Table of Contents
Overview
-
- What you need to know
- Products covered in this Report
- Definitions
Executive Summary
-
- The market
- Positive outlook for sales of major domestic appliances
-
- Figure 1: Consumer spending on major domestic appliances, 2011-21
- Laundry appliances account for 38% of the market
-
- Figure 2: Market segmentation, major domestic appliances, share by value, 2016 (est)
- More housing and an active housing market drive demand
- Companies and brands
- Currys is the market leader
-
- Figure 3: Major domestic appliances, channels to market, by value, 2016 (est)
- Samsung’s well-known brand gives it a head start
-
- Figure 5: Attitudes towards and usage of selected appliance brands, January 2017
- Innovation includes better functionality as well as connectivity
- The consumer
- Many appliances are a household essential
- Laundry appliances purchased most often
-
- Figure 6: Percentage of major domestic appliances bought in the last three years, February 2017
- Currys is the leading retailer for major domestic appliances
-
- Figure 7: Retailers used for major domestic appliances, February 2017
- Online shopping ahead of buying in-store
- Shoppers drive a hard bargain
-
- Figure 8: Factors influencing choice of retailer for major domestic appliances, February 2017
- Internet shopping plays a massive role in the customer journey
-
- Figure 9: Customer journey for major domestic appliances, February 2017
- Smart appliances that offer savings are most interesting to shoppers
-
- Figure 10: Interest in features of major domestic appliances, February 2017
- What we think
Issues and Insights
-
- Which features of smart appliances capture the attention of shoppers?
- The facts
- The implications
- Are physical stores redundant now that online shopping has been adopted by so many?
- The facts
- The implications
- What next for the design of major domestic appliances?
- The facts
- The implications
The Market – What You Need to Know
-
- Spending to grow by 28% in five years
- Market picked up momentum in 2015-16
- Tumble dryer sales up 42.3% in five years
- Smart connected appliances remain a small niche
- Currys, AO.com and Argos are the top three retailers for major domestic appliances
- Argos’s acquisition by Sainsbury’s will change the shape of the business
- More than half of major domestic appliance sales are now online
- More households leading to market growth
Market Size and Forecast
-
- Market to grow by 28% in five years
-
- Figure 11: Consumer spending on major domestic appliances, 2011-21
- Forecast methodology
- Market picked up momentum in 2015-16
-
- Figure 12: Consumer spending on major domestic appliances, 2011-16
- The impact of the EU referendum vote
- Spending on appliances has been dented by previous slowdowns
Market Segmentation
-
- Laundry appliances make up the largest market segment
-
- Figure 13: Market segmentation, major domestic appliances, 2016 (est)
- Tumble dryers have outpaced the market
-
- Figure 14: Market segments for major domestic appliances, 2011-21 (est)
- Growth of the built-in market
- Smart appliances are a small market niche
Channels to Market
-
- Currys is the market leader
- AO.com has gained ground
- Argos’s acquisition by Sainsbury’s will change the shape of the business
- DIY chains have an opportunity to grow share
- John Lewis continues its outstanding performance
-
- Figure 15: Major domestic appliances, channels to market, by value, 2016 (est)
- Online sales surge ahead
-
- Figure 16: Major domestic appliances, online sales as a percentage of consumer spending on major domestic appliances, 2016 (est)
Market Drivers
-
- Household numbers will grow by 4.7% in the five years to 2021
-
- Figure 17: UK households, by size, 2011-21
- Replacement sales gain from previous housing booms
- Steady housing sales help boost demand for appliances
-
- Figure 18: Residential property transactions, UK, 2005-16
- Consumers positive about their finances
-
- Figure 19: How consumers describe their finances, UK, 2009-16
- Decisions based on available space
- Rising energy prices will spur demand for efficient appliances
- Change to energy labelling
Companies and Brands – What You Need to Know
-
- Addressing the built-in market
- Many leading brands now offer smart connected appliances
- Brands aim for differentiation
- Innovation at the premium end of the market
- Catering for smaller kitchens
- Retailers opening smart home departments
- Pay as you go to become mainstream
- Samsung’s stands out among the brands
Competitive Strategies
-
- Addressing the built-in market
- Bosch aims to chime with the needs of customers in their everyday lives
- Whirlpool emphasises functionality and style
- Indesit sets out to make things easier and faster
- Beko is a price fighter brand, with added value
- Electrolux taps into emotions
- Hoover emphasises connected appliances
- Aga Rangemaster focusses on range cookers
- Miele is a premium brand
- Major brands from the Far East have ambitious plans for the UK
- LG promises a better life
- Panasonic’s fridge features new technologies
- Samsung elevates the fridge into a home hub
- Haier’s products have ground-breaking ideas
- Glen Dimplex features brand heritage
- Smeg has developed iconic styling
Launch Activity and Innovation
-
- Supplier innovation
- Professional results at home
-
- Figure 21: GE Appliances, monogram pizza oven, 2017
- LG pitches high with its Signature range launched in the UK in 2017
-
- Figure 22: LG Signature washing machine, 2017
- Belling invests for growth
- GE developing a ‘micro kitchen’ aimed at urban dwellings
-
- Figure 23: Micro Kitchen by GE, 2017
- KitchenAid’s latest innovation acts as an oven and a hob
-
- Figure 24: Chef Sign by KitchenAid, February 2017
- LG’s Styler cabinet
-
- Figure 25: LG, Laundry Cabinet, 2017
- Sharp launching major domestic appliances in the UK
- Talk to your Whirlpool appliances through Alexa
- Retailer innovation
- Pay monthly to go mainstream at Dixons
- Retailers opening smart home departments
Advertising and Marketing Activity
-
- Adspend on major domestic appliances jumps in 2016 in buoyant market conditions
-
- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2012-16
- AO.com’s advertising more than double its closest rival
-
- Figure 27: Share of above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2016
- AO.com piles on the pressure
-
- Figure 28: Above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by advertiser, 2012-16
- Television advertising accounts for over half of spending
-
- Figure 29: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by medium, 2016
- Advertising and marketing campaigns
- Beko positions itself as ‘the official partner of the everyday’
- Currys features dreams based around technology
- AO.com features great customer experience
- Nielsen Ad Intel coverage
Brand Research
-
- Samsung’s well-known brand gives it a head start
- Bosch is in a position of strength
- Middle market group lacks differentiation
- Did the appliance fires make a difference to perceptions of brands?
