IHA, Sponsor of the International Housewares Show

Transcription

1 H O U S E W A R E S MARKETWATCH 1st QUARTER 2001 New Data! Benchmark Your Business! MANUFACTURERS CAN USE HOUSEWARES MARKET WATCH TO: V Determine how well their product lines are performing relative to the total category. V Estimate market share. V Predict how well the category and their product lines is going to perform in the future. V Identify product categories with strong growth potential. V Understand which channels of distribution are most important to their product category. V Understand what type of consumer buys their product category. V Allocate resources among different product lines. RETAILERS CAN USE HOUSEWARES MARKET WATCH TO: V Determine how well their stores are performing relative to the total market. V Predict how well the category is going to perform in the future. V Identify product categories with strong growth potential. V Determine how much shelf space each product category should have. V Validate data provided to them by vendors. INTERNATIONAL HOUSEWARES ASSOCIATION THE HOME AUTHORITY LOOKS AT RETAIL STORE SALES V Mass merchants do significantly more retail dollar sales volume in cookware and bakeware and in 45 out of the 46 small electrics product categories tracked by NPD INTELECT Market Tracking than either department stores or home specialty stores. V Department stores sell more cutlery, dinnerware, beverageware, flatware and stand mixers (in retail dollars) than either mass merchants or home specialty stores. V Bread makers, espresso machines and air purifiers were the only three categories that declined in all three reporting channels. V Retail dollar sales of 14 categories declined from 1999 to 2000 in department stores but grew in mass merchants or home specialty stores. V Retail dollar sales of four categories declined from 1999 to 2000 in mass merchants but not in department or home specialty stores. THE HOME AUTHORITY LOOKS AT THE U.S. CONSUMER V Even though over one-quarter of U.S. households do not do much, if any, cooking at home, virtually every U.S. household owns the products needed to serve food and eat and to clean up the kitchen. V More than half of U.S. households purchased at least one new candle, photo frame and/or dish cloth, dish towel, hot pad or pot mitt in the past year. V Only 35% to 50% of U.S. households bought flatware, glassware, dinnerware, serving bowls/platters, salt & pepper shakers, trays, coasters, portable lamps, clocks, sinkware, tablecloths, placemats and plastic bins/totes/drawers in the past year. V Less than 30% of U.S. households purchased framed art; napkin holders; craft, closet, kitchen cabinet/drawer or garage storage; shower/bath caddies and/or oral care appliances in the past year. V For most tabletop, decorative, textile, storage/organization and oral care products categories, households with children are more important than are households with no children or single person households. INSIGHT INTO HOUSEWARES TRENDS V On average, U.S. households prepared food at home 42 times per month in 2000, up from 32 times per month in First-Time Ever non-electrics Point-of-Sale Data kitchen electrics for the personal care elec. Housewares electric floor care Industry household electrics IHA, Sponsor of the International Housewares Show

2 2 For more information POINT-OF-SALE TRACKING FOR NON-ELECTRICS HOW BIG IS THE MARKET? 2000 RETAIL DOLLAR SALES Numbers in Thousands Mass merchants sold the most cookware and bakeware Cookware $409,628 $527,138 $241,794 Bakeware $65,256 $210,475 $68,982 Dinnerware $483,750 $301,591 $143,218 Beverageware $316,871 $241,792 $116,379 Flatware $234,718 $161,399 $67,131 Cutlery $111,274 $82,504 $65,325 Source: NPD HomeTrak Department stores sold the most cutlery, dinnerware, beverageware, and flatware HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 2000 vs Percent Change in Dollars Cookware sales in home specialty stores outpaced cookware sales in department stores and mass merchants Cookware 3.4% 6.5% 20.0% Bakeware 3.1% 3.3% 12.8% Dinnerware 16.2% 7.5% 16.3% Beverageware -1.3% 4.5% 6.5% Flatware 7.5% -3.6% 3.8% Cutlery n/a n/a n/a Source: NPD HomeTrak

