Table of Contents
Executive Summary
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- Continued growth despite COVID-19 disruption
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- Figure 1: Short, medium and long-term impact of COVID-19 on small domestic appliances, 6 January 2020
- The market
- Market size and forecast
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- Figure 2: Consumer spending on small domestic appliances, 2015-25
- Post-Brexit trade could see some initial disruptions despite deal
- Fans/heaters, food preparation and hot beverage appliances grow amid disruption
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- Figure 3: Estimated consumer spend on small domestic appliances, by segment, 2020
- The growth of online-only operators raises questions for the future
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- Figure 4: Estimated channels of distribution, 2020
- Companies and brands
- Multichannel retailers innovate to bridge the gap between online and in-store
- COVID-19 triggers a wave of air purifier innovation
- Dyson and Bosch stand out at the top of the market
- The consumer
- COVID-19 has seen a fundamental shift in shopping behaviours
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- Figure 5: Changes to shopping behaviour, 8-16 December 2020
- A nation of appliance lovers
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- Figure 6: Ownership of small domestic appliances, September 2020
- Purchases hold as demand polarises
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- Figure 7: Small domestic appliance purchases in the last 12 months, September 2019 and 2020
- Store browsing contracts with COVID-19
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- Figure 8: Browsing channel, September 2020
- A year of unprecedented growth in online purchasing
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- Figure 9: Channel of purchase, September 2020
- Online-only retailers steal a march in 2020
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- Figure 10: Retailers used for purchasing small domestic appliances in the last 12 months, 2019 and 2020
- Space remains a major obstacle, but there remain overarching opportunities
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- Figure 11: Consumer attitudes towards small domestic appliances, September 2020
- Extended periods inside and a renewed focus on health opens up new opportunities
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- Figure 12: Small domestic appliance shopping and COVID-19, September 2020
Issues and Insights
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- The short-term impact from COVID-19
- The longer-term impact from COVID-19
- Appliance opportunities as health and wellbeing are bought into the home
The Market – Key Takeaways
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- Although slowed by COVID-19, spending is set to grow in 2020
- Uncertainty will polarise demand in the market
- The growth of online-only operators raises questions for the future
Market Size and Forecast
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- Continued growth despite COVID-19 disruption
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- Figure 13: Short, medium and long-term impact of COVID-19 on small domestic appliances, 6 January 2020
- Although slowed by COVID-19, spending is set to grow in 2020
- High online penetration eased initial disruption
- Immediate opportunities amid extended periods inside
- A polarisation of demand
- Before steadily recovering speed from 2021
- New opportunities moving forwards
- COVID-19 will continue to polarise demand
- Post-Brexit trade could see some initial disruptions despite deal
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- Figure 14: Consumer spending on small domestic appliances, 2015-25
- Figure 15: Consumer spending on small domestic appliances, 2015-25
- Market drivers and assumptions
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- Figure 17: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared 15 December 2020)
- Learnings from the last recession
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- Figure 17: Consumer spending on small kitchen appliances, 2008-12
- Forecast methodology
Market Segmentation
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- Food preparation gains from the rise in cooking
- Hot beverages and fans/heaters grow share
- Vacuum cleaners spending tops £1 billion
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- Figure 18: Estimated consumer spend on small domestic appliances, by segment, 2020
- Figure 19: Estimated consumer spend on small domestic appliances, by segment, 2020
Channels of Distribution
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- Online pure players accelerate growth
- Electrical specialists hold their own
- Argos slips slightly but remains a favourite
- Supermarkets come to the fore for essential purchases
- Mixed goods fall as department stores falter
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- Figure 20: Estimated channels of distribution, 2020
Market Drivers
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- The impact of the January 2021 lockdown
- House moves stutter in mid-2020 with COVID-19
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- Figure 21: Monthly UK residential property transactions, January 2018-October 2020
- Before recovering, aided by the temporary stamp duty holiday
- Inflation holds stable, with the exception of coffee machines
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- Figure 22: Monthly CPIH, % growth on previous year, October 2019-20
- Home cooking and baking surges with restrictions
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- Figure 23: Changes to home cooking, 26 March-16 April 2020
- COVID-19 lockdown boosts demand for coffee systems
- Christmas will be important, but disruption remains
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- Figure 24: What consumers give as Christmas gifts, December 2018, 2019 and 2020
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- Figure 25: Christmas spending intentions, October 2020
- Uptake of credit falls amid uncertainty
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- Figure 26: Consumer credit excluding student loans, January 2018-October 2020
- The UK agrees a late post-Brexit trade deal
Companies and Brands – Key Takeaways
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- COVID-19 triggers a wave of air purifier innovation
- Multichannel retailers innovate to bridge the gap online and in-store
- Dyson and Bosch stand out at the top of the market
Launch Activity and Innovation
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- Currys PC World rolls out ShopLive
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- Figure 27: Dixons Carphone, ShopLive, May 2020
- COVID-19 triggers a wave of air purifier innovation
- LG launches a wearable air purifier
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- Figure 28: LG PuriCare Wearable, September 2020
- Texas-based group launches a portable, ‘smart’ air purifier
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- Figure 29: Airpool Smart Reindeer (portable), December 2020
- AirTherapy: an air purifier using UV light technology
- Amazon introduces the ‘Smart Oven’
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- Figure 30: Amazon Smart Oven, September 2019
- Glowstone heated smart mugs
Advertising and Marketing Activity
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- Adspend up 3.9% in 2019
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- Figure 31: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2016-20
- Gtech leads the market in 2019
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- Figure 32: Top 12 spenders on above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2016-20
- TV dominates advertising
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- Figure 33: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, by media type, 2016-20
- Leaders favour TV, but strategies vary
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- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, by advertiser & media type, 2020
