Covering Quarter 4, 2014
Three Fourth Quarter Shout-Outs
By Debra Mednick, The NPD Group, Inc.
T
he fourth quarter has historically been a
critical period with respect to demand
and sales for the vast majority of products in the housewares industry, and 2014
was no exception. As the year came to a
close, three key trends became apparent:
increased involvement of the Millennial generation with home products, the continued
growth and popularity of online and nontraditional channels, and the power of messaging in the absence of innovation.
About Housewares MarketWatch
Housewares MarketWatch reports
both point-of-sale (POS) and consumer
data from NPD databases. The quarterly
data covers various product categories
within the divisions of Small Appliances
and Non-electric Housewares.
The information contained on the
following pages is offered as a snapshot
of a category’s performance, both from
the retailer (POS) and consumer
perspectives. The POS data covers the
retail channels of mass/national chains,
department stores, specialty stores and
drug stores (personal care and home
environment only). Each issue of
Housewares MarketWatch will feature
several categories from the Small
Appliances and Housewares divisions.
Complete data on a category can be
purchased by visiting NPD’s website at
www.npd.com.See the Data and
Methodology section on page 9 for an
explanation of how the data is compiled.
Winning Over Millennials
With all the rhetoric around
Millennials, their economic circumstances, behavior and shopping habits, it only seems fitting
to discuss whether the housewares industry is making an
impact on this cohort and vice
THREE KEY TRENDS:
versa. Whether looking at small
1. Millennials spending more
kitchen electrics, floor care appli2. Online purchases popularity
ances, personal care appliances or
non-electric housewares,
3. Power of messaging
Millennials (consumers under 35
years of age) made up a larger
Clicks Popularity Continues
share of purchases and sales in 2014 than
Online purchases account for about 20
they did in the prior three years. This is
percent of small appliance and non-electric
good news from an economic perspective –
housewares
sales, with the highest rates
this generation is starting to do better
among
floor
care and kitchen electrics.
financially, which in turn is enabling more
Although online sales continued to grow at
to set out on their own and more impora double-digit pace for most categories, the
tantly, choosing to spend a portion of their
rate of growth slowed compared to the past
hard-earned income on products for the
few years.
home.
On the flip side, Millennials, for the
most part, spend less per transaction – this
partially explains the softened trade-up
effect across most categories. The lower
average price paid by Millennials compared
to older consumers is more prevalent for
appliance products as opposed to non-electric housewares. When setting up a household, there is a greater need to buy full sets
of cookware, dinnerware and flatware, and
that spend may be comparative, if not somewhat higher, than an older consumer trading up to replace open stock pieces.
On the electrics side, younger consumers
with more limited disposable income are
less inclined to purchase premium options,
but may acquire them as a gift.
In general, unit growth outpaced that of
dollar sales – a sign that average price paid
retracted. The shift was due in part to a
reduction in trade-up purchase behavior, as
well as wider distribution of premium products across the channels. TV shopping,
although still a modest percentage of total
sales, has also become more relevant and
another source of competition for traditional brick-and-mortar retailers.
As a result of more sales shifting to nontraditional channels, brick-and-mortar sales
were either flat or down for most homerelated categories. Still, the majority of
sales (about 7 in 10) moved through traditional brick-and-mortar outlets with the
continued on page 8
TABLETOP:
Dinnerware, Beverageware, Flatware
Market Size
Demographic Analysis
Quarter Four • 2014
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
TOTAL TABLETOP
DINNERWARE • AGE
Percentage purchased by head of household age
23%
$698,250
19%
17%
17%
45 – 54
years
55 – 64
years
15%
11%
Source: Consumer
Tracking Service
18 – 24
years
25 – 34
years
35 – 44
years
65 years +
Source: Consumer Tracking Service
INSIGHTS:
CHANNELS: Dollar sales of beverageware purchased at specialty stores declined by
double digits in Q4’14, compared to 2013.
Source: Consumer Tracking Service
PURCHASE BEHAVIOR: Dollars spent on flatware by consumers who reported
“shopping around first” was up 48 percent in Q4’14 from Q4’13.
Source: Consumer Tracking Service
PURCHASE OCCASION: Unit sales of dinnerware purchased for holiday was
39 percent higher in Q4’14 than it was in Q4’13.
Source: Consumer Tracking Service
PRICE SEGMENTATION: During Q4’14, casual flatware sets priced less than $10 was
the only segment that grew.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: Appearance was the biggest consideration for
beverageware purchased in Q4’14.
Source: Consumer Tracking Service
ONLINE SALES: 25 percent of all flatware sold is purchased online – a significant
increase from 2013.
Source: Retail Tracking Service
Source: The NPD Group
2
COOKING/KITCHEN:
Cookware, Bakeware, Cutlery
Market Size
Demographic Analysis
Quarter Four • 2014
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
CUTLERY • HOUSEHOLD INCOME
TOTAL COOKING/KITCHEN
Percentage purchased by head of household income
19%
$1,364,373
15%
13%
14%
12%
13%
7%
Source: Consumer
Tracking Service
Under
$15,000
$15,000$29,999
$30,000$44,999
$45,000$59,999
$60,000$74,999
7%
$75,000$99,999
$100,000 - $150,000+
$149,999
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: In Q4’14, anodized aluminum cookware accounted for nearly 25 percent of
all cookware sold.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said
price, good value and easy to clean were most important to them in Q4’14.
