quarters 2 & 3, 2011 small appliances and the web: a ... · 41 percent of all small appliance...

continued on page 14

uct research. The Internet’s role in smallappliance sales starts well before the pur-chase, when consumers are looking forinformation to help them decide whichproduct is right for them. Fourteen percentof items sold in the 12 months endingSeptember 2011, and 26 percent of dollarsales, were researched online first.

Overall, websites are the most popularresource, followed by store visits and friendor family recommendation. Across all smallappliance categories, retailer websites are themost popular online resource for pre-pur-chase research, with product review websitesa close second. Social networks and blogsare utilized for small appliance pre-purchaseresearch, but only for 1 percent of sales inthe 12 months ending September 2011.

Although online is important for mostsmall appliance categories, consumers have

adopted this purchasing vehicle more forsome categories than others. Looking atthe impact of the Internet by sub-industry,41 percent of all small appliance websitesales are home environment appliances.Website sales represent nearly 10 percent ofsmall kitchen electrics unit sales, 8 percentof home environment and 7 percent of per-sonal care appliance sales.

At the category level, more than 20 per-cent of stand mixers, breadmakers and vacu-um sealers sold between October 2010 andSeptember 2011 were purchased online, butrobotic vacuums take the top spot with 40percent of unit sales coming from websitesales. The most popular online resourcesfor robotic vacuum pre-purchase researchwere product review websites, representing15 percent of sales.

About Housewares MarketWatchHousewares MarketWatch reports

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

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

Complete data on a category can bepurchased by visiting NPD’s website atwww.npd.com.See the Data andMethodology section on page 8 for anexplanation of how the data is compiled.

Technology and the Internet are over-whelming forces in our lives, andthey 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 2011were purchased through online channels.

More than half of small appliance con-sumers did some kind of pre-purchase prod-

Quarters 2 & 3, 2011

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

Source: The NPD Group 2

MARKET SIZEQUARTER TWO • 2011UNIT VOLUME IN THOUSANDS

Small Appliances: KITCHEN ELECTRICSTO

TAL

MARKET

FOOD P

REP/

BEVER

AGE

COOKI

NG &

SPEC

IALT

Y

ELEC

TRICS

Source: Consumer Tracking Service

25,386

12,07413,312

■ The top 3 reasons consumers purchaseda specific brand of electric skillet werethe price, it was a brand they trust and itwas recommended by friends/family.Source: Consumer Tracking Service

ELECTRICSKILLETS

■ Nearly 19% of espressomakers sold in Q2’11 were POD Machines.

Source: Retail Tracking Service

ESPRESSOMAKERS

■ 28% of waffle irons sold inQ2’11 were traditional style,rather than Belgian.


WAFFLE IRONS

13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

NewEngland

MiddleAtlantic

East NorthCentral

West NorthCentral

SouthAtlantic

East SouthCentral

West SouthCentral

Mountain Pacific

ESPRESSO MAKERS

CENSUS (PERCENT OF POPULATION)

STAND MIXERS


STAND MIXERS • AGE OF BUYERPercentage purchased by age of buyer versus census

DEMOGRAPHIC ANALYSISUnit Volume Share

6 months ending — June 2011


ESPRESSO MAKERS • REGIONPercentage purchased in region versus census


1.0%

13.6

%

8.9%

7.4%

11.6

%

20.2

%

16.3

%

17.0

%

17.5

%

16.1

% 17.8

%

14.0

%

13.2

%

11.6

%

14.7

%18

.6%

15.7

%

7.1%

9.1%

11.4

%

15.9

%

5.9%

3.2%

19.3

%

24.5

%

6.7%

6.5%

15.5

%

11.9

%13.6

%

9.3%

4.8%

Source: The NPD Group3

MARKET SIZEQUARTER THREE • 2011UNIT VOLUME IN THOUSANDS

Small Appliances: KITCHEN ELECTRICSTO

TAL

MARKET

FOOD P

REP/

BEVER

AGE

COOKI

NGEL

ECTR

ICS


27,326

13,18814,138

■ The top 3 reasons consumerspurchased a specific brand of icecream/yogurt maker were the price,it was a brand they trust and it wasrecommended by friends/family.


ICE CREAM/YOGURT MAKERS

■ 40% of food processors soldin Q3’11 were blender/mixer/chopper systems.


FOOD PROCESSORS

■ 16% of coffee grinders sold inQ3’11 were burr grinders.


