The home industry was still a hot spot in

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1 Untapped Opportunities in Housewares Covering Quarters 1 & 2, By Joe Derochowski, The NPD Group, Inc. About Housewares MarketWatch Housewares MarketWatch reports point-of-sale (POS), consumer survey, and Checkout Tracking SM consumer receipt-based data from NPD databases. The quarterly data covers various product categories within the divisions of Small Appliances, Non-electric Housewares, and Home Textiles. The information contained on the following pages is offered as a snapshot of a category s performance, including perspective crossing each of the mentioned information sources. Each issue of Housewares MarketWatch will feature several categories from the Small Appliances, Housewares, and Kitchen and Dining Textiles divisions. Complete data on a category can be purchased by visiting NPD s website at See the Data and Methodology section on page 15 for an explanation of how the data is compiled. ers are taking advantage of the consumer need for portable breakfast options, fueling the growth of inhome breakfast sandwich consumption. Breakfast sandwiches are also one of the fastest growing foods in the restaurant industry. A homemade breakfast sandwich would be approximately half the cost of a pre-prepared frozen sandwich, and 15 to 25 percent of the cost of restaurant breakfast sandwiches. By offering consumers a convenient way to make their own breakfast sandwiches, we can help them save hundreds to potentially a thousand dollars a year. Besides the cost savings, homemade breakfast options also put ingredient control back in the hands of consumers, which can make them feel better about what they are eating. Match Existing Needs Turning to floor care, sales of bare floor cleaners have been declining of late; however, the age groups that index high for these products are growing parts of the population. This indicates a consumer need that should be driving growth. In addition, Millennials and Boomers have more pets, and hardwood floors, so the benefits of these products are a match for existing The home industry was still a hot spot in the first half of. Over the first six months of the year, dollar sales of the small kitchen electrics segment grew 5 percent, non-electric housewares and home environment appliances each grew 2 percent and personal care appliances grew 1 percent. The winning categories continue to be tied to consumers desires to live healthy, entertain and make everyday jobs easier. However, there are still untapped opportunities. In kitchen electrics, sandwich maker sales are down but portable breakfast sandwich makers are just scratching the surface of the market potential. Frozen food manufactur- consumer needs. Finally, new moms are another growing segment of the population, adding to the increasing number of homes that could benefit from bare floor cleaners. There are no consumer-driven reasons for the decline of this category, which means increased support from manufacturers and retailers should be able to turn this category around. While the tabletop market is on the decline, with dollar sales down 5 percent in the first half of, there are some pockets of sunshine related to entertaining, versatility and a few other areas of consumer focus. However, the growth in sales of novelty and character-designed products likely driven by the increase in the number of children age 5 or younger and increases in sales of seasonal designs, fill-in open stock flatware, or price cuts on formal flatware will not be market drivers. Similar to apparel and other industries where design is a critical component, the continued on page 14

2 TABLETOP: Dinnerware, Beverageware, Flatware Q1 TOTAL TABLETOP $470,581 6 months ending March DINNERWARE INCOME Percentage purchased by head of household income 23% 18% 9% 10% 7% 11% 9% 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 + FEATURES: Dollar sales of glass beverageware were down by 7 percent in Q1 17, with a flat average selling price. PURCHASE BEHAVIOR: Nearly 70 percent of flatware sold in Q1 17 were planned purchases. PURCHASE INFLUENCE: 40 percent of the dinnerware purchased in Q1 17 was on promotion, up 5 percentage points from last year. CHANNEL DYNAMICS: During Q1 17, over one-fifth of dinnerware sales came from the specialty mid-tier/value channel, twice as much as last year. PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said appearance, price and good value were the top motivators in Q1 17. ONLINE SALES: Over one-fourth of flatware sales were from the ecommerce channel during Q1 17, up 9 percentage points compared to last year. 2

