Table of Contents
Executive Summary
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- The market
- Market growth stagnates
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- Figure 1: Consumer spending on major domestic appliances, 2013-23
- A fragmented market
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- Figure 2: Estimated market segmentation for major domestic appliances, 2018
- Specialists maintain share but online specialists grow
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- Figure 3: Channels of distribution, 2014-18
- Housing market slows in 2018
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- Figure 4: Annual change in the number of residential housing transactions of £40,000, 2009-18
- Companies and brands
- Using technology to tackle food waste
- Appliances at the centre of the smart home
- Advanced induction hob
- Waterless washing machine
- Advertising spend down 32% year-on-year in 2018
- The Consumer
- 70% of households bought a major appliance in the last 3 years
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- Figure 5: What they bought, February 2019
- Breakdowns trigger the majority of purchases
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- Figure 6: Triggers to purchase, February 2019
- Hotpoint the most popular brand of appliance
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- Figure 7: Brand of appliance bought most recently, February 2019
- Style and reputation drive brand choice
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- Figure 8: Reasons for choosing major domestic appliance brand, February 2019
- Hotpoint and Bosch the most considered alternative brands
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- Figure 9: Other brands considered when buying a major domestic appliance, February 2019
- Majority of purchase decisions take less than a week
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- Figure 10: Length of time to purchase, February 2019
- Practical innovations hold greatest appeal
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- Figure 11: Interest in innovations, February 2019
- What we think
Issues and Insights
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- What a slowing housing market means
- The facts
- The implications
- Breaking out from distress buying
- The facts
- The implications
- Pre-empting ‘right-to-repair’
- The facts
- The implications
The Market – What You Need to Know
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- Market growth stagnates
- A fragmented market
- Specialists maintain share but shifting online
- Housing market slows in 2018
- EU consults on Ecodesign Directive
Market Size and Forecast
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- Market stagnates as uncertainty grows
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- Figure 12: Consumer spending on major domestic appliances, 2013-23
- Figure 13: Consumer spending on major domestic appliances, 2013-23
- Forecast methodology
Market Segmentation
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- Cooling accounts for 34% of the market
- Separate laundry appliances preferred
- Cooking segment more reliant on home moves
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- Figure 14: Estimated market segmentation for major domestic appliances, 2018
Channels to Market
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- Online specialists have been growing share
- Tesco stops selling appliances
- Troubled DIY sector loses share
- IKEA making a play for greater share of kitchen market
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- Figure 15: Channels to market, 2014-18
Market Drivers
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- Housing market slows in 2018
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- Figure 16: Residential housing transactions over £40,000, 2009-18
- Home appliance prices increase faster than topline inflation
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- Figure 17: Annual rate of inflation, 2012-18
- Spending on kitchens continues to grow
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- Figure 18: Consumer spending on kitchens, 2013-23
- 47% buy white goods on credit
- Ownership of smart home devices remains low
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- Figure 19: Interest and ownership in smart home devices, April 2018
- Right to Repair
Companies and Brands – What You Need to Know
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- Using technology to tackle food waste
- Appliances at the centre of the smart home
- Advanced induction hob
- Waterless washing machine
- Advertising spend down 32% year-on-year in 2018
Competitive Strategies
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- Tackling food waste
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- Figure 20: Beko FreshMark on display at the IFA event in Berlin, October 2018
- Appliances as a hub of the smart home
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- Figure 21: The Samsung family hub, January 2019
- Multi-tasking appliances
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- Figure 22: LG TWINWash, September 2018
- Figure 23: Samsung dual cook, February 2019
- Hooking into a household care eco-system
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- Figure 24: Sharp laundry appliances with Amazon Dash replenishment feature, October 2018
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- Figure 25: Miele twindos system
- White goods that are anything but white
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- Figure 26: Bosch fridge freezers, October 2018
- Figure 27: Liebherr fridge freezers, October 2018
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- Figure 28: Liebherr personalised fridge collection, October 2018
Launch Activity and Innovation
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- Refrigeration
- No frost technology means no more manual defrosting
- Combating food waste
- Home inverter and solar energy-powered refrigerator
- Cookers and ovens
- Oven designed to cook and preserve hot food
- Advanced induction hob
- Washing machines
- Foot powered washing machine
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- Figure 29: Drumi
- Waterless washing machine
- Dishwashers
- ‘Extra Baby Care’ dishwasher
- Connected major domestic appliances
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- Figure 30: Tovala Smart Oven
Advertising and Marketing Activity
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- Advertising spend down 32% year-on-year in 2018
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- Figure 31: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2014-18
- Three brands account for 70% of total sector advertising spend
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- Figure 32: Share of total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2018
- Samsung, Indesit and Hoover Candy all increase advertising spend in 2018
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- Figure 33: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by advertiser, 2014-18
- TV attracts 54% of total sector advertising expenditure in 2018
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- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by media type, 2018
- Advertising and marketing campaigns
- 70% of Samsung advertising budget used to push QuickDrive washing machine
- Indesit #doittogether campaign
- Hotpoint pushes refrigeration technologies that can keep food fresh for longer
- Hoover outdoor advertising campaign which changes with the weather
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 35: Attitudes towards and usage of selected brands, January 2019
- Key brand metrics
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- Figure 36: Key metrics for selected brands, January 2019
- Brand attitudes: Bosch delivers consistent quality
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- Figure 37: Attitudes, by brand, January 2019
- Brand personality: Samsung projects a ‘fun’ image
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- Figure 38: Brand personality – macro image, January 2019
- Hotpoint is affordable, user-friendly and reliable
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- Figure 39: Brand personality – micro image, January 2019
