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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Major Domestic Appliances: Inc Impact of COVID-19 market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

The major story in 2020 is the ongoing impact of COVID-19. Prior to this outbreak, the market for major domestic appliances had actually recovered momentum, with sales up 1.6% as they neared £4 billion in 2019. This was underpinned by stability in the housing market and ongoing real wage growth, while price deflation encouraged shoppers to upgrade.

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Expert analysis from a specialist in the field

Written by Marco Amasanti, a leading analyst in the Retail sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

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

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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.

                                                                                                                                                                                                                                          Description