covering quarter 3, 2018 rethinking seemingly secondary ...there is more than one way to approach...

level of attention warranted by the opportunity they pose to the housewares industry.

As an industry, we need to rethink the way we approach both major retail events and seemingly secondary events and remember that there can be overlap. While in-store promotions will be focused on primary events, secondary events can oftentimes be covered through consumer marketing. There is more than one way to approach targeted consumer marketing, more than one type of consumer to address for each event and more than one vehicle to be used in communicating with those consumers.

Back-to-College Had Less Focus in 2018

Why? The back-to-college segment is a large portion of the population, and just as large an opportunity for the home industry. We need to think about building relationships around this life event, and marketing opportunity, and identify new ways to reach these consumers? We don’t do a good job of maximizing word-of-mouth potential and friends-and-family networking.

Beyond bedding and décor, we need to think about addressing the deeper core needs and desires of incoming college students, like maintaining a healthy diet and staying on trend with personal grooming and styling.

Finally, we need to hit the mark on logistics – making it easy for the consumer to get what they want, putting it where they

need it and when they want it. Back-to-college needs don’t end when school starts, and don’t only exist in the student’s hometown.

Outdoor Entertaining Not Limited to One Season

Outdoor entertaining needs don’t just overlap the typical back-to-college shopping months. Due to weather shifts, outdoor entertaining is extending into the fall, through October even. In some cases, those same weather shifts are causing the outdoor entertaining to start later in the summer months.

Are we fully leveraging the different outdoor entertaining opportunities from backyard barbeques to camping to tailgating? Are we thinking about how consumers are using different types of products to address their varying outdoor entertaining needs?

About Housewares MarketWatch Housewares MarketWatch reports

point-of-sale (POS), consumer survey, and CheckoutSM consumer receipt-based data from NPD databases. The quarterly data covers various product categories within the divisions of Small Appliances, Non-electric Housewares, and Home Textiles. The information contained on the following pages is offered as a snapshot of a category’s performance, including perspective crossing each of the mentioned information sources.

Each issue of Housewares MarketWatch will feature several categories from the Small Appliances, Housewares, and Kitchen and Dining Textiles divisions. Complete data on a category can be purchased by visiting NPD’s website at www.npd.com.

See the Data and Methodology section on page 15 for an explanation of how the data is compiled.

In the first nine months of 2018, the home industry continued its growth streak across the board – small kitchen electrics

and home environment appliance dollar sales each increased 9 percent, personal care appliances grew 6 percent and non-electric housewares grew just over 1 percent, according to NPD’s Retail Tracking Service. How do we keep this momentum going?

In the Q4 2017 issue of Housewares MarketWatch, we talked about how Thanksgiving needs often get lost among the focus on gifting during the holiday season. Similarly, there are other events that occur throughout the year that don’t get the

continued on page 8

Covering Quarter 3, 2018

Rethinking Seemingly Secondary Opportunities By Joe Derochowski, The NPD Group, Inc.

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group

2018 Market Size Dollar Volume in Thousands

Source: Retail Tracking Service Source: Checkout

INSIGHTS: FEATURES: Dollar sales of flatware were up by 9 percent in Q3’18, with a 7-point increase in average selling price.

Source: Retail Tracking Service

PURCHASE BEHAVIOR: 40 percent of dinnerware sold between August and October 2018 were planned purchases. Source: Purchase Insights Tracking Service

PURCHASE INFLUENCE: 21 percent of flatware sold in the 3 months ending October 2018 was purchased as a gift.

Source: Purchase Insights Tracking Service

CHANNEL DYNAMICS: During Q3’18, 20 percent of flatware sales came from mass merchants, down 1 share point compared to last year.

Source: Checkout

PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said style, quality and color were the top motivators in between August and October 2018.


ONLINE SALES: 32 percent of beverageware sales in Q3’18 were generated online, down 1.5 percentage points compared to last year.

Source: Checkout

Demographic Analysis 6 months ending • September 2018

Unit Volume Share

FLATWARE • AGE Percentage purchased by head of household age

2

Q3

$414,213

TOTAL TABLETOP

18-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55+ YEARS

12.4%

17.3%

16.4%31.8%

22.1%


COOKING/KITCHEN: Cookware, Bakeware, Cutlery

COOKWARE • INCOME Percentage purchased by head of household income


0

5

10

15

20

25

30

Source: Checkout

INSIGHTS: FEATURES: Cutlery category sales grew 3 percent during Q3’18, driven by cutlery sets and accessories.


PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said that quality, durability, easy to clean and style were most important to them in the 3 months ending October 2018.


ONLINE SALES: 30 percent of cutlery dollar sales in Q3’18 came from online purchases, a 4-point increase from last year.

Source: Checkout

CHANNEL DYNAMICS: During Q3’18, 40 percent of cutlery sales came from purchases made at mass merchants, 6 points higher than last year.

Source: Checkout

PURCHASE INFLUENCE: 49 percent of the cookware sold between August and October 2018 was to replace an old/worn-out or broken item.


IMPULSE: 48 percent of bakeware purchased in the 3 months ending October 2018 was driven by planned purchases.



Unit Volume Share

3


Q3

$638,824

TOTAL COOKING/KITCHEN

Under $50,000

$50,000 – 74,999

$75,000 – 99,999

$100,000 +

27.7%

23.9%

18.8%

29.5%

Small Appliances: KITCHEN ELECTRICS



Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS:

FEATURES: Dollar sales of espresso makers grew 33 percent during Q3’18 compared to the prior

year, with a 16-percent higher average selling price.


PURCHASE MOTIVATORS: When it comes to choosing a mixer, consumers said that price,

brand and good value were their top motivators in Q3’18.

Source: Consumer Tracking Service

ONLINE SALES: 36 percent of all juice extractor sales in Q3’18 came from online purchases.


PURCHASE INFLUENCE: During Q3’18, 42 percent of the juice extractors sold were purchased

on sale, 7 percentage points lower than Q3’17.


IMPULSE: 73 percent of all toaster ovens sold in Q3’18 were planned purchases, down 3

percentage points compared to last year.



Unit Volume Share

BLENDING & PROCESSING • INCOME Percentage purchased by head of household income

4

Q3FO

OD P

REP/

BE

VERA

GE

$831,137

COOK

ING

& SP

ECIA

LTY

ELEC

TRIC

S

$693,473

TOTA

L KI

TCHE

N EL

ECTR

ICS

$1,524,610

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 +

5.3%

10.3%8.5% 9.1%

17.8%

12.1%

23.4%

13.5%


Small Appliances: PERSONAL CARE

MEN’S TRIMMERS • AGE Percentage purchased by head of household age


INSIGHTS:

FEATURES: Oral care appliance dollar sales increased 11 percent in Q3’18.


PURCHASE MOTIVATORS: When it comes to selecting a specific oral care appliance,

consumers said price, brand trust and good value were top motivators in Q3’18.


ONLINE SALES: E-commerce accounted for 16 percent of hair dryer sales in Q3’18.


PURCHASE OCCASION: 10 percent of massaging appliances sold in Q3’18 were purchased for

someone else, but not as a gift.


IMPULSE: 38 percent of the curling irons sold in Q3’18 were purchased on promotion.



Unit Volume Share

5


Q3HA

IR C

ARE/

GR

OOMI

NG

$716,949

ORAL

CAR

E, HO

ME

HEAL

TH, &

OTH

ER

PERS

ONAL

CAR

E

$1,206,399

TOTA

L MA

RKET

$1,923,348

16 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

3.1%

15.3%

20.3%

16.5%

13.8%

22.3%

8.8%

Small Appliances: FLOOR CARE




INSIGHTS:

FEATURES: Dollar sales of specialty cleaning products grew 41 percent in Q3’18 compared to the prior year, with a 12-percent higher average selling price.


PURCHASE MOTIVATORS: When it comes to selecting a robotic vacuum, consumers said ratings and brand features were the top motivators in Q3’18.


ONLINE SALES: 33 percent of canister vacuum sales in Q3’18 came from online purchases, down 8 share points compared to last year.


CHANNEL DYNAMICS: The mass channel accounted for 48 percent of hand/stick vacuum sales in Q3’18, a 4-percentage point increase from last year.


PROMOTION INFLUENCE: 52 percent of deep carpet cleaners sold in Q3’18 were purchased on sale.



Unit Volume Share

HAND/STICK VACUUMS • AGE Percentage purchased by head of household age

6

Q3

$1,331,990

TOTAL MARKET

16-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55-64 YEARS

65+ YEARS

7.8%

15.6%

17.3%

14.0%

18.4%

27.0%


Home: KITCHEN & DINING TEXTILES

KITCHEN LINENS • HOUSEHOLD AGE Percentage purchased by head of household age

Source: Checkout Source: Checkout

INSIGHTS:

FEATURES: 29 percent of dollars spent on kitchen linens in Q3’18 were on solid color products,

up 4 points compared to the prior year.

