Spring 2010 Consumer Awakening: Spending Begins Again · 2016. 3. 2. · ELECTRICS FOOD PREP/ BEVERAGE Source: Consumer Tracking Service 43,587 19,956 23,631 DRIP COFFEEMAKERS CENSUS

continued on page 7

As we see the market beginning to turn,heavy promotions and discounting are not along-term solution for retailers’ and manu-facturers’ success. While consumers’ cur-rent motivation is certainly based in part onprice, deprivation fatigue and the strongdesire to enhance their homes and personallives with little luxuries are compelling driv-ers of change.

The NPD Group’s Consumer TrackingService reports small kitchen electrics ended2009 on a positive note, with almost 9 per-cent growth in dollar sales and more than12 percent unit growth. This was not sur-prising given the multitude of marketdynamics that encouraged consumers topurchase last year, including increased foodpreparation at home, a boost in Q4 existinghome sales (compared to year-ago) due tothe first-time home buyer tax credit,improvements in certain economic condi-

tions during Q3 and Q4 (such as GDP andconsumer confidence) and especially deepdiscounting through most of the year. Withno shortage of promotions during the holi-day season, consumers found more reasonsto shop for themselves, making up for thedelayed purchases from the prior year.

Staying Home Trend BuoysKitchen Electrics

The trend of consumers spending moretime at home, particularly at dinnertime,was a positive one for small kitchenelectrics. In particular, two specialty cate-gories, fondue sets and popcorn makers,grew as a result of this change. Fondue setsoffered consumers an affordable, fun andunusual way to enjoy dinner or dessert athome and entertain. However, a decline inaverage selling price made this purchase an

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 store, specialty store and drugstore (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.

Could it be? Is the tide beginningto turn? Beginning with the lastquarter of 2009, it is clear that

consumers have started to spend againand many home-related categories arebenefiting from this behavioral change.Still budget-conscious, wary consumersare making their way back. However,depending on the category, the price paidby the consumer may come at a cost tothe manufacturer or retailer.

Spring 2010

Consumer Awakening: Spending Begins AgainBy Peter Goldman, The NPD Group, Inc.

� 63% of all electric can openerssold in Q4’09 had a built-inknife sharpener.

Source: Retail Tracking Service

ELECTRIC CANOPENERS

� Single speed models gained nearly fiveshare points from the 4th quarter of2008 to 2009, now accounting for75% of all unit sales.


JUICEEXTRACTORS

� Hand mixers gained four sharepoints in Q4’09, compared to2008, accounting for 64% ofall mixer units sold in thatquarter.


HAND MIXERS

Source: The NPD Group 2

Small Appliances: KITCHEN ELECTRICS

MARKET SIZEQUARTER FOUR • 2009UNIT VOLUME IN THOUSANDS

0

10000

20000

30000

40000

50000

TOTA

LMARKE

TCO

OKING

ELEC

TRICS FO

OD PREP

/

BEVER

AGE

Source: Consumer Tracking Service

43,587

19,95623,631

DRIP COFFEEMAKERS

CENSUS (PERCENT OF POPULATION)

SLOW COOKERS


SLOW COOKERS • INCOMEPercentage purchased by income versus census

DEMOGRAPHIC ANALYSISUnit Volume Share

3 months ending — December 2009

0

5

10

15

20


DRIP COFFEEMAKERS • GENDERPercentage purchased by buyer gender versus census

0

10

20

30

40

50

60

70

80


24.0

%

7.2

%

11.1

%

15.6

% 16.6

%

12.6

%

16.1

%

12.6

% 13.7

% 15.2

%

11.5

%

16.9

%

12.7

%

13.2

%

11.3

%

6.3

%

6.5

%

0.9

%

0 %

60.5%

51.1 %48.9 %

39.5 %

Male Female

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 + Teens withNo Income

Source: The NPD Group3

Small Appliances: PERSONAL CARE


0

10000

20000

30000

40000

50000

60000

70000

80000

TOTA

LMARKE

TORAL C

ARE & O

THER

PERSO

NAL CARE

HAIR C

ARE/

GROOMING


65,819

29,60936,210

� Multi-purpose trimmerscontinue to hold the top spotwith 63% of unit sales and67% of dollar sales in Q4’09,over beard/mustache/noseand pen-style trimmers.


MEN’S FACIAL TRIMMERS

� Rotary type replacementsgained 10 share pointscompared to Q4’08, nowaccounting for the largestshare of dollar sales, 42%


ELECTRIC SHAVERREPLACEMENT PARTS

� Beauty related personal wellnessitems gained 10 share pointscompared to Q4’08, but onlyrepresent 37% of unit sales, behindsensory related items.


