IHA, Sponsor of the International Housewares Show

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1 H O U S E W A R E S MARKETWATCH VOL. 2 NO.2 $ Complimentary New Data! Benchmark Your Business! MANUFACTURERS CAN USE HOUSEWARES MARKETWATCH 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 MARKETWATCH 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 FOR 1st QUARTER 2001 According to NPD INTELECT Market Tracking, mass merchants sold more than $1 billion (in retail dollars) worth of electric housewares products in the 1st quarter of 2001, department stores sold slightly more than $110 million worth of electric housewares products and home specialty stores sold just under $65 million. It is important to note that January 2001 was a five-week month, compared with four weeks in 2000; consequently, the first quarter 2001 contained 14 weeks, compared with 13 weeks in In the mass merchant channel, retail dollar sales of kitchen electrics increased by almost 10% and personal care electrics grew by over 14% and, even after adjusting for the extra week in the 2001 reporting period, these two product segments experienced year over year sales increases. According to NPD HomeTrak, mass merchants sold more than $350 million (in retail dollars) worth of non-electric housewares products in the covered categories, department stores sold slightly more than $325 million worth of housewares products and home specialty stores sold more than $125 million. Retail dollar sales of non-electrics increased modestly from 2000 to 2001 in all three channels, even after adjusting for the extra week in the 2001 reporting period. Department stores are an important channel of distribution for the non-electric housewares categories covered. In fact, department stores sold significantly more dinnerware and flatware than mass merchants in 1st quarter The home specialty store channel is the smallest of the three channels of distribution, but is growing at an impressive pace. THE HOME AUTHORITY LOOKS AT THE U.S. CONSUMER Of the 25 product categories studied for this issue, Christmas/holiday decorations, pet care products and sewing accessories will be purchased by most U.S. households in the next year. INSIGHT INTO HOUSEWARES TRENDS According to research conducted by Roper Starch Worldwide, more than 50% of Americans entertain friends at home at least once a month. But they are not serving food as often as they used to; 66% of Americans served food the last time they had friends in for the evening, down 6 points from Specifically, Americans are serving significantly fewer sit-down dinners and late evening snacks. Register now for the 2002 International Housewares Show January Reserve your Show badge and hotel accommodations online at IHA, Sponsor of the International Housewares Show

2 2 POINT-OF-SALE TRACKING FOR NON-ELECTRICS Non-Electric Housewares Sales in 6 Categories Topped $800 Million HOW BIG IS THE MARKET? 1st Quarter 2001 Retail Dollar Sales Numbers in Thousands Mass merchants sold the most cookware and bakeware during the first quarter of 2001 Dept. Stores Mass Merchants Home Specialty Cookware $91,925 $126,616 $30,666 Bakeware $12,786 $42,556 $13,579 Dinnerware $101,862 $71,684 $31,076 Beverageware $57,017 $57,038 $25,048 Flatware $48,766 $34,944 $12,153 Cutlery $20,390 $20,898 $13,988 Source: NPD HomeTrak Department stores sold the most dinnerware and flatware 1st Quarter Sales Exceed Same Period Last Year Fastest growing nonelectrics category in all three channels HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 1st Quarter 2001 vs. 1st Quarter 2000 Percent Change in Dollars Cookware sales up significantly in home specialty stores. Dept. Stores Mass Merchants Home Specialty Total Cookware 1.8% 7.3% 21.6% 6.7% Bakeware 8.0% 5.0% 0.2% 4.5% Dinnerware 11.3% 14.8% 10.7% 12.4% Beverageware 9.3% 5.7% 8.7% 7.7% Flatware 4.3% 8.3% -10.0% 3.6% Cutlery 20.5% 27.8% 37.9% 27.3% Source: NPD HomeTrak Note: January 2001 was a five-week month, compared with four weeks in Therefore, the 1st quarter 2001 contains 14 weeks, compared with 13 weeks in 2000 For more in-depth demographic