3 COOKING/KITCHEN: Cookware, Bakeware, Cutlery Q1 TOTAL COOKING/KITCHEN 6 months ending March CUTLERY AGE Percentage purchased by head of household age $782, YEARS YEARS YEARS 16% 28% YEARS YEARS 65+ YEARS 19% FEATURES: Despite a 10 percent lower average selling price, canister/jar food storage sales grew 16 percent in Q1 17 compared to last year. PURCHASE MOTIVATORS: When it comes to selecting bakeware, consumers said that price, good value and easy to clean were most important to them in Q1 17. ONLINE SALES: 26 percent of cookware dollar sales in Q1 17 were from online purchases, up 3 percentage points compared to the prior year. CHANNEL DYNAMICS: During Q1 17, 23 percent of cutlery sales came from the specialty mid-tier/value channel, 50 percent higher than last year. PURCHASE INFLUENCE: 36 percent of bakeware sold during Q1 17 was on promotion, up 6 percentage points from last year. IMPULSE: More than one-third of dollars spent on cookware in Q1 17 were from unplanned purchases, up 6 percentage points from one year ago. 3

4 Small Appliances: KITCHEN ELECTRICS Q1 TOTAL KITCHEN ELECTRICS 6 months ending March COOKERS INCOME Percentage purchased by head of household income 20% COOKING & SPECIALTY ELECTRICS FOOD PREP/ BEVERAGE $721,046 $1,279,385 8% 15% 9% 8% $558,339 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 + FEATURES: Dollar sales of traditional food processors grew 43 percent in Q1 17. PURCHASE MOTIVATORS: When it comes to choosing a juice extractor, consumers said that price, brand and features were their top motivators in Q1 17. ONLINE SALES: Over one-third of all toaster oven sales in Q1 17 were from online purchases, up 7 percentage points compared to Q1 16. PURCHASE INFLUENCE: During Q1 17, half of the blenders and processors purchased were on sale. IMPULSE: One-fourth of all toaster ovens sold in Q1 17 were unplanned purchases, up 5 percentage points compared to the prior year. 4

5 Small Appliances: PERSONAL CARE Q1 HAIR CARE/GROOMING $579,065 ORAL CARE, HOME HEALTH, & OTHER PERSONAL CARE $979,305 TOTAL MARKET $1,558,369 6 months ending March CURLING IRONS/STYLERS AGE Percentage purchased by head of household age 18% 11% 17% 23% YEARS YEARS YEARS YEARS YEARS 65+ YEARS 20% FEATURES: Rechargeable men s facial trimmers, representing nearly 60 percent of total sales, were up slightly in Q1 17. PURCHASE MOTIVATORS: When it comes to selecting a specific curling iron/styling appliance, consumers said price, brand and good value were top motivators in Q1 17. ONLINE SALES: During Q1 17, one-fourth of oral care products sales were from the ecommerce channel, 4 percentage points higher than Q1 16. PURCHASE OCCASION: Six in 10 of the massaging appliances sold in Q1 17 were first-time purchases, a 2-percentage point increase versus the prior year. IMPULSE: Nearly 40 percent of curling irons/stylers were purchased on promotion in Q

6 Small Appliances: FLOOR CARE Q1 TOTAL MARKET 6 months ending March SPECIALTY CLEANING AGE Percentage purchased by head of household age $1,089,322 18% 9% YEARS YEARS YEARS YEARS 13% 24% YEARS 65+ YEARS 16% 20% FEATURES: Dollar sales of cordless stick vacuums grew by 42 percent in Q1 17, now comprising more than half of total stick vacuum sales. PURCHASE MOTIVATORS: When it comes to selecting a deep carpet cleaner, consumers said brand, price and features were the top motivators in Q1 17. ONLINE SALES: Nearly two-thirds of robotic vacuums sold in Q1 17 were purchased online, up 10 percentage points compared to last year. CHANNEL DYNAMICS: Around one-third of stick vacuum sales came from the mass channel in Q1 17, 10 percentage points higher than last year. PROMOTION INFLUENCE: Two-thirds of robotic vacuums were purchased on sale during Q1 17, up 8 percentage points compared to last year. 6

