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Global Growth Trends in Small Appliance Markets Udo Jansen Global Director Small Domestic Appliances

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Global Growth Trends in Small Appliance Markets Udo Jansen Global Director Small Domestic Appliances Global Growth Trends in Small Appliance Markets Udo Jansen Global Director Small Domestic Appliances April 2018 IFA Global Press Conference © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 1 In 2017, the global Small Appliances Market, based on NPD`s and GfK`s retail panels, reached 65.2 billion USD Small Appliances (all monitored product groups) – Global Panelmarket – 2017 . Hot beverage makers . Electric water kettles . Food preparation . Rice cookers . Toasters 65.2 . Juicers . Fun cooking . Mini ovens billion USD . Deep fryers . Barbecues . Shavers . Hair dryers . Hair stylers . Irons . Vacuum cleaners +8% . Steam Cleaner . Air treatment vs. 2016 . Electrical fans (constant currency) . Electrical heating … … and more Source: GfK- and NPD Point-of-Sale Tracking © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 2 Innovation © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 3 Global SDA market1 is driven by innovations and smart appliances. New products make the everyday life of consumers easier. SDA total | World Panelmarket | Sales billion € 11 32 37 Hot water dispenser 96 103 44 Personal scales with Mobile Connect. 7.1 billion 128 185 51 Foodpreparation with shredder 296 Massage mat 336 68 Espresso Full. with Mobile Connect 1.882 mn 415 Trad. filtercoffee with int. coffee grinder 477 Hybrid Groomer Window cleaner 510 Waterjet solo (Dental Care) Toothbrush Rech. with Mobile Connect. 27,7 billion 38,4 billion Slow juicers 1364 Laser/IPL hair removal Electrical cooking pots Foodpreparation with cooking function 2926 Hot Air Fryers Robot vacuum cleaners 2012 2017 Handstick rechargeable vac cleaners 1 Without U.S. © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 4 Connectivity © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 5 Connectivity swaps more and more over to Small Domestic Appliances Panelmarket China Panelmarket France Sales value % Sales value % 12% 13% 26% 50% 18% 19% 2015 2016 2017 Panelmarket Germany Panelmarket Netherlands Sales value % Sales value % 10% 13% 17% 20% 21% 24% Source: GfK Point of Sales Tracking 2015 2016 2017 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 6 Prices for connected vs not-connected small appliances Panelmarket China Panelmarket France Price in RMB 1591 1130 281 € 161 € Connected Not connected Connected Not connected Panelmarket Germany Panelmarket Netherlands 115 € 38 € 46 € 16 € Connected Not connected Connected Not connected Source: GfK Point of Sales Tracking © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 7 Growth engines © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 8 Floor Care © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 9 Floorcare is getting cordless – massive growth of rechargeable handstick vacuum cleaner VACUUM CLEANERS Panelmarket EUROPE., PAC., LATAM., MEA., ASIA. Jan 15-Dec 15, Jan 16-Dec 16, Jan 17-Dec 17 HANDSTICK Sales Mio. EUR Jan 15-Dec 15 Jan 16-Dec 16 Jan 17-Dec 17 3,5 3.247 VACUUM CLEANERS 257 3,0 Handstick 2,5 2.262 225 MAINS ONLY fix (x2,0 1.000 ) RECH. ONLY EUR 1.623 Others alue 196 V 1,5 2.984 io. M ales S 1,0 2.035 1.426 0,5 0,0 Sales Value EUR fix +/- % PY 39,3 43,6 Sales Mio. Units 10,7 13,5 17,5 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 10 PRJ 192170 - RG 2314135 - RP 30615797 - ID 509144440 Strong growth rates for Robotic vacuum cleaner, mainly driven by China Panelmarket EUROPE., PAC., LATAM., MEA., ASIA. Jan 15-Dec 15, Jan 16-Dec 16, Jan 17-Dec 17 ROBOT VACUUM CLEANERS Sales Mio. Value EUR Jan 15-Dec 15 Jan 16-Dec 16 Jan 17-Dec 17 1,4 1,2 1,0 fix (x0,8 1.000 ) EUR 1.390 alue V 0,6 1.164 io. M 968 ales S 0,4 0,2 0,0 Sales Value EUR fix +/- % PY 20,3 19,4 Sales Mio. Units 3,8 4,3 5,4 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 11 PRJ 192170 - RG 2314135 - RP 30615962 - ID 509144606 Strong growth rates for CONNECTED Robotic vacuum cleaner, mainly driven by China Panelmarket EUROPE., PAC., LATAM., MEA., ASIA. Jan 15-Dec 15, Jan 16-Dec 16, Jan 17-Dec 17 ROBOT VACUUM CLEANERS Sales Mio. Value EUR fix Jan 15-Dec 15 Jan 16-Dec 16 Jan 17-Dec 17 1,4 1.390 1,2 1.164 559 241 1,0 968 56 + SMART CONNECT. 