Percentage purchased by household size versus census
       devices sold in Q3’11 had a
       container capacity between
       ½-gallon and 1 gallon.                                            35.8%                          DEHUMIDIFIERS
         Source: Retail Tracking Service                                                                CENSUS (PERCENT OF POPULATION)

                                                                                 26.4%

                                                                                                                   22.1%            21.5%
                         WATER                                                            20.2% 19.5%
                      FILTRATION                                                                           17.1%
                                                                                                                            14.8%
                        DEVICES
                                                     12.0%
                                                             10.5%
     ■ The top 3 reasons consumers
       purchased a specific brand of
       water filtration device were that it
       was a brand they trust, the price
       and it was a good value.                          Single               Two            Three             Four             Five or
     Source: Consumer Tracking Service                  Member              Members         Members           Members        More Members
                                              Source: Consumer Tracking Service

                                                                   7                            Source: The NPD Group
Small Appliances: FLOOR CARE
MARKET SIZE
QUARTER TWO • 2011                                                 DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                Unit Volume Share
                                                                       6 months ending — June 2011
                           ET
                         RK L
                     M AO TA

                                                                STICK VACUUMS • BUYER GENDER
                       T

                                                         Percentage purchased by buyer gender versus census
                       8,346
                                                                                                       STICK VACUUMS
                                                                                                       CENSUS (PERCENT OF POPULATION)

                                                                                                          60.4%

                                                                               49.1%                                       50.9%

                                                               39.6%

Source: Consumer Tracking Service

                                                                       Male                                       Female
                        DEEP CARPET             Source: Consumer Tracking Service
                         CLEANERS

                                                               STICK VACUUMS • HOUSEHOLD SIZE
                                                        Percentage purchased by household size versus census
  ■ 26% of all deep carpet cleaners sold                               37.0%
    in Q2’11 were compact style.                                                                       STICK VACUUMS
           Source: Retail Tracking Service                                                             CENSUS (PERCENT OF POPULATION)

                                                                               26.4%
                                                                                       25.1%
                                                                                                                  22.1%            21.5%
                                                                                               19.5%
                    DEEP CARPET
                     CLEANERS                          14.3%
                                                                                                          11.5%            12.0%
                                                               10.5%

  ■ The top 3 reasons consumers purchased
    a specific brand of deep carpet cleaner
    were it was a brand they trust, they like
    the features and the price.                           Single            Two           Three               Four             Five or
      Source: Consumer Tracking Service                  Member           Members        Members             Members        More Members
                                                Source: Consumer Tracking Service

Source: The NPD Group                                              8
Small Appliances: FLOOR CARE
MARKET SIZE
QUARTER THREE • 2011                                               DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                   Unit Volume Share
                                                                       6 months ending — September 2011
                         ET
                       RK L
                   M AO TA
                     T

                                                            UPRIGHT VACUUMS • AGE OF BUYER
                     8,685
                                                         Percentage purchased by age of buyer versus census

                                                                                                                          19.1%
                                                                                                         18.6%
                                                                                        17.9%

                                                                                                                                  17.8%

                                                                                                                                                                 17.7%
                                                                                                                 17.5%
                                                                                                16.3%

                                                                                                                                                                         14.7%
                                                                                                                                             14.7%

                                                                                                                                                     13.2%
                                                                            11.6%
                                                          8.9%

                                                                     8.8%

Source: Consumer Tracking Service                                                                                        UPRIGHT VACUUMS
                                                                                                                         CENSUS (PERCENT OF POPULATION)
                                                  3.1%

                                                  13 – 17            18 – 24             25 – 34          35 – 44         45 – 54            55 – 64             65 years +
                                                   years              years               years            years           years              years
             STICK VACUUMS                 Source: Consumer Tracking Service

                                                         UPRIGHT VACUUMS • HOUSEHOLD SIZE
                                                    Percentage purchased by household size versus census

         ■ 64% of stick vacuums sold in                                     32.1%                                        UPRIGHT VACUUMS
           Q3’11 were corded.
                                                                                                                         CENSUS (PERCENT OF POPULATION)
         Source: Retail Tracking Service
                                                                                        26.4%

                                                                                                                                          22.1%                      21.5%
                                                                                                        21.1%
                                                                                                                 19.5%
                                                                                                                              16.5%                          16.7%
            STICK VACUUMS
                                                  13.7%
                                                             10.5%