7 Home: KITCHEN & DINING TEXTILES Q1 TOTAL MARKET $213,062 6 months ending March KITCHEN LINENS AGE Percentage purchased by age of panel member 9% YEARS YEARS YEARS % 16% FEATURES: During Q1 17, nearly 40 percent of dollars spent on kitchen linens were on pattern or print products. PURCHASE MOTIVATORS: When it comes to selecting table linens, consumers reported that color, quality and material/fabric were most important to them in Q1 17. Source: Home Textiles Lifestyles, Attitudes & Behaviors Study, March ONLINE SALES: In Q1 17, less than 10 percent of table linen sales came from online purchases. DEMOGRAPHICS: Over one-third of kitchen linen dollar sales came from products purchased by men in Q1 17, up 4 percentage points compared to Q1 16. SPECIAL OCCASION: Nearly half of the table linens sold in Q1 17 were purchased to replace old ones. Source: Home Textiles Lifestyles, Attitudes & Behaviors Study, March 7

8 TABLETOP: Dinnerware, Beverageware, Flatware Q2 TOTAL TABLETOP 6 months ending June BEVERAGEWARE AGE Percentage purchased by head of household age YEARS $533,604 10% YEARS YEARS 13% 30% YEARS YEARS 65+ YEARS 19% FEATURES: Dollar sales of casual glass beverageware were down 3 percent in Q2 17, with a 7 percent lower average selling price PURCHASE BEHAVIOR: 27 percent of dinnerware sold in Q2 17 was purchased as a gift, up 10 percentage points compared to last year. PURCHASE INFLUENCE: Three out of 10 flatware purchases in Q2 17 were on promotion, up 3 percentage points from last year. CHANNEL DYNAMICS: During Q2 17, approximately one-third of beverageware sales came from the mass merchants, 4 percentage points higher than last year. PURCHASE MOTIVATORS: When it comes to selecting dinnerware, consumers said appearance, price and good value were the top motivators in Q2 17. ONLINE SALES: One-fifth of flatware sales in Q2 17 were from the ecommerce channel, up slightly compared to last year. 8

9 COOKING/KITCHEN: Cookware, Bakeware, Cutlery Q2 TOTAL COOKING/KITCHEN $741,494 COOKWARE INCOME Percentage purchased by head of household income 16% 6 months ending June 20% 13% 15% 6% 5% 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 + FEATURES: Despite an 8 percent lower average selling price, non-electric can opener sales grew by 2 percent in Q2 17. PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said that price, good value and easy to clean were most important to them in Q2 17. ONLINE SALES: 17 percent of bakeware dollar sales in Q2 17 were from online purchases, up 5 percentage points compared to the prior year. CHANNEL DYNAMICS: During Q2 17, one-fifth of cookware sales came from the specialty premium channel. PURCHASE INFLUENCE: 17 percent of cutlery sold in Q2 17 was purchased as a gift, up 2 percentage points from last year. IMPULSE: Four out of 10 bakeware purchases in Q2 17 were unplanned, up 4 percentage points from one year ago. 9

10 Small Appliances: KITCHEN ELECTRICS Q2 TOTAL KITCHEN ELECTRICS 6 months ending June BLENDING & PROCESSING AGE Percentage purchased by head of household age YEARS COOKING & SPECIALTY ELECTRICS $548,598 FOOD PREP/ BEVERAGE $709,612 $1,258,210 16% 13% 16% 22% YEARS YEARS YEARS YEARS 65+ YEARS 17% 17% FEATURES: Convection toaster oven sales grew 23 percent in Q2 17, now representing more than half of total sales. PURCHASE MOTIVATORS: When it comes to choosing a toaster oven, consumers said that price, brand and good value were their top motivators in Q2 17. ONLINE SALES: 30 percent of blending & processing dollar sales were from online purchases during Q2 17, up 4 percentage points compared to last year. PURCHASE INFLUENCE: In Q2 17, 46 percent of the mixers sold were purchased on sale, a 4-percentage point decline from last year. IMPULSE: Three in 10 of the juice extractors sold in Q2 17 were unplanned purchases, up 6 percentage points compared to the prior year. 10

