Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations & Terms
- Abbreviations
- Terms
Executive Summary
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- Growth of $2 billion between 1999 and 2004
- Low interest rates propel sales
- Distress purchasing primary
- Lifestyle changes impact purchasing
- Home ownership and income drive market
- Features and styling impact average price
- Market dominated by refrigerators
- Four manufacturers, five brands dominate
- Advances in style and functionality
- Branding campaigns may prove ineffective in light of customer concerns
- Features the primary factor in product choice
- Functional buyers satisfied with current products
- Limited growth ahead
Market Drivers
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- Home ownership
- Home ownership is rising
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- Figure 1: Percentage of U.S. households owning homes, 1999-2003
- Moving homes
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- Figure 2: Existing and new home sales and new housing starts (single-unit, privately owned homes), 1999-2004*
- Population size and characteristics
- Presence of children in the household
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- Figure 3: Presence of children in households, by age of householder, 2003
- Moving home, buying first home, and buying new home by age and marital status
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- Figure 4: Home moves, purchase of new home and first home ownership, by age and marital status, January-September 2004
- The U.S. population by age
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- Figure 5: U.S. Population by age group, 2000, 2005, and 2010
- Replacement cycles
- Appliance life-expectancy
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- Figure 6: Life-expectancy of refrigerators, freezers, dishwashers, and disposals, and units to be replaced, 2004 and 2005
- Trends in kitchen remodeling/improving
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- Figure 7: Spending for residential improvements, 1999-2004
- Figure 8: Chart: Spending for residential improvements, 1999-2004*
- Features
- Time deprivation
- Long-term savings
- Low mortgage (and short-term interest) rates stimulate the market
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- Figure 9: Mortgage rates and change in volume sales for refrigerators, dishwashers, and freezers, 1999-2004
- Low rates and home ownership
- Refinancing
- Buying appliances on credit
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- Figure 10: Reasons for buying on credit, December 2004
- Income
- Impact of income on home ownership and remodeling
- Income affects price paid for refrigerators, freezers, and dishwashers
- Income and conditions of the sale
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- Figure 11: Number of households per income group, 2000 and 2003
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- Figure 12: Graph: Households per income group in 2003 and change from 2000
Market Size and Trends
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- Overview
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- Figure 13: Total U.S. manufacturer sales of food preservation and kitchen cleanup appliances, at current and constant 2004 prices, 1999-2004
- Figure 14: Chart: Total U.S. manufacturer sales of food preservation and kitchen cleanup appliances, at current and constant 2004 prices, 1999-2004
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- Figure 15: Total U.S. unit shipments of food preservation and kitchen cleanup appliances, 1999-2004
- Figure 16: Total U.S. manufacturer average sales price of food preservation and kitchen cleanup appliances, at current and constant 2004 prices, 1999-2004
- Market trends
- Increased interest in styling and features
- Supplier product releases respond to and stimulate consumer desire
- Trends in cooking
- Cooking becomes hip
Market Segmentation
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- Overview
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- Figure 17: U.S. manufacturer sales of food preservation and kitchen cleanup appliances, segmented by product type, 2002 and 2004
- Figure 18: Chart: U.S. manufacturer sales of food preservation and kitchen cleanup appliances, segmented by product type, 2004
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- Figure 19: Total U.S. unit shipments of kitchen appliances, by segment, 2002 and 2004
- Refrigerators
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- Figure 20: Total U.S. manufacturer sales of refrigerators, at current and constant 2004 prices, 1999-2004
- Figure 21: Chart: Total U.S. manufacturer sales of refrigerators, at current and constant 2004 prices, 1999-2004
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- Figure 22: Total U.S. unit shipments of refrigerators, 1999-2004
- Dishwashers
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- Figure 23: Total U.S. manufacturer sales of dishwashers, at current and constant 2004 prices, 1999-2004
- Figure 24: Chart: Total U.S. manufacturer sales of dishwashers, at current and constant 2004 prices, 1999-2004
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- Figure 25: Total U.S. unit shipments of dishwashers, 1999-2004
- Figure 26: Unit shipments of dishwashers, by type, 1999-2004
- Freezers
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- Figure 27: U.S. manufacturer sales of freezers, at current and constant 2004 prices, 1999-2004
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- Figure 28: Total U.S. unit shipments of freezers, 1999-2004
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- Figure 29: Unit shipments of freezers, by type, 1999-2004
- Garbage disposals
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- Figure 30: Total U.S. manufacturer sales of disposals, at current and constant 2004 prices, 1999-2004
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- Figure 31: Total U.S. unit shipments of disposals, 1999-2004
Supply Structure
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- Overview of brand preferences
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- Figure 32: Purchase of appliances in the last 24 months, by brand, by product type, December 2004
- Company profiles
- Sears Holdings Corp (Kenmore)
- Product offerings
- GE Consumer & Industrial
- Product offerings
- Whirlpool
- Product offerings
- Maytag Corporation
- Product offerings
- Electrolux Home Products (Frigidaire)
- Product offerings
- Haier America
- Product offerings
- In-Sink-Erator
- Anaheim Manufacturing
Advertising and Promotion
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- Overview
- Brand perception
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- Figure 33: Respondents’ attitudes towards brand, December 2004
- Commentary
- Company activity
