Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

“The market actually recovered momentum in 2019; however, the adverse impact of COVID-19 will put an end to this. While the majority of purchases are triggered by necessity, sales are nonetheless set to fall 11% in 2020 as stores are closed, housing transactions fall and elements of demand are limited to essential purchasing. The exodus from the high-street will catalyse the growth in online purchasing, particularly among older consumers; but there will be some opportunities for growth within the market.”
– Marco Amasanti, Retail Analyst, 4th May 2020

This Report covers the following areas:

  • The impact of COVID-19 on the Major Domestic Appliances over the course of 2020.
  • The changes that COVID-19 will trigger in the market over the longer term.
  • How the growing importance of sustainability, and its increasing prioritisation among consumers, is changing the way that people shop for major domestic appliances.
  • What stores must do to ensure they remain relevant amid the rising tide of online retailers.
  • New innovations and growth opportunities for brands.

What's included

What's included

Table of contents

Table of contents

  1. Overview

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

            • The market
              • Sales recover momentum in 2019, but will fall sharply over the next year
                • Figure 1: Forecast of UK value sales of major domestic appliances (adjusted for COVID-19), 2014-24
              • Market segmentation remains unchanged in 2019
                • Online retailers make gains
                  • Price deflation encourages purchasing, but uncertainty lies ahead in the housing market
                    • Impact of COVID-19 on Major Domestic Appliances
                      • COVID-19 could hold lasting implications for Major Domestic Appliances
                        • Figure 2: Expected impact of COVID-19 on Major Domestic Appliances, short, medium and long-term, April 2020
                      • Companies and brands
                        • Brands innovate for the future
                          • A heightened focus on smart tech
                            • Total advertising spend down 9.2% year-on-year in 2019
                              • Samsung and Bosch: two standout brands
                                • The consumer
                                  • 67% of consumers have purchased a major domestic appliance in the past three years
                                    • Figure 3: Purchases in the past 3 years, February 2020
                                  • Beko tops mass-market purchases, but brand choice varies by product
                                    • Figure 4: What brand they purchased, washing/tumble drying, February 2020
                                  • Online is the most popular channel and will surge in 2020 amid the COVID-19 outbreak
                                    • Figure 5: Channel of purchase, February 2020
                                  • Breakdowns trigger the majority of purchases
                                    • Figure 6: Triggers to purchase, February 2020
                                  • Price and quality considerations underpin brand choice
                                    • Figure 7: Key purchase drivers, February 2020
                                  • The store remains indispensable but needs increased customer engagement
                                    • Figure 8: Behaviours in the major domestic appliances market, February 2020
                                  • Sustainability considerations are changing the way that people shop
                                    • Figure 9: Environmental concerns, February 2020
                                  • Interest in innovation is significant
                                    • Figure 10: Attitudes towards major domestic appliances, February 2020
                                  • What we think
                                  • Impact of COVID-19 on Major Domestic Appliances

                                    • Short, medium and long-term impact on the industry
                                      • Figure 11: Expected impact of COVID-19 on Major Domestic Appliances, short, medium and long-term, April 2020
                                    • Opportunities and Threats
                                      • Economic uncertainty will lead to a lengthening of the replacement cycle
                                        • Home improvement projects could move up the agenda in the short-term
                                          • Temporary disruptions in the supply chain
                                            • Retailers with a strong credit offering could benefit
                                              • Accelerating the shift to online
                                                • Net-long term benefit for online retailers
                                                  • A role for augmented reality
                                                    • Figure 12: Dixons Carphone Point & Place Augmented-Reality website feature, 2020
                                                  • Greater integration of online and offline offerings
                                                    • Figure 13: Dixons Carphone, Shoplive, May 2020
                                                  • Smaller regional retailers could collapse
                                                    • Push environmental concerns up the agenda
                                                      • Consumers will remember brands that helped the effort
                                                        • Impact on the Major Domestic Appliances market
                                                          • COVID-19 will see double-figure sales loss for 2020…
                                                            • …and have lasting implications beyond this
                                                              • Figure 14: Forecast of UK value sales of major domestic appliances (adjusted for COVID-19), 2014-24
                                                            • Shifts in consumer behaviour
                                                              • A fundamental change in shopping behaviours
                                                                • Nearly one third of consumers expect to spend less on their home…
                                                                  • Figure 15: Changes in spending habits on home and gardening products, 26th March-23rd April, 2020
                                                                • …but there could be opportunities for the home
                                                                    • Figure 16: Consumers that expect to spend more on sector over the next month, 16th-23rd April, 2020
                                                                  • How the crisis will affect Major Domestic Appliances’ key consumer segments
                                                                    • Older consumers lead the shift in shopping behaviour
                                                                      • Figure 17: Changes in shopping behaviour, by age, 16th-23rd April 2020
                                                                    • Expected spending is spearheaded by younger consumers
                                                                      • Figure 18: Consumers that expect to spend more on the home over the next month, by age, 16th-23rd April 2020
                                                                    • Spending among less affluent consumers will drop disproportionately
                                                                      • Figure 19: Consumers that expect not to spend on the home over the next month, by household income, 16th-23rd April 2020
                                                                    • How a COVID-19 recession will reshape the Major Domestic Appliances market
                                                                      • A slow housing market, and paused renovations
                                                                        • Unemployment will hit discretionary spending
                                                                          • A renewed focus on value
                                                                            • Innovation needs to focus on longer-term cost savings
                                                                              • The need for flexibility could make a case for subscription services
                                                                                • COVID-19: Market context
                                                                                • Issues and Insights

