Washers and Dryers - US

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2008 - 95 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

New homeowners, new parents the primary target

Going “green”

Young and the wealthy seeking style and new features

Slowdown in housing market impacting sales

Washers larger segment, dryers faster growing

Sears loses share to Home Depot and Lowe’s

Younger homeowners, Baby Boomers and multi-ethnic population

Consolidated supply structure, led by Whirlpool

Well-established brands enter the Internet age

A gamut of innovations

Consumer findings

The purchase process

Attitudes toward product features

Findings by race/ethnicity

Market Size and Forecast

Key points

Mature market shows fairly strong growth

Sales have tracked the boom and bust of the housing market

2007 and 2008 sales buffered by replacement and high-end sales

Sales and shipments

Figure 5: Total U.S. sales and forecast of washers and dryers at current prices, 2003-11

Figure 6: Total U.S. sales and forecast of washers and dryers at inflation adjusted prices, 2003-11

Figure 7: Manufacturer shipments of laundry appliances, 2003-08

Competitive Context

Key points

Laundromats serve urban renters

Laundromats enhancing appeal to eco-conscious consumers

Dry cleaners offer limited cleaning and pressing competition

Segment Performance

Key points

Washers comprise largest segment, dryers faster growing

From 2006-08, dryers grow at slightly higher rate

Figure 8: U.S. sales and forecast of laundry appliances at current prices, by segment, 2003-13

Figure 9: U.S. sales of laundry appliances, by segment, 2006 and 2008

Segment Performance—Washers

Key points

Sales growth has slowed since 2006, but prices have increased

Innovation driving high-end sales

Front-load machines show strong growth

Figure 10: U.S. sales and forecast of washers, in inflation-adjusted prices, 2003-11

Figure 11: U.S. sales and forecast of washers, in inflation-adjusted prices, 2003-11

Figure 12: Factory unit shipments of washers, 2003-08

Segment Performance—Dryers

Key points

Growth tapered off in 2007

Figure 13: U.S. sales and forecast of dryers at constant prices, 2003-11

Figure 14: U.S. sales and forecast of dryers at inflation-ajdusted prices, 2003-13

Figure 15: Factory unit shipments of dryers, 2003-08

Gas vs. electric

Figure 16: U.S. shipments of gas and electric dryers, 2006 and 2008

Figure 17: Factory unit shipments of electric dryers, 2003-08

Figure 18: Factory unit shipments of gas dryers, 2003-08

Retail Channels

Key points

Figure 19: U.S. sales of laundry appliances, by retail channel, 2006-07

Lowe’s expands its position; Sears loses market share

Figure 20: Sales of major home appliances by top appliance retailers, 2005-07

Retail Channels—Appliance and Specialty Stores

Key points

Below average sales growth every year from 2003-07

Figure 21: U.S. sales of laundry appliances at electronic/appliance stores, 2003-07

Sears considering selling Kenmore through other retailers

Best Buy educates sales associates on environmental issues

Retail Channels—Home Centers, Hardware Stores, Building Supply Stores

Key points

Segment gaining share every year

Figure 22: U.S. sales of laundry appliances at home centers/hardware/building supply stores, 2003-07

Lowe’s continues to post growth in appliance category

Home Depot focusing on high-end, e-tailing and Eco-options

Retail Channels—Other

Key points

Sales decline in “other” retail channels

Figure 23: U.S. sales of laundry appliances at other retailers, 2003-07

Market Drivers: Going Green

Green living fuels demand for environmentally-friendly appliances

Green appliances a part of a broader “green” retailer approach

Growth of green homes

Government certification programs for energy efficient appliances

State and local promotions of energy efficient appliances

Market Drivers: The Housing Market

Homeowners twice as likely to own laundry appliances

Figure 24: Ownership of washers and dryers, by home ownership, Jan-Nov 2007

Buying new home, moving and remodeling drive appliance purchase

New and existing home sales dropped sharply in 2006 and 2007

Gloomy housing prognosis through 2008

Figure 25: Sales of new and existing homes, 2002-07

Home renovations fell in 2007

Figure 26: Expenditures for residential repairs and maintenance, and improvements, 2002-07

Demographic Drivers

Limited differences in purchases by age

Figure 27: Purchase of appliance in the past 12 months, by age, Jan-nov 2007

Figure 28: Population aged 18 or older, by age group, 2003-13

A growing multi-ethnic population

Figure 29: Population by race and Hispanic origin, 2003-13

Growth in high-end due to increase in high-income households

Figure 30: Distribution of households, by income (current dollars), 1999 and 2006

Figure 31: Purchase in the past 12 months, by household income, Jan-Nov 2007

Life events propel purchases

Leading Companies

Key points

Three tiered pricing with economical, mass market and premium lines

Whirlpool Corporation (Whirlpool, Maytag, Amana)

General Electric (GE)

Electrolux (Frigidaire)

LG Electronics

Brand Qualities

Whirlpool (Whirlpool, Maytag, Amana)

Whirlpool

Maytag

Amana

Sears (Kenmore)

General Electric (GE)

Electrolux (Frigidaire, Electrolux)

LG Electronics (LG)

