Table of Contents
Executive Summary
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- The market
- Consumer spending on small domestic appliances rises by 7.5%...
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- Figure 1: Consumer spending on small domestic appliances, 2014-24
- Interest in health and wellbeing drives small kitchen and air treatment appliance sales
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- Figure 2: Estimated consumer spend on small domestic appliances, by segment, 2019
- Price deflation and wage growth buoy consumer confidence
- Online-only players consolidate, while multichannel integration grows crucial
- Companies and brands
- Space-saving solutions lead the way in innovation
- Advertising spend fell by 8.9% in 2018
- Consumers are happy to pay more for Bosch and Dyson appliances
- Morphy Richards should build on its strengths to revamp its brand
- The consumer
- Appliance ownership is near-universal
- Over two thirds of consumers made a purchase in the past year
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- Figure 3: Small domestic appliances purchased in the past 12 months, August 2019
- Price remains paramount in deciding purchases
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- Figure 4: Important factors when deciding what to buy, August 2019
- The majority of purchases are made online, but stores remain essential
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- Figure 5: How consumers bought their small domestic appliance, August 2019
- Amazon takes the crown as top retailer
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- Figure 6: Where they shop, August 2019
- The prioritisation of price and product range drive consumers online
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- Figure 7: Reasons for selecting retailer, August 2019
- The lack of space limits newer uptake
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- Figure 8: Use and purchase of small domestic appliances, August 2019
- Health-consciousness and tech advancements drive opportunities for future growth
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- Figure 9: Attitudes towards small domestic appliances, August 2019
- What we think
Issues and Insights
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- The opportunity for small domestic appliances in the burgeoning smart home market
- The facts
- The implications
- Increasingly cramped homes underpin the need for space-saving appliances
- The facts
- The implications
- How will consumer confidence fare in the year ahead?
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending rises by 7.5%...
- …but this is forecast to contract with uncertainty ahead
- Innovation and mounting interest in health drive sector sales
- Price deflation and wage growth boost new uptake
- Consumer confidence rises despite uncertainty
- Online-only players consolidate, while multichannel proves crucial
Market Size and Forecast
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- Price deflation and wage growth buoy new purchases amid uncertainty…
- …but uncertainty could intensify with the general election and new Brexit date
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- Figure 10: Consumer spending on small domestic appliances, 2014-24
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- Figure 11: Consumer spending on small domestic appliances, 2014-24
- Forecast methodology
Market Segmentation
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- Vacuum cleaner innovation drives sales
- Health-conscious consumers champion air fryers and air purifiers
- Coffee connoisseurs compensate for the contraction in capsules
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- Figure 12: Estimated consumer spend on small domestic appliances, by segment, 2019
- Figure 13: Estimated consumer spend on small domestic appliances, by segment, 2019
Market Drivers
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- The return of real wage growth
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- Figure 14: Great Britain average weekly earnings annual growth rate, total pay (real), May 2014-May 2019
- Inflation in the market has fallen since the turn of the year
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- Figure 15: Monthly CPIH, % growth on previous year, August 2018-August 2019
- Consumer confidence remains resilient despite uncertainty
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- Figure 16: Consumer confidence in the state of their finances and their finances compared to the previous year, January 2017-October 2019
- Consumers continue to take on credit
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- Figure 17: Monthly consumer credit gross lending (excluding student loans), August 2017-August 2019
- Housing transactions remain high despite recent cooldown
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- Figure 18: Number of residential housing transactions over £40,000, 2009-18
- The UK’s growing weight problem opens an opportunity for health aids in the kitchen
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- Figure 19: Consumers’ perceptions of the healthiness of their habits, August 2018
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- Figure 20: Trends in BMI, England, 1995-2017
- Connoisseurs drive demand for coffee appliances
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- Figure 21: Types of coffee drunk, June 2019
- Promotions and sales
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- Figure 22: Electrical items purchased during Black Friday 2017, by age, December 2017
- Small domestic appliances remain a popular gift option
Channels of Distribution
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- Online-only consolidates as the purchasing journey migrates online
- Argos and Currys lead the way in multichannel retail
- Department stores struggle amid high street uncertainty
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- Figure 23: Estimated channels of distribution, 2019
Companies and Brands – What You Need to Know
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- Space-saving solutions lead the way in innovation
- Advertising spend fell by 8.9% in 2018
- Consumers are happy to pay more for Bosch and Dyson appliances
- Morphy Richards should build on its strengths to revamp its brand
Launch Activity and Innovation
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- Never run out of coffee again
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- Figure 24: illy Y5 Espresso and Coffee Machine with integrated Amazon Dash Replenishment System, October 2019
- LG targets Artificial Intelligence with the ThinQ home appliance brand
- Heatworks launches a space-saving countertop dishwasher…
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- Figure 25: Heatworks Tetra, October 2019
- …and a battery-powered, temperature-controlling kettle
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- Figure 26: Heatworks Duo Carafe, October 2019
- Nespresso launches its smallest ever coffee machine
- Smart kettle integrates biometrics to make the perfect brew
- The ‘future of blending’
- Panasonic eyes up wellbeing in the kitchen
Advertising and Marketing Activity
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- 8.9% drop in advertising spend in 2018
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- Figure 27: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2015-2018
- Advertising spend peaks in Q4
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, Q1-Q4 2018
- Vacuum cleaner brands step up advertising amid growing competition
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- Figure 29: Top 10 spenders on above-the-line, online display and direct mail advertising on small domestic appliances, 2015-2018
- TV dominates total spend
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- Figure 30: Recorded above-the-line, online display and direct mail total advertising expenditure on small domestic appliances, by media type, 2015-2018
- Leaders favour TV, but adopt varied advertising strategies