- A significant focus on cordless vacuums
- Gtech champions its AirRam cordless vacuum cleaner
- Vax advertises new Blade Range
- Dyson emphasises its relentless innovation
- Nielsen Ad Intel coverage
Brand Research
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- Dyson and Bosch stand out at the top
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- Figure 35: Attitudes towards and usage of selected brands, December 2020
- Key brand metrics
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- Figure 36: Key metrics for selected brands, December 2020
- Brand attitudes: Dyson stands out as the key innovator
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- Figure 37: Attitudes, by brand, December 2020
- Brand personality: consumers turn to Russell Hobbs, Tefal and Breville for accessibility and value
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- Figure 38: Brand personality – Macro image, December 2020
- Bosch is deemed a prestigious label
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- Figure 39: Brand personality – Micro image, December 2020
- Brand analysis
- Bosch makes a name for itself at the high-end of the market
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- Figure 40: User profile of Bosch, December 2020
- Russell Hobbs a favourite entry-point at the lower end of the market
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- Figure 41: User profile of Russell Hobbs, December 2020
- Dyson a cutting-edge, favourite brand
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- Figure 42: User profile of Dyson, December 2020
- Tefal is good value and reliable, but lacks a stand-out quality
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- Figure 43: User profile of Tefal, December 2020
- Breville offers good-value, but is deemed basic and outdated
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- Figure 44: User profile of Breville, December 2020
The Consumer – Key Takeaways
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- A renewed COVID-19 anxiety due to further lockdowns
- Purchases hold in a mixed year for small domestic appliances
- Opportunities lie ahead
- Online channel consolidates across the total purchasing journey
- Online pure players extend their lead at the top
Impact of COVID-19 on Consumer Behaviour
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- Concern has spiked as cases return
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- Figure 45: Extremely worried about exposure to COVID-19/coronavirus, 24 September-16 December 2020
- A fundamental change in shopping behaviour
- Older consumers lead the shift in behaviour
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- Figure 46: Changes in shopping behaviour, by age, 24 September-16 December 2020
- 22% of consumers are spending less on the home…
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- Figure 47: Planned spend on home products in the coming month, 8-16 December
- …but 14% are spending more
- The sector could be buoyed by redirected spending
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- Figure 48: Consumers who expect to spend more on sector over the next month, 8-16 December
Ownership of Small Domestic Appliances
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- A nation of appliance lovers
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- Figure 49: Ownership of small domestic appliances, September 2020
- Coffee machines, juicers and blenders ownership peaks among younger, more affluent consumers
- But this ownership could grow in the next year
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- Figure 50: Ownership of small domestic appliances, by age and socio-economic group, September 2020
- Three quarters of consumers own five or more appliances
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- Figure 51: Repertoire of ownership of small domestic appliances, September 2020
Purchases of Small Domestic Appliances
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- Two thirds made a purchase in the past year
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- Figure 52: Small domestic appliance purchases in the last 12 months, September 2019 and 2020
- 36% purchase more than one appliance
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- Figure 53: Repertoire analysis of purchases, September 2020
- Younger consumers drive new purchasing
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- Figure 54: Small domestic appliance purchases in the last 12 months, by age band, September 2020
- Disruption has polarised demand
- But also opened new opportunities
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- Figure 55: Purchases, by employment, September 2020
- Kettles and vacuums top spending levels
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- Figure 56: Small domestic appliances spent most on, September 2020
How They Browsed
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- Online dominates the total purchasing process
- Laptops top browsing, but smartphone use is on the up
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- Figure 57: Browsing channel, September 2020
- Older consumers more likely to browse in-store
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- Figure 58: Browsing channel, by age band, September 2020
Channels of Purchase
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- A year of unprecedented online growth
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- Figure 59: Channel of purchase, September 2020
- Net long term benefit for the online channel
- Disruption sees a surge in mobile purchasing
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- Figure 60: Purchases by smartphone, by age, September 2020
- Four in 10 consumers used multiple means of purchasing
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- Figure 61: Repertoire of channel of purchase, September 2020
Retailers Used
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- Online-only retailers top spending in the past year
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- Figure 62: Retailers used for purchasing small domestic appliances, 2019 and 2020
- Younger consumers favour online pure players
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- Figure 63: Retailers used for purchasing small domestic appliances, by age and socio-economic group, September 2020
- Amazon extends its lead as the top retailer
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- Figure 64: Retailers used for purchasing small domestic appliances, 2019 and 2020
- Online pure players lead in every product category
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- Figure 65: Retailers used, by purchases, September 2020
- Four in 10 consumers shopped around
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- Figure 66: Repertoire of retailers used, 2020
Attitudes in the Small Domestic Appliances Market
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- Space is a major issue for appliance ownership
- Many consumers still value the store experience
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- Figure 67: Consumer attitudes towards small domestic appliances, September 2020
- Two newer avenues for growth in appliances
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- Figure 68: Agreement with ‘sustainable domestic appliances are appealing’, by household income, September 2020
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- Figure 69: Agreement with ‘small domestic appliances with connected smart technologies are appealing’, by age band, September 2020
Small Domestic Appliances and COVID-19
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- Extended periods inside open up new opportunities
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- Figure 70: Small domestic appliance shopping and COVID-19, September 2020
- COVID-19 sees a renewed focus on health
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- Figure 71: Agreement with ‘I am more interested in health-boosting small domestic appliances now than before the outbreak’, by purchases, September 2020
- A quarter of consumers turn to credit
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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