Covering Quarters 1 & 2, 2014 Innovative Thinking Takes ... · Innovative Thinking Takes Consumers...

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Single-serve brewing sys-tems, blender/mixer/chop-per systems, stick vacuumsand bare floor cleaners areclear examples of innovativeproducts that are drawingconsumer interest, regardlessof the price premium. Theseare products that draw ontechnology and features, andconvey the benefits of con-venience, customization andsimplification of an everydaytask to consumers.

In the case of countertopblenders, it is the high-pow-ered premium offeringswithin the category that aredriving the dollar growth.Unique features or position-ing gives consumers the abili-ty to rationalize the higherspend which, in some cases,can be as much as 10 timeshigher than lower-pricedsolutions.

While some consumers arecertainly trading up to higherpriced, more premiumproducts, there are also cat-egories realizing increaseddemand, and sales, in theabsence of recent notableinnovation. Rice cookers,electric kettles, slow cook-ers, stand mixers and waffleirons are examples of suchcategories that are growing simply due to theirbasic function, appealing to the American con-sumer’s desire to get back to basics. In these

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 9 for anexplanation of how the data is compiled.

Innovation has been the key to drivingsmall appliance sales in recent years, butwe are also beginning to see a segment of

consumers who are interested in gettingback to basics again. In the 12 months end-ing June 2014, the U.S. small home appli-ance market grew 4 percent to $19.6 bil-lion. The categories whose sales increasedthe most during this period were either cen-tered around providing something new orfilling simpler needs.

Covering Quarters 1 & 2, 2014

Innovative Thinking Takes Consumers Back to BasicsBy Debra Mednick, The NPD Group, Inc.

Single-serve brewing systems, blender/mixer/chopper systems, stick vacuums andbare floor cleaners are clear examples ofinnovative products that are drawing consumerinterest, regardless of the price premium.

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group 2

Market SizeQuarter One • 2014

Dollar Volume in Thousands

Source: Consumer Tracking Service Source: Consumer Tracking Service

Insights:FEATURES: 4 percent more spoons were sold than forks in Q1’14.

Source: Retail Tracking Service

IMPULSE: More than one-third of all dinnerware purchases made in Q1’14 wereunplanned.

Source: Consumer Tracking Service

ONLINE SALES: Online sales accounted for 12 percent of beverageware dollars spent inQ1’14.


PRICE SEGMENTATION: Unit sales of beverageware sets priced under $25 increased18 percent in Q1’14.


PURCHASE MOTIVATORS: When it comes to selecting specific flatware, consumerssaid price, good value and appearance were the top motivators in Q1’14.


Demographic Analysis6 months ending • March 2014

Unit Volume Share

BEVERAGEWARE • HEAD OF HOUSEHOLD AGEPercentage purchased by head of household age

$446,325

TOTAL TABLETOP

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

23%

20%20%

14%15%

9%

Source: The NPD Group3

TABLETOP: Dinnerware, Beverageware, Flatware

FLATWARE • REGIONPercentage purchased in region

Market SizeQuarter Two • 2014



Insights:FEATURES: Dollar sales of beverageware in packs increased 5 percent in Q2’14.


PURCHASE MOTIVATORS: When it comes to selecting specific beverageware,consumers said price, appearance and good value were the top motivators in Q2’14.


ONLINE SALES: Onlines sales of dinnerware declined 2 points in dollar share whencomparing Q2’14 to Q2’13, while in-store sales gained 9 share points.


PRICE SEGMENTATION: Unit sales of flatware placesettings priced under $25increased 23 percent in Q2’14.


GIFTING: One-quarter of dinnerware dollar sales in Q2’14 came from gift purchases.Source: Consumer Tracking Service

Demographic Analysis6 months ending • June 2014

Unit Volume Share

$445,796

TOTAL TABLETOP

Northeast16%

Central23%

South39%

West23%

COOKING/KITCHEN: Cookware, Bakeware, Cutlery





Insights:FEATURES: 7 percent of bakeware dollar sales in Q1’14 came from stoneware/claystone products.


