covering quarter 2, 2016 more “me” time equals more … q2 2016.pdf · 2016. 11. 1. ·...

Home entertaining is also in-fashion.More than half of housewares dollar expendi-tures came from consumers who said theyenjoy hosting parties at their home, and thisstatement is even more prevalent among mil-lennials. The millennial generation is taking adifferent approach to entertainment thanGen X and boomers did when they were intheir 20s and 30s – it is less about going out.

Focus on Entertaining At HomeEntertaining at home is a natural fit with

the millennial interest in cooking and com-fort, and it allows them to create their ownfun without spending as much money asthey would if they went out to a bar orrestaurant. In the case of boomers, as theylook to resize and refresh their living spaceafter becoming empty-nesters, they are wel-coming friends and family into their homeswith a fresh energy.

In general, we have entered a timewhen consumers are increasingly focused

on experiences, directing their attentionand spending toward things that givethem more than just another item ontheir counter or in their cabinets. Thisdevelopment in consumer spending iscompeting with home products for ashare of consumer wallets, but it alsopresents opportunity.

Kitchen gadgets used for entertainingare one example of a category segmentthat is thriving. In the first half of 2016,U.S. sales of entertaining gadgets grew 10percent, resulting in a dollar sales increaseof nearly $7 million compared to the firsthalf of 2015, according to NPD’s retailtracking service. Entertaining gadgets arethe fastest growing of all kitchen gadgetsegments. When more than $70 million isspent in just six months on products likecorkscrews, ice buckets and barware tools,it is clear consumer are willing to spend onproducts related to entertaining.

About Housewares MarketWatchHousewares MarketWatch reports

both point-of-sale (POS) and consumerdata from NPD databases. The quarterlydata covers various product categorieswithin the divisions of Small Appliancesand Non-electric Housewares.

The information contained on the following pages is offered as a snapshotof a category’s performance, both fromthe retailer (POS) and consumer perspectives. The POS data covers theretail channels of mass/national chains,department stores, specialty stores anddrug stores (personal care and homeenvironment only). Each issue ofHousewares MarketWatch will featureseveral categories from the SmallAppliances and Housewares divisions.

Complete data on a category can bepurchased by visiting NPD’s website at

www.npd.com.See theData and Methodologysection on page 9 for anexplanation of how thedata is compiled.

The thriving segments of today’s popula-tion, millennials and baby boomers, aremostly in pre-and post-kid lifestages, so

they have more “me” time. The majority ofthese groups are also in the workforce, sothey are more likely to have some disposableincome. This combination leads to more timefor fun, more time spent with friends andfamily and more entertaining in the home.Home entertaining is big business, encom-passing everything from home décor and fur-nishings to food and everything associatedwith food preparation and serving. Add thetwo largest consumer groups into the mix,and you have a winning combination.

continued on page 8

Covering Quarter 2, 2016

More “Me” Time Equals More Entertaining OpportunitiesBy Joe Derochowski, The NPD Group, Inc.

More than half ofhousewares dollarexpenditures came fromconsumers who said theyenjoy hosting parties attheir home.

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group 2

Market SizeQuarter Two • 2016

Dollar Volume in Thousands

Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS:PRICE SEGMENTATION: During Q2’16, unit sales of casual flatware priced below $10 grew by 19 percent compared to 2015.

Source: Retail Tracking Service

PURCHASE BEHAVIOR: Nearly half of beverageware sold in Q2’16 were unplanned purchases, up by 7 points versus Q2’15.

Source: Consumer Tracking Service

PROMOTION INFLUENCE: Nearly half of dinnerware purchased in Q2’16 was on promotion, one-third higher compared to last year.


CHANNEL PERFORMANCE: During Q2’16, one-third of flatware sales were from Mass Merchants, down by 3 points compared to Q2’15.


PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said appearance, good value and price were the top motivators in Q2’16.


ONLINE SALES: Over one-third of dinnerware sales were from online purchases in Q2’16, up 3 points compared to last year.


