Table of Contents
Executive Summary
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- The issues
- Replacement most common motivation, but other factors represent opportunities for growth
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- Figure 1: Reasons for most recent major appliance purchase, December 2014
- Remodeling continues to trend higher
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- Figure 2: NAHB Remodeling Market Index (RMI), 2009-14
- For 25-44s, trade-ups and multiple appliance purchases boost amount spent
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- Figure 3: Average amount spent on most recent major appliance purchase, by age, December 2014
- The opportunities
- Personal touch: Amid wider array of info sources, salesperson still plays key role
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- Figure 4: Helpfulness of information sources – Very helpful, by amount spent, December 2014
- Beyond price: Focus on selection and service
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- Figure 5: Reasons for selecting major appliances purchase location – very important, by amount spent, December 2014
- Omnichannel experience: Integrate in-store and online
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- Figure 6: Major appliance purchase behaviors and attitudes, by amount spent, December 2014
- What it means
The Market – What you Need to Know
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- Appliance sales rebound
- Efficiency and features motivate sales.
- Home renovations maintain momentum.
Market Perspective
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- Improving economic picture helps lift major appliance categories
- Retailers positioned to convert innovation into sales
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- Figure 7: Total US sales of major appliances, by category, 2009-14
Market Factors
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- Replacement most common motivation, but other factors come into play
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- Figure 8: Reasons for most recent major appliance purchase, December 2014
- Remodeling continues to trend higher
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- Figure 9: NAHB Remodeling Market Index (RMI), 2009-14
- Consumer confidence fluctuates month-to-month but trends higher
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- Figure 10: Thomson Reuters/University of Michigan Index of Consumer Sentiment, 2009-15
- Home sales lose some momentum in 2014
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- Figure 11: New and existing home sales, 2009-14
- Home ownership rates continue to slip, especially for younger adults
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- Figure 12: Homeownership rate by age of householder, 2009-14
Key Players – What You Need to Know
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- Big-box home centers build on convenience and context
- Specialist retailers face increasing challenges, focus on service and selection
- An opportunity to bring smart-home solutions to life
What’s Working?
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- Overview: Big-box home centers continue to gain
- Big-box home centers build on convenience and context
- Lowe’s claims top spot
- Home Depot caters omnichannel shopping
- Best Buy highlights appliances in Pacific Kitchen & Home store-within-a-store
What’s Struggling?
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- Specialists face increasing challenges, focus on service and selection
What’s Next?
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- Samsung tests kiosks and store-within-a-store concepts
- Sears looks to sell smart solutions
The Consumer – What You Need to Know
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- Younger adults a key target
- Spending peaks in 35-44 age group
- Replacement tops long list of purchase motivations
- Online purchases gain ground
- Store selection based on more than just price
- Even amid online alternatives, salesperson still a key influencer
- Omnichannel shopping prevalent
Major Appliances Purchased
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- Fridge or freezer an increasingly common and lifestyle-oriented purchase
- Young adults most likely to be in appliance acquisition mode
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- Figure 13: Types of major appliances purchased, by age, December 2014
- Kitchen appliances a focal point for big purchases
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- Figure 14: Types of major appliances purchased, by amount purchased, December 2014
Purchase Timing and Amount Spent
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- Young adults more likely to have purchased recently
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- Figure 15: Types of major appliances purchased, by age, December 2014
- For 35-44s, trade-ups may boost amount spent
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- Figure 16: Average amount spent on most recent major appliance purchase, by age, December 2014
Reasons for Most Recent Purchase
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- Renovation projects drive biggest purchases
- Opportunity to help appliance shoppers visualize new appliances in their kitchens
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- Figure 17: Reasons for most recent major appliance purchase, by amount spent, December 2014
Location of Most Recent Purchase
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- Sears still a top retailer but faces competition from all angles
- Online gains in importance
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- Figure 18: Major appliances purchase locations, by in-store or online, December 2014
Reasons for Selecting Purchase Location
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- Beyond price: Selection, service, store reputation key in store selection
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- Figure 19: Reasons for selecting major appliances purchase location – Very important, by amount spent, December 2014
- In their words
Helpfulness of Information Sources
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- Salesperson still plays essential role
- In their words
- Big-ticket purchasers likely to consult and value more info sources
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- Figure 20: Helpfulness of information sources – very helpful, by amount spent, December 2014
Shopping Attitudes and Behaviors
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- A more involved process for bigger-ticket purchases
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- Figure 21: Major appliance purchase behaviors and attitudes, by amount spent, December 2014
- In their words
Appendix: Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
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