Bed and Bath Linens - US - January 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total U.S. retail sales and fan chart forecast of bed and bath linens, at current prices, 2007-17
Market factors
Shaky consumer confidence has made price more important to consumers
Figure 2: University of Michigan’s index of consumer sentiment (ICS), 2007-12
Commodity prices affect market
Figure 3: Cotton futures prices, December 2011-November 2012
Sleep problems becoming more prevalent among adults
Retail channels
Figure 4: Share of U.S. retail sales of bed and bath linens, by channel, at current prices, 2010 and 2012
The bed and bath linens consumer
Sheets/pillowcases and towels command highest purchase incidence
Figure 5: Purchased bedding, bath, and linens in the last 12 months, April 2011-June 2012
Replacement main reason consumer make purchases this category
Figure 6: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), October 2012
Figure 7: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), October 2012
Mass merchandisers, department stores, and specialty stores most commonly visited
Figure 8: Purchase locations for bed and bath linens, October 2012
Cost is key purchase factor
Figure 9: Factors in purchasing bed and bath linens, October 2012
In-store displays function as main source of selection inspiration for many consumers
Figure 10: Sources of inspiration for selecting bed and bath linens, October 2012
What we think
INSIGHTS AND OPPORTUNITIES
Focus on helping consumers to get a good night’s sleep
Bedding items that help consumers accelerate recovery from sickness
ISSUES IN THE MARKET
Are there ways for bed and bath linen retailers and manufacturers to overcome price being one of the main purchase factors?
How can market players increase purchase occasions when replacement is currently the leading reason for purchase?
How can retailers enhance the current bed and bath linen shopping experience to drive increased purchase frequency?
TREND APPLICATIONS
Trend: Premiumization and Indulgence
Trend: Perfecting the Details
2015 Trend: Old Gold
MARKET SIZE AND FORECAST
Key points
Bed and bath linen sales expected to grow steadily in the coming years
Sales and forecast of bed and bath linens market
Figure 11: Total U.S. retail sales and forecast of bed and bath linens market, at current prices, 2007-17
Figure 12: Total U.S. retail sales and forecast of bed and bath linens market, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 13: Total U.S. retail sales and fan chart forecast of bed and bath linens, at current prices, 2007-17
MARKET DRIVERS
Key points
Shaky consumer confidence leads to more value focused consumers
Figure 14: University of Michigan’s index of consumer sentiment (ICS), 2007-12
Fluctuations in cotton prices impact the market
Figure 15: Cotton futures prices, December 2011-November 2012
Sleep problems becoming more prevalent among adults
SEGMENT PERFORMANCE
Key points
Market evenly divided among segments
Sales of bed and bath linens, by segment
Figure 16: Total U.S. retail sales of bed and bath linens, by segment, at current prices, 2010 and 2012
SEGMENT PERFORMANCE—BATH LINENS
Key points
Bath linens have overtaken top-of-bed items as the leading segment
Sales and forecast of bath linens
Figure 17: Total U.S. retail sales and forecast of bath linens, at current prices, 2007-17
SEGMENT PERFORMANCE—TOP-OF-BED ITEMS
Key points
Top-of-bed segment growing steadily
Sales and forecast of top-of-bed items
Figure 18: Total U.S. retail sales and forecast of top-of-bed items, at current prices, 2007-17
SEGMENT PERFORMANCE—SHEETS AND PILLOWCASES
Key points
Though recession caused declines, strong growth expected in the coming years
Sales and forecast of sheets and pillowcases
Figure 19: Total U.S. retail sales and forecast of sheets and pillowcases, at current prices, 2007-17
SEGMENT PERFORMANCE—UTILITY BEDDING
Key points
Utility bedding segment growing but will become product segment
Sales and forecast of utility bedding
Figure 20: Total U.S. retail sales and forecast of utility bedding, at current prices, 2007-17
RETAIL CHANNELS
Key points
Mass merchandisers and club stores command most purchases
Sales of bed and bath linens, by channel
Figure 21: U.S. retail sales of bed and bath linens, by channel, 2010 and 2012
RETAIL CHANNELS—SUPERCENTERS, WAREHOUSE CLUBS, AND MASS MERCHANDISERS
Key points
Majority of sales taking place in supercenters, warehouse club stores, and mass merchandisers
Supercenter and warehouse club sales of bed and bath linens
Figure 22: U.S. supercenter and warehouse club sales of bed and bath linens, at current prices, 2007-12
RETAIL CHANNELS—DEPARTMENT STORES
Key points
Department stores experienced significant decline during the recession but are starting to see growth
