Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- New homeowners, new parents the primary target
- Going “green”
- Young and the wealthy seeking style and new features
- Slowdown in housing market impacting sales
- Washers larger segment, dryers faster growing
- Sears loses share to Home Depot and Lowe’s
- Younger homeowners, Baby Boomers and multi-ethnic population
- Consolidated supply structure, led by Whirlpool
- Well-established brands enter the Internet age
- A gamut of innovations
- Consumer findings
- The purchase process
- Attitudes toward product features
- Findings by race/ethnicity
Insights and Opportunities
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- Targeting buyers, movers, and renovators
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- Figure 1: Purchase of appliance in the past 12 months, by changes in residence, Jan-Nov 2007
- Moms—and those expecting—warrant focus
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- Figure 2: Purchases in the past 12 months, by selected demographics and life events, Jan-Nov 2007
- Greening appliances
- Ramp up marketing of combination machines
- Style + economy = brand differentiation
- Innovations important to young and high-income
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- Figure 3: Willingness to pay more for a machine that integrates various added features, by age May 2008
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- Figure 4: Willing to pay more for a machine that integrates various added features, by household income, May 2008
Fast Forward Trends
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- Third place—a place outside the home and office to relax
- Opportunities for branding in the retail clothes cleaning environment
- Greener and greener—as the green movement mainstreams, alpha-greens seek ways to stay ahead of the curve
- Use of ultraviolet light and free-radical oxygen to clean clothes
- Heating of fluids to reduce dryer’s energy consumption
Market Size and Forecast
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- Key points
- Mature market shows fairly strong growth
- Sales have tracked the boom and bust of the housing market
- 2007 and 2008 sales buffered by replacement and high-end sales
- Sales and shipments
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- Figure 5: Total U.S. sales and forecast of washers and dryers at current prices, 2003-11
- Figure 6: Total U.S. sales and forecast of washers and dryers at inflation adjusted prices, 2003-11
- Figure 7: Manufacturer shipments of laundry appliances, 2003-08
Competitive Context
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- Key points
- Laundromats serve urban renters
- Laundromats enhancing appeal to eco-conscious consumers
- Dry cleaners offer limited cleaning and pressing competition
Segment Performance
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- Key points
- Washers comprise largest segment, dryers faster growing
- From 2006-08, dryers grow at slightly higher rate
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- Figure 8: U.S. sales and forecast of laundry appliances at current prices, by segment, 2003-13
- Figure 9: U.S. sales of laundry appliances, by segment, 2006 and 2008
Segment Performance—Washers
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- Key points
- Sales growth has slowed since 2006, but prices have increased
- Innovation driving high-end sales
- Front-load machines show strong growth
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- Figure 10: U.S. sales and forecast of washers, in inflation-adjusted prices, 2003-11
- Figure 11: U.S. sales and forecast of washers, in inflation-adjusted prices, 2003-11
- Figure 12: Factory unit shipments of washers, 2003-08
Segment Performance—Dryers
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- Key points
- Growth tapered off in 2007
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- Figure 13: U.S. sales and forecast of dryers at constant prices, 2003-11
- Figure 14: U.S. sales and forecast of dryers at inflation-ajdusted prices, 2003-13
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- Figure 15: Factory unit shipments of dryers, 2003-08
- Gas vs. electric
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- Figure 16: U.S. shipments of gas and electric dryers, 2006 and 2008
- Figure 17: Factory unit shipments of electric dryers, 2003-08
- Figure 18: Factory unit shipments of gas dryers, 2003-08
Retail Channels
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- Key points
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- Figure 19: U.S. sales of laundry appliances, by retail channel, 2006-07
- Lowe’s expands its position; Sears loses market share
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- Figure 20: Sales of major home appliances by top appliance retailers, 2005-07
Retail Channels—Appliance and Specialty Stores
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- Key points
- Below average sales growth every year from 2003-07
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- Figure 21: U.S. sales of laundry appliances at electronic/appliance stores, 2003-07
- Sears considering selling Kenmore through other retailers
- Best Buy educates sales associates on environmental issues
Retail Channels—Home Centers, Hardware Stores, Building Supply Stores
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- Key points
- Segment gaining share every year
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- Figure 22: U.S. sales of laundry appliances at home centers/hardware/building supply stores, 2003-07
- Lowe’s continues to post growth in appliance category
- Home Depot focusing on high-end, e-tailing and Eco-options
Retail Channels—Other
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- Key points
- Sales decline in “other” retail channels
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- Figure 23: U.S. sales of laundry appliances at other retailers, 2003-07