PERSONALWELLNESS

CURLINGIRONS/BRUSHES


NewEngland

MiddleAtlantic

East NorthCentral

West NorthCentral

SouthAtlantic

East SouthCentral

West SouthCentral

Mountain Pacific

CURLING IRONS/BRUSHES • REGIONPercentage purchased in region versus census



0

5

10

15

20


MASSAGING APPLIANCES • AGE OF BUYERPercentage purchased by age of buyer versus census

0

5

10

15

20

25


2.2

%

4.9

%

12.6

% 14.1

%

14.2

% 15.9

%

6.3

%

6.8

%

17.3

% 18.6

%

11.9

%

9.2

%

6.0

%

11.3

%

6.7

%

6.6

%

19.5

%

15.7

%

MASSAGING APPLIANCES


13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

9.0

%

4.2

%

10.0

% 11.7

%

18.9

%

16.8

%

21.8

%

18.9

%

17.2

%

17.7

%

11.7

%

8.8

%

14.7

%

18.6

%


Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)


0

5000

10000

15000

20000

25000


TOTA

LMARKE

T

22,674

� In Q4’09, items with99.97% HEPA filtrationtechnology accountedfor 55% of dollar sales.

Source: RetailTracking Service

AIR PURIFIERS

HEATERS


13 – 17 years

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

HEATERS • REGIONPercentage purchased by region versus census



0

5

10

15

20


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

0

5

10

15

20

25

30


0.4

%

9.0

%

14.0

%

24.4

%

11.7

%

6.2

%

20.1

%

16.8

%

27.6

%

18.9

%

17.0

%

17.2

%

14.7

%

11.7

%

HEATERS


6.0

%

4.9

%

17.8

% 18.6

%

16.2

%

13.6

%

15.7

%

11.3

%

4.4

%

6.6

%

6.0

%

5.9

%6.8

%

6.2

%

15.9

%

14.4

%

14.1

%15.4

%

NewEngland

MiddleAtlantic

East NorthCentral

West NorthCentral

SouthAtlantic

East SouthCentral

West SouthCentral

Mountain Pacific

14.7

%

Source: The NPD Group5

Small Appliances: FLOOR CARE


0

2000

4000

6000

8000

10000

12000


TOTA

LMARKE

T

10,318

� Almost 89% of handvacuum units sold inQ4’09 were cordless.

Source: RetailTracking Service

HANDVACUUMS

CANISTER VACUUMS


CANISTER VACUUMS • BUYER GENDERPercentage purchased by buyer gender versus census



0

10

20

30

40

50

60


CANISTER VACUUMS • HOUSEHOLD SIZEPercentage purchased by household size versus census

0

5

10

15

20

25

30

35

40


CANISTER VACUUMS


56.551.1%

48.9 %

43.5 %

Single Member

Two Members

Three Members

Four Members

Five or More Members

9.5

%

10.3

%

36.1

%

26.3

%

27.9

%

19.3

% 22.6

%

11.1

%

21.4

%

15.4

%

Male Female


Housewares: NON-ELECTRIC


0

5000

10000

15000

20000


15,5

76

8,38

0

6,62

0

2,90

7

2,32

1

DINNERWARE

BEVERAGEWARE

BAKEWARE

COOKWARE

CUTLERY

FLATWARE

6,59

3

� In Q4’09, wine glasses continuedto hold the largest share of dollarsales among the various shapes, atnearly 28%, up from Q4’08.


BEVERAGEWARE

� Geometric dinnerware designsaccounted for the largest share ofdollars in Q4’09, nearly 20%.


DINNERWARE

� In Q4’09, price was thetop purchase motivator forconsumers buying cutlery,followed by good valueand appearance.

Source: ConsumerTracking Service

CUTLERY

STOVETOP COOKWARE


18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

STOVETOP COOKWARE • HEAD OF HOUSEHOLD AGEPercentage purchased by age of head of household versus census



0

5

10

15

20

25

30


BAKEWARE•HEAD OF HOUSEHOLD GENDER Percentage purchased by head of household gender versus census

0

20

40

60

80

100


11.7

%

5.8

%

23.5

%

18.9

%

25.9

%

16.8

%

16.5

%

17.2

%

15.3

%

11.7

% 13.1

% 14.7

%

BAKEWARE


Male Female

83.2 %

51.1 %48.9 %

16.8 %

Non-Electric Housewares ShowGrowth

Surprisingly, fine champagne and finewine glasses weathered the storm betterthan others, being the only two beverage-ware shapes without a double-digit declinein 2009 dollar sales. Stable pricing, the “athome” trend and the increasing popularityof wine over the past several years are alllikely factors keeping these segments justabove others. Consumers clearly want toentertain in style. This is apparent when itcomes to outdoor entertaining as well, withboth acrylic open stock and sets growing by6 percent in beverageware, a step up fromdisposable paper or plastic cups.

So far, the first quarter of 2010 showedmore positive news and growth in moreareas of the home. For the first time sincethe start of the recession, the housewaresindustry is seeing growth over last year inmany categories, most notably beverage-ware, cookware and bakeware,with double-digit dollargrowth. The kitchen and casualsegments are driving thisgrowth. Although these cate-gories are not yet back at pre-recession levels, it is good tosee some upward movementafter a long period of declines.Small kitchen electrics not onlysaw growth over the first quar-ter of 2009 and 2008, but dol-lar sales were just 4 percent shyof Q1 2007 levels. Blenders,food processors and hand mix-ers were the only categories toexceed dollar sales seen in thefirst quarter of 2007.