Innovation and Innovators

Energy and water efficiency

Use of steam for efficiency, wrinkle reduction

Bacteria-killing features

Anti-allergenic features

Remote monitoring and communication between machines

Capacity

Stain removal

Detergent management

Reduced noise and vibration

Temperature, water level sensors and other indicators

Color and styling

Advertising and Promotion

Key points

Limited brand loyalty = opportunity

Overall advertising expenditures stagnate or fall in 2007

Figure 32: Media expenditures of major appliance brands on ads for major appliances, 2005-07

Whirlpool (Whirlpool and Maytag)

Whirlpool

Figure 33: Whirlpool—Duet Swirling sea animals, 2008

Figure 34: Whirlpool—Duet steam dryer, 2008

Maytag

Figure 35: MAYTAG—centennial washer/dryer, 2008

Figure 36: MAYTAG—bravo dryer, 2008

Figure 37: MAYTAG—epic washer-dryer, 2008

GE

Kenmore (Sears)

LG

Figure 38: LG—Steam Washing, 2008

Electrolux (Frigidaire, Electrolux)

Frigidaire

Electrolux

Ownership and Frequency of Purchase

Key points

Ownership rises with age and household income

Figure 39: Ownership of washers and dryers, by household income, Jan-Nov 2007

Figure 40: Ownership of washers and dryers, by age, Jan-Nov 2007

Online, young and high-income respondents bought washers more recently

Figure 41: Age of current washer or dryer, May 2008

Figure 42: Age of current washer, by household income, May 2008

Figure 43: Age of current washer, by age, May 2008

Younger respondents are planning to buy new appliances

Figure 44: Intended time of next washer purchase, by age, May 2008

Spending, Acquisition and Retail Considerations

Key points

Women are primary buyers; retail environment counts

Figure 45: Spending on and acquisiton of washers, by gender, May 2008

Respondents of all household incomes seek a deal

Figure 46: Spending on and acquisiton of washers, by household income, May 2008

Household income considerations shape buying new appliances, replacing as a pair

Figure 47: Other attitudes towards replacement of machines, by Household income, May 2008

Economically priced machines important for younger consumer base

Figure 48: Other attitudes towards replacement of machines, by Age, May 2008

Warranty, delivery and installation

Figure 49: Retailer and supplier extras checked or bought, by household income, May 2008

Figure 50: Retailer and supplier extras checked or bought, by age, May 2008

Marketing: Internet and In-store are Key

Key points

Sources of information

Figure 51: Sources of information when purchasing washer/dryer, by gender, May 2008

Figure 52: Sources of information when purchasing washer/dryer, by age, May 2008

Figure 53: Sources of information when purchasing washer/dryer, by household income, May 2008

Attitudes and Motivations

Key points

Replacement is the major reason for buying new appliances

Figure 54: Reasons to buy a new washer or dryer, by household income, May 2008

Younger respondents are major first time buyers

Figure 55: Reasons to buy a new washer or dryer, by age, May 2008

Willingness to pay for ‘made in America’, front-loading and other design features

Figure 56: Features willing to pay more for-part i, May 2008

Willingness to pay for quiet running, energy efficiency, special wash cycles

Figure 57: Features willing to pay more for-part ii, May 2008

Front-loading machines still rule, spin cycles important

Figure 58: Interest in functions and functionality, by household income, May 2008

Figure 59: Interest in a simple machine, by Age, May 2008

Attitudes toward style and appearance

Figure 60: Cares about appliance appearance, by household income, May 2008

Figure 61: Attitudes towards appearance and style, by age, May 2008

Figure 62: Attitudes towards appearance and style, by household income, May 2008

Attitudes towards brands

Figure 63: Attitudes towards brands, by age, May 2008

Race and Ethnicity

Key points

Homeownership and age lead to lower ownership levels

Figure 64: Ownership of washers and dryers, by race/race/ethnicity, Jan-Nov 2007

Asians and Hispanics actively acquiring new appliances

Figure 65: Recent purchase of washers and dryers, by race/ethnicity, Jan-Nov 2007

Figure 66: Age of current washer, by race/ethnicity, May 2008

Figure 67: Intended time of next washer purchase, by race/ethnicity, May 2008

Motivations and attitudes among multi-ethnic respondents

Figure 68: Reasons to buy a new washer or dryer, by race/ethnicity, May 2008

Figure 69: Interest in a simple machine, by race/ethnicity, May 2008

Figure 70: Attitudes towards appearance and style, by race/ethnicity, May 2008

Figure 71: Attitudes towards brands, by race/ethnicity, May 2008

Appendix: Age of Dryers

Figure 87: Age of current dryer, by household income, May 2008

Figure 88: Age of current dryer, by age, May 2008

Abstract

During 2003-2008, appliance sales have tracked the boom and the bust of the housing market. After showing strong sales for a mature market through mid-2006, the market has seen sales slide as the housing market has stumbled. Once the housing market stabilizes, replacement sales, product innovation - especially in "green" technologies - and sales to affluent Boomers and young, multi-ethnic consumers should drive growth through 2013. Analysis and insights include:

• Factors shaping the competitive landscape
• The progress of individual retailers and suppliers, including the rise of home centers at the expense of Sears
• How brand identifications are being developed and promoted
• Where appliances are purchased
• How retailers and suppliers can capitalize on "green" trends
• What product innovations, features, functions, and styles are being used and are on the horizon
• Proprietary consumer research and offers insights into what innovations are most likely to appeal to diverse consumer groups

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