COFFEE GRINDERS

Male Female

TEA MAKERS


ELECTRIC CAN OPENERS


ELECTRIC CAN OPENERS • INCOMEPercentage purchased by income versus census


6 months ending — September 2011


TEA MAKERS • BUYER GENDERPercentage purchased by buyer gender versus census


9.4%

18.1

%

56.3%

50.9%

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 +

43.7%

49.1%

9.7%

3.1%

14.1

%

7.6%

13.2

%

10.2

%

11.1

%

8.9%

13.0

%14.8

%

15.1

%

15.4

%

14.3

%

21.9

%



Small Appliances: PERSONAL CARETO

TAL

MARKET

HAIR C

ARE/

GROOMING

ORAL CARE,

HOME

HEALT

H, & O

THER

PERSO

NAL CARE


61,323

30,184 31,139

■ The top 3 reasons consumerspurchased a specific brand of oralcare replacement parts were that itwas a brand they currently own, abrand they trust and price.


ORAL CAREREPLACEMENT PARTS

■ Handheld garment steamersaccounted for 4% of garmentcare items sold in Q2’11.


GARMENT CARE

■ 25% of men’s electric shaverssold in Q2’11 were wet & dry.


MEN’S ELECTRIC SHAVERS

13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

Single Member

Two Members

Three Members

Four Members

Five or More Members

WOMEN’S ELECTRIC SHAVERS


CURLING IRONS/BRUSHES


CURLING IRONS/BRUSHES • AGE OF BUYERPercentage purchased by age of buyer versus census




WOMEN’S ELECTRIC SHAVERS • HOUSEHOLD SIZEPercentage purchased by household size versus census


17.8

%

17.5

%

16.6

%

13.5

%

13.2

%

12.9

% 14.7

%15.8

%

16.3

%17.9

%

11.6

%12.9

%

8.9%

10.4

%

10.9%

25.7%

22.1%

19.5%21.5%

19.5%21.9%

26.4%

21.9%

10.5%



Small Appliances: PERSONAL CARETO

TAL

MARKET

HAIR C

ARE/

GROOMING

ORAL CARE,

HOME

HEALT

H, & O

THER

PERSO

NAL CARE


57,231

28,488 28,743

■ The top 3 reason consumerspurchased a specific brand of bloodpressure monitor were the price,features and it was easy to use


BLOOD PRESSUREMONITORS

■ More than 60% ofshowerheads sold in Q3’11were handheld.


SHOWERHEADS

■ More than half of home hairclippers sold in Q3’11 had20 or more pieces.


HOME HAIR CLIPPERS

SEWING MACHINES


HAIRDRYERS


HAIRDRYERS • AGE OF BUYERPercentage purchased by age of buyer versus census




SEWING MACHINES • INCOMEPercentage purchased by income versus census


17.8

%

13.0

%

13.2

%

8.9%

14.7

%

7.9% 9.

4%

26.5

%

14.3

%

18.1

%

15.1

%

12.0

%

13.0

%

5.6%

11.1

%

11.1

% 13.2

%

12.3

% 14.1

%

6.5%

9.7%

13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000 –149,999

$150,000 +

19.5

%

17.5

%19.3

%

16.3

%

18.4

%

11.6

%

12.2

%

8.9%

8.7%



Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)


TOTA

LMARKE

T

28,212

■ 25% of fans sold in Q2’11were personal/clip fans.


FANS

■ The top 3 reasons consumerspurchased a specific brand of fanwere the price, it was a goodvalue and they liked the features.


FANS

WATER FILTRATION DEVICES


WATER FILTRATION DEVICES • INCOMEPercentage purchased by income versus census




WATER FILTRATION DEVICES • REGIONPercentage purchased in region versus census


10.3

%

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 +

NewEngland

MiddleAtlantic

East NorthCentral

West NorthCentral

SouthAtlantic

East SouthCentral

West SouthCentral

Mountain Pacific

4.1%

WATER FILTRATIONDEVICES

CENSUS (PERCENTOF POPULATION)

4.8%

14.2

%

13.6

% 14.8

%

15.5

%

6.7%7.

8%

14.9

%

19.3

%

5.8% 5.9%

10.6

%

11.4

%

7.9%

7.1%

15.7

%

20.0

%

9.4%

18.8

%

14.3

%

12.6

%

11.1

%

7.7%

13.0

%

15.3

%

15.1

%

11.0

%

13.2

%

18.7

%

14.1

%

5.5%

9.7%



Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)


TOTA

LMARKE

T

27,161

■ More than 25% of water filtrationdevices sold in Q3’11 had acontainer capacity between ½-gallon and 1 gallon.


WATERFILTRATION

DEVICES

■ The top 3 reasons consumerspurchased a specific brand ofwater filtration device were that itwas a brand they trust, the priceand it was a good value.


