Covering Quarter 1, 2019 Shaping Our Industry in the Eye

Quiet Individuality Overall, dollar sales of tabletop

products grew nearly 5 percent in the 52 weeks ending March 30, 2019, outpaced by dinnerware at 7 percent growth. The growing assortments of dinnerware products are better suited for today’s one-dish meals while also providing a contemporary look that is about more than color. Color is still important, and colors like silver, black, bone white, smoke gray, blue and black gold are hot; but the key is that many of today’s hot dinnerware items also have unique shapes and textures*. They have pebbled and hammered finishes. They incorporate arches and swirls. They even have slanted or asymmetrical shaping.

So while color is still a draw, and an

important element to offer, many of the hot tabletop items emphasize unique and different shapes beyond the standard round. These kinds of styles give consumers the ability to express their individual style while maintaining an overall clean look and making it easier to eat today’s popular meals.

Less Is More The small home appliance industry

continues to grow. Home environment appliance dollar sales are up 10 percent, small kitchen electrics is up 9 percent and personal care is up 4 percent. Many of today’s consumers aspire to more counter space in their homes, but they don’t want anything cluttering the appearance of those countertops.

About Housewares MarketWatch Housewares MarketWatch reports

point-of-sale (POS), consumer survey, and CheckoutSM 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 www.npd.com.

See the Data and Methodology section on page 15 for an explanation of how the data is compiled.

Today’s consumers demand more of us. When shopping for histori-cally design-oriented categories,

the consumer also wants functionality. And, when they are looking at prod-ucts that used to be heavily based in functionality, consumers are now also looking for design.

Housewares products play a role in consumers’ self-expression to today’s selfie-driven, social media world, so we always need to be focused on how both design and function can distinguish our products in the eye of the consumer.

continued on page 8

Covering Quarter 1, 2019

Shaping Our Industry in the Eye of the Consumer By Joe Derochowski, The NPD Group, Inc.

*Source: The NPD Group / SupplyTrack

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group

Market Size Dollar Volume in Thousands

Source: Retail Tracking Service Source: Checkout

INSIGHTS:

CATEGORY PERFORMANCE: Dollar sales of beverageware were down by 10% in Q1’19, with a 4-point decrease in average selling price.

Source: Retail Tracking Service

PURCHASE MOTIVATORS: 27% of beverageware sold in the three months ending January 2019 was purchased to have a new style or design.

Source: Purchase Insights Tracking Service

PROMOTION INFLUENCE: 24% of dinnerware sold in the three months ending January 2019 was purchased as a gift.


ONLINE SALES: During Q1’19, 38% of dinnerware sales were made online, a 2% decrease from 2018.

Source: Checkout

PURCHASE MOTIVATORS: When it comes to selecting dinnerware, consumers said style/design and quality/durability were the top purchase motivators in the three months ending January 2019.


IMPULSE: 51% of flatware sold in the three months ending January 2019 were planned purchases.


Demographic Analysis 6 months ending • March 2019

Unit Volume Share

DINNERWARE • INCOME Percentage purchased by head of household income

2

Q1 2019

$393,548

TOTAL TABLETOP

UNDER $50,000

$50,000 - $75,000

$75,000 - $100,000

$100,000+

26.0%

42.4%

15.7%

16.0%

Source: The NPD Group3

COOKING/KITCHEN: Cookware, Bakeware, Cutlery


Source: Retail Tracking Service Source: Checkout

INSIGHTS:

CATEGORY PERFORMANCE: Cookware category sales were down 11% in Q1’19, due in part to a 3% decline in average selling price.


PURCHASE MOTIVATORS: When it comes to selecting bakeware, consumers said that quality/durability, easy to maintain/clean and style/design were most important to them in the three months ending January 2019.


ONLINE SALES: 39% of bakeware dollar sales in Q1’19 came from online purchases, a 3% increase from last year.

Source: Checkout

PURCHASE INFLUENCE: 20% of the cookware sold during the three months ending January 2019 was purchased as a gift.


IMPULSE: Planned purchases represented 46% of cutlery purchased in the three months ending January 2019.



Unit Volume Share

CUTLERY • AGE Percentage purchased by head of household age

Q1 2019

$652,071

TOTAL COOKING/KITCHEN 18-24 YEARS

25-34 YEARS

35-44 YEARS

45-54 YEARS

55+ YEARS

14.0%

28.4%

28.4%

15.9%

13.4%

SMALL APPLIANCES: Kitchen Electrics



Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS: CATEGORY PERFORMANCE: Dollar sales of juice extractors grew 39% in Q1’19 compared to prior year, with a 7% increase in average selling price.


PURCHASE MOTIVATORS: When it comes to comes to selecting an electric grill/griddle, consumers said that price, good value and brand trust were their top motivators in Q1’19.

Source: Consumer Tracking Service

ONLINE SALES: 42% of all electric food sealer purchases in Q1’19 were made online, up 16% from 2018.


PURCHASE INFLUENCE: During Q1’19, 50% of juice extractors sold were purchased on sale, a 14% increase compared to Q1’18.


IMPULSE: 45% of breadmakers sold in Q1’19 were not planned purchases, up 17% from Q1’18.



