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Major Domestic Appliances - UK - April 2017

“Few consumer sectors enjoy the pace of innovation and change that characterises the market for major domestic appliances. Better functionality, better energy efficiency and water savings rank among the advances in recent years and this has transformed choices. But arguably the greatest change is poised to take off as suppliers develop smart connected appliances. Consumers are most interested in developments that could save them money on utility bills or call-out charges for repairs, but there is a hurdle to overcome, as most connected appliances command a hefty price premium which consumers appear reluctant to pay for.”
– Jane Westgarth, Senior Market Analyst

This Report answers the following key questions:

  • Which features of smart appliances capture the attention of shoppers? 
  • Are physical stores redundant now that online shopping has been adopted by so many? 
  • What next for design of major domestic appliances?

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
        • Definitions
        • Executive Summary

            • The market
              • Positive outlook for sales of major domestic appliances
                • Figure 1: Consumer spending on major domestic appliances, 2011-21
              • Laundry appliances account for 38% of the market
                • Figure 2: Market segmentation, major domestic appliances, share by value, 2016 (est)
              • More housing and an active housing market drive demand
                • Companies and brands
                  • Currys is the market leader
                    • Figure 3: Major domestic appliances, channels to market, by value, 2016 (est)
                  • Samsung’s well-known brand gives it a head start
                    • Figure 5: Attitudes towards and usage of selected appliance brands, January 2017
                  • Innovation includes better functionality as well as connectivity
                    • The consumer
                      • Many appliances are a household essential
                        • Laundry appliances purchased most often
                          • Figure 6: Percentage of major domestic appliances bought in the last three years, February 2017
                        • Currys is the leading retailer for major domestic appliances
                          • Figure 7: Retailers used for major domestic appliances, February 2017
                        • Online shopping ahead of buying in-store
                          • Shoppers drive a hard bargain
                            • Figure 8: Factors influencing choice of retailer for major domestic appliances, February 2017
                          • Internet shopping plays a massive role in the customer journey
                            • Figure 9: Customer journey for major domestic appliances, February 2017
                          • Smart appliances that offer savings are most interesting to shoppers
                            • Figure 10: Interest in features of major domestic appliances, February 2017
                          • What we think
                          • Issues and Insights

                            • Which features of smart appliances capture the attention of shoppers?
                              • The facts
                                • The implications
                                  • Are physical stores redundant now that online shopping has been adopted by so many?
                                    • The facts
                                      • The implications
                                        • What next for the design of major domestic appliances?
                                          • The facts
                                            • The implications
                                            • The Market – What You Need to Know

                                              • Spending to grow by 28% in five years
                                                • Market picked up momentum in 2015-16
                                                  • Tumble dryer sales up 42.3% in five years
                                                    • Smart connected appliances remain a small niche
                                                      • Currys, AO.com and Argos are the top three retailers for major domestic appliances
                                                        • Argos’s acquisition by Sainsbury’s will change the shape of the business
                                                          • More than half of major domestic appliance sales are now online
                                                            • More households leading to market growth
                                                            • Market Size and Forecast

                                                              • Market to grow by 28% in five years
                                                                • Figure 11: Consumer spending on major domestic appliances, 2011-21
                                                              • Forecast methodology
                                                                • Market picked up momentum in 2015-16
                                                                  • Figure 12: Consumer spending on major domestic appliances, 2011-16
                                                                • The impact of the EU referendum vote
                                                                  • Spending on appliances has been dented by previous slowdowns
                                                                  • Market Segmentation

                                                                    • Laundry appliances make up the largest market segment
                                                                      • Figure 13: Market segmentation, major domestic appliances, 2016 (est)
                                                                    • Tumble dryers have outpaced the market
                                                                      • Figure 14: Market segments for major domestic appliances, 2011-21 (est)
                                                                    • Growth of the built-in market
                                                                      • Smart appliances are a small market niche
                                                                      • Channels to Market

                                                                        • Currys is the market leader
                                                                          • AO.com has gained ground
                                                                            • Argos’s acquisition by Sainsbury’s will change the shape of the business
                                                                              • DIY chains have an opportunity to grow share
                                                                                • John Lewis continues its outstanding performance
                                                                                  • Figure 15: Major domestic appliances, channels to market, by value, 2016 (est)
                                                                                • Online sales surge ahead
                                                                                  • Figure 16: Major domestic appliances, online sales as a percentage of consumer spending on major domestic appliances, 2016 (est)
                                                                              • Market Drivers