Steep discounts and heavypromotions may have been atactic that worked well to getconsumers back in the door andopening their wallets for certaincategories. However, the behav-

even sweeter one for many, influencing the6 percent unit sales increase.

Popcorn makers experienced double-digit growth in 2009, thanks to the valueproposition they offered when compared toan evening at the movies. They had theadded benefit of providing a relativelyhealthy snack, in line with another trendinfluencing home-related categories.

Despite the strong perception that con-sumers are forever looking for the next sale,they told NPD that “good value” was thetop reason for deciding to make theirhousewares purchases. Price did come in aclose second for consumers purchasing cate-gories like dinnerware, beverageware, cook-ware and bakeware. It may be easier to “re-train” consumers back to those pre-price-slashing days than previously thought.While overall units and dollars for thehousewares industry are declining for thesecond year in a row, it is important to notethat the overall average selling price hasbeen increasing for most categories.

The exception is flatware, a categoryconsumers tend to replace less often. In thefirst quarter of 2010, cookware’s averageselling price increased 30 percent over thesame time last year. The stability of averageselling price may be because nearly a quarterof housewares sales are purchased as gifts,including bridal and holiday. Much of thistrend applies to consumers purchasing fortheir own homes, as well.

7

The Aging ConsumerContinued from page 1

ioral changes influencing many consumersalso offer opportunities with the right posi-tioning and understanding of their motiva-tions. After more than a year of “doingwithout” consumers appear to be headinginto a slightly less cautious spending modebut only with the goal of making theirbudget-conscious, modified lifestyles a littlemore enjoyable.

Peter Goldman is president of the Home Section at The NPD Group. These arethe opinions of Goldman and NPD. For more information, contact Goldman at 516-625-6136.

Source: The NPD Group

March 6 - 8 • McCormick Place, Chicago

8Source: The NPD Group

ABOUT THE NPD GROUP, INC.

The NPD Group, Inc. (NPD) is a glob-al market information company thatmeasures product movement and con-sumer behavior across a broad rangeof industries -- apparel, automotiveproducts, consumer electronics, cosmet-ics and fragrances, food, foodservice,footwear, housewares, information tech-nology, interactive entertainment, toysand music. NPD's clients, many in theFortune 500, use this insight to uncovermarket opportunities, strengthen chan-nel relationships and benchmark indus-try performance. Since 1967, NPD hasintroduced numerous industry firsts,most recently combining and calibratinginformation from consumer panels andpoint-of-sale tracking via its flagshipservices, the NPD Worlds. The firm hasoffices and affiliations in 60 countries.For more information on The NPDGroup, visit 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 assem-bled from retailers' records of actual sales byproduct as collected at the cash register.These databases are highly reliable and pro-vide census counts of sales by product andprice for participating retailers. The complet-ed sales data are valuable to clients trying tounderstand which products or items are sell-ing well and which are not, at which pricesand in which channels. The finished POSdata describe the product, retail channel andprice. They do not, however, address thebuyer of the product.

Consumer databases are developed usingproduct purchase surveys completed by alarge-scale rotating sample of consumers.

These data also produce estimates of sales byproduct and retail channel. More importantly,the consumer surveys capture informationabout each purchase, such as buyer demo-graphics, the product's intended use and avariety of other characteristics. These factshelp clients understand why products are sell-ing and consumers' motivations.

CONSUMER METHODOLOGYMost consumer data in the U.S. are gath-

ered from periodic samples of individuals whoare asked about their recent purchases.Respondents report certain details about thetype and nature of their purchases in a surveyadministered via the Web. The respondingsample is demographically weighted and pro-jected through a series of steps to representthe Total Adult (18+) and, for appliances,Total Teen (13-17) U.S. population.

Each week, over 35,000 individuals areselected from the NPD online consumer panel

to participate in the appliancestudy. Each month, over 30,000U.S. households are selected forthe housewares study.

The NPD online consumerpanel is composed of pre-recruited individuals who haveagreed to participate in NPDonline surveys and have com-pleted a comprehensive demo-graphic questionnaire. The useof an established online panelassures good cooperation levelsand predictable demographicbalance among cooperators.

POS METHODOLOGYNPD collects point-of-sale

retailer data from selected retail-ers. These data are the actualsales for the chain on an SKU-by-SKU basis. The data arecombined with data from otherretailers to produce reports oncertain categories by channel,where a sufficient number ofretailers are cooperating andwhere sufficient market demandexists for the database.

Deborah A. Teschke, Senior EditorPeter Goldman, 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

Documents

Spring 2010 Consumer Awakening: Spending Begins Again · 2016. 3. 2. · ELECTRICS FOOD PREP/ BEVERAGE Source: Consumer Tracking Service 43,587 19,956 23,631 DRIP COFFEEMAKERS CENSUS