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Quarters 2 & 3, 2011 Small Appliances and The Web: A Budding Relationship By Perry James, The NPD Group, Inc.

echnology and the Internet are over- whelming forces in our lives, and Tthey play an increasing role in the way consumers make purchases and pur- chase decisions. The small appliance indus- try is not immune to this trend. Eight per- cent of units, and 12 percent of dollar sales, in the 12 months ending September 2011 were purchased through online channels. More than half of small appliance con- sumers did some kind of pre-purchase prod-

About Housewares MarketWatch Housewares MarketWatch reports both point-of-sale (POS) and consumer data from NPD databases. The quarterly data covers various product categories within the divisions of Small Appliances and Non-electric Housewares. The information contained on the uct research. The Internet’s role in small adopted this purchasing vehicle more for following pages is offered as a snapshot appliance sales starts well before the pur- some categories than others. Looking at of a category’s performance, both from chase, when consumers are looking for the impact of the Internet by sub-industry, the retailer (POS) and consumer information to help them decide which 41 percent of all small appliance website perspectives. The POS data covers the product is right for them. Fourteen percent sales are home environment appliances. retail channels of mass/national chains, of items sold in the 12 months ending Website sales represent nearly 10 percent of department stores, specialty stores and September 2011, and 26 percent of dollar small kitchen electrics unit sales, 8 percent drug stores (personal care and home sales, were researched online first. of home environment and 7 percent of per- environment only). Each issue of sonal care appliance sales. Housewares MarketWatch will feature Overall, websites are the most popular several categories from the Small resource, followed by store visits and friend At the category level, more than 20 per- Appliances and Housewares divisions. or family recommendation. Across all small cent of stand mixers, breadmakers and vacu- um sealers sold between October 2010 and Complete data on a category can be appliance categories, retailer websites are the purchased by visiting NPD’s website at most popular online resource for pre-pur- September 2011 were purchased online, but www.npd.com.See the Data and chase research, with product review websites robotic vacuums take the top spot with 40 Methodology section on page 8 for an a close second. Social networks and blogs percent of unit sales coming from website explanation of how the data is compiled. are utilized for small appliance pre-purchase sales. The most popular online resources research, but only for 1 percent of sales in for robotic vacuum pre-purchase research the 12 months ending September 2011. were product review websites, representing 15 percent of sales. Although online is important for most small appliance categories, consumers have continued on page 14 Small Appliances: KITCHEN ELECTRICS

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — June 2011

TOTAL MARKET STAND MIXERS • AGE OF BUYER Percentage purchased by age of buyer versus census 25,386 STAND MIXERS CENSUS (PERCENT OF POPULATION) COOKING & SPECIALTY 20.2% FOOD PREP/ ELECTRICS BEVERAGE 17.8% 17.5% 17.0% 16.3% 13,312 16.1% 12,074 14.7% 14.0% 13.6% 13.2% 11.6% 11.6% 8.9%

Source: Consumer Tracking Service 7.4%

WAFFLE IRONS 13 – 17 18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + ■ 28% of waffle irons sold in years years years years years years Q2’11 were traditional style, Source: Consumer Tracking Service rather than Belgian. Source: Retail Tracking Service ESPRESSO MAKERS • REGION Percentage purchased in region versus census

ESPRESSO MAKERS 24.5% ESPRESSO CENSUS (PERCENT OF POPULATION) MAKERS 19.3% 18.6% ■ Nearly 19% of espresso 15.9% makers sold in Q2’11 15.7% 15.5% were POD Machines. 13.6% Source: Retail Tracking Service 11.9% 11.4% 9.3% 9.1% 7.1% 6.7% 6.5%

ELECTRIC 5.9% SKILLETS 4.8% 3.2% ■ The top 3 reasons consumers purchased 1.0% a specific brand of electric skillet were the price, it was a brand they trust and it New Middle East North West North South East South West South Mountain Pacific was recommended by friends/family. England Atlantic Central Central Atlantic Central Central Source: Consumer Tracking Service Source: Consumer Tracking Service

Source: The NPD Group 2 Small Appliances: KITCHEN ELECTRICS

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — September 2011

TOTAL MARKET ELECTRIC CAN OPENERS • INCOME 27,326 Percentage purchased by income versus census

21.9% ELECTRIC CAN OPENERS COOKING FOOD PREP/ ELECTRICS CENSUS (PERCENT OF POPULATION) BEVERAGE 18.1% 14,138 13,188 15.4% 15.1% 14.8% 14.3% 14.1% 13.2% 13.0% 11.1% 10.2% 9.7% 9.4% 8.9%