PURCHASE MOTIVATORS: When it comes to selecting specific cookware, consumerssaid price, good value and easy to clean were the top motivators in Q1’14.


ONLINE SALES: More than 20 percent of cutlery dollar sales in Q1’14 came from onlinepurchases.


PRICE SEGMENTATION: Two-thirds of bakeware sets purchased in Q1’14 were pricedunder $25.


IMPULSE: Almost half of cutlery dollar sales in Q1’14 resulted from unplannedpurchases.



Unit Volume Share

BAKEWARE • HOUSEHOLD INCOMEPercentage purchased by household income

$731,016

TOTAL COOKING/KITCHEN

14%

Under$15,000

22%

$15,000-$29,999

14%

$30,000-$44,999

13%

$45,000-$59,999

8%

$60,000-$74,999

10%

$75,000-$99,999

12%

$100,000 -$149,999

7%

$150,000+


COOKING/KITCHEN: Cookware, Bakeware, Cutlery

COOKWARE • GENDERPercentage purchased by gender of panel member




Insights:FEATURES: More than 80 percent of cookware dollar sales in Q2’14 came from productsthat were not PTFE/PFOA free.


PURCHASE MOTIVATORS: When it comes to selecting specific bakeware, consumerssaid price, easy to clean and brand were the top motivators in Q2’14.


ONLINE SALES: Online dollar sales of bakeware increased 25 percent in Q2’14 versusQ2’13.


PRICE SEGMENTATION: 14 percent of cutlery sets sold in Q2’14 were priced between$25 and $50.


IMPULSE: More than half of cookware purchases made in Q2’14 were planned.Source: Consumer Tracking Service


Unit Volume Share

$649,131

TOTAL COOKING/KITCHENMALE

FEMALE

25%

75%

Small Appliances: KITCHEN ELECTRICS





Insights:FEATURES: Unit sales of stand mixers increased 15 percent in Q1’14 versus Q1’13.


PURCHASE MOTIVATORS: When it comes to selecting a specific food steamer or ricecooker, consumers said price, features and brand I trust were the top motivators in Q1’14.


ONLINE SALES: More than one-quarter of all citrus juicers sold in Q1’14 werepurchased online.


PRICE SEGMENTATION: 4 percent of all blenders sold in Q1’14 were priced at $200or more, more than 50 percent growth over the previous year.


IMPULSE: Almost 25 percent of all electric can openers sold in Q1’14 were unplannedpurchases.



Unit Volume Share

MIXERS • GENDERPercentage purchased by gender of panel member

MALE

FEMALE

36%

64%

FOOD

PRE

P/BE

VERA

GE

$810,643

COOK

ING &

SPECIALTY ELECTRICS

$440,548

TOTAL K

ITCHE

NELECTRICS

$1,251,191


Small Appliances: KITCHEN ELECTRICS

FOOD PROCESSORS • PRICEPercentage purchased by price



Source: Consumer Tracking Service Source: Retail Tracking Service

Insights:FEATURES: Masticating juicers represent less than 10 percent of all juice extractors soldin Q2’14.


PURCHASE MOTIVATORS: When it comes to selecting a specific fryer, consumers saidprice, good value and easy to use were the top motivators in Q2’14.


ONLINE SALES: Nearly one-third of all breadmakers sold in Q2’14 were purchasedonline.


DEMOGRAPHICS: 35 percent of slow cookers sold in Q2’14 were purchased in theSouth; the Central region was second largest in terms of category sales at 27 percent.


PRE-PURCHASE RESEARCH: No pre-purchase research was done for the majority oftoaster ovens purchased in Q2’14. But for those who did do research, visiting stores to seethe product was the top method.