Source: Checkout

RETAIL LANDSCAPE: In the off-price channel, Q3’18 dollar sales of table linens grew by $8

million compared to last year.

Source: Checkout

PRICE BAND: Kitchen linens priced below $4 lost 5 dollar-share points during Q3’18 compared

to last quarter.

Source: Checkout

FEATURES: Dollar sales of pattern/printed kitchen linens decreased 8 points in Q3’18 compared

to the prior year.

Source: Checkout


Unit Volume Share

7


Q3

$289,300

TOTAL MARKET

UNDER 25

25-34 YEARS

35-44 YEARS

45+

10%

12%

14%64%

Source: The NPD Group 8

Rethinking Seemingly Secondary Opportunities continued from page 1

Housewares Retail Tracking Service now available in Canada

Know where your best opportuni琀 es are.

npdgroup.ca/go/housewares

Super Bowl Sunday—Big Event in Many Households

The Super Bowl is more than just another football game, it’s a gathering of family and friends and it’s a culinary event – potentially at Thanksgiving levels. Marketing strategies should reflect the true focus of this event, beyond football-shaped dishes and big-screen TVs. How can we help consumers prepare, present and serve their fare for the big game, and handle the clean-up?

There are many opportunities for us in the housewares industry that are just waiting for new, creative ways to better connect with the consumer, make life better for the consumer and grow the business.

9

DATA AND METHODOLOGY

NPD has a standard data model that is used for all categories that incorporates both consumer and point-of-sale (POS) databases. These two data sources are highly complementary and are used to support one another. Point-of-Sale (POS) databases are assembled from retailers' records of actual sales by product as collected at the cash register. Consumer databases are developed using online purchase surveys completed by a large-scale rotating sample of consumers. These data produce estimates of sales by product for the total marketplace. More importantly, the consumer surveys capture information about each purchase, such as buyer demographics, the product's intended use and other purchase motivators.

CONSUMER METHODOLOGY

The NPD online consumer panel is comprised of pre-recruited individuals who have agreed to participate in NPD online surveys and have completed a comprehensive demographic questionnaire. The use of an established online panel assures good cooperation levels and predictable demographic balance among panelists. Consumer panelists are asked about their recent purchases in a survey administered via the Internet. The responding sample is demographically weighted and projected through a series of steps to represent the U.S. population. Each month, over 200,000 individuals are selected from the NPD online consumer panel to participate in the appliance study. Each month, over 30,000 U.S. households are selected for the housewares and home textiles studies.

POS METHODOLOGY NPD collects point-of-sale retailer data

from selected retailers. These data are the actual sales for the chain on an SKU-by-SKU basis. The data are combined with data from other retailers to produce reports on certain categories by channel, where a sufficient number of retailers are cooperating and where sufficient market demand exists for the database. The POS data covers the retail channels of mass/national chains, department stores, specialty stores and drug stores (personal care and home environment only).

CHECKOUTSM METHODOLOGY The CheckoutSM service is based on the

total channel purchasing behavior of nearly 50,000 panelists in the United States who transmit purchase receipts (both brick & mortar and online) using their smartphones. Individual items on the receipts are coded to merchants, product categories, and other variables along with units purchased and price paid -- allowing for deep analysis of total channel purchasing behavior. The CheckoutSM sample is currently balanced and projected each month to represent the purchasing behavior of individuals in the United States according to U.S. Census estimates.

LIFESTYLES, ATTITUDES AND BEHAVIORS CONSUMER STUDY

An online consumer survey mailed to a demographically representative sample of adults ages 18+ in August 2016. Home textiles category information was captured among respondents who qualified as buyers (5,017 qualified as past year home textile purchasers).

ABOUT THE NPD GROUP, INC.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers and service companies rely on NPD to help them drive critical business decisions at the global, national and local market levels. NPD helps our clients to identify new business opportunities and guides product 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, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless. For more information, contact us or visit www.npd.com

Deborah A. Teschke, Senior Editor Joe Derochowski, Contributing Editor Janine Marshall-Bolton, Contributing Editor Tom Goodman/Kim Hall, Design Published by IHA

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

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


covering quarter 3, 2018 rethinking seemingly secondary ...there is more than one way to approach...

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