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Small Domestic Appliances: Inc Impact of COVID-19 - UK - December 2020

OVERVIEW
Key issues covered in this Report
COVID-19: market context
Impact of the January lockdown and the vaccination rollout
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Continued growth despite COVID-19 disruption
Figure 1: Short, medium and long-term impact of COVID-19 on small domestic appliances, 6 January 2020
The market
Market size and forecast
Figure 2: Consumer spending on small domestic appliances, 2015-25
Post-Brexit trade could see some initial disruptions despite deal
Fans/heaters, food preparation and hot beverage appliances grow amid disruption
Figure 3: Estimated consumer spend on small domestic appliances, by segment, 2020
The growth of online-only operators raises questions for the future
Figure 4: Estimated channels of distribution, 2020
Companies and brands
Multichannel retailers innovate to bridge the gap between online and in-store
COVID-19 triggers a wave of air purifier innovation
Dyson and Bosch stand out at the top of the market
The consumer
COVID-19 has seen a fundamental shift in shopping behaviours
Figure 5: Changes to shopping behaviour, 8-16 December 2020
A nation of appliance lovers
Figure 6: Ownership of small domestic appliances, September 2020
Purchases hold as demand polarises
Figure 7: Small domestic appliance purchases in the last 12 months, September 2019 and 2020
Store browsing contracts with COVID-19
Figure 8: Browsing channel, September 2020
A year of unprecedented growth in online purchasing
Figure 9: Channel of purchase, September 2020
Online-only retailers steal a march in 2020
Figure 10: Retailers used for purchasing small domestic appliances in the last 12 months, 2019 and 2020
Space remains a major obstacle, but there remain overarching opportunities
Figure 11: Consumer attitudes towards small domestic appliances, September 2020
Extended periods inside and a renewed focus on health opens up new opportunities
Figure 12: Small domestic appliance shopping and COVID-19, September 2020
ISSUES AND INSIGHTS
The short-term impact from COVID-19
The longer-term impact from COVID-19
Appliance opportunities as health and wellbeing are bought into the home
THE MARKET – KEY TAKEAWAYS
Although slowed by COVID-19, spending is set to grow in 2020
Uncertainty will polarise demand in the market
The growth of online-only operators raises questions for the future
MARKET SIZE AND FORECAST
Continued growth despite COVID-19 disruption
Figure 13: Short, medium and long-term impact of COVID-19 on small domestic appliances, 6 January 2020
Although slowed by COVID-19, spending is set to grow in 2020
High online penetration eased initial disruption
Immediate opportunities amid extended periods inside
A polarisation of demand
Before steadily recovering speed from 2021
New opportunities moving forwards
COVID-19 will continue to polarise demand
Post-Brexit trade could see some initial disruptions despite deal
Figure 14: Consumer spending on small domestic appliances, 2015-25
Figure 15: Consumer spending on small domestic appliances, 2015-25
Market drivers and assumptions
Figure 17: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared 15 December 2020)
Learnings from the last recession
Figure 17: Consumer spending on small kitchen appliances, 2008-12
Forecast methodology
MARKET SEGMENTATION
Food preparation gains from the rise in cooking
Hot beverages and fans/heaters grow share 
Vacuum cleaners spending tops £1 billion
Figure 18: Estimated consumer spend on small domestic appliances, by segment, 2020
Figure 19: Estimated consumer spend on small domestic appliances, by segment, 2020
CHANNELS OF DISTRIBUTION
Online pure players accelerate growth
Electrical specialists hold their own
Argos slips slightly but remains a favourite
Supermarkets come to the fore for essential purchases
Mixed goods fall as department stores falter
Figure 20: Estimated channels of distribution, 2020
MARKET DRIVERS
The impact of the January 2021 lockdown
House moves stutter in mid-2020 with COVID-19
Figure 21: Monthly UK residential property transactions, January 2018-October 2020
Before recovering, aided by the temporary stamp duty holiday
Inflation holds stable, with the exception of coffee machines
Figure 22: Monthly CPIH, % growth on previous year, October 2019-20
Home cooking and baking surges with restrictions
Figure 23: Changes to home cooking, 26 March-16 April 2020
COVID-19 lockdown boosts demand for coffee systems
Christmas will be important, but disruption remains
Figure 24: What consumers give as Christmas gifts, December 2018, 2019 and 2020
Figure 25: Christmas spending intentions, October 2020
Uptake of credit falls amid uncertainty
Figure 26: Consumer credit excluding student loans, January 2018-October 2020
The UK agrees a late post-Brexit trade deal
COMPANIES AND BRANDS – KEY TAKEAWAYS
COVID-19 triggers a wave of air purifier innovation
Multichannel retailers innovate to bridge the gap online and in-store
Dyson and Bosch stand out at the top of the market
LAUNCH ACTIVITY AND INNOVATION
Currys PC World rolls out ShopLive
Figure 27: Dixons Carphone, ShopLive, May 2020
COVID-19 triggers a wave of air purifier innovation
LG launches a wearable air purifier
Figure 28: LG PuriCare Wearable, September 2020
Texas-based group launches a portable, ‘smart’ air purifier
Figure 29: Airpool Smart Reindeer (portable), December 2020
AirTherapy: an air purifier using UV light technology
Amazon introduces the ‘Smart Oven’
Figure 30: Amazon Smart Oven, September 2019
Glowstone heated smart mugs
ADVERTISING AND MARKETING ACTIVITY
Adspend up 3.9% in 2019
Figure 31: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2016-20
Gtech leads the market in 2019
Figure 32: Top 12 spenders on above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2016-20