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- Figure 31: Recorded above-the-line, online display and direct mail total advertising expenditure on small domestic appliances, by advertiser and media type, 2018
- Campaign highlights
- Gtech sings up with Channel 4 for Gogglebox sponsorship
- A work of art for worktops: Russell Hobbs launches new digital campaign
- ‘Cordless’ Dyson banned by the Advertising Standards Authority
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 32: Attitudes towards and usage of selected brands, October 2019
- Key brand metrics
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- Figure 33: Key metrics for selected brands, October 2019
- Brand attitudes: Dyson at the forefront of innovation
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- Figure 34: Attitudes, by brand, October 2019
- Brand personality: Kenwood and Russell Hobbs champion accessibility
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- Figure 35: Brand personality – Macro image, October 2019
- Morphy Richards could do with strengthening its brand image
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- Figure 36: Brand personality – Micro image, October 2019
- Brand analysis
- Consumers are happy to pay more for Bosch’s consistently high quality
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- Figure 37: User profile of Bosch, October 2019
- Kenwood’s accessible and affordable brand lends itself to younger shoppers
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- Figure 38: User profile of Kenwood, October 2019
- Russell Hobbs appeals to old and young shoppers alike
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- Figure 39: User profile of Russell Hobbs, October 2019
- Dyson championed by older, rural homeowners
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- Figure 40: User profile of Dyson, October 2019
- Morphy Richards lacks a point of difference, and struggles among younger consumers
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- Figure 41: User profile of Morphy Richards, October 2019
The Consumer – What You Need to Know
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- Appliance ownership is near-universal
- Over two thirds of consumers made a purchase in the past year
- Price remains paramount in deciding purchases
- The majority of purchases are made online, but stores remain essential
- Amazon takes the crown as top retailer
- The prioritisation of price and product range drive consumers online
- The lack of space limits newer uptake
- Health and tech advancements drive opportunities for future growth
Ownership of Small Domestic Appliances
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- Kettles and toasters dominate worktops
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- Figure 42: Ownership of small domestic appliances, August 2019
- Younger consumers look to less traditional appliances
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- Figure 43: Ownership of small domestic appliances, by age, August 2019
- Ownership peaks among settled dwellers
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- Figure 44: Ownership of small domestic appliances, by duration in dwelling, August 2019
- Ownership is widespread
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- Figure 45: Repertoire analysis of small domestic appliances ownership, August 2019
Purchases of Small Domestic Appliances
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- Two thirds of consumers purchased an appliance in the past year
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- Figure 46: Small domestic appliances purchased in the past 12 months, August 2019
- Younger consumers spearhead demand
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- Figure 47: Small domestic appliances purchased in the past 12 months, by age, August 2019
- However, vacuum cleaners top spending
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- Figure 48: Small domestic appliances that consumers spent the most on in the past 12 months, August 2019
Important Factors When Deciding What to Buy
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- Price remains king…
- …but the importance of functionality is evolving
- The need for style and brand grows among more affluent consumers
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- Figure 49: Important factors when deciding what to buy, August 2019
- Essential appliances spearhead the need for price
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- Figure 50: Important factors when deciding what to buy, by purchases in the last 12 months, August 2019
How Consumers Bought their Small Domestic Appliance
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- Online channels consolidate in purchasing journey
- The development of multichannel…
- …as stores remain essential for many
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- Figure 51: How consumers bought their small domestic appliance, August 2019
- Consumers increasingly confident of buying big-ticket products online
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- Figure 52: How consumers bought their small domestic appliance, by purchases, August 2019
Where They Shop
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- Amazon takes the top spot
- Argos holds strong despite takeover upheaval
- Currys dominates the specialists
- Supermarkets still account for a third of consumers
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- Figure 53: Where they shop, August 2019
- Many consumers still seek the assurance of stores in larger purchases
- Supermarkets remain the domain of cheaper purchases
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- Figure 54: Purchases in the last 12 months, by retailers purchased from, August 2019
- The majority of in-store shoppers stuck to one store
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- Figure 55: Repertoire analysis of where they shop in-store, August 2019
- Online shoppers were more likely to visit multiple retailers
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- Figure 56: Repertoire analysis of where they shop online, August 2019
Reasons for Selecting Retailer
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- The prioritisation of price and product range favour online retailers…
- …but retailers with stores benefit from trust and local presence
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- Figure 57: Reasons for selecting retailer, August 2019
Use and Purchase of Small Domestic Appliances
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- Daily appliance use is near-universal, but some products sit forgotten
- The lack of space is a growing concern
- Product reviews take centre stage as browsing migrates online
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- Figure 58: Use and purchase of small domestic appliances, August 2019
- New movers head to the sales
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- Figure 59: Use and purchase of small domestic appliances, by duration in home, August 2019
Attitudes towards Small Domestic Appliances
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- Consumers low on space spearhead the need for storage solutions
- Time-pressed consumers look to self-cleaning features
- Burgeoning interest in health and wellbeing is a major avenue for growth
- Over a third of younger consumers would be interested in rental
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- Figure 60: Attitudes towards small domestic appliances, August 2019
- The perceived need for in-store visits limited by location
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- Figure 61: Agreement with the statement 'It is necessary to visit a store when buying small domestic appliance purchases', by area, August 2019
- Older consumers remain sceptical of connected tech
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- Figure 62: Agreement with the statement 'Small domestic appliances with connected smart technologies are appealing', by age, August 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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