3 3 POINT-OF-SALE TRACKING FOR KITCHEN ELECTRICS HOW BIG IS THE MARKET? 2000 RETAIL DOLLAR SALES Numbers in Thousands Number one in retail dollar sales at mass merchants Only kitchen electrics category where department store sales outpace mass merchant Mass merchants sold more than $9 worth of slow cookers for every $1 of slow cookers sold by department stores Number one in retail dollar sales at department and home specialty stores Electric Indoor Grills 1 $67,832 $209,453 $35,852 Auto Drip Coffeemakers $57,139 $252,118 $32,883 Blenders 2 $49,523 $137,978 $25,800 Toasters $25,972 $115,029 $14,194 Toaster Ovens $28,915 $96,770 $19,274 Stand Mixers $63,185 $40,834 $16,801 Slow Cookers $10,984 $103,118 $4,801 Food Processors 3 $35,576 $42,316 $13,684 Can Openers $5,653 $69,450 $5,797 Deep Fryers $3,814 $61,600 $2,320 Hand Mixers $8,764 $46,294 $6,120 Breadmakers $12,082 $35,474 $4,236 Waffle Irons/ Sandwich Makers $11,920 $29,002 $7,174 Juice Extractors $10,795 $18,514 $3,194 Electric Skillets $3,582 $27,107 $1,335 Electric Griddles $2,848 $28,546 $1,478 Rice Cookers $4,989 $19,188 $2,067 Coffee Grinders $4,187 $14,253 $4,493 Espresso Machines $7,151 $10,872 $2,101 Food Steamers $2,197 $9,993 $1,693 Citrus Juicers $1,282 $4,607 $1,224 Electric Woks $1,036 $1,541 $ Includes flat and hinged grills 2. Includes jug blenders, hand blenders, drink mixers 3. Includes full-size, compact, kitchen centers, chopper and salad HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 2000 vs Percent Change in Dollars Deep fryer sales grew at the fastest pace in department stores Electric Indoor Grills n/a n/a n/a Auto Drip Coffeemakers 20.3% 9.6% 46.3% Blenders 13.7% 12.7% 54.6% Toasters 9.6% 2.3% 46.8% Toaster Ovens 5.6% 6.2% 44.8% Stand Mixers 22.7% 7.4% 26.1% Slow Cookers n/a n/a n/a Food Processors 14.1% -5.0% 41.1% Can Openers 5.0% 4.3% 16.5% Deep Fryers 40.9% 29.1% 19.6% Hand Mixers 5.4% 8.5% 22.1% Breadmakers -34.7% -32.6% -21.9% Waffle Irons/ Sandwich Makers 21.8% -4.9% 67.0% Juice Extractors -6.9% 10.7% 17.1% Electric Skillets n/a n/a n/a Electric Griddles n/a n/a n/a Rice Cookers n/a n/a n/a Coffee Grinders -3.1% 7.2% 24.3% Espresso Machines -58.4% -5.7% -53.7% Food Steamers -10.9% -16.8% 49.1% Citrus Juicers 5.1% 16.5% 26.5% Electric Woks n/a n/a n/a visit

4 4 POINT-OF-SALE TRACKING FOR PERSONAL CARE ELECTRICS HOW BIG IS THE MARKET? 2000 RETAIL DOLLAR SALES Numbers in Thousands Number one in retail dollar sales at mass merchants Number one in retail dollar sales at department and home specialty stores HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 2000 vs Percent Change in Dollars Retail dollar sales of electric massagers grew dramatically in department and home specialty stores Retail dollar sales of shower heads declined in department stores and mass merchants Home specialty stores outpace department stores in sales of many personal care electrics Men s Electric Shavers $13,896 $251,680 $12,523 Shaver Replacement Parts $100 $39,662 $5,338 Women s Electric Shavers $193 $26,483 $1,272 Electric Massagers 4 $36,443 $117,514 $28,865 Oral Care 5 & Oral Care Replacements $19,397 $143,439 $22,207 Shower Heads $588 $53,225 $3,500 Hair Dryers $2,588 $200,630 $8,725 Curling Irons/Brushes $399 $155,330 $3,755 Electric Hair Clippers/ Trimmers $420 $83,579 $1,961 Electric Beard/ Moustache Trimmers 6 $1,760 $76,591 $4, Includes hand-held, shiatsu, foot, back/body, specialty 5. Includes plaque removers, oral irrigators, power flossers, dental 6. Includes beard, moustache, nose, ear and combination units Men s Electric Shavers 4.5% 12.6% 1.0% Shaver Replacement Parts -5.8% 4.6% -5.2% Women s Electric Shavers -4.8% 24.4% 18.2% Electric Massagers 52.2% 14.6% 109.7% Oral Care & Oral Care Replacements -8.9% 25.6% 34.2% Shower Heads -3.2% -6.2% 53.2% Hair Dryers -3.9% 8.0% 48.3% Curling Irons/Brushes -23.7% 4.5% 33.7% Electric Hair Clippers/ Trimmers -26.6% 10.8% 9.7% Electric Beard/ Moustache Trimmers -1.7% 10.0% 1.2% For more information