Source: Consumer Tracking Service 7.6% 3.1%

COFFEE GRINDERS Under $15,000 – $30,000 – $45,000 – $60,000 – $75,000 – $100,000 – $150,000 + $15,000 29,999 44,999 59,999 74,999 99,999 149,999 ■ 16% of coffee grinders sold in Source: Consumer Tracking Service Q3’11 were burr grinders. TEA MAKERS • BUYER GENDER Source: Retail Tracking Service Percentage purchased by buyer gender versus census

TEA MAKERS CENSUS (PERCENT OF POPULATION) FOOD PROCESSORS 56.3% 50.9% 49.1% ■ 40% of food processors sold 43.7% in Q3’11 were / /chopper systems. Source: Retail Tracking Service

ICE CREAM/ YOGURT MAKERS ■ The top 3 reasons consumers purchased a specific brand of ice cream/yogurt maker were the price, it was a brand they trust and it was recommended by friends/family. Male Female Source: Consumer Tracking Service Source: Consumer Tracking Service

3 Source: The NPD Group Small Appliances: PERSONAL CARE

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — June 2011

CURLING IRONS/BRUSHES • AGE OF BUYER TOTAL Percentage purchased by age of buyer versus census MARKET CURLING IRONS/BRUSHES 61,323 CENSUS (PERCENT OF POPULATION)

ORAL CARE, HOME

HAIR CARE/ HEALTH, & OTHER 17.9% 17.8%

GROOMING PERSONAL CARE 17.5% 16.6% 16.3% 31,139 15.8% 30,184 14.7% 13.5% 13.2% 12.9% 12.9% 11.6% 10.4%

Source: Consumer Tracking Service 8.9%

MEN’S ELECTRIC SHAVERS ■ 13 – 17 18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + 25% of men’s electric shavers years years years years years years sold in Q2’11 were wet & dry. Source: Consumer Tracking Service Source: Retail Tracking Service WOMEN’S ELECTRIC SHAVERS • HOUSEHOLD SIZE Percentage purchased by household size versus census WOMEN’S ELECTRIC SHAVERS GARMENT CENSUS (PERCENT OF POPULATION) CARE 26.4% 25.7%

■ Handheld garment steamers 21.9% 21.9% 22.1% 21.5% accounted for 4% of garment 19.5% 19.5% care items sold in Q2’11. Source: Consumer Tracking Service

10.9% 10.5% ORAL CARE REPLACEMENT PARTS ■ The top 3 reasons consumers purchased a specific brand of oral care replacement parts were that it was a brand they currently own, a Single Two Three Four Five or brand they trust and price. Member Members Members Members More Members Source: Consumer Tracking Service Source: Consumer Tracking Service

Source: The NPD Group 4 Small Appliances: PERSONAL CARE

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — September 2011 TOTAL MARKET HAIRDRYERS • AGE OF BUYER 57,231 Percentage purchased by age of buyer versus census HAIRDRYERS CENSUS (PERCENT OF POPULATION) ORAL CARE, HOME HAIR CARE/ HEALTH, & OTHER GROOMING PERSONAL CARE 19.3% 19.5% 18.4% 17.8%

28,488 28,743 17.5% 16.3% 14.7% 13.2% 13.0% 12.2% 11.6%

Source: Consumer Tracking Service 8.9% 8.9% 8.7%

HOME HAIR CLIPPERS

■ More than half of home hair clippers sold in Q3’11 had 13 – 17 18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + 20 or more pieces. years years years years years years Source: Retail Tracking Service Source: Consumer Tracking Service SEWING MACHINES • INCOME Percentage purchased by income versus census

SHOWERHEADS 26.5% SEWING MACHINES CENSUS (PERCENT OF POPULATION) ■ More than 60% of showerheads sold in Q3’11 were handheld. 18.1% 15.1%

Source: Retail Tracking Service 14.3% 14.1% 13.2% 13.0% 12.3% 12.0% 11.1% 11.1% 9.7% 9.4% 7.9%

BLOOD PRESSURE 6.5% MONITORS 5.6%

■ The top 3 reason consumers purchased a specific brand of blood pressure monitor were the price, Under $15,000 – $30,000 – $45,000 – $60,000 – $75,000 – $100,000 – $150,000 + features and it was easy to use $15,000 29,999 44,999 59,999 74,999 99,999 149,999 Source: Consumer Tracking Service Source: Consumer Tracking Service

5 Source: The NPD Group Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — June 2011

TOTAL MARKET WATER FILTRATION DEVICES • INCOME 28,212 Percentage purchased by income versus census

