Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The market
- Improving economy boosts appliance sales
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- Figure 1: Total US sales and fan chart forecast of major household appliances, at current prices, 2013-23
- Housing market, population shifts will determine designs, features of focus
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- Figure 2: Homeownership rate, among those aged 35 and under, 2007-17
- The challenges and opportunities
- High penetration, low intent to purchase temper growth
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- Figure 3: Major appliance ownership and intent to purchase, December 2018
- Replacement slows market, look to other factors and trends to boost sales
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- Figure 4: Purchase drivers, select attitudes toward design and technology, December 2018
- Majority still buy in-store, yet online is gaining ground
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- Figure 5: In-store and online purchases, November 2017-December 2018
- Negating security concerns will help smart market gain traction
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- Figure 6: Barriers and ownership of smart appliances, by age, December 2018
- Meeting lifestyle and lifestage needs with features
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- Figure 7: Interest in select kitchen appliance features, by adults aged 18-34 and parents, December 2018
- What it means
The Market – What You Need to Know
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- Category maintains consistent growth
- Home design trends and meal kits impact appliance design, usage
- Homeownership, remodeling trends benefit appliance sales
Market Size and Forecast
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- Economy, housing market sustain category growth
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- Figure 8: Total US sales and fan chart forecast of major household appliances, at current prices, 2013-23
- Figure 9: Total US sales and forecast of major household appliances, at current prices, 2013-23
Market Breakdown
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- All segments gain from rising market
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- Figure 10: Total US retail sales of major household appliances, by segment, at current prices, 2013-18
Market Perspective
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- Home design trends: technology and wellness will impact kitchen design
- Could small cooking appliances replace major appliances for urbanites?
- Meal kits making moves that can benefit cooking appliances
Market Factors
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- Boom in (apartment) housing starts
- First-time ownership, remodeling increases
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- Figure 11: Homeownership rate, by age of householder, 2007-17
Key Players – What You Need to Know
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- Online disrupting retail landscape, driving retail innovation
- Manufacturers design with a European style in mind
- Transparency critical to growing the smart market
What We’re Seeing?
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- Sears attempts to transform amid increasing competition
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- Figure 12: Select purchase locations, November 2017-December 2018
- Interactive shopping represents the future of appliance retail
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- Figure 13: Miele Experience Center
- Figure 14: LG Experience & Design Center
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- Figure 15: Wayfair augmented reality app
- A focus on speed and size
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- Figure 16: Instagram posts from influencer accounts featuring Smeg appliances
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- Figure 17: GE Dry Boost technology
What’s Next?
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- Appliance design becomes a stronger focus
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- Figure 18: Instagram posts from influencer accounts featuring GE Café line
- Addressing smart home privacy concerns
- Manufacturers catching up with guided-cooking trend
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- Figure 19: Whirlpool display at CES 2019
The Consumer – What You Need to Know
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- High penetration and low intent to purchase temper market
- Home improvement retailers are most popular purchase location
- Replacement provides sales base; low post-purchase engagement
- Appliance designs should be extension of personal and home styles
- Privacy concerns and price remain issues for smart appliances
- Efficiency garners strongest interest for washer and dryer features
- Parents seek convenience, flexibility in their kitchen appliances
Major Appliance Ownership and Intent to Purchase
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- High penetration with few plans to purchase are challenging the market
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- Figure 20: Major appliance ownership and intent to purchase, December 2018
- Laundry appliances more commonly purchased as suite
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- Figure 21: Repertoire kitchen and laundry appliance intent to purchase, December 2018
- Younger buyers, parents will be in the market soon
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- Figure 22: Plans to purchase select major household appliances in the next year, by age, parental status, December 2018
- Income, homeownership limit appliance ownership
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- Figure 23: Any ownership or plans to purchase major household appliances in the next year – Net, by household income, homeownership, December 2018
Purchase Location
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- Slight uptick in online purchases, yet majority still buy in-store
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- Figure 24: In-store or online purchases, November 2017-December 2018
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- Figure 25: In-store and online purchases, by age and location, December 2018
- Home improvement retailers lead, but online moving up the ladder
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- Figure 26: Purchase location, November 2017-December 2018
- Younger adults elevate online and mass to “home destination”
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- Figure 27: Select purchase locations, by age, December 2018
Attitudes toward Purchasing Appliances
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- Replacement provides sales base
- Reversing decline in involvement means proving value, level of expertise
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- Figure 28: Attitudes toward purchasing, December 2018
- Older adults purchase to replace, stay involved post-purchase
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- Figure 29: Select attitudes toward purchasing, by age, December 2018
Attitudes toward Appliance Design
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- Homes and appliances are a reflection of lifestyle
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- Figure 30: Attitudes toward appliance design, December 2018
- Younger shoppers, parents drawn to design
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- Figure 31: Select attitudes toward appliance design, by age, parental status, December 2018
Attitudes toward Smart Appliances
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- Smart appliance ownership still low, yet has room to grow
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- Figure 32: Attitudes toward smart appliances, December 2018
- Younger adults find more benefits to smart features
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- Figure 33: Smart appliance ownership, by gender, age, parental status, race and Hispanic origin, living location, December 2018
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- Figure 34: Select attitudes toward smart appliances, age, parental status, December 2018
Desired Washer and Dryer Features
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- Efficiency generates greatest interest
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- Figure 35: Desired washer and dryer features, December 2018
- Younger shoppers drawn to features that focus on convenience
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- Figure 36: Desired washer and dryer features, by age, December 2018
Desired Cooking Appliance Features
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- Convenience, flexibility are key themes for kitchen appliances
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- Figure 37: Desired cooking appliance features, December 2018
- Mark resistant and capacity reach widest audience
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- Figure 38: TURF analysis of desired cooking appliance features
- Methodology
- Newest generation features focus on the family
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- Figure 39: Select desired cooking appliance features, by parental status, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 40: Total US retail sales and forecast of major household appliances, at inflation-adjusted prices, 2013-23
- Figure 41: Total US retail sales of major household appliances, by segment, at current prices, 2013-18
- Figure 42: Total US retail sales of major household appliances, by segment, at current prices, 2016 and 2018
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Appendix – The Consumer
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- Figure 43: Summary of bases for ownership of energy efficient major appliances, July 2010-August 2018
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- Figure 44: Energy efficient major appliance ownership, July 2010-August 2018
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