0,8 wo. SMART CONNECT. UNKNOWN 0,6 911 923 0,4 831 Sales Mio. Value EUR fix ( x 1.000 ) 0,2 0,0 Sales Value EUR fix +/- % PY 20,3 19,4 Sales Mio. Units 3,8 4,3 5,4 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 12 PRJ 192170 - RG 2314135 - RP 30615962 - ID 531068566 Beverage Makers © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 13 Fully automatic coffee/espresso machines market is up by 14% © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 14 A closer look on regions © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 15 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 16 China becomes the biggest virtual market place in the world. ONLINE SALES CHINA Jan 14-Dec 14 - Jan 17-Dec 17 Sales Mio. Value EUR fix Jan 14-Dec 14 Jan 15-Dec 15 Jan 16-Dec 16 Jan 17-Dec 17 7 6 5 4 fix( x1.000 ) EUR alue 6.403 V 3 io. M ales 4.615 S 2 3.760 2.645 1 0 +/- % PY 83,9 42,1 22,7 38,7 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 17 PRJ 192170 - RG 2314135 - RP 21240170 - ID 532801133 New markets, like electrical toothbrushes, show a very good development DENTAL CARE Panelmarket China Jan 15-Dec 15, Jan 16-Dec 16, Jan 17-Dec 17 ELECTRICAL TOOTHBRUSHES Sales Mio. Value EUR (fixed) Jan 15-Dec 15 Jan 16-Dec 16 Jan 17-Dec 17 450 400 350 300 250 438 200 Sales Mio.150 Value EUR fix 100 218 136 50 0 Sales Value EUR fix +/- % PY 59,5 101,4 Sales Mio. Units 3,9 5,8 11,4 Price EUR 37 37 37 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 18 PRJ 192170 - RG 2314135 - RP 33335745 - ID 532332649 Strong growth rates in South American markets Latin America JAN17-DEC17 SDA TOTAL Sales Value <LC> +/-% PY 10,7-1,6 -3,2 1,5 3,9 13,3 8,8 22,3 ≥ -15 ≥ -10 ≥ -5 ≥ -3 ≥ -1 ≥ 1 ≥ 3 ≥ 5 ≥ 10 < -15 ≥ 15 n.a. < -10 < -5 < -3 < -1 < 1 < 3 < 5 < 10 < 15 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 19 The Air Fryer market in Brazil exploded again in 2017 DEEP FRYERS Brazil Panelmarket Jan-Dec 11 - Jan-Dec 17 Sales Mio. Units Jan-Dec 11 Jan-Dec 12 Jan-Dec 13 Jan-Dec 14 Jan-Dec 15 Jan-Dec 16 Jan-Dec 17 2,7 +68% HOT AIR FRYER (<0.5 litres oil) vs. +14% SDA total TRAD. DEEP FRYER 1,6 1,5 1,3 2,6 1,4 1,5 0,6 1,2 0,2 0,4 0,2 0,1 0,2 0,2 0,1 0,1 0,1 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 20 PRJ 66580 - RG 4820038 - RP 31230071 - ID 529482638 Retail Trends © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 21 The retail environment is changing quickly in many countries. Online Sales remain a strong motor for growth. Panelmarket EUROPE Jan 16-Dec 16, Jan 17-Dec 17 TOTAL SDA Growth Rates PY Growth Rate PY Jan 17-Dec 17 Sales Units Sales Value EUR Panelmarket 0,9 3,1 Internet Sales 12,3 12,4 Traditional Sales -1,3 0,3 © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 22 PRJ 192170 - RG 2314135 - RP 33096265 - ID 530971987 GfK`s Technical Market Index (TEMAX) © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 23 GfK TEMAX® = GfK Technical Market Index • Top-line market report on Consumer Electronics, MDA, SDA, Photo, IT, TC • Country coverage: 46 countries + Western Europe Fusion report • Methodology: 100% coverage Total Market reports based on measured POS panel data • Quarterly publication (mid of Feb/May/Aug/Nov) of text and graphic contents in English and local language • Website accessible free, selected content by registration http://temax.gfk.com/reports/ © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 24 Summary and key findings © GfK April 19, 2018 | Global Growth Trends in Small Appliance Markets 25 Small Appliances - global key trends Overall, continuously Innovation & new 1 good growth rates 2 Trading up 3 market segments The positive and dynamic trend In many countries, consumers Global SDA market is driven by continues, in almost all countries, buy higher priced, better equipped innovations and smart appliances. and based on several growth appliances. New products make the everyday engines. life of consumers easier. Energy Connectivity Growth 4 efficiency 5 and Smart Home 6 of internet sales Label appeared in 2014 for vacuum . The next big wave? Growth of the internet as a sales cleaners in the EU. Connectivity is swapping over channel impacts SDA sales. Second step for the VC label came in to Small Household Appliances, However, the share of online sales 2017. and will bring new benefits differs strongly by country and to consumers.
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