Price Segmentation6 months ending • June 2014

Unit Volume Share

Under $2531%

$25-$49.9927%

$50-$99.9932%

$100+10%

FOOD

PRE

P/BE

VERA

GE

$770,350

COOK

ING &

SPECIALTY ELECTRICS

$431,970

TOTAL K

ITCHE

NELECTRICS

$1,202,320

Small Appliances: PERSONAL CARE





Insights:FEATURES: 14 percent of all oral care appliances sold in Q1’14 were rechargeable.


PURCHASE MOTIVATORS: When it comes to selecting a specific massaging appliance,consumers said price, easy to use and features were the top motivators in Q1’14.


ONLINE SALES: 23 percent of men’s electric shaver dollar sales in Q1’14 came fromonline purchases.


DEMOGRAPHICS: 41 percent of showerhead dollar sales in Q1’14 came from men.Source: Consumer Tracking Service

IMPULSE: Almost 75 percent of dollars spent on electric toothbrushes in Q1’14 camefrom planned purchases.


Price Segmentation6 months ending • March 2014

Unit Volume Share

HAIRSETTERS • PRICEPercentage purchased by price

Under $2537%

$25-$49.9942%

$50-$99.9919%

$100+1%

HAIR CAR

E/GR

OOMI

NG

$581,256

ORAL

CAR

E, HO

ME HEA

LTH,

& OT

HER PERS

ONAL

CAR

E

$729,014

TOTAL

MARK

ET

$1,310,270


Small Appliances: PERSONAL CARE

ELECTRIC SHAVER REPLACEMENT PARTS • REGIONPercentage purchased in region




Insights:FEATURES: More than half of hairdryers sold in Q2’14 use ionic technology.


PURCHASE MOTIVATORS: When it comes to selecting a specific women’s electricshaver, consumers said friend/family recommendation, price and features were the topmotivators in Q2’14.


ONLINE SALES: 14 percent of Q2’14 showerhead dollar sales came from onlinepurchases.


PRICE SEGMENTATION: Unit sales of men’s trimmers priced between $25 and $50increased 8 percent in Q2’14.


IMPULSE: More than 25 percent of dollars spent on home hair clippers in Q2’14 camefrom unplanned purchases.



Unit Volume Share

Northeast27%

Central18%

South35%

West19%

HAIR CAR

E/GR

OOMI

NG

$568,268

ORAL

CAR

E, HO

ME HEA

LTH,

& OT

HER PERS

ONAL

CAR

E

$690,382

TOTAL

MARK

ET

$1,258,650

Small Appliances: FLOOR CARE





Insights:FEATURES: More than half of the canister vacuums sold in Q1’14 used cyclonictechnology.


PURCHASE MOTIVATORS: When it comes to a selecting specific bare floor cleaner,consumers said features, price and brand I trust were the top motivators in Q1’14.


ONLINE SALES: 22 percent of dollars spent on canister vacuums sold in Q1’14 camefrom online purchases.


PRICE SEGMENTATION: 8 percent of stick vacuums sold in Q1’14 were priced $200and up.


PRE-PURCHASE RESEARCH: Manufacturer’s websites were the top method of pre-purchase research for electric carpet sweepers in Q1’14.



Unit Volume Share

STICK VACUUMS • HOUSEHOLD INCOMEPercentage purchased by household income

$1,159,324

TOTAL MARKET

10%

18%

11%12%

9%

14%15%

11%

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+


Small Appliances: FLOOR CARE

DEEP CARPET CLEANERS • PRICEPercentage purchased by price




Insights:FEATURES: 7 percent of hand vacuums sold in Q2’14 were wet/dry.


PURCHASE MOTIVATORS: When it comes to selecting a specific deep carpet cleaner,consumers said price, brand I trust and good value were the top motivators in Q2’14.


ONLINE SALES: 42 percent of hand vacuums sold in Q2’14 were purchased online.Source: Consumer Tracking Service

DEMOGRAPHICS: More than half of non-electric carpet sweepers sold in Q2’14 werepurchased by men.


