Economizing in the Home: Professional Services - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2009 - 67 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Recession has substantial lingering ramifications in spite of “recovery”

Households with children, women and Hispanics cutting back most

At the top line

Home cleaning

Laundry and dry cleaning

Childcare

Pet care

Salon and spa

Fitness

Consumers pare back use of cleaning services

Low-cost alternatives to laundry, dry cleaning services include appliances, special soaps and new products

Parents taking on more childcare

As families reduce art lessons, at-home cultural materials may be promoted

Supporting sport teams and children’s clubs may offer branding and marketing opportunities

Upper-income families maintain more services, middle-income families seeking lower-cost

alternatives

Cutbacks on pet services open opportunities for products and new services

Growth opportunity in at-home alternatives to salon, nail and spa services

Promoting at-home fitness options with discounted/alternative club memberships

Hispanics, hard hit by downturn, economize aggressively

LINGERING IMPACTS OF THE 2007-09 RECESSION

Key points

Falling real estate values shrink household wealth and limit home equity

Figure 1: Case-Shiller U.S. national home price index, January 2000-January 2009

Stock market decline further diminishes wealth

Unemployment still rising

Figure 2: U.S. unemployment rate, September 2008-September 2009

Rebuilding wealth is a long-term project

The psychology of financial losses determines future behavior

Effective branding now can engender loyalty

WHO IS ECONOMIZING AT HOME?

Key points

Two thirds have cut spending; families and Hispanics economizing most

Figure 3: Changes or plans to change spending to save money, by gender and presence of children, March 2009

Figure 4: Changes or plans to change spending to save money, by age, household income and marital status, March 2009

Figure 5: Changes or plans to change spending to save money, by race/Hispanic origin and employment status, March 2009

HOUSEHOLD-CLEANING SERVICES AND SUPPLIES

Key points

Cutbacks in household-cleaning services may drive more DIY cleaning

Figure 6: House cleaning service, changes in service use in the past 12 months, March 2009

Interest in window washers drops

Figure 7: Window-washing service, changes in service use in the past 12 months, March 2009

Figure 8: Windex All-In-One Glass Cleaning Tool

Equipment rentals as alternatives to professional upholstery cleaners

Figure 9: Furniture or rug-cleaning service, changes in service use in the past 12 months, March 2009

Some 70% cutting back on cleaning supplies

Figure 10: Reduced spend on household cleaners, March 2009

Cutting back on cleaning products decreases as household income rises

Figure 11: Reduced spend on household cleaners, by household income, March 2009

Consumers cutting back on cleaning products in a variety in ways

Figure 12: Select private-label household cleaners

LAUNDRY AND DRY CLEANING SERVICE

Key points

Laundry services

Figure 13: Laundry service, changes in service use in the past 12 months, March 2009

Dry cleaning service

Figure 14: Woolite Dry Clean At Home

Figure 15: Dry cleaning service, changes in service use in the past 12 months, March 2009

Changes in laundry and dry cleaning services by household income

Figure 16: Change in use of laundry services in the past 12 months, by household income, March 2009

Figure 17: Dry cleaning service changes in the past 12 months, for those with HH income of $100K+, March 2009

CHILDCARE

Key points

Childcare/babysitting reduced as unemployment rises and subsidies fall

Figure 18: Child daycare services, changes in service use in the past 12 months, March 2009

Figure 19: Babysitting services, changes in service use in the past 12 months, March 2009

After-school care also sees enrollment shrink

Figure 20: Children after-school care, changes in service use in the past 12 months, March 2009

Parents cut back on art, music and dance lessons

Figure 21: Children’s art, music or dance lessons, changes in service use in the past 12 months, March 2009

Parents cut back on sports expenses, but strive not to eliminate entirely

Figure 22: Children’s sports lessons, changes in service use in the past 12 months, March 2009

Substantial cuts to sports team membership

Figure 23: Children’s sports teams, changes in service use in the past 12 months, March 2009

Children’s clubs suffer cutbacks

Figure 24: Children’s clubs, changes in service use in the past 12 months, March 2009

Income determines extent of cutbacks

Figure 25: Changes in use of services/activities for children in the past 12 months, by household income, March 2009

PET CARE

Key points

Pet-grooming services in decline

Figure 26: Pet-grooming services, changes in service use in the past 12 months, March 2009

More consumers cut back on kennel services than maintain them

Figure 27: Pet kennel/boarding services, changes in service use in the past 12 months, March 2009

Pet owners cut back on obedience classes and pet daycare

Figure 28: Pet obedience or agility classes, changes in service use in the past 12 months, March 2009

Figure 29: Pet daycare, changes in service use in the past 12 months, March 2009

Changes made in pet care services, by household income

Figure 30: Has made no change in use of pet services in the past 12 months, by household income, March 2009

SALON AND SPA

Key points

Half of women cut down on hair-cutting services

Figure 31: Hair salons—hair cutting, changes in service use in the past 12 months, by gender, March 2009

Consumers pare back use of coloring services

Figure 32: Hair tinting/coloring, changes in service use in the past 12 months, by gender, March 2009

Consumers cut back on nail services

Figure 33: Nail salon, changes in service use in the past 12 months, by gender, March 2009

Consumers cut back or stop massages

Figure 34: Massage, changes in service use in the past 12 months, by gender, March 2009

As many stop facials and “other spa services” as have continued to do so

Figure 35: Facials, changes in service use in the past 12 months, by gender, March 2009

Figure 36: Other spa services, changes in service use in the past 12 months, by gender, March 2009

Only highest income bracket shows above-average use of salon and spa

Figure 37: Has made no change in use of salon and spa services in the past 12 months, by household income, March 2009

FITNESS

Key points

Fitness class cutbacks

Figure 38: Fitness classes, changes in service use in the past 12 months, by household income, March 2009

Upper-income households cut back on personal trainers

Figure 39: Personal trainer, changes in service use in the past 12 months, by household income, March 2009

Income drives fitness club membership

Figure 40: Club memberships, changes in service use in the past 12 months, by household income, March 2009

APPENDIX—FITNESS TRADE ASSOCIATIONS

APPENDIX—TRADE ASSOCIATIONS: PET CARE

APPENDIX—TRADE ASSOCIATIONS: LAUNDRY AND DRY CLEANING SERVICE

APPENDIX—TRADE ASSOCIATIONS: CHILDCARE

Abstract

For some, smart shopping is a competitive sport, the score tallied in unique items found and deals negotiated. For others, smart shopping is a source of quiet pride, driven by a sense of responsibility and financial necessity. That smart shopping is now more important than ever is perhaps a bit of understatement.

With the advent of cellular internet services, we are increasingly accessing the net from anywhere at any time. Simultaneously, we have grown accustomed to bargain shopping online for products. The next step forward is bargain shopping online for services—and the most efficient system of all is likely to be an auction system. Applied to gym services, for example, this means the consumer can bid on a time slot and a machine, and the gym can select the highest bidder—a Monday night 630pm slot on the treadmill can be sold for its real value, as can the 1130am slot on a Friday. As another example, a teenage babysitter can auction off her unsold Thursday night inventory on short notice after plans for a school extracurricular activity are cancelled.

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