Department store sales of bed and bath linens
Figure 23: U.S. department store sales of bed and bath linens, at current prices, 2007-12
RETAIL CHANNELS—HOUSEWARES AND HOME FURNISHING STORES
Key points
Housewares/home furnishing stores see slight growth in the last year
Housewares and home furnishing store sales of bed and bath linens
Figure 24: U.S. housewares and home furnishing stores sales of bed and bath linens, at current prices, 2007-12
RETAIL CHANNELS—OTHER RETAIL CHANNELS
Key points
Other retail channel sales of bed and bath linens
Figure 25: U.S. sales of bed and bath linens, through other channels, at current prices, 2007-12
LEADING SUPPLIERS
Overview
Alok Industries
Welspun
WestPoint Home
INNOVATIONS AND INNOVATORS
Overview
Linen sprays refresh linens and enhance experience
Pillows with enhanced benefits
MARKETING STRATEGIES
Overview of the retailing landscape
Retailer analysis: Macy’s
Figure 26: Retailer analysis of Macy’s, 2013
Online initiatives
TV presence
Figure 27: Macy’s television ad, 2012
Retailer analysis: Bed Bath & Beyond
Figure 28: Retailer analysis of Bed Bath & Beyond, 2013
Online initiatives
Print and other
Figure 29: Bed Bath & Beyond coupon, 2012
Retailer analysis: Target
Figure 30: Retailer analysis of Target, 2013
Online initiatives
Figure 31: Target website, 2013
PURCHASE INCIDENCE OF BED AND BATH LINENS
Key points
Sheets/pillowcases and towels command highest purchase incidence
Figure 32: Purchased bedding, bath, and linens in the last 12 months, by household income, April 2011-June 2012
Figure 33: Purchased bedding, bath and linens in the last 12 months, by age, April 2011-June 2012
Purchase incidence has decreased only slightly in recent years
Figure 34: Purchased bedding, bath and linens in the last 12 months, April 2007-June 2012
AMOUNT SPENT ON BED AND BATH LINENS
Key points
Average amount fell between 2008 and 2011 in most segments, but increases are now occurring
Figure 35: Amount spent on sheets/pillowcases in the last 12 months, April 2007-June 2012
Figure 36: Amount spent on towels in the last 12 months, April 2007-June 2012
Figure 37: Amount spent on comforters/quilts in the last 12 months, April 2007-June 2012
Figure 38: Amount spent on other blankets in the last 12 months, April 2007-June 2012
REASONS FOR PURCHASING BED LINENS
Key points
Replacement main reason for purchase of bed linens
Figure 39: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by gender, October 2012
Quality upgrades and décor coordination more likely to be drivers for younger consumers
Figure 40: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by age, October 2012
Presence of children may make consumers more active in this category
Figure 41: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by presence of children in household, October 2012
REASONS FOR PURCHASING BATH LINENS
Key points
Replacement and spare sets main reasons for purchase of bath linens
Figure 42: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by gender, October 2012
Younger consumers more likely to want extra sets or to upgrade to better-quality items
Figure 43: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by age, October 2012
Higher-income looking to replace, have a spare set, or make upgrades in quality
Figure 44: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by household income, October 2012
Upgrading more significant for those with children in the home
Figure 45: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by presence of children in household, October 2012
PURCHASE LOCATIONS
Key points
Mass merchandisers, department stores, and specialty stores leading retailers
Figure 46: Purchase locations for bed and bath linens, by gender, October 2012
Younger consumers more likely than older to purchase at mass merchandisers and online
Figure 47: Purchase locations for bed and bath linens, by age, October 2012
Retailer choices indicative of household income
Figure 48: Purchase locations for bed and bath linens, by household income, October 2012
PURCHASE FACTORS
Key points
Cost main factor in purchasing bed and bath linens
Figure 49: Factors in purchasing bed and bath linens, by gender, October 2012
Cost driver for lower-income households; higher-income households more likely to touch/feel items prior to purchase
Figure 50: Factors in purchasing bed and bath linens, by household income, October 2012
SOURCES OF INSPIRATION
Key points
In-store displays function as source of inspiration for many
Figure 51: Sources of inspiration for selecting bed and bath linens, by gender, October 2012
Older consumer segments most likely to be influenced by in-store displays
Figure 52: Sources of inspiration for selecting bed and bath linens, by age, October 2012
Consumers who shop at discount retailers get inspiration from friends/family and home décor magazines