5 5 POINT-OF-SALE TRACKING FOR ELECTRIC FLOOR CARE HOW BIG IS THE MARKET? 2000 RETAIL DOLLAR SALES Numbers in Thousands Mass merchants sold more than $47 worth of upright vacuums for every $1 of upright vacuums sold by department stores Upright Vacuums $13,954 $668,847 $5,990 Steam Extractors $1,694 $232,631 $2,151 Stick Vacuums $1,804 $79,938 $5,385 Hand Vacuums $1,725 $72,341 $5,043 Canister Vacuums $3,559 $29,664 $84 Wet/Dry Vacuums $2 $47,298 n/a Carpet Sweepers n/a $9,124 $446 HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 2000 vs Percent Change in Dollars Retail dollar sales of canister vacuums grew in department stores Retail dollar sales of stick vacuums grew in home specialty stores Upright Vacuums 3.4% 8.2% 2.7% Steam Extractors -14.6% 27.4% 15.9% Stick Vacuums -9.7% -2.6% 28.5% Hand Vacuums -23.7% 3.2% 32.4% Canister Vacuums 15.8% -14.9% -73.6% Wet/Dry Vacuums n/a -8.0% n/a Carpet Sweepers n/a 6.4% 63.1% visit

6 6 POINT-OF-SALE TRACKING FOR HOUSEHOLD ELECTRICS HOW BIG IS THE MARKET? 2000 RETAIL DOLLAR SALES Numbers in Thousands Number one in retail dollar sales at department and home specialty stores Number one in retail dollar sales at mass merchants Irons $43,221 $209,997 $15,693 Fans $1,680 $228,992 $3,933 Water Filtration Devices and Replacement Filters $2,198 $156,181 $15,237 Heaters $368 $94,458 $1,164 Humidifiers $335 $59,200 $2,469 Air Purifiers $358 $38,580 $159 Vaporizers $5 $10,222 $122 HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 2000 vs Percent Change in Dollars Air purifiers declined in retail dollar sales across all three channels of distribution Irons 18.6% 8.1% 40.1% Fans n/a n/a n/a Water Filtration Devices and Replacement Filters -48.8% 0.6% 9.1% Heaters n/a n/a n/a Humidifiers -20.4% 7.5% 38.7% Air Purifiers -36.4% -2.1% -84.1% Vaporizers n/a n/a n/a For more information

