Covering Quarter 4, 2016 Harnessing Home’s Momentum · 2017-08-31 · even toys. This momentum should continue through 2017 and beyond. However, we may not be doing what is necessary

returned to in 2015. Covering more than100 small kitchen electrics, personal careappliance, home environment appliance andhousewares categories, NPD is forecasting anearly 3 percent combined dollar salesincrease for these industry segments in2017 versus 2016. This projection is basedon forecasted sales of small home applianceand housewares products captured in TheNPD Group Retail Tracking Service point-of-sale data.

The early part of 2017 told a story ofgrowth, but also some missed opportunity.According to NPD’s Retail TrackingService, year-to-date through May 2017,home environment appliances grew just2 percent compared to the same periodin 2016, and dollar sales of personal careappliances increased 1 percent. Smallkitchen electrics appears to be operatingon all cylinders with a nearly 5 percentincrease in dollar sales during the first fivemonths of 2017. Housewares is right ontarget with 2 percent dollar gains com-pared to last year.

Even before seeing this forecast, I waspreaching the opportunity facing the home-products industry. It has entered a 5-to-10-year window in which it has the potential tosee consistent annual growth in the U.S.,based on the changes occurring in thedemographics of the population. While this

About Housewares MarketWatchHousewares MarketWatch reports

point-of-sale (POS), consumer survey,and Checkout TrackingSM consumerreceipt-based data from NPD databases.The quarterly data covers various productcategories within the divisions of SmallAppliances, Non-electric Housewares,and Home Textiles. The informationcontained on the following pages isoffered as a snapshot of a category’sperformance, including perspectivecrossing each of the mentionedinformation sources.

Each issue of Housewares MarketWatchwill feature several categories from theSmall Appliances, Housewares, and Kitchenand Dining Textiles divisions. Complete dataon a category can be purchased by visitingNPD’s website at www.npd.com.See the Data and Methodology section

on page 9 for anexplanation of howthe data is compiled.

The home products industry was the sec-ond fastest growing industry tracked byNPD during the 2016 holiday shopping

season. Our industry saw more than 3 per-cent growth during the nine weeks of theseason – stronger growth than apparel, ath-letic footwear, technology, fragrances andeven toys. This momentum should continuethrough 2017 and beyond. However, wemay not be doing what is necessary toensure it does.

A recent home-products industry fore-cast from NPD revealed that the smallhome appliances and housewares marketswill continue on the growth path they

continued on page 8

Covering Quarter 4, 2016

Harnessing Home’s MomentumBy Joe Derochowski, The NPD Group, Inc.

The home products industry hasentered a 5-to-10-year windowin which it has the potential tosee consistent annual growth inthe U.S., based on the changesoccurring in the demographics ofthe population

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group 2

Market SizeQuarter Four • 2016

Dollar Volume in Thousands

Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS:PRICE SEGMENTATION: During Q4’16, unit sales of kettles priced between $15 - $19.99 grew by 12 percent compared to 2015, now representing one-fourth of total unit sales.

Source: Retail Tracking Service

PURCHASE BEHAVIOR: Four out of 10 beverageware items bought in Q4’16 were unplanned purchases.

Source: Consumer Tracking Service

PROMOTION INFLUENCE: 42 percent of the dinnerware purchased in Q4’16 was onpromotion, down 13 points compared to last year.


CHANNEL PERFORMANCE: During Q4’16, one-fourth of flatware sales were from the mass merchant channel.


PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said appearance, good value and price were the top motivators in Q4’16.


ONLINE SALES: 22 percent of dinnerware sales in Q4’16 were online purchases, 50 percent less than last year.


Demographic Analysis6 months ending • December 2016

Unit Volume Share

BEVERAGEWARE • AGEPercentage purchased by head of household age

TOTAL T

ABLETO

P

$ 736,121

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

12%

27%

21%

17%

12% 12%

Source: The NPD Group3

COOKING/KITCHEN: Cookware, Bakeware, Cutlery

BAKEWARE • INCOMEPercentage purchased by head of household income




INSIGHTS:CHANNEL: In Q4’16, 30 percent of cutlery dollar sales were from the specialty store channel, an 11-share-point gain versus last year.


PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said that price, good value and easy to clean were most important to them in Q4’16.


ONLINE SALES: Online purchases comprised 17 percent of total bakeware sales in Q4’16, a 3-point increase from Q4’15.


FEATURES: In Q4’16, dollar sales of aluminum cookware increased 25 percent compared 2015, now accounting for more than half of total category sales.


GIFTING: One-fourth of cookware items sold during Q4’16 were purchased as a gift.Source: Consumer Tracking Service

IMPULSE: More than 40 percent of cutlery purchases in Q4’16 were unplanned.Source: Consumer Tracking Service


Unit Volume Share

$1,435,761

TOTAL COOKING/KITCHEN

16%20%

11%12%

9% 9%

15%

7%

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: KITCHEN ELECTRICS





INSIGHTS:

FEATURES: Multi-cookers grew 39 percent in dollar sales in Q4’16 versus last year,

with an average price of $79. Source: Retail Tracking Service

PURCHASE MOTIVATORS: When it comes to choosing a blending and processing product,

consumers said that price, good value and brand were their top motivators in Q4’16.Source: Consumer Tracking Service

ONLINE SALES: Half of mixer sales in Q4’16 were from online purchases, up 3 points

versus Q4’15.Source: Consumer Tracking Service

PROMOTION INFLUENCE: During Q4’16, 61 percent of the toaster ovens purchased

were on sale.Source: Consumer Tracking Service

IMPULSE: During Q4’16, 7-in-10 juice extractors sold were planned purchases.Source: Consumer Tracking Service


Unit Volume Share

BLENDERS • AGEPercentage purchased by age of panel member

COOK

ING &

SPECIALTY ELECTRICS

$913,632

FOOD

PRE

P/BE

VERA

GE

$1,402,644

TOTAL K

ITCHE

NELECTRICS

$2,316,276

14%

22%

19%

16% 16%

13%

16 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +


Small Appliances: PERSONAL CARE

CURLING IRONS/STYLERS • INCOMEPercentage purchased by head of household income




INSIGHTS:GIFTING: Nearly one-third of massaging appliances sold in Q4’16 were purchased as a gift for someone else.


PURCHASE MOTIVATORS: When it comes to selecting a hair dryer, consumers said price, brand and features were top motivators in Q4’16.


PURCHASE BEHAVIOR: More than 40 percent of curling iron/styling appliances sold in Q4’16 were first-time purchases, an increase of 3 percentage points versus the prior year.


FEATURES: In Q4’16, sales of wet/dry trimmers grew 53 percent versus Q4’15, now representing one-third of total sales.


IMPULSE: 7-in-10 oral care appliances sold in Q4’16 were planned purchases.Source: Consumer Tracking Service

ONLINE SALES: During Q4’16, more than one-fourth of dollars spent on curling irons/stylers came from online purchases.



Unit Volume Share

HAIR CAR

E/GR

OOMI

NG

$855,609

ORAL

CAR

E, HO

MEHE

ALTH

, & OTH

ERPERS

ONAL

CAR

E

$1,182,640

TOTAL M

ARKE

T

$2,038,249

9%

15%

10%12%

9%

13%

22%

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





INSIGHTS:

FEATURES: Dollar sales of non-programmable robotic vacuums grew by 78 percent in Q4’16,

now representing over one-fourth of total category sales.Source: Retail Tracking Service

PURCHASE MOTIVATORS: When it comes to selecting a stick vacuum, consumers said brand,

price and good value were the top motivators in Q4’16.Source: Consumer Tracking Service

ONLINE SALES: More than 40% of deep carpet cleaners sold in Q4’16 were purchased online, a

9-share-point increase versus last year.Source: Consumer Tracking Service

PROMOTION INFLUENCE: Three-fourths of robotic vacuums were purchased on sale during

Q4’16, 50 percent more than last year.Source: Consumer Tracking Service

IMPULSE: During Q4’16, more than one-fourth of stick vacuum sales were unplanned purchases.Source: Consumer Tracking Service


Unit Volume Share

HAND/STICK VACUUMS • AGEPercentage purchased by age of panel member

$1,556,351

TOTAL MARKET

16 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

11%

18%16%

17%16%

22%


Textiles: KITCHEN/DINING

KITCHEN LINENS • AGEPercentage purchased by age of panel member



Source: Checkout TrackingSM Source: Checkout TrackingSM

INSIGHTS:FEATURES: During Q4’16, more than one-fourth of dollars spent on tablecloths were from solidproducts, 16 percent higher than last year.