3 3 POINT-OF-SALE TRACKING FOR KITCHEN ELECTRICS More Than $400 Million of Kitchen Electrics Sold in 1st Quarter HOW BIG IS THE MARKET? 1st Quarter 2001 Retail Dollar Sales Numbers in Thousands The largest kitchen electrics category in all three channels Two small electrics categories where department stores sell more than mass merchants Dept. Stores Mass Merchants Home Specialty Electric Indoor Grills 1 $11,259 $42,429 $5,196 Auto Drip Coffeemakers $12,780 $61,328 $6,318 Blenders 2 $9,543 $29,725 $4,675 Toasters $5,409 $25,976 $2,576 Toaster Ovens $6,945 $21,559 $3,072 Stand Mixers $10,652 $5,992 $2,631 Slow Cookers $2,598 $20,154 $794 Food Processors 3 $6,625 $8,223 $2,515 Can Openers $1,174 $15,008 $891 Deep Fryers $912 $12,546 $250 Hand Mixers $1,745 $9,416 $1,016 Breadmakers $1,761 $4,899 $426 Waffle Irons/ Sandwich Makers $2,265 $5,184 $1,129 Juice Extractors $2,714 $4,926 $735 Electric Skillets $622 $5,476 $163 Electric Griddles $673 $4,506 $171 Rice Cookers $1,191 $4,488 $319 Coffee Grinders $947 $3,291 $845 Espresso Machines $3,324 $2,620 $935 Food Steamers $402 $2,142 $300 Citrus Juicers $339 $1,685 $255 Electric Woks $167 $357 $21 HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 1st Quarter 2001 vs. 1st Quarter 2000 Percent Change in Dollars Biggest decline in sales from 1st quarter 2000 to 1st quarter 2001 Fastest growing kitchen electrics category during 1st quarter Includes flat and hinged grills 2. Includes jug blenders, hand blenders, drink mixers 3. Includes full-size, compact, kitchen centers, chopper and salad Mass Channel Sales Increase; Department Store, Home Specialty Sales Decline Dept. Stores Mass Merchants Home Specialty Total Electric Indoor Grills -24.6% 22.5% -9.3% -8.4% Auto Drip Coffeemakers 1.1% 9.6% 3.1% 7.6% Blenders -3.1% 11.8% 19.9% 8.9% Toasters -12.8% 1.4% -8.8% -2.0% Toaster Ovens 11.6% 11.0% -10.5% 8.6% Stand Mixers -2.3% 12.4% 1.1% 2.3% Slow Cookers 19.6% 13.1% -7.6% 13.0% Food Processors 11.2% 9.8% 15.4% 11.1% Can Openers 4.3% 2.7% -13.7% 1.8% Deep Fryers 41.2% 7.6% -39.8% 7.7% Hand Mixers 2.4% 12.6% -18.6% 7.6% Breadmakers -45.4% -11.3% -56.7% -27.2% Waffle Irons/ Sandwich Makers 8.0% 2.7% 31.4% 7.2% Juice Extractors 1.8% 5.3% 5.5% 4.2% Electric Skillets -16.7% 7.5% -46.6% 1.9% Electric Griddles 52.3% -10.1% -30.2% -6.1% Rice Cookers 28.1% 15.0% -14.0% 15.3% Coffee Grinders 9.2% 4.4% 3.2% 5.0% Espresso Machines 5.1% 24.7% -8.6% 9.4% Food Steamers -11.3% -8.7% -1.6% -8.3% Citrus Juicers 4.3% 28.1% -26.7% 14.6% Electric Woks -24.8% 22.3% -61.1% -4.0% Note: January 2001 was a five-week month, compared with four weeks in Therefore, the 1st quarter 2001 contains 14 weeks, compared with 13 weeks in information visit