WATERFILTRATION

DEVICES

Male Female

Single Member

Two Members

Three Members

Four Members


DEHUMIDIFIERS


DEHUMIDIFIERS


DEHUMIDIFIERS • BUYER GENDERPercentage purchased by buyer gender versus census




DEHUMIDIFIERS • HOUSEHOLD SIZEPercentage purchased by household size versus census


53.2%

12.0%

49.1%46.8%

50.9%

35.8%

10.5%

26.4%

20.2% 19.5%17.1%

22.1%

14.8%

21.5%



Small Appliances: FLOOR CARE


TOTA

LMARKE

T

8,346

■ 26% of all deep carpet cleaners soldin Q2’11 were compact style.


DEEP CARPETCLEANERS

■ The top 3 reasons consumers purchaseda specific brand of deep carpet cleanerwere it was a brand they trust, they likethe features and the price.Source: Consumer Tracking Service

DEEP CARPETCLEANERS

Male Female

Single Member

Two Members

Three Members

Four Members


STICK VACUUMS


STICK VACUUMS


STICK VACUUMS • BUYER GENDERPercentage purchased by buyer gender versus census




STICK VACUUMS • HOUSEHOLD SIZEPercentage purchased by household size versus census


39.6%

37.0%

49.1% 50.9%

60.4%

21.5%

12.0%

22.1%

11.5%

19.5%

25.1%26.4%

10.5%

14.3%



Small Appliances: FLOOR CARE


TOTA

LMARKE

T

8,685

■ 64% of stick vacuums sold inQ3’11 were corded.


STICK VACUUMS

■ The top 3 reasons consumerspurchased a specific brand ofstick vacuum were the price, itwas a brand they trust and it was a good value.


STICK VACUUMS

13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

Single Member

Two Members

Three Members

Four Members


UPRIGHT VACUUMS


UPRIGHT VACUUMS


UPRIGHT VACUUMS • AGE OF BUYERPercentage purchased by age of buyer versus census




UPRIGHT VACUUMS • HOUSEHOLD SIZEPercentage purchased by household size versus census


3.1%

13.7%

8.9%

8.8%

11.6

%

17.9

%

16.3

%

18.6

%

17.5

% 19.1

%

17.8

%

14.7

%

13.2

%

17.7

%

14.7

%

26.4%

10.5%

32.1%

21.1%19.5%

16.5%

22.1%

16.7%

21.5%

■ The top 3 motivators behindpurchasing cutlery in Q2’11 wereprice, value and easy to clean.


CUTLERY

■ Single piece beveragewaresales represented 38% ofQ2’11 dollar sales.


BEVERAGEWARE

■ More than 8% of Q2’11dinnerware dollar sales came fromplastic as a primary material.


DINNERWARE



Housewares: NON-ELECTRIC

STOVETOPCOOKWAREDINNERWAREBEVERAGEWAREOVEN ORMICROWAVEBAKEWARECUTLERYFLATWARE


$621

,247

$278

,407

$217

,786

$192

,891

$183

,577

$153

,699

Male Female

NewEngland

MiddleAtlantic

East NorthCentral

West NorthCentral

SouthAtlantic

East SouthCentral

West SouthCentral

Mountain Pacific

OVEN OR MICROWAVE BAKEWARE


STOVETOP COOKWARE


STOVETOP COOKWARE • REGIONPercentage purchased in region versus census




OVEN OR MICROWAVE BAKEWARE • BUYER GENDERPercentage purchased by buyer gender versus census


6.2%

16.0%

49.1% 50.9%

84.0%

15.7

%

12.0

%

7.1%

4.4%

11.4

%

1.8%

5.9%

4.4%

19.3

%21.3

%

6.7%7.

3%

15.5

%

16.1

%

13.6

%

13.4

%

4.8%



Housewares: NON-ELECTRIC

■ The top 3 reasons consumerspurchase specific cookware areprice, good value and easy to clean.


STOVETOPCOOKWARE

■ Serving utensil sets represented 4% offlatware dollar sales in Q3’11.


FLATWARE

■ Stoneware/clay stoneaccounted for 8% of bakewaredollar sales in Q3’11.


BAKEWARE

STOVETOPCOOKWAREDINNERWARECUTLERY BEVERAGEWARE OVEN ORMICROWAVEBAKEWARE FLATWARE


$504

,890

$334

,854

$150

,326

$171

,782

$204

,670

$212

,422

0%

8.9%

14.9

%

11.6

% 13.3

%

16.3

%

23.6

%

17.5

% 18.5

%

17.8

%

16.7

%

13.2

%

13.1

% 14.7

%

Male Female

13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

DINNERWARE


DINNERWARE • HEAD OF HOUSEHOLD AGEPercentage purchased by age of the head of household versus census




BEVERAGEWARE • HEAD OF HOUSEHOLD GENDERPercentage purchased by head of household gender versus census


12.2%

49.1% 50.9%

87.8%BEVERAGEWARE




Home: KITCHEN & DINING TEXTILES

■ In the 6 months ending June2011, $65 million in sales camefrom potholders/oven mitts andtowel/potholder sets.