     ■ The top 3 reasons consumers
       purchased a specific brand of
       stick vacuum were the price, it
       was a brand they trust and it
       was a good value.                                  Single                      Two                  Three                   Four                         Five or
     Source: Consumer Tracking Service                   Member                     Members               Members                 Members                    More Members
                                           Source: Consumer Tracking Service

                                                                   9                                             Source: The NPD Group
Housewares: NON-ELECTRIC
MARKET SIZE
QUARTER TWO • 2011                                                                               DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                                                         Unit Volume Share
                                          STOVETOP                                                              6 months ending — June 2011
                                          COOKWARE
                                          DINNERWARE
        $621,247

                                          BEVERAGEWARE                                           STOVETOP COOKWARE • REGION
                                          OVEN OR                                               Percentage purchased in region versus census
                                          MICROWAVE
                                          BAKEWARE                                                                                                                STOVETOP COOKWARE
                                          CUTLERY                                                                                                                 CENSUS (PERCENT OF POPULATION)

                                                                                                                                                 21.3%
                                          FLATWARE

                                                                                                                                                         19.3%
                   $278,407

                               $217,786

                                           $192,891

                                                      $183,577

                                                                                                                 16.1%
                                                                 $153,699

                                                                                                                                                                                                                      15.7%
                                                                                                                         15.5%
                                                                                                        13.6%
                                                                                                13.4%

                                                                                                                                                                                                              12.0%
                                                                                                                                                                                       11.4%
                                                                                                                                   7.3%

                                                                                                                                                                                                       7.1%
                                                                                                                                          6.7%
                                                                                  6.2%

                                                                                                                                                                        5.9%
Source: Consumer Tracking Service
                                                                                         4.8%

                                                                                                                                                                 4.4%

                                                                                                                                                                                                4.4%
                                                                                                                                                                                1.8%
                              DINNERWARE
                                                                                    New          Middle         East North West North             South          East South West South Mountain                 Pacific
                                                                                  England        Atlantic        Central    Central              Atlantic         Central    Central
    ■ More than 8% of Q2’11
                                                                            Source: Consumer Tracking Service
      dinnerware dollar sales came from
      plastic as a primary material.
                                                                            OVEN OR MICROWAVE BAKEWARE • BUYER GENDER
           Source: Retail Tracking Service
                                                                                         Percentage purchased by buyer gender versus census
                                                                                                                                                                  OVEN OR MICROWAVE BAKEWARE
                                                                                                                                                                  CENSUS (PERCENT OF POPULATION)
                   BEVERAGEWARE
                                                                                                                                                                        84.0%

          ■ Single piece beverageware
            sales represented 38% of
            Q2’11 dollar sales.
           Source: Retail Tracking Service                                                                                       49.1%                                                             50.9%

                                    CUTLERY
                                                                                                 16.0%

    ■ The top 3 motivators behind
      purchasing cutlery in Q2’11 were
      price, value and easy to clean.                                                                           Male                                                                   Female
     Source: Consumer Tracking Service                                      Source: Consumer Tracking Service

Source: The NPD Group                                                                              10
Housewares: NON-ELECTRIC
MARKET SIZE
QUARTER THREE • 2011                                                                          DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                                                Unit Volume Share
                                          STOVETOP                                                  6 months ending — September 2011
                                          COOKWARE
                                          DINNERWARE
        $504,890

                                          CUTLERY                                  DINNERWARE • HEAD OF HOUSEHOLD AGE
                                          BEVERAGEWARE                      Percentage purchased by age of the head of household versus census
                                          OVEN OR
                                          MICROWAVE

                                                                                                                                  23.6%
                                                                                                                                                  DINNERWARE
                   $334,854

                                          BAKEWARE
                                                                                                                                                  CENSUS (PERCENT OF POPULATION)
                                          FLATWARE
                              $212,422

                                          $204,670

                                                                                                                                                   18.5%

                                                                                                                                                           17.8%
                                                                                                                                          17.5%
                                                     $171,782

                                                                $150,326

                                                                                                                                                                   16.7%
                                                                                                                          16.3%
                                                                                                 14.9%

                                                                                                                                                                                               14.7%
                                                                                                                  13.3%

                                                                                                                                                                            13.2%

                                                                                                                                                                                       13.1%
                                                                                                         11.6%
                                                                                       8.9%