7 visit 7 CONSUMER BEHAVIOR HOW MANY OWN? Almost every U.S. household owns tabletop products, decorative accessories and kitchen textiles while very few own an oral irrigator V More than 90% of all U.S. households own decorative accessories such as candles, clocks and photo frames V Virtually every U.S. household owns flatware, dinnerware, glassware, salt & pepper shakers and serving bowls and platters V The majority of households own tablecloths, placemats and kitchen textiles such as dish towels, hot pads, pot mitts and dish cloths In contrast: V 37% of U.S. households own garage storage products V 36% own power toothbrushes or plaque removers and 25% own oral irrigators Percent of Households Who Own Flatware Dinnerware Glassware Salt & Pepper Shakers Clocks Kitchen Textiles Photo Frames Candles Serving Bowls/Platters Tablecloths Placemats Plastic Storage Totes, Bins/Drawers Coasters Trays Sinkware Portable Lamps Napkin Holders Framed Art Kitchen Cabinet/Drawers Storage/Organizers Shower/Bath Caddies Craft Storage Closet Storage/Organizers Garage Storage Power Toothbrushes/Plaque Removers Oral Irrigators Retailers: Are most of your housewares categories low household penetration categories or high household penetration categories? If most of your housewares categories are high household penetration categories, are you carrying the right mix of higher-end fully featured products to attract the aging baby boomer who is trading up when they replace? Manufacturers: Does your portfolio of products skew more to the high household penetration side of the scale or to the low household penetration side of the scale? If your product categories are low household penetration categories, are they new, emerging product categories with tremendous growth potential or are they mature, niche categories with limited growth potential? 25% 37% 36% 62% 61% 58% 100% 99% 99% 98% 97% 97% 97% 96% 95% 92% 89% 85% 84% 83% 81% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 71% 70% 75% Source: IHA Research by Riedel Marketing Group

8 For more information 8 CONSUMER BEHAVIOR WHAT THEY BOUGHT Three out of four U.S. households bought candles in the past year V 72% of U.S. households purchased candles in the past year V Over half of all U.S. households bought photo frames in the past year V Over half bought kitchen textiles such as dish towels, hot pads, pot mitts and/or dish cloths In contrast: V 9% of U.S. households bought new napkin holders in the past year V 8% bought garage storage products in the past year V 6% of U.S. households bought oral irrigators in the past year Percent of Households Who Bought in Past Year None Candles Photo Frames Kitchen Textiles Plastic Storage Totes, Bins/Drawers Tablecloths Placemats Glassware Clocks Craft Storage Sinkware Portable Lamps Framed Art Salt & Pepper Shakers Flatware Dinnerware Serving Bowls/Platters Shower/Bath Caddies Kitchen Cabinet/Drawers Storage/Organizers Closet Storage/Organizers Coasters Power Toothbrushes/Plaque Removers Trays Napkin Holders Garage Storage Oral Irrigators 8% 34% 29% 29% 26% 25% 23% 22% 21% 21% 20% 20% 16% 15% 15% 12% 12% 11% 9% 8% 6% 37% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 54% 56% 72% Retailers: Are you carrying the housewares categories that were purchased by the most households in the past year? Are you promoting the housewares categories that were purchased by the most households in the past year? Manufacturers: Where do your product categories rank in terms of past year purchase incidence? What is driving past year purchase incidence of your product categories: Length of product replacement cycle? Level of new product activity? Being "on trend" or "off trend"? Amount of new product innovation? Increases or decreases in category ad spending? What implications does this have for your marketing and new product development strategies? Source: IHA Research by Riedel Marketing Group

9 visit 9 CONSUMER BEHAVIOR HOUSEHOLD PENETRATION Far more owners of candles purchased a new candle within the past year than did owners of coasters, trays and napkin holders purchase a new one V 75% of U.S. households who own candles purchased at least one new candle in the past year V More than half of households who own photo frames purchased at least one new photo frame in the past year V More than half of U.S. households who own kitchen textiles purchased at least one new dish towel, hot pad, pot mitt or dish cloth in the past year In contrast: V Less than 15% of the U.S. households who own coasters, trays, or napkin holders purchased new coasters, trays, or napkin holders in the past year Past Year Purchase as a Percent of Household Penetration Candles Photo Frames Kitchen Textiles Plastic Storage Totes, Bins/Drawers Craft Storage Tablecloths Placemats Power Toothbrushes/Plaque Removers Framed Art Sinkware Clocks Portable Lamps Glassware Closet Storage/Organizers Shower/Bath Caddies Oral Irrigators Garage Storage Salt & Pepper Shakers Kitchen Cabinet/Drawers Storage/Organizers Serving Bowls/Platters Flatware Dinnerware Coasters Trays Napkin Holders 14% 13% 12% 58% 56% 48% 43% 40% 38% 33% 31% Retailers: 31% 30% 29% 29% 26% 26% Manufacturers: 24% 22% 21% 21% 21% 21% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 75% Are you missing sales by not promoting the product categories that rank highest on "Past Year Purchase as a Percent of Household Penetration"? Are there any hot new product categories that you should be carrying but are not? Do your product categories have "Past Year Purchase as a Percent of Household Penetration" of: 1) over 50%; 2) between 25% and 50%; or 3) less than 25%? If your product categories have "Past Year Purchase as a Percent of Household Penetration" of over 50%, what is driving this high level of past year purchase incidence? Source: IHA Research by Riedel Marketing Group