                                                                                • Household numbers will grow by 4.7% in the five years to 2021
                                                                                  • Figure 17: UK households, by size, 2011-21
                                                                                • Replacement sales gain from previous housing booms
                                                                                  • Steady housing sales help boost demand for appliances
                                                                                    • Figure 18: Residential property transactions, UK, 2005-16
                                                                                  • Consumers positive about their finances
                                                                                    • Figure 19: How consumers describe their finances, UK, 2009-16
                                                                                  • Decisions based on available space
                                                                                    • Rising energy prices will spur demand for efficient appliances
                                                                                      • Change to energy labelling
                                                                                      • Companies and Brands – What You Need to Know

                                                                                        • Addressing the built-in market
                                                                                          • Many leading brands now offer smart connected appliances
                                                                                            • Brands aim for differentiation
                                                                                              • Innovation at the premium end of the market
                                                                                                • Catering for smaller kitchens
                                                                                                  • Retailers opening smart home departments
                                                                                                    • Pay as you go to become mainstream
                                                                                                      • Samsung’s stands out among the brands
                                                                                                      • Competitive Strategies

                                                                                                        • Addressing the built-in market
                                                                                                          • Bosch aims to chime with the needs of customers in their everyday lives
                                                                                                            • Whirlpool emphasises functionality and style
                                                                                                              • Indesit sets out to make things easier and faster
                                                                                                                • Beko is a price fighter brand, with added value
                                                                                                                  • Electrolux taps into emotions
                                                                                                                    • Hoover emphasises connected appliances
                                                                                                                      • Aga Rangemaster focusses on range cookers
                                                                                                                        • Miele is a premium brand
                                                                                                                          • Major brands from the Far East have ambitious plans for the UK
                                                                                                                            • LG promises a better life
                                                                                                                              • Panasonic’s fridge features new technologies
                                                                                                                                • Samsung elevates the fridge into a home hub
                                                                                                                                  • Haier’s products have ground-breaking ideas
                                                                                                                                    • Glen Dimplex features brand heritage
                                                                                                                                      • Smeg has developed iconic styling
                                                                                                                                      • Launch Activity and Innovation

                                                                                                                                        • Supplier innovation
                                                                                                                                          • Professional results at home
                                                                                                                                            • Figure 21: GE Appliances, monogram pizza oven, 2017
                                                                                                                                          • LG pitches high with its Signature range launched in the UK in 2017
                                                                                                                                            • Figure 22: LG Signature washing machine, 2017
                                                                                                                                          • Belling invests for growth
                                                                                                                                            • GE developing a ‘micro kitchen’ aimed at urban dwellings
                                                                                                                                              • Figure 23: Micro Kitchen by GE, 2017
                                                                                                                                            • KitchenAid’s latest innovation acts as an oven and a hob
                                                                                                                                              • Figure 24: Chef Sign by KitchenAid, February 2017
                                                                                                                                            • LG’s Styler cabinet
                                                                                                                                              • Figure 25: LG, Laundry Cabinet, 2017
                                                                                                                                            • Sharp launching major domestic appliances in the UK
                                                                                                                                              • Talk to your Whirlpool appliances through Alexa
                                                                                                                                                • Retailer innovation
                                                                                                                                                  • Pay monthly to go mainstream at Dixons
                                                                                                                                                    • Retailers opening smart home departments
                                                                                                                                                    • Advertising and Marketing Activity

                                                                                                                                                      • Adspend on major domestic appliances jumps in 2016 in buoyant market conditions
                                                                                                                                                        • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2012-16
                                                                                                                                                      • AO.com’s advertising more than double its closest rival
                                                                                                                                                        • Figure 27: Share of above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2016
                                                                                                                                                      • AO.com piles on the pressure
                                                                                                                                                        • Figure 28: Above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by advertiser, 2012-16
                                                                                                                                                      • Television advertising accounts for over half of spending
                                                                                                                                                        • Figure 29: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by medium, 2016
                                                                                                                                                      • Advertising and marketing campaigns
                                                                                                                                                        • Beko positions itself as ‘the official partner of the everyday’
                                                                                                                                                          • Currys features dreams based around technology
                                                                                                                                                            • AO.com features great customer experience
                                                                                                                                                              • Nielsen Ad Intel coverage
                                                                                                                                                              • Brand Research