4 4 POINT-OF-SALE TRACKING FOR PERSONAL CARE ELECTRICS Personal Care Electrics Sales Total Nearly $275 Million for Quarter Best selling personal care electrics category Mass merchants are, by far, the most important channel of distribution for personal care electrics Fastest growing category All 10 personal care electrics categories grew in mass merchants HOW BIG IS THE MARKET? 1st Quarter 2001 Retail Dollar Sales Numbers in Thousands Dept. Stores Mass Merchants Home Specialty Men s Electric Shavers $1,450 $37,476 $2,318 Shaver Replacement Parts $36 $9,384 $1,334 Women s Electric Shavers $19 $3,893 $168 Electric Massagers 4 $3,710 $13,783 $2,399 Oral Care 5 & Oral Care Replacements $4,598 $42,750 $4,844 Shower Heads $120 $14,965 $1,143 Hair Dryers $562 $49,317 $1,711 Curling Irons/Brushes $85 $41,691 $690 Electric Hair Clippers/ Trimmers $147 $18,581 $300 Electric Beard/ Moustache Trimmers 6 $211 $15,021 $ 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 Personal Care Electrics Sales Increase for 1st Quarter HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 1st Quarter 2001 vs. 1st Quarter 2000 Percent Change in Dollars Dept. Stores Mass Merchants Home Specialty Total Men s Electric Shavers -19.0% 9.8% 26.6% 9.2% Shaver Replacement Parts 125.0% 7.4% 14.1% 8.3% Women s Electric Shavers 35.7% 24.0% -11.1% 22.0% Electric Massagers 19.4% 30.5% 75.9% 32.3% Oral Care & Oral Care Replacements 14.6% 42.3% -9.1% 32.5% Shower Heads -18.4% 9.0% 37.1% 10.3% Hair Dryers 13.8% 3.6% 31.9% 4.4% Curling Irons/Brushes -12.4% 10.9% -1.6% 10.6% Electric Hair Clippers/ Trimmers 31.3% 3.2% -18.7% 2.9% Electric Beard/ Moustache Trimmers -21.6% 22.3% % Note: January 2001 was a five-week month, compared with four weeks in Therefore, the 1st quarter 2001 contains 14 weeks, compared with 13 weeks in For more in-depth demographic

5 5 POINT-OF-SALE TRACKING FOR ELECTRIC FLOOR CARE More Than $300 Million in Electric Floor Care Products Sold The largest electric floor care category HOW BIG IS THE MARKET? 1st Quarter 2001 Retail Dollar Sales Numbers in Thousands Mass merchants are, by far, the most important channel of distribution for electric floor care products Dept. Stores Mass Merchants Home Specialty Upright Vacuums $3,546 $206,586 $1,744 Steam Extractors $345 $59,800 $494 Stick Vacuums $368 $19,537 $1,111 Hand Vacuums $468 $14,446 $2,419 Canister Vacuums $1,047 $5,401 $6 Wet/Dry Vacuums $1 $10,585 $0 Carpet Sweepers $1 $2,467 $101 Mass Merchants, Home Specialty Stores Lead Quarter Sales HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 1st Quarter 2001 vs. 1st Quarter 2000 Percent Change in Dollars Fastest growing floor care category in home specialty Sharpest decline in sales from first quarter 2000 to first quarter 2001 in home specialty Dept. Stores Mass Merchants Home Specialty Total Upright Vacuums -11.8% 11.3% -14.3% 10.5% Steam Extractors -29.2% 3.6% 48.8% 3.6% Stick Vacuums -12.4% 2.7% 9.5% 2.7% Hand Vacuums 13.3% -3.5% 228.2% 7.5% Canister Vacuums 10.7% -38.9% -73.9% -34.2% Wet/Dry Vacuums n/a 2.7% n/a 2.7% Carpet Sweepers n/a 10.4% 34.7% 11.3% Note: January 2001 was a five-week month, compared with four weeks in Therefore, the 1st quarter 2001 contains 14 weeks, compared with 13 weeks in information visit