                                                                                  • Sustainability considerations are changing the way that people shop
                                                                                    • The facts
                                                                                      • The implications
                                                                                      • The Market – What You Need to Know

                                                                                        • Sales recover momentum in 2019, but set to drop 11% in 2020
                                                                                          • Market segmentation remains unchanged in 2019
                                                                                            • Online retailers make gains
                                                                                              • Price deflation encourages purchasing, but uncertainty lies ahead in the housing market
                                                                                              • Market Size and Forecast

                                                                                                • Sales recover momentum in 2019
                                                                                                  • Figure 20: Total UK value sales of major domestic appliances, 2014-19
                                                                                                • Outlook in light of COVID-19
                                                                                                  • COVID-19 will see sales fall sharply in 2020 …
                                                                                                    • … but there will be some opportunities for growth
                                                                                                      • The market should recover momentum in 2021
                                                                                                        • Figure 21: Forecast of UK value sales of major domestic appliances (adjusted for COVID-19), 2014-24
                                                                                                        • Figure 22: Forecast of UK value sales of major domestic appliances (adjusted for COVID-19), 2014-24
                                                                                                      • Pre-COVID-19 forecast highlights the crisis’s impact on sales
                                                                                                        • Figure 23: Forecast of UK value sales of major domestic appliances (pre-COVID-19 forecast), 2014-24
                                                                                                        • Figure 24: Forecast of UK value sales of major domestic appliances (pre-COVID-19 forecast), 2014-24
                                                                                                      • Forecast methodology
                                                                                                      • Market Segmentation

                                                                                                        • Market share remains stable in 2019
                                                                                                          • Growth of built-in appliances
                                                                                                            • COVID-19 set to bring change for 2020
                                                                                                              • Figure 25: Estimated market segmentation for major domestic appliances, 2019
                                                                                                          • Channels to Market

                                                                                                            • Online makes gains in the specialist sector …
                                                                                                              • … and more broadly
                                                                                                                • Department stores endure a difficult year
                                                                                                                  • Supermarket sales fall in the first full year of Tesco Direct’s closure
                                                                                                                    • Figure 26: Channels to market, 2015-19
                                                                                                                • Market Drivers

                                                                                                                  • The housing market has stabilised in recent years, but huge uncertainty lies ahead
                                                                                                                      • Figure 27: Quarterly UK residential property transactions, Q1 2015-Q4 2019
                                                                                                                    • A rising proportion of homeowners in England
                                                                                                                      • Figure 28: English households, by tenure, 2012-18
                                                                                                                    • Price deflation should encourage purchasing
                                                                                                                      • Figure 29: Annual rate of Inflation, CPIH and major appliances and small electric goods, June 2019-February 2020
                                                                                                                    • Spending on kitchens grew in 2019
                                                                                                                      • Consumers remain willing to take on credit
                                                                                                                        • Figure 30: Consumer credit excluding student loans, March 2018-February 2020
                                                                                                                    • Companies and Brands – What You Need to Know