Source: Checkout TrackingSM

PURCHASE MOTIVATORS: When it comes to selecting table linens, consumers reported thatquality, color and fabric were most important to them in Q4’16.


ONLINE SALES: In Q4’16, 10 percent of kitchen linens sales came from online purchases.Source: Checkout TrackingSM

DEMOGRAPHICS: In Q4’16, one-fourth of tablecloth dollar sales came from products purchasedby men.


CHANNEL DYNAMICS: The mass channel represented nearly half of kitchen linen sales inQ4’16, up 7 percentage points from a year ago.



Unit Volume Share

$397,377

TOTAL MARKET

45+ years13%

25 – 34 years

13 – 24 years9%

13%

35 – 44 years65%


has been my mantra, and the environmentis supportive of growth for the homeindustry, manufacturers and retailers willneed to deliver innovative new approachesaddressing consumer needs and wants, notjust bells and whistles, in order to competeand capture consumer dollars.

The year is far from over, and the criti-cal holiday season is still up for the tak-ing. But, the opportunity confronting theindustry is like a wave, and manufacturersand retailers need to approach that wavelike a surfer. They need to understandwhich direction the energy is comingfrom in order to extend the life of theirride and keep them from getting washedonto shore before their competition.

Those in the industry who pay closeattention to the nuances driving the con-

sumer needs and desires, and figure outhow to harness the current momentum totheir benefit, will be the stand-out per-formers getting the attention of the crowd– rather, the consumers.

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

Harnessing Home’sMomentumcontinued from page 1


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 complemen-tary 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. Consumerdatabases are developed using online purchasesurveys completed by a large-scale rotatingsample of consumers. These data produce esti-mates of sales by product for the total market-place. More importantly, the consumer surveyscapture information about each purchase, suchas buyer demographics, the product's intendeduse and other purchase motivators.

CONSUMERMETHODOLOGYThe 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 areasked about their recent purchases in a sur-vey administered via the Internet. Theresponding sample is demographicallyweighted and projected

through a series of steps to represent theU.S. population. Each month, over 200,000individuals are selected from the NPD onlineconsumer panel to participate in the appliancestudy. 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. The POS data covers the retailchannels of mass/national chains, depart-ment stores, specialty stores and drug stores(personal care and home environment only).

CHECKOUT TRACKINGSM

METHODOLOGYThe Checkout TrackingSM Total Channel

service is based on the total channel purchas-ing behavior of nearly 50,000 panelists in theUnited States who transmit purchase receipts(both brick & mortar and online) using theirsmartphones. Individual items on the receiptsare coded to merchants, product categories,and other variables along with units pur-chased and price paid -- allowing for deepanalysis of total channel purchasing behavior.The Checkout Tracking Total Channel sam-ple is currently balanced and projected eachmonth to represent the purchasing behaviorof individuals in the United States accordingto U.S. Census estimates.

LIFESTYLES, ATTITUDES ANDBEHAVIORS CONSUMER STUDYAn online consumer survey mailed to a

demographically representative sample ofadults ages 18+ in August 2016. Home tex-tiles category information was capturedamong respondents who qualified as buyers(5,017 qualified as past year home textilepurchasers).

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 guidesproduct 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 visit www.npd.com

Deborah A. Teschke, Senior EditorJoe Derochowski, Contributing EditorJanine Marshall-Bolton, Contributing EditorTom Goodman/Kim Hall, 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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Covering Quarter 4, 2016 Harnessing Home’s Momentum · 2017-08-31 · even toys. This momentum should continue through 2017 and beyond. However, we may not be doing what is necessary