covering quarter 1, 2018 why a good first quarter is a ... · rest of the year – in 2016 and...

holidays, so itprovides a nice pulseon the inertia of theindustry. It illustratesthe consumer’smindset on essentialliving needs withoutthe influence ofmarket tactics thatmight impactshopping trends.

The lack ofdistraction duringthe first quarterallows us to gaugethe key consumer needs driving the industry– health and wellness, entertaining,convenience, crafting and do-it-yourself.New Year’s resolutions and March dieting(in preparation for Spring break), drive thegreatest interest in health and wellnessduring Q1. When consumers try to changetheir behavior to live healthier they arelooking for more fruits and vegetables, morehomemade meals, less processed foods andmore exercise, all of which lead to a greaterneed for the housewares industry’s products.

Convenience and crafting are also at play,with growth in categories like multi-cookers,air fryers and cooking and specialty gadgets.Products that are integral to creatinghomemade meals, such as measuringcups/sets/spoons, mixing bowls, kitchenscales and grating and peeling gadgetscontinue to grow. All of this growthillustrates the personal desire to get involvedin meal prep, and the importance of each ofthese key trends to consumers.

Second, the first three months of the yearare an important time to see how new items,introduced over the previous holiday season,are performing. In Q1 2018, we are stillseeing growth of Q4 2017’s new productsintroductions, even after the promotionshave ended. When the holiday buzz hasdwindled, we can see if the consumerreaction has the positive energy necessary todrive sales through the start of the new year.

Third, I look at Q1 as a way to see whichcategories have the momentum to drive salesnot only throughout the year, but throughthe coming holiday season as well. Typically,the hot products throughout the year arealso hot over the holiday because, inessence, the holidays are a time to buy theitems we have desired all year. We can alsosee if any rebounding categories, liketabletop, are ripe for growth (I believe this isthe case for tabletop in 2018). I generallylike to wait to see which categories arewinning during the months of Januarythrough August to help predict what the

About Housewares MarketWatchHousewares MarketWatch reports

point-of-sale (POS), consumer survey,and CheckoutSM consumer receipt-baseddata from NPD databases. The quarterlydata covers various product categorieswithin the divisions of Small Appliances,Non-electric Housewares, and HomeTextiles. The information contained on thefollowing pages is offered as a snapshotof a category’s performance, includingperspective crossing each of thementioned information sources.

Each issue of Housewares MarketWatchwill feature several categories from theSmall Appliances, Housewares, andKitchen and Dining Textiles divisions.Complete data on a category can bepurchased by visiting NPD’s website atwww.npd.com.

See the Data andMethodology sectionon page 15 for anexplanation of howthe data is compiled.

It’s easy to overlook the first quarter andmiss its value in predicting the rest ofthe year. The housewares industry

(including small kitchen electrics and non-electric housewares) had a great first quarterof 2018. This is good news because itprovides a good foundation for the year andhistorically has been a fair predictor for therest of the year – in 2016 and 2017, bothfirst quarter and end-of-year dollar salesshowed 4 percent growth according toNPD’s Retail Tracking Service.

There are several reasons for thispredictive value of the first quarter. First,Q1 is free of significant behavior-changing

continued on page 8

Covering Quarter 1, 2018

Why a Good First Quarter is a Good Sign for 2018By Joe Derochowski, The NPD Group, Inc.

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group

2018 Market Size

Dollar Volume in Thousands

0

100,000

200,000

300,000

400,000

500,000

600,000

Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS:FEATURES: Dollar sales of flatware were up by 10 percent in Q1’18, with a flat averageselling price.

Source: Retail Tracking Service

PURCHASE BEHAVIOR: Nearly 40 percent of dinnerware sold in Q1’18 were unplannedpurchases, 10 share points higher than last year.

Source: Consumer Tracking Service

PURCHASE INFLUENCE: Nearly 30 percent of the flatware sold in Q1’18 was purchased asa gift, a 6-point increase from last year.