Market Drivers: Going Green
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- Green living fuels demand for environmentally-friendly appliances
- Green appliances a part of a broader “green” retailer approach
- Growth of green homes
- Government certification programs for energy efficient appliances
- State and local promotions of energy efficient appliances
Market Drivers: The Housing Market
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- Homeowners twice as likely to own laundry appliances
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- Figure 24: Ownership of washers and dryers, by home ownership, Jan-Nov 2007
- Buying new home, moving and remodeling drive appliance purchase
- New and existing home sales dropped sharply in 2006 and 2007
- Gloomy housing prognosis through 2008
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- Figure 25: Sales of new and existing homes, 2002-07
- Home renovations fell in 2007
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- Figure 26: Expenditures for residential repairs and maintenance, and improvements, 2002-07
Demographic Drivers
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- Limited differences in purchases by age
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- Figure 27: Purchase of appliance in the past 12 months, by age, Jan-nov 2007
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- Figure 28: Population aged 18 or older, by age group, 2003-13
- A growing multi-ethnic population
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- Figure 29: Population by race and Hispanic origin, 2003-13
- Growth in high-end due to increase in high-income households
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- Figure 30: Distribution of households, by income (current dollars), 1999 and 2006
- Figure 31: Purchase in the past 12 months, by household income, Jan-Nov 2007
- Life events propel purchases
Leading Companies
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- Key points
- Three tiered pricing with economical, mass market and premium lines
- Whirlpool Corporation (Whirlpool, Maytag, Amana)
- General Electric (GE)
- Electrolux (Frigidaire)
- LG Electronics
Brand Qualities
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- Whirlpool (Whirlpool, Maytag, Amana)
- Whirlpool
- Maytag
- Amana
- Sears (Kenmore)
- General Electric (GE)
- Electrolux (Frigidaire, Electrolux)
- LG Electronics (LG)
Innovation and Innovators
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- Energy and water efficiency
- Use of steam for efficiency, wrinkle reduction
- Bacteria-killing features
- Anti-allergenic features
- Remote monitoring and communication between machines
- Capacity
- Stain removal
- Detergent management
- Reduced noise and vibration
- Temperature, water level sensors and other indicators
- Color and styling
Advertising and Promotion
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- Key points
- Limited brand loyalty = opportunity
- Overall advertising expenditures stagnate or fall in 2007
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- Figure 32: Media expenditures of major appliance brands on ads for major appliances, 2005-07
- Whirlpool (Whirlpool and Maytag)
- Whirlpool
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- Figure 33: Whirlpool—Duet Swirling sea animals, 2008
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- Figure 34: Whirlpool—Duet steam dryer, 2008
- Maytag
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- Figure 35: MAYTAG—centennial washer/dryer, 2008
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- Figure 36: MAYTAG—bravo dryer, 2008
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- Figure 37: MAYTAG—epic washer-dryer, 2008
- GE
- Kenmore (Sears)
- LG
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- Figure 38: LG—Steam Washing, 2008
- Electrolux (Frigidaire, Electrolux)
- Frigidaire
- Electrolux
Ownership and Frequency of Purchase
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- Key points
- Ownership rises with age and household income
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- Figure 39: Ownership of washers and dryers, by household income, Jan-Nov 2007
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- Figure 40: Ownership of washers and dryers, by age, Jan-Nov 2007
- Online, young and high-income respondents bought washers more recently
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- Figure 41: Age of current washer or dryer, May 2008
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- Figure 42: Age of current washer, by household income, May 2008
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- Figure 43: Age of current washer, by age, May 2008
- Younger respondents are planning to buy new appliances
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- Figure 44: Intended time of next washer purchase, by age, May 2008
Spending, Acquisition and Retail Considerations
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- Key points
- Women are primary buyers; retail environment counts
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- Figure 45: Spending on and acquisiton of washers, by gender, May 2008
- Respondents of all household incomes seek a deal
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- Figure 46: Spending on and acquisiton of washers, by household income, May 2008
- Household income considerations shape buying new appliances, replacing as a pair
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- Figure 47: Other attitudes towards replacement of machines, by Household income, May 2008
- Economically priced machines important for younger consumer base
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- Figure 48: Other attitudes towards replacement of machines, by Age, May 2008
- Warranty, delivery and installation
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- Figure 49: Retailer and supplier extras checked or bought, by household income, May 2008
