Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Market overview
- Healthy economy bolsters spending on appliances
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- Figure 1: Total US sales and fan chart forecast of major household appliances, at current prices, 2011-21
- The issues
- Decline in households with children can dampen spending on new appliances
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- Figure 2: Households, by presence of related children, 2006-16
- Low interest in major appliances with connectivity features
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- Figure 3: Interest and willingness to pay more for new features in refrigerators/freezers, November 2016
- The opportunities
- Replacement and upgrades top reasons for purchase
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- Figure 4: Reasons for purchasing latest appliance, November 2016
- Efficiency and productivity features drive purchase interest
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- Figure 5: Interest and willingness to pay more for new features in washers/dryers, November 2016
- Aligning features of connected appliances with consumers’ needs
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- Figure 6: Any interest (net) in refrigerator connectivity features, by Hispanic origin and parental status, November 2016
- What it means
The Market – What You Need to Know
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- Healthy overall economy and innovation push appliance sales up
- Sales in all three appliance segments perform well
- Smart home market offers growth prospects for connected appliances
- Home improvement market inspires appliance upgrades
Market Size and Forecast
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- Housing market and innovation lead sales in major appliances
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- Figure 7: Total US sales and fan chart forecast of major household appliances, at current prices, 2011-21
- Figure 8: Total US retail sales and forecast of major household appliances, at current prices, 2011-21
Market Breakdown
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- Refrigerators, freezers, and dishwashers lead category sales
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- Figure 9: sales of major household appliances, by segment, at current prices, 2011-16
Market Perspective
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- Connected appliances emerge through the smart homes market
- Entry points for connected appliances within smart home retailing
- Home improvement market drives spending on major appliances
- DIY retailing offers consumers new ways to visualize their appliance purchase
Market Factors
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- Appliance sales expected to level after peak in housing starts
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- Figure 10: New privately owned housing units started (seasonally adjusted), 2011-16
- Record-setting consumer confidence drives spending on appliances
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- Figure 11: Consumer Sentiment Index, December 2010-16
- Decline in households with children could challenge appliance market
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- Figure 12: Households, by presence of related children, 2006-16
Key Players – What You Need to Know
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- Global competition grows fierce in major household appliances
- Energy-efficiency ratings and performance drive purchase interest
- Brick-and-mortar stores evolve to improve customer experience
- Legacy retailer loses ground and product recalls create concern
- Compact designs and connected appliances continue to emerge
Category Review
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- Mid-range brands lead major household appliance market
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- Figure 13: major household appliance ownership by parent company, November 2016
- Review of earnings for major household appliance manufacturers
What’s In?
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- Energy efficiency drives purchase interest for appliance shoppers
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- Figure 14: JCPenney email campaign for energy-efficient appliances, May 2016
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- Figure 15: Sears email campaigns for state tax incentives on energy-efficient appliances, May-September 2016
- Brand leadership in energy-efficient appliances and innovations
- Retailers strive to offer in-store experience to appliance shoppers
- High-end retailers offer shoppers an interactive purchasing experience
- Need for speed drives innovation in cooking and laundry appliances
- Fast convection and commercial-grade ovens drive kitchen appliance innovation
- Flexible and fast cycles lead innovation in laundry appliances
- Consumer satisfaction sets bar for reliability of high-end brands
What’s Out?
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- Sears loses appliance retail share to home improvement stores
- Product recalls and cyber-security concerns challenge leading brands
What’s Next?