CHANNEL DYNAMICS: During Q1’18, 13 percent of flatware sales came from the specialtymid-tier/value channel, a slight increase over last year.


PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers saidappearance, price and good value were the top motivators in Q1’18.


ONLINE SALES: 21 percent of beverageware sales in Q1 ’18 were generated online, up7 percentage points compared to last year.


Demographic Analysis6 months ending • March 2018

Unit Volume Share

FLATWARE• AGEPercentage purchased by head of household age

2

Q1

$512,258

TOTAL TABLETOP

13.1%

30.7%

22.1%

13.7%

12.3%

8.1%18-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55-64 YEARS

65+ YEARS


COOKING/KITCHEN: Cookware, Bakeware, Cutlery

COOKWARE • INCOMEPercentage purchased by head of household income

0

200,000

400,000

600,000

800,000

1,000,000


0

5

10

15

20


INSIGHTS:FEATURES: Cutlery category sales grew 12 percent during Q1’18, driven by cutlery sets andcutting boards.


PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said that price,good value and easy to clean were most important to them in Q1’18.


ONLINE SALES: One-quarter of bakeware dollar sales in Q1’18 came from online purchases,a 4-point increase from last year.


CHANNEL DYNAMICS: During Q1’18, 29 percent of cutlery sales came from purchases madeat Specialty Premium stores, 7 points higher than last year.


PURCHASE INFLUENCE: Nearly half of the cutlery sold during Q1’18 was on promotion.Source: Consumer Tracking Service

IMPULSE: 45 percent of bakeware purchased in Q1’18 was driven by unplanned purchases.Source: Consumer Tracking Service


Unit Volume Share

3

2018 Market SizeDollar Volume in Thousands

Q1

$856,577

TOTAL COOKING/KITCHEN

13.2%14.6%

11.6%

13.9%

7.2%

11.9%

18.3%

9.3%

Under$15,000

$15,000 –$29,999

$30,000 –$44,999

$45,000 –$59,999

$60,000 –$74,999

$75,000 –$99,999

$100,000 -$149,999

$150,000 +

Small Appliances: KITCHEN ELECTRICS



0

500,000

1,000,000

1,500,000

2,000,000


0

5

10

15

20


INSIGHTS:

FEATURES: Dollar sales of espresso makers grew 14 percent during Q1’18 compared to the prioryear, with a 2-percent higher average selling price


PURCHASE MOTIVATORS: When it comes to choosing a mixer, consumers said that price,brand and good value were their top motivators in Q1’18.


ONLINE SALES: Nearly 50 percent of all juice extractor sales in Q1’18 came fromonline purchases.


PURCHASE INFLUENCE: During Q1’18, 44 percent of the juice extractors sold were purchasedon sale, 2 percentage points higher than Q4’17.


IMPULSE: 80 percent of all toaster ovens sold in Q1’18 were planned purchases, up8 percentage points compared to last year..



Unit Volume Share

BLENDING & PROCESSING • INCOMEPercentage purchased by head of household income

4

Q1FO

OD PRE

P/BE

VERA

GE

$880,503 COOK

ING &

SPECIALTY ELECTRICS

$667,329

TOTAL K

ITCHE

NELECTRICS

$1,547,832

7.9%

13.1%11.6%

14.1%

8.5%

13.3%

18.4%

13.3%

Under$15,000

$15,000-$29,999

$30,000-$44,999

$45,000-$59,999

$60,000-$74,999

$75,000-$99,999

$100,000 -$149,999

$150,000+


Small Appliances: PERSONAL CARE

MENS TRIMMERS • AGEPercentage purchased by head of household age

0

500,000

1,000,000

1,500,000

2,000,000


INSIGHTS:

FEATURES: Oral care appliance dollar sales increased 18 percent in Q1’18.