TV dominates advertising
Figure 33: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, by media type, 2016-20
Leaders favour TV, but strategies vary
Figure 34: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, by advertiser & media type, 2020
A significant focus on cordless vacuums
Gtech champions its AirRam cordless vacuum cleaner
Vax advertises new Blade Range
Dyson emphasises its relentless innovation
Nielsen Ad Intel coverage
BRAND RESEARCH
Dyson and Bosch stand out at the top
Figure 35: Attitudes towards and usage of selected brands, December 2020
Key brand metrics
Figure 36: Key metrics for selected brands, December 2020
Brand attitudes: Dyson stands out as the key innovator
Figure 37: Attitudes, by brand, December 2020
Brand personality: consumers turn to Russell Hobbs, Tefal and Breville for accessibility and value
Figure 38: Brand personality – Macro image, December 2020
Bosch is deemed a prestigious label
Figure 39: Brand personality – Micro image, December 2020
Brand analysis
Bosch makes a name for itself at the high-end of the market
Figure 40: User profile of Bosch, December 2020
Russell Hobbs a favourite entry-point at the lower end of the market
Figure 41: User profile of Russell Hobbs, December 2020
Dyson a cutting-edge, favourite brand
Figure 42: User profile of Dyson, December 2020
Tefal is good value and reliable, but lacks a stand-out quality
Figure 43: User profile of Tefal, December 2020
Breville offers good-value, but is deemed basic and outdated
Figure 44: User profile of Breville, December 2020
THE CONSUMER – KEY TAKEAWAYS
A renewed COVID-19 anxiety due to further lockdowns
Purchases hold in a mixed year for small domestic appliances
Opportunities lie ahead
Online channel consolidates across the total purchasing journey
Online pure players extend their lead at the top
IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Concern has spiked as cases return
Figure 45: Extremely worried about exposure to COVID-19/coronavirus, 24 September-16 December 2020
A fundamental change in shopping behaviour
Older consumers lead the shift in behaviour
Figure 46: Changes in shopping behaviour, by age, 24 September-16 December 2020
22% of consumers are spending less on the home…
Figure 47: Planned spend on home products in the coming month, 8-16 December
…but 14% are spending more
The sector could be buoyed by redirected spending
Figure 48: Consumers who expect to spend more on sector over the next month, 8-16 December
OWNERSHIP OF SMALL DOMESTIC APPLIANCES
A nation of appliance lovers
Figure 49: Ownership of small domestic appliances, September 2020
Coffee machines, juicers and blenders ownership peaks among younger, more affluent consumers
But this ownership could grow in the next year
Figure 50: Ownership of small domestic appliances, by age and socio-economic group, September 2020
Three quarters of consumers own five or more appliances
Figure 51: Repertoire of ownership of small domestic appliances, September 2020
PURCHASES OF SMALL DOMESTIC APPLIANCES
Two thirds made a purchase in the past year
Figure 52: Small domestic appliance purchases in the last 12 months, September 2019 and 2020
36% purchase more than one appliance
Figure 53: Repertoire analysis of purchases, September 2020
Younger consumers drive new purchasing
Figure 54: Small domestic appliance purchases in the last 12 months, by age band, September 2020
Disruption has polarised demand
But also opened new opportunities
Figure 55: Purchases, by employment, September 2020
Kettles and vacuums top spending levels
Figure 56: Small domestic appliances spent most on, September 2020
HOW THEY BROWSED 
Online dominates the total purchasing process
Laptops top browsing, but smartphone use is on the up
Figure 57: Browsing channel, September 2020
Older consumers more likely to browse in-store
Figure 58: Browsing channel, by age band, September 2020
CHANNELS OF PURCHASE
A year of unprecedented online growth
Figure 59: Channel of purchase, September 2020
Net long term benefit for the online channel
Disruption sees a surge in mobile purchasing
Figure 60: Purchases by smartphone, by age, September 2020
Four in 10 consumers used multiple means of purchasing
Figure 61: Repertoire of channel of purchase, September 2020
RETAILERS USED
Online-only retailers top spending in the past year
Figure 62: Retailers used for purchasing small domestic appliances, 2019 and 2020
Younger consumers favour online pure players
Figure 63: Retailers used for purchasing small domestic appliances, by age and socio-economic group, September 2020
Amazon extends its lead as the top retailer
Figure 64: Retailers used for purchasing small domestic appliances, 2019 and 2020
Online pure players lead in every product category
Figure 65: Retailers used, by purchases, September 2020
Four in 10 consumers shopped around
Figure 66: Repertoire of retailers used, 2020
ATTITUDES IN THE SMALL DOMESTIC APPLIANCES MARKET
Space is a major issue for appliance ownership
Many consumers still value the store experience
Figure 67: Consumer attitudes towards small domestic appliances, September 2020
Two newer avenues for growth in appliances
Figure 68: Agreement with ‘sustainable domestic appliances are appealing’, by household income, September 2020
Figure 69: Agreement with ‘small domestic appliances with connected smart technologies are appealing’, by age band, September 2020
SMALL DOMESTIC APPLIANCES AND COVID-19
Extended periods inside open up new opportunities
Figure 70: Small domestic appliance shopping and COVID-19, September 2020
COVID-19 sees a renewed focus on health
Figure 71: Agreement with ‘I am more interested in health-boosting small domestic appliances now than before the outbreak’, by purchases, September 2020
A quarter of consumers turn to credit
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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