Source: Consumer Tracking Service

                                   BAKEWARE
                                                                                 0%

                                                                                  13 – 17        18 – 24          25 – 34         35 – 44          45 – 54          55 – 64            65 years +
        ■ Stoneware/clay stone                                                     years          years            years           years            years            years
          accounted for 8% of bakeware                                     Source: Consumer Tracking Service
          dollar sales in Q3’11.
              Source: Retail Tracking Service
                                                                              BEVERAGEWARE • HEAD OF HOUSEHOLD GENDER
                                                                            Percentage purchased by head of household gender versus census

                                                                                                    BEVERAGEWARE                                       87.8%
                                         FLATWARE
                                                                                                    CENSUS (PERCENT
                                                                                                    OF POPULATION)
  ■ Serving utensil sets represented 4% of
    flatware dollar sales in Q3’11.
              Source: Retail Tracking Service                                                                       49.1%                                                      50.9%

                              STOVETOP
                              COOKWARE
                                                                                              12.2%
  ■ The top 3 reasons consumers
    purchase specific cookware are
    price, good value and easy to clean.                                                                   Male                                                    Female
      Source: Consumer Tracking Service                                    Source: Consumer Tracking Service

                                                                                               11                                         Source: The NPD Group
Home: KITCHEN & DINING TEXTILES
MARKET SIZE
QUARTER TWO • 2011                                                    DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                                            Dollar Share
                                                                               6 months ending — June 2011

                                                                               TABLE LINENS • REGION
                                                                            Dollar share in region versus census
                                  KITCHEN &
                                    DINING                                                                         DOLLAR SHARE
                                   TEXTILES
                                                                                                                   CENSUS (PERCENT
                                                                                                   48.6%           OF POPULATION)

                 ■ In the 6 months ending June
                   2011, $65 million in sales came                                                         36.6%
                   from potholders/oven mitts and
                   towel/potholder sets.
                 Source: Consumer Tracking Service
                                                                                           22.2%                                     22.8%
                                                             20.9%
                                                                       18.4%      18.4%

                                                                                                                      12.3%

                                                                Northeast             Midwest          South                  West
                                                     Source: Consumer Tracking Service
MARK YOUR CALENDAR!

                               to register: www.housewares.org/attend

Source: The NPD Group                                                  12
Home: KITCHEN & DINING TEXTILES
MARKET SIZE
QUARTER THREE • 2011                                           DEMOGRAPHIC ANALYSIS
UNIT VOLUME IN THOUSANDS                                               Unit Volume Share
                                                                   6 months ending — September 2011

                                                           KITCHEN LINENS • HOUSEHOLD SIZE
                     KITCHEN &                      Percentage purchased by household size versus census
                       DINING
                      TEXTILES
                                            30                                                       KITCHEN LINENS
                                                                     27.8%
 ■ In the 6 months ending September                                          26.4%                   CENSUS (PERCENT OF POPULATION)
   2011, kitchen & dining textiles dollar          25.3%
   sales increased by 21% and unit          25
                                                                                                                 22.1%           21.5%
   sales increased by nearly 14%,
   compared to the 6 months ending                                                           19.5%
                                            20
   September 2010.
                                                                                     16.0%                               15.6%
    Source: Consumer Tracking Service                                                                    15.3%
                                            15
                                                           10.5%
                                            10

                                             5

                                             0
                                                      Single             Two             Three              Four             Five or
                                                     Member            Members          Members            Members        More Members
                                            Source: Consumer Tracking Service

         Find Exhibitors and Do Business Year Round at
         www.housewares.org/housewaresconnect365
               • Search for new suppliers
               • Find the latest new products
               • Plan your Show visit

                                                               13                            Source: The NPD Group
Small Appliances and The Web: A Budding Relationship
Continued from page 1

    The Internet doesn’t discriminate when       less than 10 percent of
it comes to small appliances. From the           appliance sales, a good
widely available to the scarce, the additional   website can have a real
small appliance categories where the             impact on your bottom
Internet’s role in sales is notable, with unit   line that is well worth the
share greater than 15 percent, were: dehu-       relatively minimal cost.
midifiers, sewing machines, oral irrigators,     Manufacturers and retail-
pedometers, electric shaver replacement          ers increase their ability to
parts, lighted mirrors, espresso makers, cit-    sell bigger ticket items or
rus juicers, juice extractors, food steamers,    higher priced products.
canister vacuums, bare floor cleaners and ice    Brands gain some control
cream/yogurt makers.                             over the messaging and
                                                 image of their products,
   Having an Internet presence has been          providing consumers with
important for several years, but it has          the insight they are seek-
become a must in order to compete in             ing, giving them a leg up
today’s market. On average, online small         on the competition.
appliance sales command a 58 percent high-
                                                     Retailers also benefit
er average selling price than the industry as
                                                 from doing a good job answering questions              Perry James is president of Home & Office
a whole, and 71 percent higher than brick
                                                 about product offerings, which can get con-         Supplies at The NPD Group. These are the
and mortar sales. Nearly half of all purchases                                                       opinions of James and NPD. For more
                                                 sumers to visit their stores. The relationship
made online were researched through an                                                               information, contact James at 516-625-2349.
                                                 between the Internet and small appliances
online resource, but only a quarter of pur-      truly is a budding one and is now in a criti-
chases researched online were actually pur-      cal stage, one that requires atten-
chased online.                                   tion to truly bloom and realize
   Even though online sales still represent      its full potential.
                                                                                                  Take a look inside the home!
                                                                                              kitchen | personal care | home environment | laundry appliances