PURCHASE MOTIVATORS: When it comes to selecting a specific oral care appliance,

consumers said price and brand were top motivators in Q1’18


ONLINE SALES: E-commerce accounted for 22 percent of hair dryer sales in Q1’18,

2 percentage points higher than last year.


PURCHASE OCCASION: 7 percent of massaging appliances sold in Q1’18 were purchased for

someone else, but not as a gift.


IMPULSE: 40 percent of the curling irons sold in Q1’18 were purchased on promotion.



Unit Volume Share

5


Q1HA

IR CAR

E/GR

OOMI

NG

$674,332

ORAL

CAR

E, HO

MEHE

ALTH

, & OTH

ERPERS

ONAL

CAR

E

$1,135,074

TOTAL

MARK

ET$1,809,406 2.7%

12.1%

19.4%

16.3%21.4%

16.9%

16-17 YEARS

18-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55-64 YEARS

65+ YEARS

11.2%

Small Appliances: FLOOR CARE


2018 Market Size

Dollar Volume in Thousands

0

300,000

600,000

900,000

1,200,000

1,500,000


INSIGHTS:

FEATURES: Dollar sales of specialty cleaning products grew 37 percent in Q1’18 compared to the prior year, with a 5-percent higher average selling price.


PURCHASE MOTIVATORS: When it comes to selecting a robotic vacuum, consumers said ratings, price and brand features were the top motivators in Q1’18.


ONLINE SALES: Nearly half of canister vacuum sales in Q1’18 came from in-store purchases, up 4 share points compared to last year.


CHANNEL DYNAMICS: The kitchen specialty channel accounted for one-quarter of hand/stick vacuum sales in Q1’18, a 7-percentage point increase from last year.


PURCHASE INFLUENCE: 50 percent of deep carpet cleaners sold in Q1’18 were purchased on sale.



Unit Volume Share

HAND/STICK VACUUMS • AGEPercentage purchased by head of household age

6

Q1

$1,320,089

TOTAL MARKET

13.3%

18.7%

18.9%15.2%

15.3%

18.5%

16-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55-64 YEARS

65+ YEARS


Home: KITCHEN & DINING TEXTILES

TABLE LINENS • AGEPercentage purchased by head of household age

Source: Checkout Source: Checkout

INSIGHTS:

FEATURES: Nearly one-fourth of dollars spent on kitchen towels in Q1’18 were on solid colorproducts, up 6 points compared to the prior year.

Source: Checkout

RETAIL LANDSCAPE: In the home/hardware specialty channel, dollar sales of kitchen linensgrew 23 percent during Q1’18.

Source: Checkout

PRICE BAND: Tablecloths priced above $10 grew 21 percent in dollar sales during Q1’18.Source: Checkout

FEATURES: Dollar sales of solid color kitchen linens increased 16 percent in Q1’18.Source: Checkout


Unit Volume Share

7


Q1

$311,401

TOTAL MARKET

9%

16%

13%

62%

> 25 YEARS

25-34 YEARS

35-44 YEARS

45+ YEARS

Source: The NPD Group 8

holiday winners – including a longer basewith the perspective of the entertainingseason and related products – but the firstquarter provides a nice starting baseline.

Of course, there are environmentalfactors that can impact the predictive valueof Q1, such as significant economicchallenges. We can also derail positive

momentum from the firstquarter if we lose ourfocus as an industry – wecan’t stop innovating, wecan’t stop marketing toconsumers’ needs.Ultimately, it’s thepain/joy (or “I wish,” “Ihate,” “I love”)moments that allconsumers experienceduring the occasionswhen our products are

being used that compel and guide thegrowth potential.

The growth we have seen in Q1 2018 is agood foundation and indicator for a strongrest of the year. This doesn’t mean we cansit back and relax. Now, it is up to us, as anindustry, to pay attention to the summer’sentertaining needs while also continuing tofind ways to help consumers with theirhealth and wellness, crafting andconvenience needs and desires. If wemaintain this focus, we should expect agood 2018. And, if we follow the trend ofmirroring Q1 performance that we’ve seenover the past few years, the housewaresindustry’s 2018 growth should be in the5 percent range.

Why a Good First Quarter Is a Good Sign for 2018continued from page 1

Housewares Retail Tracking Service now available in Canada

Know where your best

Housewares Retail Tracking Service now available

Know where your best

9

DATA AND METHODOLOGYNPD has a standard data model that is used

for all categories that incorporates both con-sumer and point-of-sale (POS) databases.These two data sources are highly complemen-tary and are used to support one another.Point-of-Sale (POS) databases are assembledfrom retailers' records of actual sales by prod-uct as collected at the cash register. Consumerdatabases are developed using online purchasesurveys completed by a large-scale rotatingsample of consumers. These data produce esti-mates of sales by product for the total market-place. More importantly, the consumer surveyscapture information about each purchase, suchas buyer demographics, the product's intendeduse and other purchase motivators.

CONSUMERMETHODOLOGYThe NPD online consumer panel is com-

prised of pre-recruited individuals who haveagreed to participate in NPD online surveysand have completed a comprehensive demo-graphic questionnaire. The use of an estab-lished online panel assures good cooperationlevels and predictable demographic balanceamong panelists. Consumer panelists areasked about their recent purchases in a sur-vey administered via the Internet. Theresponding sample is demographicallyweighted and projected through a series ofsteps to represent the U.S. population. Eachmonth, over 200,000 individuals are select-ed from the NPD online consumer panel toparticipate in the appliance study. Eachmonth, over 30,000 U.S. households areselected for the housewares and home tex-tiles studies.

POS METHODOLOGYNPD collects point-of-sale retailer data

from selected retailers. These data are theactual sales for the chain on an SKU-by-SKU basis. The data are combined withdata from other retailers to produce reportson certain categories by channel, where asufficient number of retailers are cooperat-ing and where sufficient market demandexists for the database. The POS data cov-ers the retail channels of mass/nationalchains, department stores, specialty storesand drug stores (personal care and home

environment only).

CHECKOUTSM METHODOLOGYThe CheckoutSM service is based on the

total channel purchasing behavior of nearly50,000 panelists in the United States whotransmit purchase receipts (both brick &mortar and online) using their smartphones.Individual items on the receipts are coded tomerchants, product categories, and othervariables along with units purchased andprice paid -- allowing for deep analysis oftotal channel purchasing behavior. TheCheckoutSM sample is currently balanced andprojected each month to represent the pur-chasing behavior of individuals in the UnitedStates according to U.S. Census estimates.

LIFESTYLES, ATTITUDES ANDBEHAVIORS CONSUMER STUDYAn online consumer survey mailed to a

demographically representative sample ofadults ages 18+ in August 2016. Home tex-tiles category information was capturedamong respondents who qualified as buyers(5,017 qualified as past year home textilepurchasers).

ABOUT THE NPD GROUP, INC.The NPD Group is the leading

provider of reliable and comprehensiveconsumer and retail information for awide range of industries. Today, morethan 1,800 manufacturers, retailers andservice companies rely on NPD to helpthem drive critical business decisions atthe global, national and local marketlevels. NPD helps our clients to identifynew business opportunities and guidesproduct development, marketing, sales,merchandising and other functions.Information is available for the follow-ing industry sectors: automotive, beauty,commercial technology, consumer tech-nology, entertainment, fashion, foodand beverage, foodservice, home,office supplies, software, sports, toysand wireless. For more information,contact us or visit www.npd.com

Deborah A. Teschke, Senior EditorJoe Derochowski, Contributing EditorJanine Marshall-Bolton, Contributing EditorTom Goodman/Kim Hall, DesignPublished by IHA

For more information, contact Debbie Teschke at 847-692-0110; [email protected]

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


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