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- Figure 50: Retailer and supplier extras checked or bought, by age, May 2008
Marketing: Internet and In-store are Key
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- Key points
- Sources of information
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- Figure 51: Sources of information when purchasing washer/dryer, by gender, May 2008
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- Figure 52: Sources of information when purchasing washer/dryer, by age, May 2008
- Figure 53: Sources of information when purchasing washer/dryer, by household income, May 2008
Attitudes and Motivations
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- Key points
- Replacement is the major reason for buying new appliances
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- Figure 54: Reasons to buy a new washer or dryer, by household income, May 2008
- Younger respondents are major first time buyers
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- Figure 55: Reasons to buy a new washer or dryer, by age, May 2008
- Willingness to pay for ‘made in America’, front-loading and other design features
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- Figure 56: Features willing to pay more for–part i, May 2008
- Willingness to pay for quiet running, energy efficiency, special wash cycles
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- Figure 57: Features willing to pay more for–part ii, May 2008
- Front-loading machines still rule, spin cycles important
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- Figure 58: Interest in functions and functionality, by household income, May 2008
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- Figure 59: Interest in a simple machine, by Age, May 2008
- Attitudes toward style and appearance
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- Figure 60: Cares about appliance appearance, by household income, May 2008
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- Figure 61: Attitudes towards appearance and style, by age, May 2008
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- Figure 62: Attitudes towards appearance and style, by household income, May 2008
- Attitudes towards brands
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- Figure 63: Attitudes towards brands, by age, May 2008
Race and Ethnicity
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- Key points
- Homeownership and age lead to lower ownership levels
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- Figure 64: Ownership of washers and dryers, by race/race/ethnicity, Jan-Nov 2007
- Asians and Hispanics actively acquiring new appliances
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- Figure 65: Recent purchase of washers and dryers, by race/ethnicity, Jan-Nov 2007
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- Figure 66: Age of current washer, by race/ethnicity, May 2008
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- Figure 67: Intended time of next washer purchase, by race/ethnicity, May 2008
- Motivations and attitudes among multi-ethnic respondents
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- Figure 68: Reasons to buy a new washer or dryer, by race/ethnicity, May 2008
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- Figure 69: Interest in a simple machine, by race/ethnicity, May 2008
- Figure 70: Attitudes towards appearance and style, by race/ethnicity, May 2008
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- Figure 71: Attitudes towards brands, by race/ethnicity, May 2008
Cluster Analysis
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- Key points
- Free lunchers
- Pay-to-players
- Back to basics
- Cluster characteristics
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- Figure 72: Clusters, May 2008
- Figure 73: Interest in additional features, by clusters, May 2008
- Figure 74: Attitudes and behavior in most recent purchase, by clusters, May 2008
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- Figure 75: Attitudes, by clusters, May 2008
- Cluster demographics
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- Figure 76: Clusters by age, May 2008
- Figure 77: Clusters by household income, May 2008
- Figure 78: Clusters by race/ethnicity, May 2008
- Methodology
Custom Consumer Groups: Moms
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- Key points
- Ownership, Age of Machine, Intention to Purchase
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- Figure 79: Ownership of washers and dryers, for moms and women without children, May 2008
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- Figure 80: Age of current washer, for moms and women without children, May 2008
- Intent to purchase
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- Figure 81: Intended time of next purchase, for moms and women without children, May 2008
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- Figure 82: Other attitudes towards replacement of machines, for moms and women without children, May 2008
- Sources of information
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- Figure 83: Sources of information when purchasing washer/dryer, for moms and women without children, May 2008
- Interest in additional features
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- Figure 84: Features willing to pay more for, May 2008
- Attitudes towards styles, appearance and brand
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- Figure 85: Attitudes towards appearance and style, by age, May 2008
- Moms a little more open on choice of brands
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- Figure 86: Attitudes towards brands, for moms and women without children, May 2008
Appendix: Age of Dryers
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- Figure 87: Age of current dryer, by household income, May 2008
- Figure 88: Age of current dryer, by age, May 2008
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