Unit Volume Share

COFFEE/ESPRESSO MAKERS • AGE Percentage purchased by head of household age

4

Q1 2019FO

OD P

REP/

BE

VERA

GE

$827,315

COOK

ING

& SP

ECIA

LTY

ELEC

TRIC

S

$656,102

TOTA

L KI

TCHE

N EL

ECTR

ICS

$1,483,417

16 – 17 YEARS

18 – 24 YEARS

25 – 34 YEARS

35 – 44 YEARS

45 – 54 YEARS

55 – 64 YEARS

65 YEARS +

0.8%

5.6%

13.4%15.4%

19.9%

23.4%21.5%


SMALL APPLIANCES: Personal Care



INSIGHTS:

CATEGORY PERFORMANCE: Sales of curling irons/stylers increased 11% in Q1’19, driven by a 15% increase in average selling price.


PURCHASE MOTIVATORS: When it comes to selecting a men’s trimmer, consumers said price, brand trust and value were top motivators in Q1’19.


ONLINE SALES: E-commerce accounted for 30% of lighted mirror sales in Q1’19, an 8% increase from last year.


PURCHASE INFLUENCE: During Q1’19, 25% of scales sold were purchased on sale, a 12% decrease compared to Q1’18.


IMPULSE: 39% of massaging appliances sold in Q1’19 were not planned purchases, flat from 2018.



Unit Volume Share

ELECTRIC SHAVERS • INCOME Percentage purchased by head of household income

Q1 2019HA

IR C

ARE/

GR

OOM

ING

$641,943

ORAL

CAR

E, H

OME

HEAL

TH, &

OTH

ER

PERS

ONAL

CAR

E

$1,118,756

TOTA

L M

ARKE

T

$1,760,699

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+

7.2%

12.2%10.1%

14.4%

7.5%

16.0%

20.7%

11.9%

SMALL APPLIANCES: Floor Care




INSIGHTS: CATEGORY PERFORMANCE: Dollar sales of stick vacuums grew 5% in Q1’19 from 2018, driven by an 8% increase in average selling price.


PURCHASE MOTIVATORS: When it comes to selecting a canister vacuum, consumers said value, brand trust and ease of use were the top purchase motivators in Q1‘19.


ONLINE SALES: 51% of robotic vacuums were purchased online in Q1’19, a 9% increase from 2018.


IMPULSE: 82% of upright vacuum purchases were planned in Q1’19, a 4% increase from 2018.


PROMOTION INFLUENCE: 53% of bare floor cleaners sold in Q1’19 were purchased on sale.



Unit Volume Share

SPECIALTY CLEANING • INCOME Percentage purchased by head of household income

6

Q1 2019

$1,130,572

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 - $149,999

$150,000+

4.0%

8.3% 7.8%9.3%

8.3%

16.2%

26.7%

19.4%


HOME: Kitchen & Dining Textiles


Source: Checkout Source: Checkout

INSIGHTS:

CATEGORY PERFORMANCE: 22% of dollars spent on table linens in Q1‘19 were on solid

color products, up 3 share points compared to prior year.

Source: Checkout

RETAIL LANDSCAPE: E-commerce accounts for 5% of kitchen linens category dollar sales,

losing 5 share points since 2018.

Source: Checkout

PRICE BAND: Kitchen linens priced over $10 lost nearly 2 dollar share points during Q1‘19

compared to prior year.

Source: Checkout

FEATURES: Dollar sales of pattern/printed kitchen linens were down 14 dollar share points in

Q1‘19 compared to prior year.

Source: Checkout


Dollar Volume Share

KITCHEN LINENS • HOUSEHOLD INCOME Percentage purchased by head of household income

Q1 2019

$314,974

TOTAL MARKETUNDER $25,000

$25,000-$49,999

$50,000-$74,999

$75,000-$99,999

$100,000+

10.7%

37.7% 19.0%

17.5%

15.1%

Source: The NPD Group 8

The fans, air purifiers and scales that consumers are buying demonstrate the aesthetic of simplicity that they are seeking. According to NPD’s Retail Tracking Service, the top three selling heaters are oriented to personal, small space use. Today’s look is sleek, with a goal of blending into the surroundings.

A Challenging Opportunity While our industry’s continued

growth indicates consumers are focused on enhancing their home life and finding ways to do so through housewares products, the fact that they are also pursuing an uncluttered appearance in their homes could

threaten parts of our business over time. Beyond the opportunities related to producing products with clean lines, continuing to shape our industry’s outlook means engaging with the consumer to ensure we are addressing their needs – from functionality to storage – and continuing to demonstrate the value of adding our products to their homes.

How can we, as an industry, incorporate these visual desires into our products? Can you do a better job of using “shape” to differentiate your products and shape the future of your business? This kind

of thinking is what will help us sustain our industry’s growth.

For more information, contact Janine Marshall at 516-625-2356.

Shaping Our Industry in the Eye of the Consumer continued from page 1

Where the industry connects around innovation

and inspiration

Housewares.org


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).

CHECKOUTSM METHODOLOGY The CheckoutSM 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 CheckoutSM 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 2016. 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 www.npd.com

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 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

Documents

Covering Quarter 1, 2019 Shaping Our Industry in the Eye