-
- Figure 30: Attitudes towards and usage of selected appliance brands, January 2017
- Key brand metrics
- MDA brands are well-known but not favourites
-
- Figure 31: Key metrics for selected appliance brands, January 2017
- Bosch is innovative
- Beko’s good value stands out
- Samsung has a loyal following
-
- Figure 32: Attitudes, by appliance brand, January 2017
- Zanussi and Hotpoint are the most accessible brands
-
- Figure 33: Brand personality – Macro image, January 2017
- Bosch is the most sophisticated brand
- Hotpoint is reliable and affordable
- Beko appears risky
-
- Figure 34: Brand personality – Micro image, January 2017
- Brand analysis
- Bosch has a quality image, worth paying more for
-
- Figure 35: User profile of Bosch, January 2017
- Brand analysis
- Samsung is trusted and has a fun personality
-
- Figure 36: User profile of Samsung, January 2017
- Brand analysis
- Hotpoint is a safe choice
-
- Figure 37: User profile of Hotpoint, January 2017
- Brand analysis
- Neff is least-known, but its users are fans
-
- Figure 38: User profile of Neff, January 2017
- Brand analysis
- Zanussi is accessible, with a good reputation
-
- Figure 39: User profile of Zanussi, January 2017
- Brand analysis
- Indesit has good levels of awareness and usage
-
- Figure 40: User profile of Indesit, January 2017
- Brand analysis
- Beko’s key strength is value
-
- Figure 41: User profile of Beko, January 2017
- Brand analysis
The Consumer – What You Need to Know
-
- High levels of ownership illustrate that some appliances are household essentials
- Laundry appliances have the highest rate of purchasing
- Currys stands out as a destination retailer for major domestic appliances
- More purchased online than in-store
- This is a price-sensitive market place
- Internet shopping plays a massive role in buying major domestic appliances
- Stores retain their relevance
- Interest in innovation is dominated by practical solutions
Ownership of Major Domestic Appliances
-
- Washing machines, fridges and cookers are household essentials
-
- Figure 42: Ownership of major domestic appliances, summary, February 2017
- Tumble dryers must overcome negatives to increase penetration
- Tumble dryers face stiff competition from cheaper ways to dry the laundry
-
- Figure 43: Ownership of major domestic appliances, washers and dryers, February 2017
- Combined fridge-freezers dominate the market
- Wealthier households own side-by-side models
-
- Figure 44: Ownership of major domestic appliances, fridges/freezers, February 2017
- Dishwasher ownership has increased
-
- Figure 45: Ownership of major domestic appliances, dishwashers, February 2015 and 2017
- Built-in cookers in almost half of households
-
- Figure 46: Ownership of major domestic appliances, cookers/ovens February 2017
Purchases of Major Domestic Appliances
-
- Laundry appliances purchased most often
-
- Figure 47: Percentage of major domestic appliances bought in the last three years, February 2017
- Washing machine purchases dominate the laundry sector
-
- Figure 48: Major domestic appliances owned and bought in the last three years, laundry appliances, February 2017
- Fridge-freezers dominate the refrigeration market
-
- Figure 49: Major domestic appliances owned and bought in the last three years, refrigeration appliances, February 2017
- A third of dishwashers purchased are built-in models
-
- Figure 50: Major domestic appliances owned and bought in the last three years, dishwashers, February 2017
- Built-in ovens slightly ahead in the cooker market
-
- Figure 51: Major domestic appliances owned and bought in the last three years, cookers/ovens, February 2017
Retailers Used for Major Domestic Appliances
-
- Currys is the leading retailer for major domestic appliances
-
- Figure 52: Retailers used for major domestic appliances, February 2017
- Narrow repertoire of retailers used
-
- Figure 53: Retailers used for major domestic appliances, repertoire, February 2017
In-store or Online Shopping for Major Domestic Appliances
-
- Online shopping ahead of buying in-store
-
- Figure 54: In-store or online shopping for major domestic appliances, February 2017
- In-store shoppers make a bee line for Curry’s
- Currys faces stiff online challenge from AO.com
Factors Influencing Choice of Retailer for Major Domestic Appliances
-
- Shoppers drive a hard bargain
- Shoppers don’t wait until Black Friday
- Reputation counts
-
- Figure 55: Factors influencing choice of retailer for major domestic appliances, February 2017
Customer Journey for Major Domestic Appliances
-
- Internet shopping plays a massive role in buying major domestic appliances
- Assurance of stores
-
- Figure 56: Customer journey for major domestic appliances, February 2017
Interest in Features of Major Domestic Appliances
-
- Features that show tangible savings of most interest
- Price resistance to appliances with connected features
-
- Figure 57: Interest in features of major domestic appliances, February 2017
- 59% of people are not at all interested in connected appliances
-
- Figure 58: Interest in features of major domestic appliances, repertoire, February 2017
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast Methodology
Back to top