Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- The market for major domestic appliances slowed in 2017
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- Figure 1: Consumer spending on major domestic appliances, 2012-22
- Property transactions fall 1.1%
- Laundry appliances make up the largest segment
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- Figure 2: Market segmentation for major domestic appliances, 2017
- Dixons Carphone the leading retailer
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- Figure 3: Major domestic appliances, channels to market, 2017
- Companies and brands
- Growing focus on smart and connected technology
- Washing machine saves time and energy
- Adspend declines 19.1% in 2017
- Samsung is the most trusted brand
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- Figure 4: Attitudes towards and usage of selected brands, February 2018
- The consumer
- Major domestic appliances are household essentials
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- Figure 5: Ownership of major domestic appliances, February 2018
- Nearly two thirds bought a new appliance in the past three years
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- Figure 6: Purchases of major domestic appliances in the last three years, February 2018
- Online more popular than in-store
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- Figure 7: How they bought the major domestic appliance purchased most recently, February 2018
- Breakdowns drive sales
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- Figure 8: Reasons for buying a new major domestic appliance, February 2018
- Retailer websites the most popular source of information
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- Figure 9: Sources of information used when researching which major domestic appliance to buy, February 2018
- Price is the most important factor for 38% of buyers
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- Figure 10: Important factors in deciding which major domestic appliance to buy, February 2018
- What we think
Issues and Insights
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- Who owns a smart appliance and who’s interested?
- The facts
- The implications
- Will we still own major domestic appliances in the future?
- The facts
- The implications
- Buyers need better guidance on the benefits of energy efficiency
- The facts
- The implications
- What is the role of the physical store for major domestic appliances?
- The facts
- The implications
The Market – What You Need to Know
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- The market for major domestic appliances slows in 2017
- Laundry appliances make up the largest segment
- Dixons Carphone the leading retailer
- Property transactions fall 1.1%
- Consumer confidence dips but spending intentions remain strong
Market Size and Forecast
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- Slower spending on major domestic appliances
- Market forecast to grow 12.5% by 2022
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- Figure 11: Consumer spending on major domestic appliances, 2012-22
- Figure 12: Consumer spending on major domestic appliances, 2012-22
- Forecast methodology
Market Segmentation
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- Laundry appliances the largest segment
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- Figure 13: Market segmentation for major domestic appliances, 2017
- Dishwashers and tumble dryers experience strongest growth
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- Figure 14: Market segmentation for major domestic appliances, 2011-17
Channels to Market
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- Dixons Carphone moves towards building a membership scheme
- AO continues to grow
- Amazon lacks dominance in major appliances
- Sainsbury’s/Argos merger paying dividends
- A turbulent year in the DIY sector
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- Figure 15: Major domestic appliances, channels to market, 2017
Market Drivers
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- Spending on electricals is boosted by inflation
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- Figure 16: Percentage change in consumer spending on all electrical products, 2013-17
- Property transactions fall 1.1%
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- Figure 17: Residential property transactions over £40,000, UK, 2006-17
- Consumer confidence declines during 2017
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- Figure 18: Consumer confidence tracker, January 2015-February 2018
- Inflation puts a squeeze on incomes during 2017
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- Figure 19: Average weekly earnings versus CPI, January 2014-March 2018
- Electricity prices soar in 2017
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- Figure 20: Price of utilities and overall CPIH, monthly percentage change compared to a year earlier, February 2017-March 2018
- Increase in households should lead to growth
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- Figure 21: Household size, 2012-22
- 42% feel repairs make more sense when money is tight
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- Figure 22: Agreement with the following statement, by age, November 2017
- Retail credit increases 9% since 2016
Companies and Brands – What You Need to Know
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- Growing focus on smart and connected technology
- Introducing metal-backed appliances to allay safety concerns
- Washing machine saves time and energy
- Adspend declines 19.1% in 2017
- Samsung is the most trusted brand
Competitive Strategies
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- Introducing metal-backed appliances to allay safety fears
- LG introduces Google Home-compatible appliances
- Bosch integrates Amazon Alexa into Home Connect range
- Hoover launches advertising campaign for its smart appliances
- Haier focuses on reducing food wastage
- Bosch and Siemens appliances set to carry the Quiet Mark
- Candy launches Simply-Fi app in the UK
- Indesit unveils revamped website
- Stoves expands its Mini Range collection
Launch Activity and Innovation
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- Fridge that can sniff out food that has expired
- Sustainable fridge prototype
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- Figure 23: World’s first bioplastic concept fridge from Electrolux
- FridgeCam gives you a snapshot of what is in your fridge wherever you are
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- Figure 24: FridgeCam
- Washing machine saves time and energy
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- Figure 25: Samsung WW8800M washing machine
- A washing machine that folds clothes and an on-command mobile fridge
- Countertop dishwasher for small kitchens
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- Figure 26: Tetra countertop dishwasher
- Connected domestic appliances
- Whirlpool’s direct-to-the-consumer home delivery service
Advertising and Marketing Activity
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- Adspend declines 19.1% in 2017
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- Figure 27: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2013-17
- Bosch’s share of total sector advertising spend up 25 percentage points
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- Figure 28: Share of above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2017
- Bosch and Currys increase advertising spend in 2017
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- Figure 29: Above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by advertiser, 2013-17
- TV attracts the highest spend, but its share is declining as advertisers switch to digital
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- Figure 30: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by media type, 2017
- Advertising and marketing campaigns
- Bosch pushes technological innovations
- Currys Lowest Price campaign
- AO.com focusing on building brand awareness
- Beko partners with sports radio station talkSPORT
- 'Hoover, that's who' national advertising campaign