WATER FILTRATION DEVICES

18.8% CENSUS (PERCENT OF POPULATION) 18.7% 15.3% 15.1% 14.3% 14.1% 13.2% 13.0% 12.6% 11.1% 11.0% 10.3% 9.7% 9.4% 7.7% Source: Consumer Tracking Service 5.5%

Under $15,000 – $30,000 – $45,000 – $60,000 – $75,000 – $100,000 – $150,000 + $15,000 29,999 44,999 59,999 74,999 99,999 149,999 FANS Source: Consumer Tracking Service WATER FILTRATION DEVICES • REGION Percentage purchased in region versus census

WATER FILTRATION 20.0% ■ 25% of fans sold in Q2’11 19.3% DEVICES were personal/clip fans. CENSUS (PERCENT Source: Retail Tracking Service OF POPULATION) 15.7% 15.5% 14.9% 14.8% 14.2% 13.6% 11.4% 10.6%

FANS 7.9% 7.8% 7.1% 6.7% 5.9% 5.8% 4.8% 4.1% ■ The top 3 reasons consumers purchased a specific brand of were the price, it was a good value and they liked the features. New Middle East North West North South East South West South Mountain Pacific Source: Consumer Tracking Service England Atlantic Central Central Atlantic Central Central Source: Consumer Tracking Service

Source: The NPD Group 6 Small Appliances: HOME ENVIRONMENT(EXCLUDING VACS)

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — September 2011

TOTAL MARKET • BUYER GENDER 27,161 Percentage purchased by buyer gender versus census

DEHUMIDIFIERS CENSUS (PERCENT OF POPULATION) 53.2% 50.9% 49.1% 46.8%

Source: Consumer Tracking Service

WATER FILTRATION Male Female DEVICES Source: Consumer Tracking Service DEHUMIDIFIERS • HOUSEHOLD SIZE ■ More than 25% of water filtration Percentage purchased by household size versus census devices sold in Q3’11 had a container capacity between ½-gallon and 1 gallon. 35.8% DEHUMIDIFIERS Source: Retail Tracking Service CENSUS (PERCENT OF POPULATION)

26.4%

22.1% 21.5% WATER 20.2% 19.5% FILTRATION 17.1% DEVICES 14.8% 12.0% 10.5% ■ The top 3 reasons consumers purchased a specific brand of water filtration device were that it was a brand they trust, the price and it was a good value. Single Two Three Four Five or Source: Consumer Tracking Service Member Members Members Members More Members Source: Consumer Tracking Service

7 Source: The NPD Group Small Appliances: FLOOR CARE

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — June 2011

TOTAL MARKET STICK VACUUMS • BUYER GENDER Percentage purchased by buyer gender versus census 8,346 STICK VACUUMS CENSUS (PERCENT OF POPULATION)

60.4%

49.1% 50.9%

39.6%

Source: Consumer Tracking Service

Male Female DEEP CARPET Source: Consumer Tracking Service CLEANERS

STICK VACUUMS • HOUSEHOLD SIZE Percentage purchased by household size versus census

■ 26% of all deep carpet cleaners sold 37.0% in Q2’11 were compact style. STICK VACUUMS Source: Retail Tracking Service CENSUS (PERCENT OF POPULATION)

26.4% 25.1% 22.1% 21.5% 19.5% DEEP CARPET CLEANERS 14.3% 11.5% 12.0% 10.5%

■ The top 3 reasons consumers purchased a specific brand of deep carpet cleaner were it was a brand they trust, they like the features and the price. Single Two Three Four Five or Source: Consumer Tracking Service Member Members Members Members More Members Source: Consumer Tracking Service

Source: The NPD Group 8 Small Appliances: FLOOR CARE

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — September 2011

TOTAL MARKET UPRIGHT VACUUMS • AGE OF BUYER 8,685 Percentage purchased by age of buyer versus census 19.1% 18.6% 17.9% 17.8% 17.7% 17.5% 16.3% 14.7% 14.7% 13.2% 11.6% 8.9% 8.8%

Source: Consumer Tracking Service UPRIGHT VACUUMS CENSUS (PERCENT OF POPULATION) 3.1%

13 – 17 18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + years years years years years years STICK VACUUMS Source: Consumer Tracking Service

UPRIGHT VACUUMS • HOUSEHOLD SIZE Percentage purchased by household size versus census

■ 64% of stick vacuums sold in 32.1% UPRIGHT VACUUMS Q3’11 were corded. CENSUS (PERCENT OF POPULATION) Source: Retail Tracking Service 26.4%