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- Compact designs enter spotlight at global trade shows
- Connected home appliances are joining smart home networks
- In-store experience drives awareness and interest for connected appliances
The Consumer – What You Need to Know
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- Cooking appliances lead ownership, while laundry drives purchase
- Mid-range appliance brands lead ownership with comprehensive lines
- Appliance breakdowns is top reason for new purchase
- Online and in-store research helps with selecting an appliance
- Appliance maintenance attitudes differ by experience in ownership
- Efficiency, flexibility, and speed drive purchase interest for appliances
Appliance Ownership
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- Kitchen appliances lead ownership, while laundry leads recent purchase
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- Figure 16: Appliances owned and recently purchased, November 2016
- Repertoire analysis reveals most consumers own several appliances
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- Figure 17: Repertoire of any current appliance ownership (net), November 2016
- Recent purchase reflects on greater needs at certain lifestages
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- Figure 18: Whirlpool’s commercial puts spotlight on young parents, January 2017
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- Figure 19: recent purchase of clothes washer and refrigerator freezer combination, by age, November 2016
- Higher-income earners, homeowners purchase a variety of appliances
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- Figure 20: recent purchase of specialty appliances, by income and by primary residence, November 2016
- Recent purchases by Hispanics focus on specialty appliances
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- Figure 21: recent purchase of specialty appliances, by Hispanic origin, November 2016
- In their words:
Brand Ownership
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- Mid-range brands lead appliance ownership
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- Figure 22: Appliance brands currently owned in households, November 2016
- Age and income dictate type of brand owned
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- Figure 23: ownership of Kenmore, LG, and Samsung, by age, November 2016
- Higher-end brands have strong penetration in upper-income households
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- Figure 24: Ownership of high-end brands, by household income, November 2016
- Parents own high-end brands that deliver capacity and performance
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- Figure 25: Ownership of LG and Samsung, by parental status, November 2016
- Hispanics less likely to own legacy brands
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- Figure 26: Select brand ownership, by Hispanic origin, November 2016
- In their words:
Reasons for Purchasing
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- Breakdown of previous appliance tops reasons for recent purchase
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- Figure 27: Reasons for purchasing latest appliance, November 2016
- Young adults are purchasing appliances for new features and size
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- Figure 28: Purchasing for new features and upgrades, any rank, by age, November 2016
- Higher-income earners purchase appliances as part of a renovation
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- Figure 29: Purchasing as part of a remodel, any rank, by household income, November 2016
- Appliance purchases among Hispanics signal a growing consumer base
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- Figure 30: Select reasons for purchasing, any rank, by Hispanic origin, November 2016
Behavior toward Appliance Purchasing
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- Online, in-store research are common ways to find the right appliance
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- Figure 31: Behavior toward purchasing appliances, November 2016
- Parents and young adults are more engaged in purchase process
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- Figure 32: Select behaviors toward purchasing, by parental status and by age, November 2016
- In-store experience helps homeowners in purchase process
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- Figure 33: Select behaviors toward purchasing appliances, by primary residence, November 2016
- Hispanics look for bargains
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- Figure 34: Behaviors related to promotions and warranties when purchasing appliances, by Hispanic origin, November 2016
- In their words:
Attitudes toward Appliance Maintenance
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- Moderate satisfaction in appliances creates opportunities for brands
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- Figure 35: attitudes toward maintaining major appliances, November 2016
- Young adults take more steps toward maintenance
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- Figure 36: Attitudes toward appliance repair, by age, November 2016
- Higher-income owners satisfaction attributed to premium brands
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- Figure 37: Attitudes toward warranties and higher-end brands, by household income, November 2016
- Hispanics aim to avoid headache of appliance breakdown
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- Figure 38: Attitudes toward repair and warranties, by Hispanic origin, November 2016
- In their words:
Interest in Appliance Features
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- Energy efficiency, flexibility, and speed drive appliance purchase interest
- Interest in energy-efficiency rating leads interest in washers/dryers and category
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- Figure 39: Interest and willingness to pay more for new features in washers/dryers, November 2016
- Cooking and cleaning speeds drive purchase interest in ovens/ranges
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- Figure 40: Interest and willingness to pay more for new features in ovens/ranges, November 2016
- Flexible and convertible spaces in refrigerators/freezers are purchase interest drivers
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- Figure 41: Interest and willingness to pay more for new features in refrigerators/freezers, November 2016
- Young adults have a need for speed in their appliances
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- Figure 42: Interested in and willing to pay for select appliance features related to speed and convenience, by age, November 2016
- Interest in productivity features piques in middle-income brackets
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- Figure 43: Interested and willing to spend for select appliance features, by household income, November 2016
- Larger households drive interest in features that boost productivity
- Connectivity features spark interest among parents and Hispanics
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- Figure 44: Any interest (net) in capacity, speed, and connectivity features, by Hispanic origin, parental status, and household size, November 2016
- In their words:
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 45: Total US retail sales and forecast of major household appliances, at inflation-adjusted prices, 2011-21
- Figure 46: Total US retail sales and forecast of washers and dryers, at current prices, 2011-21
- Figure 47: Total US retail sales and forecast of refrigerators, freezers, and dishwashers, at current prices, 2011-21
- Figure 48: Total US retail sales and forecast of ranges, ovens, cooktops, microwaves, at current prices, 2011-21
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Appendix – Consumer
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- Appliance satisfaction highest among older owners with oven/range
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- Figure 49: Appliance maintenance attitudes – CHAID – Tree output, December 2016
- Methodology
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