6 6 POINT-OF-SALE TRACKING FOR HOUSEHOLD ELECTRICS More Than $175 Million in Household Electrics Sold During 1st Quarter 2001 HOW BIG IS THE MARKET? 1st Quarter 2001 Retail Dollar Sales Numbers in Thousands Mass merchants are the most important channel of distribution for household electrics products Dept. Stores Mass Merchants Home Specialty Irons $9,449 $48,345 $2,834 Fans $35 $12,912 $106 Water Filtration Devices and Replacement Filters $258 $42,634 $3,207 Heaters $54 $13,870 $393 Humidifiers $102 $22,991 $739 Air Purifiers $76 $12,111 $376 Vaporizers $1 $4,616 $32 The only household electrics category where department stores sell a significant amount of product Mass Merchants, Home Specialty Stores Lead Way in Household Electrics Sales HOW FAST IS THE MARKET GROWING? YEAR OVER YEAR SALES GROWTH 1st Quarter 2001 vs. 1st Quarter 2000 Percent Change in Dollars Sales of every household electric category except heaters increased from 1st quarter 2000 to 1st quarter 2001 in the mass merchant channel Dept. Stores Mass Merchants Home Specialty Total Irons -7.4% 1.0% 4.2% -0.3% Fans 40.0% 13.1% 89.3% 13.6% Water Filtration Devices and Replacement Filters -67.3% 18.3% 0.3% 15.2% Heaters -51.8% -21.2% 67.2% -20.2% Fastest growing category in home Humidifiers Air Purifiers Vaporizers 43.7% -13.6% -50.0% 18.9% 1.9% 24.1% 44.1% 496.8% -27.3% 19.6% 4.4% 23.4% specialty Note: January 2001 was a five-week month, compared with four weeks in Therefore, the 1st quarter 2001 contains 14 weeks, compared with 13 weeks in For more in-depth demographic

7 7 CONSUMER BEHAVIOR HOW MANY OWN Household Penetration Practically every U.S. household owns some sort of Christmas or other holiday decoration V More than 90% of U.S. households own Christmas or other holiday decorations V Two-thirds of U.S. households own sewing accessories; 50% own sewing machines V 65% of U.S. households own bath scales; 52% of U.S. households own exercise equipment V More than half of U.S. households own home office furniture; 39% own Readyto-Assemble (RTA) furniture V 29% of U.S. households own children s baths and 28% own infant/baby care products Percent of Households Who Own Decorations (Christmas or other holiday) 91% Thermometers (healthcare) Serving & buffet accessories (serving trays, bowls) Sewing accessories* Bath scales Heating pads Home office furniture Any kind of racks (audio, baker, book, CD, magazine) Metalware Exercise equipment Sewing machines Pet care products (carrier, collar, pet toys, bowls) Travel kits & accessories RTA furniture Picnic baskets or accessories* Storage products for use in child s room Electric beard/mustache trimmers Holloware Children s baths Electric hair clippers Infant/baby care products Blood pressure monitors Massagers, non-electric* Magnetic therapy products (bracelet, wrap, insole, mattress topper) Heart rate monitor* 11% 9% 17% 31% 30% 30% 29% 28% 28% 25% 39% 39% 67% 66% 65% 58% 56% 55% 52% Retailers: 52% 50% 49% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 76% 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? Source: IHA Research by Riedel Marketing Group *Caution: small sample size information visit