22.1% 21.1% 21.5% 19.5% 16.5% 16.7% STICK VACUUMS 13.7% 10.5%

■ The top 3 reasons consumers purchased a specific brand of stick vacuum were the price, it was a brand they trust and it was a good value. Single Two Three Four Five or Source: Consumer Tracking Service Member Members Members Members More Members Source: Consumer Tracking Service

9 Source: The NPD Group Housewares: NON-ELECTRIC

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share STOVETOP 6 months ending — June 2011 COOKWARE DINNERWARE BEVERAGEWARE STOVETOP COOKWARE • REGION OR Percentage purchased in region versus census

$621,247 BAKEWARE STOVETOP COOKWARE CUTLERY CENSUS (PERCENT OF POPULATION)

FLATWARE 21.3% 19.3% $278,407 16.1% 15.7% 15.5% $217,786 $192,891 $183,577 13.6% 13.4% $153,699 12.0% 11.4% 7.3% 7.1% 6.7% 6.2%

Source: Consumer Tracking Service 5.9% 4.8% 4.4% 4.4% 1.8% DINNERWARE New Middle East North West North South East South West South Mountain Pacific England Atlantic Central Central Atlantic Central Central ■ More than 8% of Q2’11 Source: Consumer Tracking Service dinnerware dollar sales came from plastic as a primary material. OVEN OR MICROWAVE BAKEWARE • BUYER GENDER Source: Retail Tracking Service Percentage purchased by buyer gender versus census

OVEN OR MICROWAVE BAKEWARE CENSUS (PERCENT OF POPULATION) BEVERAGEWARE 84.0%

■ Single piece beverageware sales represented 38% of Q2’11 dollar sales. Source: Retail Tracking Service 49.1% 50.9%

CUTLERY 16.0%

■ The top 3 motivators behind purchasing cutlery in Q2’11 were price, value and easy to clean. Male Female Source: Consumer Tracking Service Source: Consumer Tracking Service

Source: The NPD Group 10 Housewares: NON-ELECTRIC

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share STOVETOP 6 months ending — September 2011 COOKWARE DINNERWARE CUTLERY DINNERWARE • HEAD OF HOUSEHOLD AGE BEVERAGEWARE Percentage purchased by age of the head of household versus census $504,890 OVEN OR MICROWAVE DINNERWARE BAKEWARE 23.6% CENSUS (PERCENT OF POPULATION) FLATWARE $334,854 18.5% 17.8% 17.5% 16.7% $212,422 16.3% $204,670 14.9% $171,782 14.7% $150,326 13.3% 13.2% 13.1% 11.6% 8.9%

Source: Consumer Tracking Service

BAKEWARE 0%

13 – 17 18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + ■ Stoneware/clay stone years years years years years years accounted for 8% of bakeware Source: Consumer Tracking Service dollar sales in Q3’11. Source: Retail Tracking Service BEVERAGEWARE • HEAD OF HOUSEHOLD GENDER Percentage purchased by head of household gender versus census

87.8% FLATWARE BEVERAGEWARE CENSUS (PERCENT OF POPULATION) ■ Serving utensil sets represented 4% of flatware dollar sales in Q3’11. Source: Retail Tracking Service 49.1% 50.9%

STOVETOP COOKWARE 12.2% ■ The top 3 reasons consumers purchase specific cookware are price, good value and easy to clean. Male Female Source: Consumer Tracking Service Source: Consumer Tracking Service

11 Source: The NPD Group Home: KITCHEN & DINING TEXTILES

MARKET SIZE QUARTER TWO • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Dollar Share 6 months ending — June 2011

TABLE LINENS • REGION Dollar share in region versus census KITCHEN & DINING DOLLAR SHARE TEXTILES CENSUS (PERCENT 48.6% OF POPULATION)

■ In the 6 months ending June 2011, $65 million in sales came 36.6% from potholders/oven mitts and towel/potholder sets. Source: Consumer Tracking Service

22.2% 22.8% 20.9% 18.4% 18.4%

12.3%

Northeast Midwest South West Source: Consumer Tracking Service

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Source: The NPD Group 12 Home: KITCHEN & DINING TEXTILES

MARKET SIZE QUARTER THREE • 2011 DEMOGRAPHIC ANALYSIS UNIT VOLUME IN THOUSANDS Unit Volume Share 6 months ending — September 2011

KITCHEN LINENS • HOUSEHOLD SIZE KITCHEN & Percentage purchased by household size versus census DINING TEXTILES 30 KITCHEN LINENS 27.8% ■ In the 6 months ending September 26.4% CENSUS (PERCENT OF POPULATION) 2011, kitchen & dining textiles dollar 25.3% sales increased by 21% and unit 25 22.1% sales increased by nearly 14%, 21.5% 19.5% compared to the 6 months ending 20 September 2010. 16.0% Source: Consumer Tracking Service 15.3% 15.6% 15

