Washers and Dryers - US - August 2006

INTRODUCTION AND ABBREVIATIONS
Introduction
Definition
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Shipments and prices increase
Increasing numbers of homeowners
Growth in high-income households
Product development meets demand for enhanced features
“Whirltag” major force in supply structure
Half of all respondents want to buy American
Advertising focuses on brand
Sears maintains retail lead
Opportunity for private label appliances from retailers
Home moves trigger purchase
Machine failure most common reason to purchase
Majority won’t pay a premium for design
High-end features to trickle down to low-end product
Housing market to cool
Lessening of strong growth ahead
MARKET DRIVERS
Increase in the number of households and homeowners
Figure 1: Number of households, home ownership, and installed base of washers/dryers, 2001-05
Buying a home
Figure 2: Existing and new home sales (single-unit, privately owned homes), 1999-2006
Figure 3: Existing and new home sales (single-unit, privately owned homes), 1999-2006
Figure 4: 30-year conventional mortgage rates, 1971-2005
Household income
Reasons for purchase and factors in purchase decision
Distribution of households by income
Figure 5: Distribution of households, by income, 1999 and 2004
Figure 6: Change in # of households per income bracket, 1999-2004
Features
Energy-efficiency
Figure 7: Annual operating costs ($), 1994-2004
Consumers look for better design
Figure 8: Willingness to pay more for design-led product, June 2006
Quiet operation
Age of the U.S. population
Figure 9: Age composition of the U.S. population, 1990-2020
MARKET SIZE AND TRENDS
Introduction
Figure 10: Total U.S. manufacturer sales of washers and dryers, at current and constant prices, 2001-06
Figure 11: Graph: Total U.S. manufacturer sales of washers and dryers, at current prices, 2001-06
Figure 12: Total U.S. shipments of washers and dryers, 2001-06
“Hour-glass” sales as average prices rise
Figure 13: Average U.S. sales price for washers and dryers, at current prices, 2001-06
MARKET SEGMENTATION
Introduction
Figure 14: Total U.S. sales of laundry appliances, segmented by product type, 2004 and 2006
Figure 15: Graph: Total estimated U.S. sales of laundry appliances, segmented by product type, 2006
Figure 16: Total U.S. volume shipments of laundry appliances, segmented by product type, 2004 and 2006
Washing machines
Figure 17: Supplier sales of washing machines, at current and constant prices, 2001-06
Figure 18: Average supplier sales price for washing machines, at current and constant prices, 2001-06
Figure 19: Unit sales of washing machines, 2001-06
Dryers
Figure 20: Supplier sales of dryers, at current and constant prices, 2001-06
Figure 21: Average supplier sales price for washing machines, at current and constant prices, 2001-06
Figure 22: Unit sales of dryers, 2001-06
SUPPLY STRUCTURE
Introduction
Brand ownership
Figure 23: Brand of washer/dryer owned by respondents, June 2006
Figure 24: Graph: Brand of washer/dryer owned, June 2006
Figure 25: Purchased same brand when replacing washer/dryer, by age, June 2006
 COMPANY PROFILES
Whirlpool Corporation (Whirlpool, Maytag, Roper)
Sears Holdings Corp (Kenmore)
GE Consumer & Industrial
Electrolux Home Products North America (Frigidaire)
LG Electronics USA Inc
Samsung Electronics Co
Haier America
ADVERTISING AND PROMOTION
Introduction
Figure 26: Adspend and sales, 2005
Figure 27: Graph: Adspend, 2005
Whirlpool
Figure 28: Maytag TV Spot, Neptune/Pacific sales, 2006
Figure 29: Whirlpool TV Spot, Penguins, 2006
Sears/Kenmore
GE
Electrolux/Frigidaire
LG Electronics USA
Figure 30: LG TV Spot, SteamWash, 2006
RETAIL DISTRIBUTION
Introduction
Choice of retailer
Figure 31: Where washer/dryer was purchased in the last 24 months, June 2006
Figure 32: Graph: Where washer/dryer was purchased in the last 24 months, June 2006
Attitudes towards brands available through major retailers
Figure 33: Any brand offered by a major retailer will offer the same quality and reliability, June 2006
After-sale services
Figure 34: Purchase of after-sale services, June 2006
Mintel’s retail store audits
Impressions of the laundry appliance department
Figure 35: Retail auditor’s comments on what made washer/dryer display unique, July 2006
Merchandise sold with/next to washers and dryers
Brands, pricing and product selection
Figure 36: Washer/dryer brands carried by select retailers, July 2006
Figure 37: Range of prices for washers/dryers, by retailer, July 2006
Promotions
Figure 38: Promotional activity by retailers, July 2006
THE CONSUMER
Introduction
Summary
Reason for purchase
Factors in purchase
Home ownership, purchase and remodeling
Age
Household income
Household size and marital status
Race/Hispanic origin
Ownership of appliances
Figure 39: Ownership of laundry appliances, by age, January-September 2005
Figure 40: Ownership of laundry appliances, by household income, January-September 2005