                                                                                                                                                                  • Samsung’s well-known brand gives it a head start
                                                                                                                                                                    • Bosch is in a position of strength
                                                                                                                                                                      • Middle market group lacks differentiation
                                                                                                                                                                        • Did the appliance fires make a difference to perceptions of brands?
                                                                                                                                                                          • Figure 30: Attitudes towards and usage of selected appliance brands, January 2017
                                                                                                                                                                        • Key brand metrics
                                                                                                                                                                          • MDA brands are well-known but not favourites
                                                                                                                                                                            • Figure 31: Key metrics for selected appliance brands, January 2017
                                                                                                                                                                          • Bosch is innovative
                                                                                                                                                                            • Beko’s good value stands out
                                                                                                                                                                              • Samsung has a loyal following
                                                                                                                                                                                • Figure 32: Attitudes, by appliance brand, January 2017
                                                                                                                                                                              • Zanussi and Hotpoint are the most accessible brands
                                                                                                                                                                                • Figure 33: Brand personality – Macro image, January 2017
                                                                                                                                                                              • Bosch is the most sophisticated brand
                                                                                                                                                                                • Hotpoint is reliable and affordable
                                                                                                                                                                                  • Beko appears risky
                                                                                                                                                                                    • Figure 34: Brand personality – Micro image, January 2017
                                                                                                                                                                                  • Brand analysis
                                                                                                                                                                                    • Bosch has a quality image, worth paying more for
                                                                                                                                                                                      • Figure 35: User profile of Bosch, January 2017
                                                                                                                                                                                    • Brand analysis
                                                                                                                                                                                      • Samsung is trusted and has a fun personality
                                                                                                                                                                                        • Figure 36: User profile of Samsung, January 2017
                                                                                                                                                                                      • Brand analysis
                                                                                                                                                                                        • Hotpoint is a safe choice
                                                                                                                                                                                          • Figure 37: User profile of Hotpoint, January 2017
                                                                                                                                                                                        • Brand analysis
                                                                                                                                                                                          • Neff is least-known, but its users are fans
                                                                                                                                                                                            • Figure 38: User profile of Neff, January 2017
                                                                                                                                                                                          • Brand analysis
                                                                                                                                                                                            • Zanussi is accessible, with a good reputation
                                                                                                                                                                                              • Figure 39: User profile of Zanussi, January 2017
                                                                                                                                                                                            • Brand analysis
                                                                                                                                                                                              • Indesit has good levels of awareness and usage
                                                                                                                                                                                                • Figure 40: User profile of Indesit, January 2017
                                                                                                                                                                                              • Brand analysis
                                                                                                                                                                                                • Beko’s key strength is value
                                                                                                                                                                                                  • Figure 41: User profile of Beko, January 2017
                                                                                                                                                                                                • Brand analysis
                                                                                                                                                                                                • The Consumer – What You Need to Know

                                                                                                                                                                                                  • High levels of ownership illustrate that some appliances are household essentials
                                                                                                                                                                                                    • Laundry appliances have the highest rate of purchasing
                                                                                                                                                                                                      • Currys stands out as a destination retailer for major domestic appliances
                                                                                                                                                                                                        • More purchased online than in-store
                                                                                                                                                                                                          • This is a price-sensitive market place
                                                                                                                                                                                                            • Internet shopping plays a massive role in buying major domestic appliances
                                                                                                                                                                                                              • Stores retain their relevance
                                                                                                                                                                                                                • Interest in innovation is dominated by practical solutions
                                                                                                                                                                                                                • Ownership of Major Domestic Appliances