IMPULSE: More than half of robotic vacuums sold in Q2’14 were planned purchases.Source: Consumer Tracking Service

Price Segmentation6 months ending • June 2014

Unit Volume Share

$1,029,461

TOTAL MARKET

Under $10029%

$100-$149.9935%

$150-$199.9926%

$200+10%

Home: KITCHEN & DINING TEXTILES





Insights:FEATURES: 24 percent of dollars spent on kitchen linens in Q1’14 were on products witha pattern or print.


PURCHASE MOTIVATORS: When it comes to selecting specific kitchen linens,consumers said price, liking how the product looks and material/texture were the topmotivators in Q1’14.


ONLINE SALES: 10 percent of kitchen linen dollar sales in Q1’14 came from onlinepurchases.


DEMOGRAPHICS: Consumers with a household income of $100K or more purchased19 percent of kitchen linens sold in Q1’14.


SPECIAL OCCASION: Weddings were the top occasion for which kitchen linens werepurchased in Q1’14, but the majority of products were purchased for no special occasion.



Unit Volume Share

TABLE LINENS • HEAD OF HOUSEHOLD GENDERPercentage purchased by head of household gender

$280,636

TOTAL MARKET

82%

18%

FEMALE

MALE


Home: KITCHEN & DINING TEXTILES

KITCHEN LINENS • HOUSEHOLD SIZEPercentage purchased by household size




Insights:FEATURES: 6 percent of dollars spent on table linens in Q2’14 went toward cloth napkinsets.


PURCHASE MOTIVATORS: When it comes to selecting specific table linens, consumerssaid liking how the product looks, matching other items owned and material/texture werethe top motivators in Q2’14.


ONLINE SALES: 15 percent of table linen dollar sales in Q2’14 came from onlinepurchases.


DEMOGRAPHICS: 18-24-year-olds purchased 22 percent of table linens sold in Q2’14.Source: Consumer Tracking Service

SPECIAL OCCASION: Mother’s Day was the top occasion for which table linens werepurchased in Q2’14, but the majority of products were purchased for no special occasion.



Unit Volume Share

$309,294

TOTAL MARKET

Single Member

24%

Two Members

35%

Three Members

16%

Four Members

14%

Five or MoreMembers

11%

Source: The NPD Group

Innovative Thinking Takes Consumers Back to Basicscontinued from page 1

14

cases, there may be other outside influ-encers at play, such as inspiration to trysomething new or prepare a dish seen ontelevision, in a favorite magazine or onsocial media.

There is clearly a consumer out there foralmost every type of product, whether theyare focused on aspirational items that fill adesire to have something a little more spe-

cial, products that can help them when theyfeel inspiration to take on a new project oridea or appliances that will assist them inperforming a necessary task.

Communicating and demonstrating thebenefits of innovative products that havespecialized features is definitely key to thesuccess within those categories. The chal-lenge is communicating an inspiring mes-

sage for products whose benefits fulfill basicneeds, and creating a link between thoseproducts with an end result that changesthe way consumers think about the catego-ry. Creative thinking is critical to the successof a product, regardless of the level of inno-vation or newness of the product itself.

For more information, contact JanineMarshall at 516-625-2356.

2,100 exhibitorsfrom 6 continents

find innovative new products

and the inspiration, ideas and

tools to grow your business

march 7 - 10chicago • usaSaturday 10:00 a.m. - 5:30 p.m.

Sunday 8:30 a.m. - 5:30 p.m.

Monday 8:30 a.m. - 5:30 p.m.

Tuesday 8:30 a.m. - 3:00 p.m.

DATA AND METHODOLOGYNPD has a standard data model that is used

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

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

CONSUMERMETHODOLOGYThe NPD online consumer

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

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

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

POS METHODOLOGYNPD collects point-of-sale retailer data

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

Source: The NPD Group

ABOUT THE NPD GROUP, INC.The NPD Group is the leading

provider 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/.

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

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

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

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