10 10 CONSUMER BEHAVIOR WHO WILL BUY? Households with children purchased more tabletop/dining, decorative, home organization/storage, oral care and kitchen textiles than any other household type V Households with children are more likely to have recently purchased almost every product category except salt & pepper shakers than either households with no children or single person households V Households with no children are most likely to have recently purchased salt and pepper shakers V Single person households are least likely to have recently purchased any tabletop/dining, decorative, home organization/storage, oral care or kitchen textile products Past Year Purchase Incidence by Household Type Retailers: Flatware Households w/ No Children N = 359 TABLETOP/DINING Households w/ Children N = 489 Single Person Households N = 143 Are the product categories you are carrying consistent with the consumer who shops your stores? Dinnerware Glassware Serving Bowls/Platter Trays Napkin Holders Coasters Salt & Pepper Shakers Should a particular product category be carried by every one of your stores, regardless of demographics? Are there cross-promotional opportunities between product categories that are bought by the same type of person? Clocks Photo Frames Portable Lamps Framed Art Candles Craft Storage Plastic Storage Totes, Bins/Drawers Closet Storage/Organizers DECORATIVE HOME ORGANIZATION/STORAGE Manufacturers: Who is the target consumer for your product categories? Do all of your product categories have the same target market or do they appeal to different consumer demographics? Are there cross-promotional opportunities between your various product categories? Shower/Bath Caddies Kitchen Cabinet/Drawers Storage/Organizers Garage Storage Sinkware Power Toothbrushes/Plaque Removers Oral Irrigators Kitchen Textiles HOME HEALTHCARE/PERSONAL CARE KITCHEN TEXTILES Tablecloths Placemats None Source: IHA Research by Riedel Marketing Group For more information

11 visit 11 CONSUMER BEHAVIOR WHAT WILL THEY BUY? Owners of candles are more likely to be planning a purchase in the next year than are owners of napkin holders, oral irrigators or garage storage products V More than 55% of U.S. households say that they definitely will buy new candles in the next year V 35% say that they definitely will buy new kitchen textiles in the next year V 33% say that they definitely will buy new photo frames in the next year In contrast: V 72% of U.S. households say that they definitely will NOT buy an oral irrigator in the next year V 70% say that they definitely will NOT buy garage storage products in the next year Likelihood of Planned Purchase 80 Definitely will purchase 70 Definitely will not purchase 66% 72% 70% % 51% 52% 49% 47% 46% 45% 46% 43% 43% 44% 39% 39% 38% 35% 33% 33% 33% 35% 33% 25% 24% 22% 19% 14% 5% 15% 13% 12% 9% 11% 12% 12% 12% 11% 11% 10% 8% 7% 7% 6% 5% 5% 5% 4% 3% 3% 0 Candles Kitchen Textiles Photo Frames Tablecloths Placemats Plastic Storage Totes, Bins/Drawers Glassware Clocks Framed Art Craft Storage Salt & Pepper Shakers Flatware Dinnerware Sinkware Portable Lamps Serving Bowls/Platters Closet Storage/Organizers Shower/Bath Caddies Trays Power Toothbrushes/ Plaque Removers Coasters Kitchen Cabinet/Drawers Storage/Organizers Napkin Holders Oral Irrigators Garage Storage Source: IHA Research by Riedel Marketing Group