- Brand analysis
- Bosch is a trusted source of innovation and quality
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- Figure 40: User profile of Bosch, January 2019
- Samsung the most trusted brand
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- Figure 41: User profile of Samsung, January 2019
- Hotpoint is the most trusted of the value brands
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- Figure 42: User profile of Hotpoint, January 2019
- Miele offers a prestigious and exclusive experience
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- Figure 43: User profile of Miele, January 2019
- Indesit struggles to deliver an excellent experience
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- Figure 44: User profile of Indesit, January 2019
- Beko is a value-oriented brand lacking differentiation
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- Figure 45: User profile of Beko, January 2019
- Siemens lacks trust
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- Figure 46: User profile of Siemens, January 2019
The Consumer – What You Need to Know
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- 70% of households bought a major appliance in the last 3 years
- Breakdowns trigger majority of purchases
- Hotpoint the most popular brand of appliance
- Style and reputation drive brand decisions
- Hotpoint and Bosch the most considered alternative brands
- Majority of purchase decisions take less than a week
- Practical innovations hold greatest appeal
- But smart innovations divide the crowd
What They Buy
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- 70% of households bought an appliance in the last three years
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- Figure 47: What they bought, February 2019
- 16-44s buy the most appliances
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- Figure 48: What they bought, by age group, February 2019
- 44% bought more than one appliance in the last three years
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- Figure 49: Repertoire analysis of appliances purchased in the last three years, February 2019
Triggers to Purchase
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- Breakdowns trigger majority of purchases
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- Figure 50: What they bought, February 2019
- Breakdowns drive laundry purchases
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- Figure 51: Triggers to purchase, laundry appliance purchasers compared to the average, February 2019
- Capacity is important in cooling
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- Figure 52: Triggers to purchase, Cooling appliance purchasers compared to the average, February 2019
- First time buyers drive dishwasher sales
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- Figure 53: Triggers to purchase, dishwasher purchasers compared to the average, February 2019
- House moves trigger cooker purchases
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- Figure 54: Triggers to purchase, cooking appliance purchasers compared to the average, February 2019
Brand of Appliance Purchased
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- Hotpoint hits the mass-market sweet spot
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- Figure 55: Brand of laundry appliance bought in the last three years, February 2019
- Hotpoint the most popular for laundry purchases
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- Figure 56: Brand of laundry appliance bought in the last three years, February 2019
- Beko takes top spot for cooling
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- Figure 57: Brand of cooling appliance bought in the last three years, February 2019
- Bosch preferred for dishwashers
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- Figure 58: Brand of dishwasher bought in the last three years, February 2019
- Samsung buyers triggered by upgrading features
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- Figure 59: Main triggers to purchase, by brand of appliance purchased, February 2019
Reasons for Choosing Appliance Brand
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- Design and brand reputation are key
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- Figure 60: Reasons for choosing major domestic appliance brand, February 2019
- Hotpoint trades off its reputation
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- Figure 61: Reasons for choosing a Hotpoint major domestic appliance, February 2019
- Reputation drives Bosch sales
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- Figure 62: Reasons for choosing a Bosch major domestic appliance, February 2019
- Beko appeals on price
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- Figure 63: Reasons for choosing a Beko major domestic appliance, February 2019
- Samsung stands out on style
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- Figure 64: Reasons for choosing a Samsung major domestic appliance, February 2019
- Brand reputation is most important for laundry and cooling
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- Figure 65: Reasons for choosing a major domestic appliance brand, by type of appliance purchased, February 2019
Other Brands Considered
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- Hotpoint and Bosch the most likely alternative brands
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- Figure 66: Other brands considered when buying a major domestic appliance, February 2019
- A decision between Indesit and Hotpoint
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- Figure 67: Other brands considered, by brand of major appliance bought most recently, February 2019
- Samsung buyers consider the most brands before buying
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- Figure 68: Other brands considered, by brand of major appliance bought most recently, February 2019
- 25-34-year-olds are most likely to consider multiple brands
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- Figure 69: Repertoire analysis of other brands considered, by age group, February 2019
Length of Time to Purchase
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- Majority of purchases take less than a week
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- Figure 70: Length of time to purchase, February 2019
- Cooking appliances take more thought
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- Figure 71: Length of time to purchase, by type of appliance purchased, February 2019
- Breakdowns demand fast decisions
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- Figure 72: Triggers to purchase, by length of time to purchase, February 2019
- Hotpoint buyers make the fastest decisions
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- Figure 73: Triggers to purchase, by length of time to purchase, February 2019
- Young people take longer over purchase decisions
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- Figure 74: Length of time to purchase, by age, February 2019
Interest in Innovations
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- Practical innovations offer greatest appeal
- Redesigning appliances for a longer life
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- Figure 75: Interest in innovations, February 2019
- Limited willingness to pay for intelligent innovations
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- Figure 76: Interest in innovations, February 2019
- Samsung buyers most willing to pay for innovations
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- Figure 77: Samsung buyers’ willingness to pay for innovations, compared to all major domestic appliance buyers, February 2019
- Bosch buyers are more interested in practical innovations
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- Figure 78: Bosch buyers’ willingness to pay for innovations, compared to all major domestic appliance buyers, February 2019
- Young and affluent most willing to pay for innovations
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- Figure 79: Willingness to pay for innovations, by average age and socio-economic group, February 2019
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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