- GE Consumer & Industrial
- Whirlpool Corporation
- KitchenAid
- Electrolux AB
- Sears Holdings Corp (Kenmore)
- Maytag
The Consumer
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- Introduction
- Market participation by home ownership and recent remodeling
- Explanation of the population base used by Simmons NCS for questions about ownership of refrigerators, freezers, dishwashers, and disposals
- Product ownership
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- Figure 34: Ownership of refrigerators, freezers, and dishwashers, by home ownership and recent remodeling, January-September 2004
- Recent purchase
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- Figure 35: Recent purchase of refrigerators, freezers, and dishwashers, by home ownership and recent remodeling, January-September 2004
- Home ownership and recent remodeling by demographic group
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- Figure 36: Home ownership and recent remodeling, by demographic group, January-September 2004
- Market participation by recent household changes
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- Figure 37: Ownership of refrigerators, freezers, and dishwashers, by recent household changes, January-September 2004
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- Figure 38: Recent purchase of refrigerators, freezers, and dishwashers, by recent household changes, January-September 2004
- Ownership and recent purchase by marital status and income
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- Figure 39: Ownership of refrigerators, freezers, and dishwashers, by marital status, household income, and sex of single respondents, January-September 2004
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- Figure 40: Purchase of refrigerators, freezers, dishwashers, and disposals in the last 12 months, by marital status, household income, and sex of single respondents, January-September 2004
- Ownership and recent purchase by age and race/Hispanic origin
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- Figure 41: Ownership of refrigerators, freezers, dishwashers, and disposals, by race/ethnicity and age, January-September 2004
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- Figure 42: Purchase of refrigerators, freezers, dishwashers, and disposals in the last 12 months, by race/ethnicity and age, January-September 2004
- Ownership and recent purchase by region and county density
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- Figure 43: Ownership of refrigerators, freezers, dishwashers, and disposals, by region and county size, January-September 2004
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- Figure 44: Purchase of refrigerators, freezers, dishwashers, and disposals in the last 12 months, by region and county size, January-September 2004
- Impact of home opinions on ownership and purchase behavior
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- Figure 45: Opinions about the home, by kitchen appliance purchase in the last 12 months, January-September 2004
- Opinions about the home by demographic group
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- Figure 46: Opinions about the home, by demographics, January-September 2004
- Reasons for purchase
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- Figure 47: Main reason for purchasing a new appliance, December 2004
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- Figure 48: Main reason for purchasing a new appliance, Part 1, by demographics, December 2004
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- Figure 49: Main reason for purchasing a new appliance, Part 2, by demographics, December 2004
- Who is willing to upgrade from a working appliance and why?
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- Figure 50: Reasons to replace an appliance, December 2004
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- Figure 51: Reasons to replace an appliance, by demographics, December 2004
- Factors in product selection
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- Figure 52: Primary factors in selecting an appliance, December 2004
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- Figure 53: Primary factors in selecting purchase, by demographics, December 2004
- Who will pay more for design-led products?
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- Figure 54: Willingness to pay 10% extra for a customized finish or color, by demographics, December 2004
- Average sales price paid
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- Figure 55: Average price paid for appliances purchased in the last 12 months, by demographics, November 2004
- Impact of additional income upon potential upgrades
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- Figure 56: Whether respondent would purchase appliances if they had more money, by appliance type, December 2004
- Summary of content for specific demographics
- Married couples
- 18-44-year-olds vs. over-45s
- 18-44-year-olds
- Over-45s
- Conclusions
Future and Forecast
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- Future trends
- Continued increases in home ownership
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- Figure 57: New housing starts (single-unit, privately owned homes), 2000-03*
- Demographic changes may be adverse for the industry
- Increasing presence of women in the workplace may drive sales
- High-end products for smaller households may prove popular
- Increased energy-efficiency to raise price points
- Features and styling to sell more high-end product
- Future penetration growth for dishwashers
- Refrigerators to address consumers’ freezer needs
- Individually customized products
- Market Forecast
- Food preservation and kitchen cleanup appliances
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- Figure 58: Forecast of total U.S. manufacturer sales of food preservation and kitchen cleanup appliances, at current and constant prices, 2004-2009
- Figure 59: Chart: Forecast of total U.S. manufacturer sales of food preservation and kitchen cleanup appliances, at current and constant prices, 2004-2009
- Refrigerators
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- Figure 60: Forecast of U.S. manufacturer sales of refrigerators, at current and constant prices, 2004-2009
- Dishwashers
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- Figure 61: Forecast of U.S. manufacturer sales of dishwashers, at current and constant prices, 2004-2009
- Freezers
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- Figure 62: Forecast of U.S. manufacturer sales of freezers, at current and constant prices, 2004-2009
- Disposals
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- Figure 63: Forecast of U.S. manufacturer sales of disposals, at current and constant prices, 2004-2009
- Forecast Factors
Appendix: Trade Associations
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