                                                                                              Uncover opportunities for your business with
                                                                                              The NPD Group’s new report, Inside the Home:
                                                                                              Appliances We Own & Use.

                                                                                              INTERESTED? Contact Charles Camaroto at
                                                                                              866-444-1411 (contactnpd@npd.com) for details.

                                                                                                                                        www.npd.com

Source: The NPD Group                                                  14
DATA AND METHODOLOGY                               CONSUMER METHODOLOGY
   NPD has a standard data model that is used         The NPD online consumer panel is com-
for all categories that incorporates both con-     prised of pre-recruited individuals who have
sumer and point-of-sale (POS) databases.           agreed to participate in NPD online surveys       ABOUT THE
These two data sources are highly comple-          and have completed a comprehensive demo-          NPD GROUP, INC.
mentary and are used to support one another.       graphic questionnaire. The use of an estab-
Point-of-Sale (POS) databases are assembled                                                             The NPD Group is the leading
                                                   lished online panel assures good cooperation
from retailers' records of actual sales by prod-                                                     provider of reliable and comprehensive
                                                   levels and predictable demographic balance
uct as collected at the cash register.                                                               consumer and retail information for a
                                                   among panelists.
                                                                                                     wide range of industries. Today, more
   Consumer databases are developed using             Consumer panelists are asked about their       than 1,800 manufacturers retailers and
online purchase surveys completed by a large-      recent purchases in a survey administered via
scale rotating sample of consumers. These                                                            service companies rely on NPD to help
                                                   the Internet. The responding sample is demo-
data produce estimates of sales by product for                                                       them drive critical business decisions at
                                                   graphically weighted and projected through a
the total marketplace. More importantly, the                                                         the global, national, and local market
                                                   series of steps to represent the U.S. popula-
consumer surveys capture information about                                                           levels. NPD helps our clients to identify
                                                   tion. Each month, over 200,000 individuals
each purchase, such as buyer demographics,                                                           new business opportunities and guide
                                                   are selected from the NPD online consumer
the product's intended use and other pur-                                                            product development, marketing, sales,
                                                   panel to participate in the appliance study.
chase motivators.                                                                                    merchandising, and other functions.
                                                         Each month, over 30,000 U.S. house-
                                                                                                     Information is available for the follow-
                                                         holds are selected for the housewares and
                                                                                                     ing industry sectors: automotive, beauty,
                                                         home textiles studies.
                                                                                                     commercial technology, consumer tech-
                                                        POS METHODOLOGY                              nology, entertainment, fashion, food
                                                                                                     and beverage, foodservice, home,
                                                           NPD collects point-of-sale retailer
                                                                                                     office supplies, software, sports, toys
                                                        data from selected retailers. These data
                                                                                                     and wireless. For more information,
                                                        are the actual sales for the chain on an
                                                                                                     contact us or visit
                                                        SKU-by-SKU basis. The data are com-
                                                                                                     http://www.npd.com/.
                                                        bined with data from other retailers to
                                                        produce reports on certain categories by
                                                        channel, where a sufficient number of
                                                        retailers are cooperating and where suffi-
                                                        cient market demand exists for the data-
                                                        base.
                                                                                                     Deborah A. Teschke, Senior Editor
                                                                                                     Perry James, Contributing Editor
                                                                                                     Janine Marshall-Bolton, Contributing Editor
                                                                                                     Tom Goodman, Design
                                                                                                     Published by IHA
                                                                                                     For more information, contact
                                                                                                     Debbie Teschke at 847-692-0110; or
                                                                                                     dteschke@housewares.org

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

Source: The NPD Group                                                   15
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