                                                                                                                      • Brands innovate for the future
                                                                                                                        • A heightened focus on smart tech
                                                                                                                          • Total advertising spend down 9.2% year-on-year in 2019
                                                                                                                            • Samsung and Bosch: two standout brands
                                                                                                                            • Competitive Strategies

                                                                                                                              • Administration and rebranding at the top
                                                                                                                                • A new approach to the physical sector
                                                                                                                                  • Miele launches ‘experience stores’
                                                                                                                                    • Neff AR pop-up events
                                                                                                                                      • Brands look to mobile apps
                                                                                                                                        • Augmented reality apps
                                                                                                                                          • Hotpoint interactive AR appliance shopping experience
                                                                                                                                            • Retailer mobile apps
                                                                                                                                              • Major appliances for newer living spaces
                                                                                                                                                • Fridge freezers for compact kitchens
                                                                                                                                                  • Digital communal launderette
                                                                                                                                                    • Counter-top dishwashers
                                                                                                                                                    • Launch Activity and Innovation

                                                                                                                                                      • Connected major domestic appliances
                                                                                                                                                        • Smart fridges that use AI to suggest recipes and create weekly meal plans
                                                                                                                                                          • AI takes the guesswork out of laundry
                                                                                                                                                            • Whirlpool’s first connected dishwasher
                                                                                                                                                              • Candy launches its first fridge freezer to feature smart food management technology
                                                                                                                                                                • Miele introduces internet connected appliances across its built-in ranges
                                                                                                                                                                  • Figure 31: Miele connected dishwasher, 2019
                                                                                                                                                                • Minimal food waste
                                                                                                                                                                  • Long-lasting food freshness
                                                                                                                                                                    • Voice-controlled appliances
                                                                                                                                                                      • Connected self-dosing dishwasher
                                                                                                                                                                        • Voice-command washing machine and oven
                                                                                                                                                                          • Microwave oven which can pair with Amazon Alexa and Google Home
                                                                                                                                                                            • Game-changing oven
                                                                                                                                                                              • Samsung’s new home laundry system
                                                                                                                                                                              • Advertising and Marketing Activity

                                                                                                                                                                                • Adspend on major domestic appliances advertising down 9.2% year-on-year in 2019
                                                                                                                                                                                  • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2015-19
                                                                                                                                                                                • Whirlpool is the sector’s biggest advertising spender
                                                                                                                                                                                  • Figure 33: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by advertiser, 2015-19
                                                                                                                                                                                • Three brands account for over half of the sector’s total spend
                                                                                                                                                                                  • Figure 34: Share of total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2019
                                                                                                                                                                                • Majority of advertising spend channelled through TV
                                                                                                                                                                                  • Figure 35: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by media type, 2019
                                                                                                                                                                                • Advertising and marketing campaigns
                                                                                                                                                                                  • Whirlpool product recall campaign
                                                                                                                                                                                    • Beko AquaTech washing machine advert featuring FC Barcelona players
                                                                                                                                                                                      • Hotpoint campaign to build awareness of its ActiveCare range of laundry appliances
                                                                                                                                                                                        • Indesit #DoItTogether campaign to promote gender equality
                                                                                                                                                                                          • Nielsen Ad Intel coverage
                                                                                                                                                                                          • Brand Research

                                                                                                                                                                                              • Brand map
                                                                                                                                                                                                • Figure 36: Attitudes towards and usage of selected brands, March 2020
                                                                                                                                                                                              • Key brand metrics
                                                                                                                                                                                                • Figure 37: Key metrics for selected brands, March 2020
                                                                                                                                                                                              • Brand attitudes: Siemens, Bosch and Zanussi stand out for high quality
                                                                                                                                                                                                • Figure 38: Attitudes, by brand, March 2020
                                                                                                                                                                                              • Brand personality: Hotpoint and Beko offer accessibility
                                                                                                                                                                                                • Figure 39: Brand personality – macro image, March 2020
                                                                                                                                                                                              • Samsung is stylish, innovative and highly desirable
                                                                                                                                                                                                • Figure 40: Brand personality – micro image, March 2020
                                                                                                                                                                                              • Brand analysis
                                                                                                                                                                                                • Samsung is the stand-out brand
                                                                                                                                                                                                  • Figure 41: User profile of Samsung, March 2020
                                                                                                                                                                                                • Bosch is a prestigious, consistently high quality brand worth paying more for
                                                                                                                                                                                                  • Figure 42: User profile of Bosch, March 2020
                                                                                                                                                                                                • Beko is the perfect entry-point brand, championed for value and accessibility
                                                                                                                                                                                                  • Figure 43: User profile of Beko, March 2020
                                                                                                                                                                                                • Hotpoint is a well-trusted, value favourite
                                                                                                                                                                                                  • Figure 44: User profile of Hotpoint, March 2020
                                                                                                                                                                                                • Siemens is a prestigious brand that offers consistent high quality
                                                                                                                                                                                                  • Figure 45: User profile of Siemens, March 2020
                                                                                                                                                                                                • Indesit offers good value but lacks a point of differentiation
                                                                                                                                                                                                  • Figure 46: User profile of Indesit, March 2020
                                                                                                                                                                                              • The Consumer – What You Need to Know