11 Small Appliances: PERSONAL CARE Q2 HAIR CARE/GROOMING ORAL CARE, HOME HEALTH, & OTHER PERSONAL CARE $923,560 TOTAL MARKET $1,519,252 6 months ending June CURLING IRONS/STYLERS INCOME Percentage purchased by head of household income 24% 8% 21% 11% $595,692 Under $29,999 $30,000 $44,999 $45,000 $59,999 $60,000 $74,999 $75,000 $99,999 $100,000 $149,999 $150,000+ FEATURES: During Q2 17, dollar sales of men s trimmers were up 1 percent, with a 2 percent higher average selling price. PURCHASE MOTIVATORS: When it comes to selecting a specific massaging appliance, consumers said price, brand and good value were top motivators in Q2 17. ONLINE SALES: Approximately one-fifth of hairdryer sales were from the ecommerce channel during Q2 17, 4 percentage points higher than Q2 16. PROMOTION INFLUENCE: During Q2 17, over one-third of hairdryers were purchased on sale, 6 percentage points higher than last year. PURCHASE OCCASION: Over one-fifth of massaging appliance products sold in Q2 17 were purchased as a gift for someone else, 5 percentage points higher than last year. 11

12 Small Appliances: FLOOR CARE Q2 TOTAL MARKET 6 months ending June HAND/STICK VACUUMS INCOME Percentage purchased by head of household income $1,090,000 20% 23% 15% 10% 8% 11% Under $29,999 $30,000 $44,999 $45,000 $59,999 $60,000 $74,999 $75,000 $99,999 $100,000 $149,999 $150,000+ FEATURES: Dollar sales of cordless hand/stick vacuums grew by 19 percent in Q2 17, now comprising over two-thirds of total hand/stick vacuum sales. PURCHASE MOTIVATORS: When it comes to selecting a deep carpet cleaner, consumers said brand, price and good value were the top motivators in Q2 17. ONLINE SALES: 45 percent of stick vacuums sold in Q2 17 were purchased online, a 13-percentage point gain compared to last year. CHANNEL DYNAMICS: Nearly 40 percent of upright vacuum sales came from the mass channel in Q2 17, 4 percentage points higher than last year. PROMOTION INFLUENCE: Seven in 10 robotic vacuums sold in Q2 17 were purchased on sale, gaining 9 percentage points compared to last year. 12

13 Home: KITCHEN & DINING TEXTILES Q2 TOTAL MARKET 6 months ending June KITCHEN & DINING INCOME Percentage purchased by head of household income $225,055 15% UNDER $25,000 $25,000-$49,999 33% $50,000-$74,999 19% $75,000-$99,999 $100, % 18% Source: Checkout Tracking SM FEATURES: 43 percent of dollars spent on table linens in Q2 17 were on pattern or print products, up by 10 percentage points compared to the prior year. MARKET BASKET: During Q2 17, 8 percent of the time consumers also purchased a bath linen product when a kitchen linen product was in the basket. ONLINE SALES: Approximately 10 percent of table linen sales in Q2 17 came from online purchases. DEMOGRAPHICS: Nearly two-thirds of kitchen linen dollar sales in Q2 17came from products purchased by consumers age 45+, up 5 percentage points compared to Q