Demographic Analysis6 months ending • June 2016

Unit Volume Share

BEVERAGEWARE • AGEPercentage purchased by head of household age

$544,400

TOTAL TABLETOP

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

8%

19% 19%

17%

20%

18%

Data may not total 100% exactly due to rounding

Source: The NPD Group3

COOKING/KITCHEN: Cookware, Bakeware, Cutlery

BAKEWARE • INCOMEPercentage purchased by head of household income




INSIGHTS:CHANNEL PERFORMANCE: In Q2’16, 28 percent of cutlery dollar sales were from mid-tier Value Specialty Stores.


PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said price, good value and easy to clean were most important to them in Q2’16.


ONLINE SALES: Online sales accounted for one-fifth of total cutlery sales in Q2’16. Source: Consumer Tracking Service

FEATURES: In Q2’16, dollar sales of cast iron cookware increased 16 percent compared to Q2’15.


GIFTING: 17 percent of cookware was purchased as a gift in Q2’16, up 3 points compared to the prior year.


IMPULSE: 40 percent of bakeware purchased in Q2’16 was unplanned.Source: Consumer Tracking Service


Unit Volume Share

$732,389

TOTAL COOKING/KITCHEN

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+

21%22%

10% 9%10%

11%

6%

11%


Small Appliances: KITCHEN ELECTRICS





INSIGHTS:

FEATURES: Programmable slow cooker dollar sales grew by 26 percent in Q2’16 versus Q2’15, accounting for nearly half of total sales.


PURCHASE MOTIVATORS: When it comes to selecting a blender, consumers said price, features and brand were the top motivators in Q2’16.


ONLINE SALES: Nearly 40 percent of dollars spent on mixers in Q2’16 were through online purchases.


PROMOTION INFLUENCE: During Q2’16, 45 percent of the toaster ovens purchased were on sale, down by 5 points compared to last year.


IMPULSE: During Q2’16, three-fourths of juice extractors sold were planned purchases, up by 8 points versus one year ago.



Unit Volume Share

BLENDERS • AGEPercentage purchased by age of panel member

COOK

ING &

SPECIALTY ELECTRICS

$516,044

FOOD

PRE

P/BE

VERA

GE

$740,722

TOTAL K

ITCHE

NELECTRICS

$1,256,766

16 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

15%17% 18%

26%

14%

11%



Small Appliances: PERSONAL CARE

CURLING IRONS/STYLERS • INCOMEPercentage purchased by head of household income




INSIGHTS:GIFTING: 16 percent of massaging appliances purchased in Q2’16 were a gift to someone else, down by 6 points compared to last year.


PURCHASE MOTIVATORS: When it comes to selecting a hair dryer, consumers said price, brand and good value were the top motivators in Q2’16.


PURCHASE BEHAVIOR: Nearly half of curling iron/styling appliances sold in Q2’16 were first time purchases, an increase compared to last year.


FEATURES: In Q2’16, sales of rechargeable electric toothbrushes grew by 9 percent versus the prior year, representing 55 percent of total sales.


IMPULSE: More than one-fourth of oral care appliances sold in Q2’16 were unplanned purchases, however this was a decline of 3 points from last year.


ONLINE SALES: During Q2’16, around one-third of dollars spent on massaging appliances were from online purchases, almost doubling its share from last year.



Unit Volume Share

HAIR CAR

E/GR

OOMI

NG

$591,960

ORAL

CAR

E, HO

MEHE

ALTH

, & OTH

ERPERS

ONAL

CAR

E

$904,695

TOTAL

MARK

ET

$1,496,655

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+

11% 11%

16%

13%

9%

13%

17%

11%


Small Appliances: FLOOR CARE





INSIGHTS:

FEATURES: Dollar sales of cordless hand/stick vacuums in Q2’16 grew 25 percent compared to Q2’15, now representing over two-thirds of total sales.


PURCHASE MOTIVATORS: When it comes to a selecting a stick vacuum, consumers said brand, features and easy to use were the top motivators in Q2’16.


ONLINE SALES: One-third of deep carpet cleaners sold in Q2’16 were purchased online, up by 5 points compared to one year ago.


PROMOTION INFLUENCE: Six out of every 10 robotic vacuums purchased during Q2’16 were on sale.


IMPULSE: During Q2’16, one-fourth of upright vacuum sales were unplanned purchases, up by 6 points compared to 2015.