Figure 53: Sources of inspiration for selecting bed and bath linens, by purchase locations for bed and bath linens (mass merchandisers, dept. stores, specialty stores, discounted retailers, online), October 2012
Figure 54: Sources of inspiration for selecting bed and bath linens, by purchase locations for bed and bath linens (club stores, dollar stores, premium specialty stores, catalog), October 2012
ATTITUDES TOWARD BED AND BATH LINENS
Key points
Regular changing of items commands strong agreement
Figure 55: Attitudes toward bed and bath linens, by gender, October 2012
Regular changing of items more prominent among older consumers
Figure 56: Attitudes toward bed and bath linens, by age, October 2012
USAGE AND STORAGE BEHAVIORS
Key points
Consumers have multiple sets of bed and bath linens for their home
Figure 57: Usage and Storage behaviors, by gender, October 2012
Older consumers more likely to have multiple sets of items
Figure 58: Usage and Storage behaviors, by age, October 2012
RACE AND HISPANIC ORIGIN
Key points
Hispanics and black consumers more likely to make nonfunctional purchases
Figure 59: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by race/Hispanic origin, October 2012
Figure 60: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by race/Hispanic origin, October 2012
Mass merchandisers main retailer frequented across segments
Figure 61: Purchase locations, by race/Hispanic origin, October 2012
Cost main purchase factor across racial and ethnic segments
Figure 62: Factors in purchasing bed and bath linens, by race/Hispanic origin, October 2012
Asian/Pacific Islanders more likely than others to draw inspiration from multiple sources
Figure 63: Sources of inspiration for selecting bed and bath linens, by race/Hispanic origin, October 2012
Regular changing out of items predominant attitude among racial and ethnic segments
Figure 64: Attitudes toward bed and bath linens, by race/Hispanic origin, October 2012
APPENDIX: OTHER USEFUL CONSUMER TABLE
Amount spent on bed and bath linens
Figure 65: Amount spent on sheets/pillowcases in the last 12 months, by household income, April 2011-June 2012
Figure 66: Amount spent on towels in the last 12 months, by household income, April 2011-June 2012
Figure 67: Amount spent on comforters/quilts in the last 12 months, by household income, April 2011-June 2012
Figure 68: Amount Spent on Other Blankets in the Last 12 Months, by household income, April 2011-June 2012
Reasons for purchasing bed linens
Figure 69: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by household income, October 2012
Figure 70: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by gender and age, October 2012
Figure 71: Reasons for purchasing bed linens (e.g., sheets, pillowcases, blankets, comforters, duvets), by parents with children and age, October 2012
Reasons for purchasing bath linens
Figure 72: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by gender and age, October 2012
Figure 73: Reasons for purchasing bath linens (e.g., towels, hand towels, bathmats, bath rugs), by parent with children and age, October 2012
Purchase locations
Figure 74: Purchase locations, by gender and age, October 2012
Figure 75: Purchase locations, by presence of children in household, October 2012
Purchase factors
Figure 76: Factors in purchasing bed and bath linens, by age, October 2012
Figure 77: Factors in purchasing bed and bath linens, by gender and age, October 2012
Figure 78: Factors in purchasing bed and bath linens, by presence of children in household, October 2012
Figure 79: Factors in purchasing bed and bath linens, by parent with children and age, October 2012
Figure 80: Factors in purchasing bed and bath linens, by purchase locations for bed and bath linens, October 2012
Figure 81: Factors in purchasing bed and bath linens, by purchase locations for bed and bath linens, October 2012
Sources of inspiration
Figure 82: Sources of inspiration for selecting bed and bath linens, by household income, October 2012
Figure 83: Sources of inspiration for selecting bed and bath linens, by gender and age, October 2012
Figure 84: Sources of inspiration for selecting bed and bath linens, by parents with children and age, October 2012
Attitudes toward bed and bath linens
Figure 85: Attitudes toward bed and bath linens, October 2012
Figure 86: Attitudes toward bed and bath linens, by household income, October 2012
Figure 87: Attitudes toward bed and bath linens, by gender and age, October 2012
Usage and storage behaviors
Figure 88: Usage and Storage behaviors, by household income, October 2012
Figure 89: Usage and storage behaviors, by gender and age, October 2012
Figure 90: Usage and storage behaviors, by race/Hispanic origin, October 2012
APPENDIX: TRADE ASSOCIATIONS