Source: Consumer Tracking Service
ONLINE SALES: Online sales of bakeware gained 6 share points in Q4’14 compared to
Q4’13.
Source: Consumer Tracking Service
PRICE SEGMENTATION: In Q4’14, 80 percent of open stock metal bakeware
purchased was priced under $10.
Source: Retail Tracking Service
GIFTING: Dollars spent on cutlery purchased for someone else increased by more than
50 percent in Q4’14 versus last year.
Source: Consumer Tracking Service
CHANNEL: Bakeware purchased at specialty stores during the 2014 holiday season
increased double digits compared to Q4’13.
Source: Consumer Tracking Service
3
Source: The NPD Group
Small Appliances: KITCHEN ELECTRICS
Demographic Analysis
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
FOOD PREP/
BEVERAGE
COOKING &
SPECIALTY ELECTRICS
TOTAL KITCHEN
ELECTRICS
Market Size
Quarter Four • 2014
COUNTERTOP BLENDERS • PRICE
Percentage purchased by price
$200+
3%
$100.01-$200
12%
$2,461,803
$50.01-$100
7%
$1,540,879
Under $50
77%
$920,925
Source: Consumer
Tracking Service
Source: Retail Tracking Service
INSIGHTS:
FEATURES: Slow cookers with capacity between 3-4 quarts grew 46 percent
in Q4’14, compared to Q4’13.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a blender,
consumers said price, good value and brand I trust were the top motivators in
Q4’14.
Source: Consumer Tracking Service
ONLINE SALES: More than one-third of all mixers sold in Q4’14 were
purchased online.
Source: Consumer Tracking Service
PURCHASE INFLUENCE: During Q4’14, 60 percent of toaster ovens
purchased were on sale.
Source: Consumer Tracking Service
IMPULSE: Nearly 40 percent of all juice extractors sold in Q4’14 were
planned purchases, up 14 share points versus 2013.
Source: Consumer Tracking Service
Source: The NPD Group
4
Small Appliances: PERSONAL CARE
Market Size
Demographic Analysis
Quarter Four • 2014
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
ORAL CARE, HOME
HEALTH, & OTHER
PERSONAL CARE
HAIR CARE/
GROOMING
TOTAL
MARKET
SPECIALTY STYLERS • AGE
Percentage purchased by panel member age
31%
$1,978,247
20%
18%
18%
$1,081,666
9%
$896,581
5%
Source: Consumer
Tracking Service
18 – 24
years
25 – 34
years
35 – 44
years
45 – 54
years
55 – 64
years
65 years +
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: Haircutting kits with 16+ pieces accounted for 65 percent of
all hair clipper sales in Q4’14.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: 62 percent of facial trimmers sold in Q4’14
were not first-time purchases.
Source: Consumer Tracking Service
ONLINE SALES: Only 8 percent of massaging appliances sold in Q4’14
were purchased online – a 5 point decline from last year.
Source: Consumer Tracking Service
PRICE SEGMENTATION: 63 percent of all rechargeable electric
toothbrushes purchased in Q4’14 were priced between $25 and $49.99.
Source: Retail Tracking Service
IMPULSE: One-third of all straighteners sold in Q4’14 were purchased on
impulse.
Source: Consumer Tracking Service
5
Source: The NPD Group
Small Appliances: FLOOR CARE
Market Size
Demographic Analysis
Quarter Four • 2014
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
DEEP CARPET CLEANERS • AGE
TOTAL MARKET
Percentage purchased by panel member age
20%
$1,328,467
18%
19%
18%
16%
9%
Source: Consumer
Tracking Service
18 – 24
years
25 – 34
years
35 – 44
years
45 – 54
years
55 – 64
years
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: 83 percent of hand vacuums sold in Q4’14 were cordless.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to a selecting an upright
vacuum cleaner, consumers said price, features and good value were the top
motivators in Q4’14.
Source: Consumer Tracking Service
ONLINE SALES: More than half of the canister vacuums sold in Q4’14 were
purchased online.
Source: Consumer Tracking Service
PRICE SEGMENTATION: 79 percent of stick vacuums sold in Q4’14 were
priced $100 or more.
Source: Retail Tracking Service
GIFTING: 40 percent of robotic vacuums sold in Q4’14 were purchased as a
gift for someone else.
Source: Consumer Tracking Service
Source: The NPD Group
65 years +
6
Home: KITCHEN & DINING TEXTILES
Market Size
Demographic Analysis
Quarter Four • 2014
6 months ending • December 2014
Dollar Volume in Thousands
Unit Volume Share
KITCHEN & DINING TEXTILES • HOUSEHOLD INCOME
TOTAL MARKET
Percentage purchased by head of household income
20%
$423,305
18%
17%
14%
13%
11%
8%
Source: Consumer
Tracking Service
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 +
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: During Q4’14, more than half of dollars spent on table linens were
for solid color products.
Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting table linens,
consumers said appearance, price and material/texture were most important to
them in Q4’14.
Source: Consumer Tracking Service
ONLINE SALES: Online sales for kitchen linens grew double digits in Q4’14
compared to Q4’13.
Source: Consumer Tracking Service
DEMOGRAPHICS: 20 percent of table linen dollar sales in Q4’14 came from
products purchased by men.
Source: Consumer Tracking Service
SPECIAL OCCASION: Kitchen and dining textiles sold in Q4’14 represent
one-third of dollar sales for the whole year.
Source: Consumer Tracking Service
7
Source: The NPD Group
Three Fourth Quarter Shout-Outs
continued from page 1
highest share of sales for personal care appliances and lowest share for floor care appliances.
Innovate vs. Rejuvenate
2
It’s commonly known that innovation is
the lifeblood of category growth. In 2014,
with the exception of a few innovations in
floor care appliances, “true” innovation or
physical reinvention was, for the most part,
limited in housewares. In spite of these limitations, there were many products that
experienced significantly increased popularity. This “renaissance” was spurred by a
combination of things – social media
espousing benefits while educating and providing ideas (i.e. slow cookers, one-pot
cooking, blending) and demonstration (i.e.
pour-overs in coffee shops).
It was impressive to see so many lowtech and traditional products realizing
growth in 2014 – many for the second consecutive year. These trends, coupled with
renewed popularity of things like mason jars
(for everything from drinking glasses to
containers for food gifts and centerpieces),
old-fashioned stovetop kettles, heavy castiron cookware and meat mincers/grinders,
feels like the birth or rebirth of a back-tobasics movement.
Looking at fashion trends beyond housewares, the theme of “what’s old is new” is
seemingly pervasive. With bohemianinspired clothing lines popularized by
Anthropologie, Urban Outfitters and Free
People, the connection becomes apparent –
a movement toward a love of simplicity, all
things retro and modern vintage. Coming
full circle, these same popular apparel retailers have introduced unique housewares to
their assortment over the past few years recognizing their ability to capitalize on
Millennials’ love of vintage as well as their
desire for individuality.
For more information, contact Janine
Marshall at 516-625-2356.
housewares.org/attend
housewares.org/exhibit
housewares.org/networking
Where High-Design and Intelligent
Innovation is on Display
2,100 Exhibitors from 6 Continents
It’s Just Plain Smart!
Source: The NPD Group
8
DATA AND METHODOLOGY
NPD has a standard data model that is used
for all categories that incorporates both consumer and point-of-sale (POS) databases.
These two data sources are highly complementary and are used to support one another.
Point-of-Sale (POS) databases are assembled
from retailers' records of actual sales by
product as collected at the cash register.
Consumer databases are developed using
online purchase surveys completed by a largescale rotating sample of consumers. These
data produce estimates of sales by product for
the total marketplace. More
importantly, the consumer surveys capture information about
each purchase, such as buyer
demographics, the product's
intended use and other purchase
motivators.
study. Each month, over 30,000 U.S. households are selected for the housewares and
home textiles studies.
POS METHODOLOGY
NPD collects point-of-sale retailer data
from selected retailers. These data are the
actual sales for the chain on an SKU-by-SKU
basis. The data are combined with data from
other retailers to produce reports on certain
categories by channel, where a sufficient
number of retailers are cooperating and
where sufficient market demand exists for
the database.
CONSUMER
METHODOLOGY
The NPD online consumer
panel is comprised of pre-recruited individuals who have agreed to
participate in NPD online surveys
and have completed a comprehensive demographic questionnaire. The use of an established
online panel assures
good cooperation levels
and predictable demographic balance among
panelists.
ABOUT THE
NPD GROUP, INC.
The NPD Group is the leading
provider of reliable and comprehensive
consumer and retail information for a
wide range of industries. Today, more
than 1,800 manufacturers, retailers and
service companies rely on NPD to help
them drive critical business decisions at
the global, national and local market
levels. NPD helps our clients to identify
new business opportunities and guides
product development, marketing, sales,
merchandising and other functions.
Information is available for the following industry sectors: automotive, beauty,
commercial technology, consumer technology, entertainment, fashion, food
and beverage, foodservice, home,
office supplies, software, sports, toys
and wireless. For more information,
contact us or visit
http://www.npd.com/.
Deborah A. Teschke, Senior Editor
Debra Mednick, Contributing Editor
Janine Marshall-Bolton, Contributing Editor
Tom Goodman, Design
Published by IHA
Consumer panelists
are asked about their
recent purchases in a
survey administered via
the Internet. The
responding sample is
demographically weighted and projected
through a series of steps
to represent the U.S.
population. Each
month, over 200,000
individuals are selected
from the NPD online
consumer panel to participate in the appliance
For more information, contact
Debbie Teschke at 847-692-0110; or
[email protected]
6400 SHAFER COURT, STE. 650
ROSEMONT, IL 60018 USA
TEL: 847-292-4200 FAX: 847-292-4211
www.housewares.org
9
Source: The NPD Group