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 31: Attitudes towards and usage of selected brands, February 2018
- Key brand metrics
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- Figure 32: Key metrics for selected brands, February 2018
- Brand attitudes: Beko seen as a value-focused brand
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- Figure 33: Attitudes, by brand, February 2018
- Brand personality: Samsung portrays a fun image
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- Figure 34: Brand personality – macro image, February 2018
- Hotpoint seen as user-friendly and affordable
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- Figure 35: Brand personality – micro image, February 2018
- Brand analysis
- Samsung is the most recommended brand
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- Figure 36: User profile of Samsung, February 2018
- Bosch is viewed as innovative and reliable
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- Figure 37: User profile of Bosch, February 2018
- Hotpoint is an affordable yet trusted brand
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- Figure 38: User profile of Hotpoint, February 2018
- NEFF appeals to those with the time and money to indulge their passion
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- Figure 39: User profile of NEFF, February 2018
- Beko: the affordable choice
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- Figure 40: User profile of Beko, February 2018
- Zanussi struggles to stand out
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- Figure 41: User profile of Zanussi, February 2018
- Indesit struggles to deliver an excellent experience
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- Figure 42: User profile of Indesit, February 2018
The Consumer – What You Need to Know
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- Major domestic appliances are household essentials
- 64% bought a new appliance in the past three years
- Online more popular than in-store
- Breakdowns drive sales
- Retailer websites are the most popular source of information
- Price is the most important factor for 38% of buyers
Ownership of Major Domestic Appliances
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- Major appliances are household essentials
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- Figure 43: Ownership of major domestic appliances, February 2018
- Separate tumble dryers are most popular with families
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- Figure 44: Washer/dryer ownership, by presence of children, February 2018
- Built-in electric ovens the most popular cooking appliance
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- Figure 45: Ownership of cooking appliances, by age and affluence, February 2018
- Half of households own at least five major domestic appliances
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- Figure 46: Repertoire analysis of major domestic appliance ownership, February 2018
Purchasing of Major Domestic Appliances
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- Laundry appliances are most purchased
- Combined fridge-freezers dominate refrigeration sales
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- Figure 47: Purchases of major domestic appliances in the last three years, February 2018
- 37% purchased multiple appliances in the past three years
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- Figure 48: Repertoire analysis of major domestic appliances purchased in the past three years, February 2018
- Major domestic appliance purchased most recently
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- Figure 49: Major domestic appliance purchased most recently (net), February 2018
- Plans of non-purchasing owners
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- Figure 50: Plans for buying a new major domestic appliance, February 2018
How They Shopped
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- Over half purchased online
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- Figure 51: How they bought the major domestic appliance purchased most recently, February 2018
- Purchase channel differs by reason for making a purchase
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- Figure 52: How they shopped for major domestic appliances, by reasons for buying a new appliance, February 2018
- In-store shoppers prioritise design and ease of use
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- Figure 53: Relative difference in importance of factors, by how they shopped for major domestic appliances, February 2018
Reasons for Buying a Major Domestic Appliance
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- Replacements drive sales of major domestic appliances
- Consumers want efficient appliances
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- Figure 54: Reasons for buying a new major domestic appliance, February 2018
- Laundry appliance purchases most likely to be driven by breakdowns
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- Figure 55: Reasons for buying a new laundry appliance, compared to the average for all appliances, February 2018
- Parents seeking more capacity help refrigeration sales
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- Figure 56: Reasons for buying a refrigeration appliance, compared to the average for all appliances, February 2018
- Dishwasher purchases most likely to be driven by first-time purchases
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- Figure 57: Reasons for buying a new dishwasher, compared to the average for all appliances, February 2018
- Purchases of cooking appliances driven by room remodelling
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- Figure 58: Reasons for buying a new cooking appliance, compared to the average for all appliances, February 2018
Sources of Information Used
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- Retailer websites the main source of information
- The importance of user reviews
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- Figure 59: Sources of information used when researching which major domestic appliance to buy, February 2018
- Older shoppers continue to rely on in-store displays
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- Figure 60: Sources of information used when researching which major domestic appliance to buy, by age and socio-economic group, February 2018
- Those with safety concerns use most sources for research
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- Figure 61: Average number of sources used for research, by reasons for buying a major domestic appliance, February 2018
- Before buying people expect to use more sources of information
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- Figure 62: Sources of information expected to be used and actually used when deciding which major domestic appliance to purchase, February 2018
Important Factors in Deciding What to Buy
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- Distress purchases mean price is a critical factor for many
- Ease of use important for almost a third
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- Figure 63: Important factors in deciding which major domestic appliance to buy, February 2018
- Wealthy dads are most interested in innovative features
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- Figure 64: Important factors in deciding which major domestic appliance to buy, February 2018
- Capacity and design are important when buying refrigeration appliances
- Ease of use and design are most important for cooking appliances
- Innovative features most likely to sell a laundry appliances
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- Figure 65: Important factors in deciding what to purchase, by major domestic appliance purchased most recently, February 2018
- Running costs fall in importance during the purchase process
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- Figure 66: Difference in priorities between those who have purchased a major domestic appliance in the past three years, and those who haven’t, February 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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