12 12 RESEARCH CONTRIBUTORS POINT-OF-SALE About NPD INTELECT Market Tracking [ NPD INTELECT Market Tracking is a leading provider of sales tracking services for consumer electronics, home appliances, information technology and imaging industries. Data are collected from comprehensive panels representing each industry's key retail and business-to-business distribution channels. The company's clients include all of the major manufacturers, retailers and business-tobusiness sellers in each industry NPD INTELECT tracks. NPD INTELECT, is a joint venture of two leading marketing information providers, The NPD Group, Inc. and GfK AG. For more information, please contact Donna Wallace at or via at donna_wallace@intelectmt.com. About NPD HomeTrak [ NPD HomeTrak is the housewares tracking division of The NPD Group, Inc. HomeTrak offers retail point-of-sale tracking information for the housewares industry. Categories include bakeware, beverageware, cookware, cutlery, dinnerware, flatware, and microwaveware. For more information, please contact Clark Johnson at or via at clark_johnson@npd.com. About The NPD Group, Inc. [ The NPD Group is the leading provider of comprehensive marketing intelligence collected and delivered online for a wide range of vertical markets. By tracking both purchasing behavior and attitudes among the same consumers, NPD offers subscribers unique insight into what's happening in their industries and why. NPD also measures both retail product movement and e-commerce for a comprehensive view of each market tracked. Consumer data are collected through the firm's Online Panel, which has access to over 2.7 million individuals, and will be delivered through a series of marketing information portals, launching throughout the year. Markets tracked by NPD include apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys, music and more. NPD is the developer of the revolutionary Web audience measurement technology now marketed by its successful spin-off Media Metrix, a Jupiter Media Metrix company. The firm has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia. CONSUMER About A.J. Riedel and the Riedel Marketing Group [www. 4rmg.com] A.J. Riedel, Senior Partner of Riedel Marketing Group (RMG), is a recognized marketing authority for the housewares industry. RMG provides a full-range of strategic marketing planning services exclusively to the housewares industry and publishes shared-cost, multi-client consumer market research reports. For more information, please contact A.J. Riedel at or via at aj@4rmg.com. METHODOLOGY o obtain retail sales data, NPD INTELECT Market Tracking and TNPD HomeTrak draw sales and inventory data from a broad and diverse panel of retailers, collecting actual results from each store in each participating chain. INTELECT s and HomeTrak s retail panels for small electric appliances and housewares comprise over 6,500 department store, mass merchandising and home specialty outlets, including such industry leaders as Wal*Mart, Federated Department Stores and Linens N Things. A sophisticated projection system is used to account for missing pieces of the market. The foregoing information is limited in that the volumes represent extrapolated retail dollar sales for specific channels of distribution, derived from a panel of retailers. NPD, NPD INTELECT and the International Housewares Association provides the foregoing information AS IS and makes no representation or warranties of any kind concerning its accuracy, completeness, suitability for any purpose or otherwise. All information is subject to change without notice. Market size data published in Housewares Market Watch should not be interpreted as representing the total market. To obtain consumer purchase dynamics, a national sample of 1,000 U.S. households were interviewed by telephone during the last week of December 2000 and the first couple of weeks of January In each household, the person who typically is responsible for making decisions about purchasing small household appliances and products was interviewed. Household selection was accomplished via a computer-generated random digit dial telephone sample, which selected households on the basis of telephone prefix. All interviews were conducted at the central location telephone facility of rose research by means of Computer Assisted Telephone Interviewing (CATI). The CATI system is a computercontrolled interview that uses a tightly integrated branching pattern to control cuing and display of contingent questions. next issue The next issue of Housewares Market Watch examines consumer purchase patterns for the following categories: Beard/mustache trimmers Hair clippers Thermometers (healthcare) Heart rate monitors Massagers, non-electric Magnetics Blood pressure monitors Travel kits & accessories Sewing accessories Sewing machines Exercise equipment Pet care products Scales Picnic accessories Metalware Serving & buffet accessories Holloware Christmas/seasonal decorations Heating pads RTA furniture Racks (audio, bakers, books, CD, magazine, video) Home office furniture & supplies Children s bath Children s storage products Infant/baby care products Housewares Market Watch Deborah A. Teschke, Senior Editor A.J. Riedel, Editor Published by: International Housewares Association 6400 Shafer Court, Ste 650, Rosemont, IL Tel: Fax: For more information, contact Debbie Teschke at ; dteschke@housewares.org INTERNATIONAL HOUSEWARES ASSOCIATION