14 Untapped Housewares Opportunities continued from page 1 tabletop industry is suffering. Rather than a must have, it is becoming a nice to have. Because the life moments that used to be vital to the tabletop industry are happening later in life, they are not having the same impact they once did on these categories. Consumers are choosing to keep their current tabletop items instead of buying new ones when they get married or buy a new home. Connecting Joy Why is it that consumers are more likely to buy a new coffeemaker during these new life moments, but not as likely to purchase dinnerware, flatware or beverageware? The answer is urgency. We have to create a need. As an industry, we emphasize design for the sake of design in our consumer communications as opposed to trying to build a product and message that addresses consumers needs. We need to do a better job of connecting the feeling of joy we get from new tabletop items as a way to complete the joy of a kitchen remodel, starting a life together or a new move. In essence, it is the dessert for these life moments, or the accessory that completes the look. We need to create design that is a conversation piece when entertaining guests and gives the consumer the ability to reflect their personal style, while also being versatile enough to adapt to casual everyday use. To tap into this industry s opportunity, we need to win a space in the consumer s mind that can compete with the many other things vying for their attention and wallet. Consumers are paying attention to their homes and home products right now, opening the door to plenty of opportunity Rather than a "must have," tabletop is becoming a "nice to have. for growth across the industry. But, manufacturers, retailers and marketers in the housewares and homegoods industry need to walk through that door with products and messages that will resonate as being helpful in the endeavors consumers are currently working toward. If consumers perceive the product to be something that will help them live a healthy life, make their home a more inviting entertaining space or find easier ways to perform everyday tasks, the opportunity will be realized and plentiful. For more information, contact Janine Marshall at

15 DATA AND METHODOLOGY NPD has a standard data model that is used for all categories that incorporates both consumer and point-of-sale (POS) databases. These two data sources are highly complementary and are used to support one another. Point-of-Sale (POS) databases are assembled from retailers' records of actual sales by product as collected at the cash register. Consumer databases are developed using online purchase surveys completed by a large-scale rotating sample of consumers. These data produce estimates of sales by product for the total marketplace. More importantly, the consumer surveys capture information about each purchase, such as buyer demographics, the product's intended use and other purchase motivators. CONSUMER METHODOLOGY The NPD online consumer panel is comprised of pre-recruited individuals who have agreed to participate in NPD online surveys and have completed a comprehensive demographic questionnaire. The use of an established online panel assures good cooperation levels and predictable demographic balance among panelists. Consumer panelists are asked about their recent purchases in a survey administered via the Internet. The responding sample is demographically weighted and projected through a series of steps to represent the U.S. population. Each month, over 200,000 individuals are selected from the NPD online consumer panel to participate in the appliance study. Each month, over 30,000 U.S. households are selected for the housewares and home textiles studies. POS METHODOLOGY NPD collects point-of-sale retailer data from selected retailers. These data are the actual sales for the chain on an SKU-by-SKU basis. The data are combined with data from other retailers to produce reports on certain categories by channel, where a sufficient number of retailers are cooperating and where sufficient market demand exists for the database. The POS data covers the retail channels of mass/national chains, department stores, specialty stores and drug stores (personal care and home environment only). CHECKOUT TRACKING SM METHODOLOGY The Checkout Tracking SM Total Channel service is based on the total channel purchasing behavior of nearly 50,000 panelists in the United States who transmit purchase receipts (both brick & mortar and online) using their smartphones. Individual items on the receipts are coded to merchants, product categories, and other variables along with units purchased and price paid -- allowing for deep analysis of total channel purchasing behavior. The Checkout Tracking Total Channel sample is currently balanced and projected each month to represent the purchasing behavior of individuals in the United States according to U.S. Census estimates. LIFESTYLES, ATTITUDES AND BEHAVIORS CONSUMER STUDY An online consumer survey mailed to a demographically representative sample of adults ages 18+ in August Home textiles category information was captured among respondents who qualified as buyers (5,017 qualified as past year home textile purchasers). ABOUT THE NPD GROUP, INC. The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers and service companies rely on NPD to help them drive critical business decisions at the global, national and local market levels. NPD helps our clients to identify new business opportunities and guides product development, marketing, sales, merchandising and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless. For more information, contact us or visit Deborah A. Teschke, Senior Editor Joe Derochowski, Contributing Editor Janine Marshall-Bolton, Contributing Editor Tom Goodman/Kim Hall, Design Published by IHA For more information, contact Debbie Teschke at ; or dteschke@housewares.org 6400 SHAFER COURT, STE. 650 ROSEMONT, IL USA TEL: FAX: