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Major Household Appliances - US - February 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The market
Figure 1: Total US sales and fan chart forecast of major household appliances, at current prices, 2012-22
The issues
Retailers competing for consumer spend, online gaining ground
Figure 2: Purchase location, November 2017
Privacy and security concerns challenge smart appliances
Figure 3: Select attitudes toward smart appliances, November 2017
The opportunities
Improving housing market suggests future category growth
Figure 4: Appliance ownership, by homeownership, November 2017
Beyond price matching, offering services could elevate retailers
Figure 5: Select reasons for choosing retailer, November 2017
Young adults, parents’ willing to pay for practical innovations
Figure 6: Interest in select washer and dryer features, by those aged 18-44, parents, November 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Major household appliance market maintains steady growth
Shifts in kitchen, laundry room distribution in new builds
Natural disasters, improving housing market lift sales
MARKET SIZE AND FORECAST
Solid category gains aligns with improvement in economy, innovation
Figure 7: Total US sales and fan chart forecast of major household appliances, at current prices, 2012-22
Figure 8: Total US retail sales and forecast of major household appliances, at current prices, 2012-22
MARKET BREAKDOWN
Market maintains growth amid improving economy, innovations
Figure 9: Total US retail sales of major household appliances, by segment, at current prices, 2012-17
MARKET PERSPECTIVE
Distribution of kitchen and laundry rooms in new builds shifting
Figure 10: Perceptions of the kitchen, April 2009-May 2017
MARKET FACTORS 
Rising consumer confidence, income could lift market further
Figure 11: Median household income, in inflation-adjusted dollars, 2005-15
Natural disasters could boost appliance sales
US housing starts steady, homeownership rates rebound
Figure 12: Annual rate for housing units started, seasonally adjusted total units, 2000-17*
Figure 13: Homeownership rate, by age of householder, 2006-16
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Social media spotlight on retailers
Greater capacity and flexibility in appliances, tools help shoppers
Sears adjusts strategy to stay afloat
Lifestyle-themed campaigns, smaller options for space-conscious adults
RETAILER AND BRAND SOCIAL MEDIA SPOTLIGHT 
Social media spotlight on retailers
Figure 14: Social audience, December 1, 2016-17
Figure 15: Posts by platform excluding Pinterest, December 1, 2016-17
Figure 16: Total number of engagements by platform, December 1, 2016-17
Sentiment toward major appliance brands on social media
Figure 17: Average positive sentiment toward select major appliance brands, December 2016-17
Figure 18: Top positive topics of select major appliance brands, December 2016-17
WHAT’S WE’RE SEEING
Voice communication and built-in assistants
Capacity remains a key focus in product development
Flexibility to simplify life
Design elevates brands
Virtual and augmented reality technology set to disrupt retailing
WHAT’S STRUGGLING?
Sears partners with Amazon, ends relationship with Whirlpool
Figure 19: Mentions of Sears, within mentions of select home appliances, December 2016-17
Challenges for smart appliances: cost and security
WHAT’S NEXT?
Campaigns focus on lifestyle- and lifestage-motivators
Figure 20: KitchenAid #FortheMaking campaign
Faster results for time-strapped adults
Internal fridge features give an insider’s view, reduce waste
The size of future appliances
THE CONSUMER – WHAT YOU NEED TO KNOW 
Lifestage influences appliance ownership
Appliance usage frequency higher among young adults, parents
Home improvement stores, Sears most popular purchase locations
Store selection based on more than merely price
High-efficiency offers cost-savings, privacy a concern for smart appliances
For washers and dryers, water- and energy-efficient draws most interest
APPLIANCE OWNERSHIP 
Ownership of household essentials high, opportunities for add-ons
Figure 21: Appliance ownership, November 2017
Figure 22: Number of major appliances purchased in the past 12 months, July 2016-August 2017
Ownership increases with age, parental status
Figure 23: Appliance ownership, by age, parental status, November 2017
Homeowners, higher-income households own wider range of appliances
Figure 24: Appliance ownership, by homeownership, November 2017
Figure 25: Appliance ownership, by household income, November 2017
FREQUENCY OF MAJOR APPLIANCE USE 
Kitchen appliances experience heaviest usage
Figure 26: Frequency of major appliance usage, November 2017
Adults aged 18-44, parents use appliances daily
Figure 27: Frequency of major appliance usage, once a day or more, by age, parental status, November 2017
Lower-income households use appliances more often
Figure 28: Frequency of major appliance usage, once a day or more, by household income, November 2017
PURCHASE LOCATION
Majority of appliance purchases occur in-store
Figure 29: In-store or online purchases, November 2017
Figure 30: In-store or online purchases, by gender, age, November 2017
Home improvement stores, Sears most shopped retailers
Figure 31: Purchase location, November 2017
Purchase location varies by age
Figure 32: Select purchase location, by age, November 2017
REASONS FOR CHOOSING APPLIANCE RETAILER 
Beyond price: service is key for retailers
Figure 33: Reasons for choosing retailer, November 2017
Price matching, free delivery reaches the widest audience
Figure 34: TURF analysis – Reasons for choosing appliance retailer, November 2017
Methodology
Retailers can differentiate on financial offers, interactive tools
Figure 35: Select reasons for choosing retailer, by age, parental status, November 2017
ATTITUDES AND BEHAVIORS TOWARD APPLIANCES
High-efficiency associated with cost-savings
Value and privacy concerns for smart appliances
Figure 36: General attitudes and behaviors toward appliances, November 2017
Smart appliances appeal to younger adults, parents
Figure 37: Attitudes toward appliances, by age, parental status, November 2017
INTEREST IN WASHER AND DRYER FEATURES 
Highest energy- and water-efficiency ratings draw strongest interest
Figure 38: Interest in washer and dryer features, November 2017
Younger adults, parents willing to spend on variety of features
Figure 39: Interest in select washer and dryer features, by age, parental status, November 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 40: Total US retail sales and forecast of major household appliances, at inflation-adjusted prices, 2012-22
Figure 41: Total US retail sales and forecast of major household appliances, by segment, at current prices, 2012-22
Figure 42: Total US retail sales and forecast of major household appliances, by segment, at current prices, 2015 and 2017
APPENDIX – THE CONSUMER 
Rival IQ methodology and supporting tables
Figure 43: Total social audience by platform, by listed retailers, December 1, 2016-17
Figure 44: Total posts by platform, by listed retailers, December 1, 2016-17
Figure 45: Posts by platform, December 1, 2016-17
Simmons consumer data
Figure 46: Summary of bases for Attitudes toward the kitchen, major appliance ownership, major appliances purchased in last 12 months, April 2009-May 2017
Figure 47: Major appliance ownership, April 2009-May 2017
Figure 48: Major appliances purchased in the last 12 months, April 2009-May 2017
Figure 49: Number of kitchen appliances purchased in the past 12 months, by gender and by age, July 2016-August 2017
Figure 50: Number of laundry appliances purchased in the past 12 months, by gender and by age, July 2016-August 2017

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