Laundry and Dishwasher Appliances - UK - February 2008

ISSUES IN THE MARKET
Key themes
Definitions
INSIGHTS AND OPPORTUNITIES
Attitudes still prevent dishwasher sales
Saving space should drive combined washer/dryer sales
Premium consumers want more features
Cheap machines are a false economy
FAST FORWARD TRENDS
 TREND 1: BOTTOMLESS VANITY
Definition
What next?
 TREND 2: EMPOWERED SENIORS
Definition
What next?
MARKET IN BRIEF
Tough market conditions
Market polarisation
Energy efficiency is a key driver
Brands are also important
Future prospects
INTERNAL MARKET ENVIRONMENT
Key points
Household penetration of laundry machines plateaus
Figure 1: Ownership of washing machines, washer/dryers and tumble dryers, 2003-07
Dishwashers still have growth potential
Figure 2: Ownership of dishwashers, 2003-07
Improved reliability limits sales levels
Figure 3: Appliances bought new in the last 12 months, 2003-07
Increasing imports pressure prices
Figure 4: Imports of washing machines and dishwashers, by source, 2004-07
BROADER MARKET ENVIRONMENT
Key points
Consumer confidence damages short term prospects
Figure 5: PDI and consumer expenditure, at constant 2002 prices, 2002-12
Changes in age profile
Figure 6: UK poulation by age, 2002-12
Increasing number of households increases potential
Figure 7: Trends in household size, UK, 2002-12
Environmental concerns
COMPETITIVE CONTEXT
Key points
Spending on durables a low priority
Figure 8: Expenditure priorities, 2006-08
Competition for consumer spend means emphasis on value-for-money
Growth lagging behind that of consumer spending
Figure 9: Consumer expenditure in selected sectors, 2002-07
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Innovation in design
Shorter wash cycles and bigger washes
New features
Detergent-less washing
Developing channels of distribution
MARKET VALUE AND FORECAST
Key points
Market declines in 2007 but is set to take up again by 2009
Figure 10: UK market for laundry and dishwasher appliances, by volume and value, 2002-12
The future
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
Washing machines
Figure 11: UK market for washing machines, by volume and value, 2002-12
Figure 12: Volume sales of washing machines, by type, 2002-06
Dryers
Figure 13: UK market for clothes dryers, by volume and value, 2002-12
Figure 14: Volume sales of clothes dryers, by type, 2002-06
Dishwashers
Figure 15: UK market for dishwashers, by volume and value, 2002-12
Figure 16: Volume sales of dishwashers, by type, 2002-06
MARKET SHARE
Key points
Washing machines
Figure 17: Brand shares in the washing machines market, by volume, 2003-07
Clothes dryers
Figure 18: Brand shares in the clothes dryers market, by volume, 2003-07
Dishwashers
Figure 19: Brand shares in the dishwashers market, by volume, 2003-07
COMPANIES AND PRODUCTS
Figure 20: Brands in the dishwasher and laundry appliance market, 2007
Beko plc
BSH Home Appliances Ltd (BSH)
Candy Domestic Appliances
Crosslee plc
Electrolux Group AB
The Indesit Company
Miele
Whirlpool UK Ltd
Other companies
BRAND ELEMENTS
 BRAND MAP
Figure 21: Usage and attitude for laundry and dishwasher appliance brands, January 2008
 HOTPOINT
What the brand is trying to achieve
What the consumer thinks
Figure 22: Attitudes towards the Hotpoint brand, January 2008
 BEKO
What the brand is trying to achieve
What the consumer thinks
Figure 23: Attitudes towards the Beko brand, January 2008
 BOSCH
What the brand is trying to achieve
What the consumer thinks
Figure 24: Attitudes towards the Bosch brand, January 2008
 HOOVER
What the brand is trying to achieve
What the consumer thinks
Figure 25: Attitudes towards the Hoover brand, January 2008
 INDESIT
What the brand is trying to achieve
What the consumer thinks
Figure 26: Attitudes towards the Indesit brand, January 2008
 ELECTROLUX
What the brand is trying to achieve
What the consumer thinks
Figure 27: Attitudes towards the Electrolux brand, January 2008
 WHIRLPOOL
What the brand is trying to achieve
What the consumer thinks
Figure 28: Attitudes towards the Whirlpool brand, January 2008
 ZANUSSI
What the brand is trying to achieve
What the consumer thinks
Figure 29: Attitudes towards the Zanussi brand, January 2008
 SMEG
What the brand is trying to achieve
What the consumer thinks
Figure 30: Attitudes towards the Smeg brand, January 2008 (NB – bases too low on satisfaction and commitment)
 BRAND QUALITIES OF LAUNDRY AND DISHWASHER BRANDS
Bosch seen as efficient, functional and reliable
Figure 31: Brand qualities of various laundry and dishwasher appliance brands, January 2008
 EXPERIENCE OF LAUNDRY AND DISHWASHER BRANDS
Hotpoint the most popular brand
Figure 32: Consumer usage of various laundry and dishwasher brands, January 2008
 BRAND CONSIDERATION FOR LAUNDRY AND DISHWASHER BRANDS
Lack of awareness hampering consideration of Beko
Figure 33: Consideration of laundry and dishwasher appliance brands, January 2008
 BRAND MOMENTUM FOR LAUNDRY AND DISHWASHER BRANDS
Hoover seen as standing still
Figure 34: Momentum of various laundry and dishwasher appliance brands, January 2008
 BRAND MOTIVATION FOR LAUNDRY AND DISHWASHER BRANDS