KITCHEN &DINING

TEXTILES

DEMOGRAPHIC ANALYSISDollar Share



20.9%

MA

RK

YO

UR

CA

LEN

DA

R!

to register: www.housewares.org/attend

TABLE LINENS • REGIONDollar share in region versus census

Northeast Midwest South West

22.8%

12.3%

36.6%

48.6%

22.2%

18.4%18.4%

DOLLAR SHARE




Home: KITCHEN & DINING TEXTILES

■ In the 6 months ending September2011, kitchen & dining textiles dollarsales increased by 21% and unitsales increased by nearly 14%,compared to the 6 months endingSeptember 2010.


KITCHEN &DINING

TEXTILES

0

5

10

15

20

25

30

KITCHEN LINENS • HOUSEHOLD SIZEPercentage purchased by household size versus census




KITCHEN LINENS


Single Member

Two Members

Three Members

Four Members


25.3%

10.5%

27.8%26.4%

16.0%

19.5%

15.3%

22.1%

15.6%

21.5%

Find Exhibitors and Do Business Year Round atwww.housewares.org/housewaresconnect365

• Search for new suppliers

• Find the latest new products

• Plan your Show visit


less than 10 percent ofappliance sales, a goodwebsite can have a realimpact on your bottomline that is well worth therelatively minimal cost.Manufacturers and retail-ers increase their ability tosell bigger ticket items orhigher priced products.Brands gain some controlover the messaging andimage of their products,providing consumers withthe insight they are seek-ing, giving them a leg upon the competition.

Retailers also benefitfrom doing a good job answering questionsabout product offerings, which can get con-sumers to visit their stores. The relationshipbetween the Internet and small appliancestruly is a budding one and is now in a criti-cal stage, one that requires atten-tion to truly bloom and realizeits full potential.

The Internet doesn’t discriminate whenit comes to small appliances. From thewidely available to the scarce, the additionalsmall appliance categories where theInternet’s role in sales is notable, with unitshare greater than 15 percent, were: dehu-midifiers, sewing machines, oral irrigators,pedometers, electric shaver replacementparts, lighted mirrors, espresso makers, cit-rus juicers, juice extractors, food steamers,canister vacuums, bare floor cleaners and icecream/yogurt makers.

Having an Internet presence has beenimportant for several years, but it hasbecome a must in order to compete intoday’s market. On average, online smallappliance sales command a 58 percent high-er average selling price than the industry asa whole, and 71 percent higher than brickand mortar sales. Nearly half of all purchasesmade online were researched through anonline resource, but only a quarter of pur-chases researched online were actually pur-chased online.

Even though online sales still representTake a look inside the home!

kitchen | personal care | home environment | laundry appliances

www.npd.com

INTERESTED? Contact Charles Camaroto at 866-444-1411 ([email protected]) for details.

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

Small Appliances and The Web: A Budding RelationshipContinued from page 1

Perry James is president of Home & OfficeSupplies at The NPD Group. These are theopinions of James and NPD. For more information, contact James at 516-625-2349.

15Source: The NPD Group

ABOUT THE NPD GROUP, INC.

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

DATA AND METHODOLOGYNPD has a standard data model that is used

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

Consumer databases are developed usingonline purchase surveys completed by a large-scale rotating sample of consumers. Thesedata produce estimates of sales by product forthe total marketplace. More importantly, theconsumer surveys capture information abouteach purchase, such as buyer demographics,the product's intended use and other pur-chase motivators.

CONSUMER METHODOLOGYThe NPD online consumer panel is com-

prised of pre-recruited individuals who haveagreed to participate in NPD online surveysand have completed a comprehensive demo-graphic questionnaire. The use of an estab-lished online panel assures good cooperationlevels and predictable demographic balanceamong panelists.

Consumer panelists are asked about theirrecent purchases in a survey administered viathe Internet. The responding sample is demo-graphically weighted and projected through aseries of steps to represent the U.S. popula-tion. Each month, over 200,000 individualsare selected from the NPD online consumerpanel to participate in the appliance study.

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

POS METHODOLOGYNPD collects point-of-sale retailer

data from selected retailers. These dataare the actual sales for the chain on anSKU-by-SKU basis. The data are com-bined with data from other retailers toproduce reports on certain categories bychannel, where a sufficient number ofretailers are cooperating and where suffi-cient market demand exists for the data-base.

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

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

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

quarters 2 & 3, 2011 small appliances and the web: a ... · 41 percent of all small appliance...

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