                                                                                                                                                                                                • 67% of consumers have purchased a major domestic appliance in the past three years
                                                                                                                                                                                                  • Beko tops mass-market purchases, but brand choice varies by product
                                                                                                                                                                                                    • Online’s popularity will surge in 2020 amid the COVID-19 outbreak
                                                                                                                                                                                                      • Breakdowns trigger the majority of purchases
                                                                                                                                                                                                        • Price and quality considerations underpin brand choice
                                                                                                                                                                                                          • The store remains indispensable, but must increase in-store engagement
                                                                                                                                                                                                            • Sustainability considerations are changing the way that people shop
                                                                                                                                                                                                              • Interest in new innovations is rife in the market
                                                                                                                                                                                                              • What They Buy

                                                                                                                                                                                                                • Two in three have purchased in the past three years
                                                                                                                                                                                                                  • One third have purchased a washing machine
                                                                                                                                                                                                                    • Figure 47: Purchases in the past 3 years, February 2020
                                                                                                                                                                                                                  • Younger shoppers spearhead recent purchases
                                                                                                                                                                                                                    • Figure 48: Purchases in the past 3 years, by age, February 2020
                                                                                                                                                                                                                  • 40% bought more than one appliance in the past three years
                                                                                                                                                                                                                    • Figure 49: Repertoire of purchases in the past 3 years, February 2020
                                                                                                                                                                                                                • Brands Purchased

                                                                                                                                                                                                                    • Beko tops mass-market purchases
                                                                                                                                                                                                                      • Hotpoint the most popular laundry appliance brand
                                                                                                                                                                                                                        • Figure 50: What brand they purchased, washing/tumble drying, February 2020
                                                                                                                                                                                                                      • Beko tops choice in fridges/freezers
                                                                                                                                                                                                                        • Figure 51: What brand they purchased, fridge/freezer, February 2020
                                                                                                                                                                                                                      • The cookers market is fragmented
                                                                                                                                                                                                                        • Figure 52: What brand they purchased, cookers, February 2020
                                                                                                                                                                                                                      • Bosch the outright leader for dishwashers
                                                                                                                                                                                                                        • Figure 53: What brand they purchased, dishwashers, February 2020
                                                                                                                                                                                                                    • Channel of Purchase

                                                                                                                                                                                                                      • Online is the most popular channel for purchasing appliances
                                                                                                                                                                                                                        • Figure 54: Channel of purchase, net, February 2020
                                                                                                                                                                                                                      • The channel will surge in 2020 amid the COVID-19 outbreak
                                                                                                                                                                                                                        • Consumers look to the security of ordering via computer …
                                                                                                                                                                                                                          • … but younger shoppers are driving the role of the smartphone
                                                                                                                                                                                                                            • Figure 55: Channel of purchase, February 2020
                                                                                                                                                                                                                        • Triggers to Purchase

                                                                                                                                                                                                                          • Breakdowns trigger the majority of purchases
                                                                                                                                                                                                                            • Figure 56: Triggers to purchase, February 2020
                                                                                                                                                                                                                          • Disparate demand among younger and older parents
                                                                                                                                                                                                                            • Figure 57: Triggers to purchase, by age of children, February 2020
                                                                                                                                                                                                                          • Laundry appliance purchases are driven by necessity
                                                                                                                                                                                                                            • Figure 58: Triggers to purchase, laundry appliance purchasers, compared to the average, February 2020
                                                                                                                                                                                                                          • Fridges/Freezers are often upgraded before breakdown
                                                                                                                                                                                                                            • Figure 59: Triggers to purchase, fridge/freezer appliance purchasers, compared to the average, February 2020
                                                                                                                                                                                                                          • A broad variety of drivers in cooker sales
                                                                                                                                                                                                                            • Figure 60: Triggers to purchase, cooking appliance purchasers, compared to the average, February 2020
                                                                                                                                                                                                                          • House movers drive dishwasher sales
                                                                                                                                                                                                                            • Figure 61: Triggers to purchase, dishwasher appliance purchasers, compared to the average, February 2020
                                                                                                                                                                                                                        • Purchase Drivers