Figure 41: Ownership of laundry appliances, by home ownership, recent remodeling and purchase of new home, January-September 2005
Figure 42: Ownership of laundry appliances, by marital status, January-September 2005
Recent purchase of appliances
Figure 43: Purchase of laundry appliances in the last 12 months, by home ownership, recent remodeling and purchase of new home, January-September 2005
Home remodeling
Figure 44: Home remodeling in the last 12 months, by household income, January-September 2005
Price paid for washers and dryers
Figure 45: Price paid for laundry appliances purchased in the last 24 months, washers and dryers, June 2006
Figure 46: Price paid for washing machine purchased in the last 24 months, by select demographics, June 2006
Reason for purchase
Figure 47: Reason for purchase of washing machine in the last 24 months, by age, June 2006
Figure 48: Reason for purchase of washing machine in the last 24 months, by household income, June 2006
Factors influencing washer purchase
Figure 49: Factors affecting decision to purchase washer, by household income, June 2006
Attitudes towards laundry appliance appearance
Figure 50: Attitudes towards appearance of laundry appliances, by age, June 2006
Figure 51: Attitudes towards appearance of laundry appliances, by number of people in household, June 2006
Attitudes toward appliance noise
Figure 52: Attitudes towards quiet-operating laundry appliances, by household income, June 2006
Attitudes toward features
Figure 53: Attitudes towards front-loading/complex washing machines, by age, June 2006
Figure 54: Attitudes towards front-loading/complex laundry appliances, by household income, June 2006
Figure 55: Attitudes towards front-loading/complex laundry appliances, by number of people in household, June 2006
Willingness to pay more for energy-efficiency
Figure 56: Not worth paying extra for energy-efficient laundry appliances, by age, June 2006
Checking length of warranties
Figure 57: Check length of manufacturer’s warranty/extended warranty is valuable, by age, June 2006
Figure 58: Check length of manufacturer’s warranty/extended warranty is valuable, by household income, June 2006
Figure 59: Check length of manufacturer’s warranty/extended warranty is valuable, by number of people in household, June 2006
Attitudes towards replacing laundry appliances
Figure 60: Have replaced washer/dryer at least once/would replace if I had more money, by age, June 2006
Figure 61: Have replaced washer/dryer at least once/would replace if I had more money, by presence of children under 18, June 2006
Buying pairs of appliances
Figure 62: Have replaced washer and dryer when one machine broke, by age, June 2006
Figure 63: Have replaced washer and dryer when one machine broke, by household income, June 2006
Who plans to replace their washer/dryer in the next year, and why?
Figure 64: Planning to replace washer or dryer in the next year, by age, household income, and presence of children, June 2006
Figure 65: Reason for planning to replace washer or dryer in the next year, by age and household income, June 2006
Figure 66: Reason for planning to replace washer or dryer in the next year, by presence of children, June 2006
 THE IMPACT OF RACE/ETHNICITY
Figure 67: Ownership of laundry appliances, by race/Hispanic origin, January-September 2005
Figure 68: Attitudes towards appearance of laundry appliances, by race and Hispanic origin, June 2006
Figure 69: Attitudes towards front-loading/complex washing machines, by race and Hispanic origin, June 2006
Figure 70: Check length of manufacturer’s warranty/extended warranty is valuable, by race and Hispanic origin, June 2006
Figure 71: Planning to replace washer or dryer in the next year, by race and Hispanic origin, June 2006
FUTURE AND FORECAST
 FUTURE TRENDS
Continued growth in the number of households and new homes
Housing market cools
Figure 72: Forecast of total U.S. sales of new and existing homes, 2005-10
Home ownership rates will continue to increase
Figure 73: Home ownership rates, by race/ethnicity (percentage), 2000 and 2010
Smaller appliances for smaller households
Figure 74: Households, by size, 1995-2005
Figure 75: Graph: Households, by size, change from 1995-2005
Continued focus on design
Front-loading future
Quiet-operating washers/dryers soar
Energy-efficient machines become the norm
Simpler interfaces to emerge
Steam cleaners to gain popularity
 MARKET FORECAST
Washers and dryers
Figure 76: Forecast of total U.S. manufacturer sales of washers and dryers, at current and constant prices, 2006-11
Figure 77: Forecast of total U.S. manufacturer sales of washers and dryers, at current prices, 2006-11
Washers
Figure 78: Forecast of U.S. manufacturer sales of washers, at current and constant prices, 2006-11
Dryers
Figure 79: Forecast of U.S. manufacturer sales of dryers, at current and constant prices, 2006-11
Forecast factors
APPENDIX: TRADE ASSOCIATIONS