10.5% 10

5

0 Single Two Three Four Five or Member Members Members Members More Members Source: Consumer Tracking Service

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13 Source: The NPD Group Small Appliances and The Web: A Budding Relationship Continued from page 1

The Internet doesn’t discriminate when less than 10 percent of it comes to small appliances. From the appliance sales, a good widely available to the scarce, the additional website can have a real small appliance categories where the impact on your bottom Internet’s role in sales is notable, with unit line that is well worth the share greater than 15 percent, were: dehu- relatively minimal cost. midifiers, sewing machines, oral irrigators, Manufacturers and retail- pedometers, electric shaver replacement ers increase their ability to parts, lighted mirrors, espresso makers, cit- sell bigger ticket items or rus , juice extractors, food steamers, higher priced products. canister vacuums, bare floor cleaners and ice Brands gain some control cream/yogurt makers. over the messaging and image of their products, Having an Internet presence has been providing consumers with important for several years, but it has the insight they are seek- become a must in order to compete in ing, giving them a leg up today’s market. On average, online small on the competition. appliance sales command a 58 percent high- Retailers also benefit er average selling price than the industry as from doing a good job answering questions Perry James is president of Home & Office a whole, and 71 percent higher than brick about product offerings, which can get con- Supplies at The NPD Group. These are the and mortar sales. Nearly half of all purchases sumers to visit their stores. The relationship opinions of James and NPD. For more made online were researched through an between the Internet and small appliances information, contact James at 516-625-2349. online resource, but only a quarter of pur- truly is a budding one and is now in a criti- chases researched online were actually pur- cal stage, one that requires atten- chased online. tion to truly bloom and realize Even though online sales still represent its full potential. Take a look inside the home!

kitchen | personal care | home environment | laundry appliances

Uncover opportunities for your business with The NPD Group’s new report, Inside the Home: Appliances We Own & Use.

INTERESTED? Contact Charles Camaroto at 866-444-1411 ([email protected]) for details.

www.npd.com

Source: The NPD Group 14 DATA AND METHODOLOGY CONSUMER METHODOLOGY NPD has a standard data model that is used The NPD online consumer panel is com- for all categories that incorporates both con- prised of pre-recruited individuals who have sumer and point-of-sale (POS) databases. agreed to participate in NPD online surveys ABOUT THE These two data sources are highly comple- and have completed a comprehensive demo- NPD GROUP, INC. mentary and are used to support one another. graphic questionnaire. The use of an estab- The NPD Group is the leading Point-of-Sale (POS) databases are assembled lished online panel assures good cooperation provider of reliable and comprehensive from retailers' records of actual sales by prod- levels and predictable demographic balance consumer and retail information for a uct as collected at the cash register. among panelists. wide range of industries. Today, more Consumer databases are developed using Consumer panelists are asked about their than 1,800 manufacturers retailers and online purchase surveys completed by a large- recent purchases in a survey administered via service companies rely on NPD to help scale rotating sample of consumers. These the Internet. The responding sample is demo- them drive critical business decisions at data produce estimates of sales by product for graphically weighted and projected through a the global, national, and local market the total marketplace. More importantly, the series of steps to represent the U.S. popula- levels. NPD helps our clients to identify consumer surveys capture information about tion. Each month, over 200,000 individuals new business opportunities and guide each purchase, such as buyer demographics, are selected from the NPD online consumer product development, marketing, sales, the product's intended use and other pur- panel to participate in the appliance study. merchandising, and other functions. chase motivators. Each month, over 30,000 U.S. house- Information is available for the follow- holds are selected for the housewares and ing industry sectors: automotive, beauty, home textiles studies. commercial technology, consumer tech- POS METHODOLOGY nology, entertainment, fashion, food and beverage, foodservice, home, NPD collects point-of-sale retailer office supplies, software, sports, toys data from selected retailers. These data and . For more information, are the actual sales for the chain on an contact us or visit SKU-by-SKU basis. The data are com- http://www.npd.com/. bined with data from other retailers to produce reports on certain categories by channel, where a sufficient number of retailers are cooperating and where suffi- cient market demand exists for the data- base. Deborah A. Teschke, Senior Editor Perry James, Contributing Editor Janine Marshall-Bolton, Contributing Editor Tom Goodman, Design Published by IHA For more information, contact Debbie Teschke at 847-692-0110; or [email protected]

6400 SHAFER COURT, STE. 650 ROSEMONT, IL 60018 USA TEL: 847-292-4200 FAX: 847-292-4211 www.housewares.org

Source: The NPD Group 15