Hotpoint most popular choice for washing machines
Figure 35: Motivation for buying various laundry and dishwasher brands, January 2008
 BRAND SATISFACTION FOR LAUNDRY AND DISHWASHER BRANDS
Bosch rated highest for excellence
Figure 36: Satisfaction of various laundry and dishwasher brands, January 2008
 BRAND COMMITMENT TO LAUNDRY AND DISHWASHER BRANDS
Bosch is worth paying a little more for
Figure 37: Commitment to various laundry and dishwasher appliances, January 2008
 ROUND UP
BRAND COMMUNICATION AND PROMOTION
Key points
Promotional spend grows
Figure 38: Main monitored media expenditure on washing machines/dryers and dishwashers, 2003-07
Top two washing machine manufacturers increase adspend
Figure 39: Main monitored media expenditure on washing machines/dryers, 2006 and 2007
Dishwashers
Figure 40: Main monitored media expenditure on dishwashers, 2006 and 2007
CHANNELS TO MARKET
Key points
Laundry appliances shift to Internet
Figure 41: Volume sales of washing machines and dryers, by type of outlet, 2003-07
Dishwasher outlets diversify
Figure 42: Volume sales of dishwashers, by type of outlet, 2003-07
OWNERSHIP OF WASHING MACHINES/DRYERS AND FACTORS AFFECTING CHOICE
Key points
Ownership
Young switch on to washer/dryers
Figure 43: Ownership of washing machines and combined washer/dryers, by age group, 2007
Figure 44: Ownership of combined washer/dryers, by socio-economic group, 2007
Larger households prefer separate machines
Figure 45: Ownership of washing machines and tumble dryers, by household size and the presence of children in the household, 2007
Empty nesters a target for combined washer/dryers
Factors determining choice of washing machine
Figure 46: Most important factors when buying a washing machine, November 2007
More promotion justified?
Warranties offset lower prices
Figure 47: Interest in ‘Lowest possible price’ and ‘extended warranties’, by age and socio-economic group, November 2007
Machine features appeal to premium consumers
Recommendations have limited impact
OWNERSHIP AND ATTITUDES TOWARDS DISHWASHERS
Key points
Ownership
Strong reflection of socio-economic group
Figure 48: Ownership of dishwashers, by socio-economic group and household size, 2007
Attitudes towards dishwashers
Figure 49: Attitudes towards dishwashers, October 2004 and November 2007
Better than hand washing
Still an unnecessary luxury
Figure 50: Consumers who consider that ‘dishwashers are an unnecessary luxury’, by age and socio-economic group, November 2007
Attitudes not space
KEY ATTITUDES AND TYPOLOGIES
Key points
Key attitudes
Luxury or necessity
Figure 51: Attitudes to coping without a washing machine, tumble dryer and dishwasher, November 2007
Consumers won’t pay for energy efficiency
Figure 52: Attitudes towards energy characteristics of washing machines, tumble dryers and dishwashers, November 2007
Washer/dryers offer convenience
Figure 53: Attitudes towards washer/dryers, November 2007
Space continues to be limiting
Figure 54: Attitudes towards integrated appliances, November 2007
Identifying targets
Figure 55: Consumer typologies in the laundry appliance and dishwasher market, November 2007
Green and clean
Figure 56: ‘Green and clean’ typology, by age, socio-economic group and lifestage, November 2007
Simply clean
Figure 57: ‘Simply clean’ typology, by age, socio-economic group and lifestage, November 2007
Not Bothered
APPENDIX
Advertising data
 ABBREVIATIONS
ATTITUDES – OWNERSHIP OF WASHING MACHINES/DRYERS AND FACTORS AFFECTING CHOICE
Figure 58: Ownership of laundry and dishwashing appliances, by demographic sub-group, 2007
Factors determining choice of washing machine
Figure 59: Most important factors when buying a washiing machine, by demographic sub-group, November 2007
Figure 60: Most important factors when buying a washiing machine, by demographic sub-group, November 2007
Figure 61: Most important factors when buying a washiing machine, by demographic sub-group, November 2007
APPENDIX – OWNERSHIP AND ATTITUDES TOWARDS DISHWASHERS
Figure 62: Attitudes towards dishwashers, by demographic sub-group, November 2007
Figure 63: Attitudes towards dishwashers, by demographic sub-group, November 2007
APPENDIX – KEY ATTITUDES
Figure 64: Attitudes towards washing machines, tumble dryers and dishwashers, by demographic sub-group, November 2007
Figure 65: Attitudes towards washing machines, tumble dryers and dishwashers, by demographic sub-group, November 2007
Figure 66: Attitudes towards washing machines, tumble dryers and dishwashers, by demographic sub-group, November 2007
APPENDIX – CONSUMER TYPOLOGIES
Figure 67: Consumer typologies in the laundry and dishwasher appliances market, by demographic sub-group, November 2007
Figure 68: Attitudes towards dishwashers, by consumer typology, November 2007
Figure 69: Factors determining choice of washing machine, by consumer typology, November 2007
Figure 70: Attitudes towards dishwashers among non-owners, by consumer typology, November 2007
Figure 71: Attitudes towards laundry and dishwasher appliances among non-owners of dishwashers, by consumer typology, November 2007