                                                                                                                                                                                                                  • Washing machines, fridges and cookers are household essentials
                                                                                                                                                                                                                    • Figure 42: Ownership of major domestic appliances, summary, February 2017
                                                                                                                                                                                                                  • Tumble dryers must overcome negatives to increase penetration
                                                                                                                                                                                                                    • Tumble dryers face stiff competition from cheaper ways to dry the laundry
                                                                                                                                                                                                                      • Figure 43: Ownership of major domestic appliances, washers and dryers, February 2017
                                                                                                                                                                                                                    • Combined fridge-freezers dominate the market
                                                                                                                                                                                                                      • Wealthier households own side-by-side models
                                                                                                                                                                                                                        • Figure 44: Ownership of major domestic appliances, fridges/freezers, February 2017
                                                                                                                                                                                                                      • Dishwasher ownership has increased
                                                                                                                                                                                                                        • Figure 45: Ownership of major domestic appliances, dishwashers, February 2015 and 2017
                                                                                                                                                                                                                      • Built-in cookers in almost half of households
                                                                                                                                                                                                                        • Figure 46: Ownership of major domestic appliances, cookers/ovens February 2017
                                                                                                                                                                                                                    • Purchases of Major Domestic Appliances

                                                                                                                                                                                                                      • Laundry appliances purchased most often
                                                                                                                                                                                                                        • Figure 47: Percentage of major domestic appliances bought in the last three years, February 2017
                                                                                                                                                                                                                      • Washing machine purchases dominate the laundry sector
                                                                                                                                                                                                                        • Figure 48: Major domestic appliances owned and bought in the last three years, laundry appliances, February 2017
                                                                                                                                                                                                                      • Fridge-freezers dominate the refrigeration market
                                                                                                                                                                                                                        • Figure 49: Major domestic appliances owned and bought in the last three years, refrigeration appliances, February 2017
                                                                                                                                                                                                                      • A third of dishwashers purchased are built-in models
                                                                                                                                                                                                                        • Figure 50: Major domestic appliances owned and bought in the last three years, dishwashers, February 2017
                                                                                                                                                                                                                      • Built-in ovens slightly ahead in the cooker market
                                                                                                                                                                                                                        • Figure 51: Major domestic appliances owned and bought in the last three years, cookers/ovens, February 2017
                                                                                                                                                                                                                    • Retailers Used for Major Domestic Appliances

                                                                                                                                                                                                                      • Currys is the leading retailer for major domestic appliances
                                                                                                                                                                                                                        • Figure 52: Retailers used for major domestic appliances, February 2017
                                                                                                                                                                                                                      • Narrow repertoire of retailers used
                                                                                                                                                                                                                        • Figure 53: Retailers used for major domestic appliances, repertoire, February 2017
                                                                                                                                                                                                                    • In-store or Online Shopping for Major Domestic Appliances

                                                                                                                                                                                                                      • Online shopping ahead of buying in-store
                                                                                                                                                                                                                        • Figure 54: In-store or online shopping for major domestic appliances, February 2017
                                                                                                                                                                                                                      • In-store shoppers make a bee line for Curry’s
                                                                                                                                                                                                                        • Currys faces stiff online challenge from AO.com
                                                                                                                                                                                                                        • Factors Influencing Choice of Retailer for Major Domestic Appliances

                                                                                                                                                                                                                          • Shoppers drive a hard bargain
                                                                                                                                                                                                                            • Shoppers don’t wait until Black Friday
                                                                                                                                                                                                                              • Reputation counts
                                                                                                                                                                                                                                • Figure 55: Factors influencing choice of retailer for major domestic appliances, February 2017
                                                                                                                                                                                                                            • Customer Journey for Major Domestic Appliances

                                                                                                                                                                                                                              • Internet shopping plays a massive role in buying major domestic appliances
                                                                                                                                                                                                                                • Assurance of stores
                                                                                                                                                                                                                                  • Figure 56: Customer journey for major domestic appliances, February 2017
                                                                                                                                                                                                                              • Interest in Features of Major Domestic Appliances

                                                                                                                                                                                                                                • Features that show tangible savings of most interest
                                                                                                                                                                                                                                  • Price resistance to appliances with connected features
                                                                                                                                                                                                                                    • Figure 57: Interest in features of major domestic appliances, February 2017
                                                                                                                                                                                                                                  • 59% of people are not at all interested in connected appliances
                                                                                                                                                                                                                                    • Figure 58: Interest in features of major domestic appliances, repertoire, February 2017
                                                                                                                                                                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                                    • Abbreviations
                                                                                                                                                                                                                                      • Consumer research methodology
                                                                                                                                                                                                                                      • Appendix – Market Size and Forecast

                                                                                                                                                                                                                                        • Forecast Methodology

                                                                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                                                                        To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                                        Major Domestic Appliances - UK - April 2017

                                                                                                                                                                                                                                        US $2,648.76 (Excl.Tax)