Unit Volume Share

HAND/STICK VACUUMS • AGEPercentage purchased by age of panel member

$1,046,244

TOTAL MARKET

16 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

11%

15%

22%

12%

16%

23%



Home: KITCHEN & DINING TEXTILES

TABLE LINENS • INCOMEPercentage purchased by head of household income




INSIGHTS:

FEATURES: During Q2’16, nearly one-fifth of dollars spent on tablecloths were on white products, 70 percent more than last year.


PURCHASE MOTIVATORS: When it comes to selecting a tablecloth, consumers said appearance, price and on promotion were most important to them in Q2’16.


ONLINE SALES: In Q2’16, 18 percent of kitchen linens sales were from online purchases, up by 8 points compared to last year.


DEMOGRAPHICS: One-fifth of kitchen linens dollar sales in Q2’16 came from products purchased by males, up by 8 points compared to last year.


SPECIAL OCCASION: 40 percent of table linens purchased in Q2’16 were on sale, down by 5 points compared to Q2’15.



Unit Volume Share

$276,033

TOTAL MARKET

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 +

14%

17%

14%12%

10%12%

22%



Specialty Items, Barware Do WellSales of snow cone makers/ice shavers

grew 15 percent, resulting in $6 million insales between January and June 2016. Thisis an example of a highly specialized prod-uct, but consumers view it as somethingthat can add a unique element of fun totheir home and gatherings. Ice buckets gen-erated $6 million in sales in the first half of2016, which was a 34 percent increase com-pared to the prior year. A simple, functionalitem that can add a touch of elegance to ahome social event can be quite attractive toconsumers.

Another category that garnered $6 mil-lion in sales in the first six months of thisyear was coasters. The detail, style and per-sonalization that can be gained by coastersare what helped drive their 24 percent

increase in dollar sales, compared to the firsthalf of 2015. Barware is another categorygrowing in excess of 6 percent, furtherdemonstrating the consumer’s willingness tospend on these special investments.

Products that offer consumers the funelements of entertaining, ways to personal-ize the experience they are looking to createor tools to simplify the way they do so—while also being relatively affordable—willbenefit most from this trend. Regardless ofthe reason behind entertaining or thenature of the gathering, people want tomake sure they enjoy themselves. This emo-tional aspect of entertaining is infectious,and will drive consumers to purchase prod-ucts that they think will help them createthe special atmosphere they aspire to.

For more information, contact JanineMarshall at 516-625-2356.

More “Me” Time Equals More Entertaining Opportunitiescontinued from page 1


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 comple-mentary and are used to support one another.Point-of-Sale (POS) databases are assembledfrom retailers' records of actual sales byproduct as collected at the cash register.

Consumer databases are developed usingonline purchase surveys completed by a large-scale rotating sample of consumers. Thesedata produce estimates of sales by product forthe total marketplace. Moreimportantly, the consumer surveys captureinformation about each purchase, such asbuyer demographics,the product's intendeduse and other purchasemotivators.

CONSUMERMETHODOLOGYThe NPD online

consumer panel iscomprised of pre-recruited individualswho have agreed toparticipate in NPDonline surveys andhave completed a com-prehensive demograph-ic questionnaire. Theuse of an establishedonline panel assuresgood cooperation lev-els and predictabledemographic balanceamong panelists.

Consumer panelistsare asked about theirrecent purchases in asurvey administered viathe Internet. Theresponding sample isdemographicallyweighted and project-ed through a series ofsteps to represent theU.S. population. Eachmonth, over 200,000individuals are selected

from the NPD online consumer panel to par-ticipate in the appliance study. Each month,over 30,000 U.S. households are selected forthe housewares and home textiles studies.

POS METHODOLOGYNPD collects point-of-sale retailer data

from selected retailers. These data are theactual sales for the chain on an SKU-by-SKUbasis. The data are combined with data fromother retailers to produce reports on certaincategories by channel, where a sufficientnumber of retailers are cooperating andwhere sufficient market demand exists forthe database.

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

covering quarter 2, 2016 more “me” time equals more … q2 2016.pdf · 2016. 11. 1. ·...

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