8 8 CONSUMER BEHAVIOR WHAT THEY BOUGHT Past Year Purchase Incidence Not only does practically every U.S. household own some sort of Christmas or other holiday decoration, but the majority of households purchased V 64% of U.S. households purchased Christmas or holiday decorations in the past year V 21% of U.S. households bought sewing accessories in the past year while 4% bought a new sewing machine V 10% of U.S. households bought a bath scale V 16% of U.S. households bought home office furniture; 17% bought RTA furniture V 17% of U.S. households bought a child s bath and 23% bought infant/baby care products decorations in the past year Percent of Households Who Bought in Past Year Decorations (Christmas or other holiday) Pet care products (carrier, collar, pet toys, bowls) Infant/baby care products Sewing accessories* Storage products for use in child s room Thermometers (healthcare) Children s baths RTA furniture Home office furniture Serving & buffet accessories (serving trays, bowls) Any kind of racks (audio, baker, book, CD, magazine) Travel kits & accessories Exercise equipment None Bath scales Heating pads Electric beard/mustache trimmers Metalware Blood pressure monitors Electric hair clippers Picnic baskets or accessories* Holloware Magnetic therapy products (bracelet, wrap, insole, mattress topper) Massagers, non-electric* Sewing machines Heart rate monitor* 23% 21% 19% 18% 17% 17% 16% 15% 15% 14% 12% 11% 10% 10% 9% 8% 7% 7% 5% 5% 5% 4% 4% 2% 38% 64% 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? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: IHA Research by Riedel Marketing Group *Caution: small sample size For more in-depth demographic

9 information visit 9 CONSUMER BEHAVIOR PURCHASE FREQUENCY Number of Years Between Purchases of Product Category Households that purchased infant/baby care products, pet products or holiday decorations within the last year will make another purchase in the same category in slightly more than one year. Households that purchased a sewing machine within the last year will not be back in the market for another sewing machine for more than 12 years. V Households that own infant/baby care products typically buy new infant/baby care every 1.2 years V Households that own pet care products typically buy new pet care products every 1.3 years V Households that own holiday decorations typically buy holiday decorations every 1.4 years V Households that own sewing machines typically buy a new sewing machine every 12 years V Households that own picnic baskets and accessories typically buy a new picnic basket or picnic accessories every 7+ years EDITOR S NOTE: Purchase frequency, computed by dividing 1 by Past Year Purchase as a Percent of Household Penetration, shows how often the typical owner will be in the market for the product category either to replace or add to what they already own. Past Year Purchase as a Percent of Household Penetration Projected number of years between purchases Infant/baby care products Pet care products (carrier, collar, pet toys, bowls) Decorations (Christmas or other holiday) Storage products for use in child s room Children s baths Magnetic therapy products (bracelet, wrap, insole, mattress topper) RTA furniture Sewing accessories* Travel kits & accessories Electric beard/mustache trimmers Home office furniture Blood pressure monitors Any kind of racks (audio, baker, book, CD, magazine) Electric hair clippers Thermometers (healthcare) Massagers, non-electric* Exercise equipment Serving & buffet accessories (serving trays, bowls) Heart rate monitor* Heating pads Holloware Metalware Bath scales Picnic baskets or accessories* Sewing machines 82% % % % % % % % % Retailers: % 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? % Manufacturers: % 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? % 7.7 8% % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group *Caution: small sample size

10 For more in-depth demographic 10 CONSUMER BEHAVIOR WHAT TYPE OF HOUSEHOLD BOUGHT Past Year Purchase Incidence by Household Type V Households with children will be most likely to purchase decorations, thermometers, serving and buffet accessories, heating pads, home office furniture, RTA furniture, exercise equipment, metalware, pet care products, travel kits and accessories, picnic baskets and accessories, storage products for use in a child s room, electric beard/mustache trimmers, children s baths, electric hair clippers, infant/baby care products and non-electric massagers V Households with no children living at home which tend to skew to 55+ in age will be most likely to purchase bath scales, blood pressure monitors and magnetic therapy products which also tend to skew to 55+ in age V Single person households will most likely not purchase any of the 25 featured product categories in the next year Past Year Purchase Incidence by Household Type Index vs. Total U.S. Households Households Single Person w/no Children w/children Households Base: 418 Base: 423 Base: 146 None Decorations (Christmas or other holiday) Thermometers (healthcare) Serving & buffet accessories (serving trays, bowls) Sewing accessories* Bath scales Heating pads Home office furniture Any kind of racks (audio, baker, book, CD, magazine) Exercise equipment Metalware Sewing machines Pet care products (carrier, collar, pet toys, bowls) Travel kits & accessories Picnic baskets or accessories* RTA furniture Storage products for use in child s room Holloware Electric beard/mustache trimmers Children s baths Electric hair clippers Infant/baby care products Blood pressure monitors Massagers, non-electric* Magnetic therapy products (bracelet, wrap, insole, mattress topper) Heart rate monitor* Source: IHA Research by Riedel Marketing Group *Caution: small sample size EDITOR S NOTE: To determine which demographic group is most likely to buy in the future, it is useful to look at the percent of owners in each demographic group in relation to a larger group. The purpose of this comparison is to identify the demographic groups that have a disproportionately large percent of owners relative to the larger group. This comparison is done through the use of an index number. The Past Year Purchase Incidence by Household Type index is derived by dividing the percent of owners of a particular product category by the percent of owners in the total sample. For example, 51.7% of owners of decorations live in households with kids; 42.5% of the total sample of 996 lives in households with kids. Divide 51.7 by 42.5 and you get an index number of 122. An index of 122 means that a disproportionately large percent of owners live in households with kids, which means that households with kids are a demographic group that is highly likely to buy decorations in the future. Greater than 108 = disproportionately higher percentage of households purchased the item Under 92 = disproportionately lower percentage of households purchased the item Please go to for a description of the demographic characteristics of each household type. Retailers: Are the product categories you are carrying consistent with the consumer who shops your stores? 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? 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?