                                                                                                                                                                                                                          • Price and quality considerations underpin brand choice
                                                                                                                                                                                                                            • Environmental credentials increasingly under the spotlight
                                                                                                                                                                                                                              • Innovations are an important differentiator for brands
                                                                                                                                                                                                                                • Figure 62: Key purchase drivers, February 2020
                                                                                                                                                                                                                              • Priorities differ across brand shoppers
                                                                                                                                                                                                                                • Figure 63: Key purchase drivers, by brand, February 2020
                                                                                                                                                                                                                            • Shopping Behaviours for Major Domestic Appliances

                                                                                                                                                                                                                              • The store remains indispensable for many
                                                                                                                                                                                                                                • Figure 64: Behaviours in the major domestic appliances market, February 2020
                                                                                                                                                                                                                              • But they must keep consumers engaged while in-store
                                                                                                                                                                                                                                • Figure 65: Agreement with behaviours in the major domestic appliances market, by channel of purchase, February 2020
                                                                                                                                                                                                                              • Many younger consumers rely on credit and sales events
                                                                                                                                                                                                                                • Figure 66: Agreement with behaviours in the major domestic appliances market, by age, February 2020
                                                                                                                                                                                                                            • Environmental Concerns

                                                                                                                                                                                                                              • Sustainability considerations are changing the way that people shop
                                                                                                                                                                                                                                  • Figure 67: Environmental concerns, February 2020
                                                                                                                                                                                                                                • Different approaches across age bands
                                                                                                                                                                                                                                  • Figure 68: Agreement with environmental concerns, by age, February 2020
                                                                                                                                                                                                                              • Attitudes towards Major Domestic Appliances

                                                                                                                                                                                                                                • Screen size limits mobile purchasing …
                                                                                                                                                                                                                                  • … but this could be driven by tech innovation in the sphere
                                                                                                                                                                                                                                    • Figure 69: Attitudes towards major domestic appliances, February 2020
                                                                                                                                                                                                                                  • The opportunity for an appliance subscription service
                                                                                                                                                                                                                                    • Younger consumers spearhead the interest in smart technologies
                                                                                                                                                                                                                                      • Figure 70: Agreement with attitudes towards major domestic appliances, by age, February 2020
                                                                                                                                                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

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

                                                                                                                                                                                                                                          • Forecast methodology

                                                                                                                                                                                                                                          About the report

                                                                                                                                                                                                                                          This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                                                                                                          • The Consumer

                                                                                                                                                                                                                                            What They Want. Why They Want It.

                                                                                                                                                                                                                                          • The Competitors

                                                                                                                                                                                                                                            Who’s Winning. How To Stay Ahead.

                                                                                                                                                                                                                                          • The Market

                                                                                                                                                                                                                                            Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                                                                                                          • The Innovations

                                                                                                                                                                                                                                            New Ideas. New Products. New Potential.

                                                                                                                                                                                                                                          • The Opportunities

                                                                                                                                                                                                                                            Where The White Space Is. How To Make It Yours.

                                                                                                                                                                                                                                          • The Trends

                                                                                                                                                                                                                                            What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                                                                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                                                                                                                          Trusted by companies. Big and small.

                                                                                                                                                                                                                                          • bell
                                                                                                                                                                                                                                          • boots
                                                                                                                                                                                                                                          • google
                                                                                                                                                                                                                                          • samsung
                                                                                                                                                                                                                                          • allianz
                                                                                                                                                                                                                                          • kelloggs
                                                                                                                                                                                                                                          • walgreens
                                                                                                                                                                                                                                          • redbull
                                                                                                                                                                                                                                          • unilever
                                                                                                                                                                                                                                          • Harvard
                                                                                                                                                                                                                                          • pinterest
                                                                                                                                                                                                                                          • new-york-time