11 information visit 11 CONSUMER BEHAVIOR WHAT WILL THEY BUY Likelihood of Planned Purchase Almost every U.S. household owns some sort of Christmas or other holiday decoration and the majority is planning to purchase decorations in the next year V 64% of U.S. households will buy new Christmas or other holiday decorations in the next year V At least 36% of U.S. households will buy pet care products in the next year (More than half of all Americans are pet owners, according to American Demographics) V 32% of households will buy sewing accessories in the next year V 22% of U.S. households will buy infant/baby care products in the next year V 21% of U.S. households will buy storage products for use in a child s room in the next year V19% of U.S. households will buy children s baths in the next year Likelihood of Planned Purchase (% of U.S. households that definitely or probably will buy in the next year) Decorations (Christmas or other holiday) Pet care products (carrier, collar, pet toys, bowls) Sewing accessories* Infant/baby care products Storage products for use in child s room Children s baths Travel kits & accessories Serving & buffet accessories (serving trays, bowls) Thermometers (healthcare) Any kind of racks (audio, baker, book, CD, magazine) Heating pads Home office furniture RTA furniture Bath scales Exercise equipment Holloware Metalware Picnic baskets or accessories* Electric beard/mustache trimmers Sewing machines Blood pressure monitors Magnetic therapy products (bracelet, wrap, insole, mattress topper) Massagers, non-electric* Electric hair clippers Heart rate monitor* 12% 11% 11% 7% 7% 7% 6% 6% 6% 4% 4% 4% 3% 3% 3% 3% 2% 2% 1% 22% 21% 19% 36% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: IHA Research by Riedel Marketing Group 64% *Caution: small sample size

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. next issue The next issue of Housewares MarketWatch examines consumer purchase patterns for the following categories: Wet/Dry Vacuums Steam Cleaners Dust Pans Mats, rugs, runners, floor protectors Sweepers (carpet/floor) non-electric Buckets/Pails Deodorizers Disposable Gloves Disposable Bags (trash, garbage) Ironing Board Covers and Pads Chinaware Scouring pads/scrubbers, sponges/scrubbers Shower Curtains Shoe care products (brushes, cleaners, clothes, polishes, shoe trees, shoelaces) Bath soap dispensers and soap dishes Bath Mats Clothing Storage (garment bags, tie racks, belt racks) Shoe Storage (shoe bags/boxes) Vacuum Bags Toilet Cleaning Brushes Laundry Dryer Racks, Sweater Dryers Lint Removers Laundry Bags, Baskets, Carts Hampers Hangers, plastic 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 MarketWatch 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 month of April. 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. Housewares MarketWatch 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