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Fridges and Freezers - UK - April 2016

Fridges and Freezers - UK - April 2016

“Innovation has touched almost every aspect of design in the market for refrigeration, inspiring consumers to trade up for better style, functionality and different formats. Today fridges and freezers come in a range of colours, have a variety of storage solutions, are more energy-efficient, keep food fresher for longer and can even be a status symbol – something to impress visitors. And now the market is poised for a revolution in connectivity as smart fridges are becoming available at prices people can afford. We will see fridges that prompt households when food needs to be used up, suggest recipes for a range of meals and occasions and generate shopping lists.”

– Jane Westgarth, Senior Market Analyst

This report discusses the following key topics:

Are today’s consumers ready for the ‘smart fridge’?
Technology that keeps food fresher for longer tops the wish list
Will online shopping for fridges and freezers continue to grow?


OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Figure 1: Consumer spend on fridges and freezers, 2010-20
Figure 2: Consumer spend on fridges and freezers, percentage by volume and value, 2015
Figure 3: UK households by size, 2010-20
Companies, brands and innovation
Figure 4: Attitudes towards and usage of selected brands, January 2016
Figure 5: Leading manufacturer shares of refrigeration appliances, by volume, UK, 2013-15 (est)
Figure 6: Estimated distribution of refrigeration appliances, by value, 2014 and 2015 (est)
The consumer
Figure 7: Ownership of fridges and freezers, by type, January 2015 and February 2016
Figure 8: Fridges and freezers purchased in the last three years, February 2016
Figure 9: Fridges and freezers purchased in the last three years, most recent, February 2016
Figure 10: Price paid for most recent purchase of fridges or freezers, average, February 2016
Figure 11: Most recent purchase of fridges or freezers, where bought, February 2016
Figure 12: How they bought most recent fridge or freezer, February 2016
Figure 13: The customer journey for fridges and freezers, February 2016
Figure 14: Reasons for purchasing fridges/freezers, February 2016
Figure 15: Interest in innovation for fridges and freezers, strongly agree and agree, February 2016
What we think
ISSUES & INSIGHTS
Are today’s consumers ready for the ‘smart fridge’?
Technology that keeps food fresher for longer tops the wish list
Will online shopping for fridges and freezers continue to grow?
THE MARKET
What you need to know
Lively market will grow by 19.6% from 2015-20
2.16 million units sold in 2015
Over 50% of sales are conventional fridge-freezers
19% of spending on built-in units
Currys is the clear market leader
Online sales top 50%
AO.com is the dominant online specialist
1.3 million more homes in five years
Lively housing market stimulates spend on the home
Market size and forecast
Market up 4% in 2015
Figure 16: Consumer spend on fridges and freezers, by value, 2010-20
Figure 17: Consumer spend on fridges and freezers, by value, 2010-20
Volume growth of 1.4% in 2015
Figure 18: Consumer spend on fridges and freezers, by volume, 2010-20
Figure 19: Consumer spend on fridges and freezers, by volume, 2010-20
Consumers opting for added value
Figure 20: Average price, all fridges and freezers, 2011-15
Forecast methodology
Market segmentation
Fridge-freezers dominate the market
Figure 21: Consumer spend on fridges and freezers by type of appliance, percentage by volume and value, 2015
Average prices
Figure 22: Average price paid for fridges and freezers, by type, 2015
Smart fridges
Built-in accounts for 19% by value
Figure 23: Consumer spend on fridges and freezers, built-in and free-standing, by value, 2015 (est)
Channels to market
Online shopping boom
AO.com is the dominant online specialist
AO.com and Currys benefitted from closure of Comet
Currys transformation led to market leadership
Argos captures 12.5% market share
John Lewis leads the department stores
Improved demand for kitchens favours DIY and kitchen retailers
Figure 24: Estimated distribution of refrigeration appliances, by value, 2014 and 2015 (est)
Grocers losing share
Figure 25: Most recent purchase of fridges or freezers, where bought, February 2016
Market drivers
Housing market livened up in 2013
Figure 26: Housing transactions, UK, 2011-15
1.3 million more homes in five years
Figure 27: UK households by size, 2010-20
Refitting kitchens
Consumers opting for fresh and chilled
What we throw away
5-a-day
KEY PLAYERS
What you need to know
Market shares
Competitive landscape
Energy efficiency has improved significantly
Showrooms and demonstrations
Smart homes poised for growth
Seeing the contents of the fridge without opening the door
Improving the user experience
Colour and design
Advertising campaigns
Hotpoint is the most familiar brand
Bosch is most likely to be recommended
Beko’s tired and basic image leads to lower levels of recommendation
Style, functionality and innovative brands most likely to be recommended
Brands translate across markets
Smeg is the most differentiated brand
Market share
Top five suppliers account for 62% market share
Figure 28: Leading manufacturer shares of fridges and freezers, by volume, UK, 2013-15 (est)
Competitive strategies
Concentration of supply
Far Eastern manufacturers ambitious for market share
Energy efficiency has improved significantly
Figure 29: Bosch, Green Technology logo and images of fridges, March 2016
Figure 30: Beko EcoSmart logo, March 2016
Broader eco developments
Showrooms and demonstrations
Multi-branding strategies
Figure 31: Leading manufacturers of white goods, brands, 2015
Own label lines avoid direct price comparisons
Figure 32: Examples of white goods own labels, 2015
Launch activity and innovation
Knock on LG’s door to reveal the contents of the fridge
Samsung’s fridge becomes a home hub
Haier focuses on user experience
New compressor technology
A fridge for people passionate about food
Smart homes
Figure 33: Hoover Wizard range, March 2016
Colour and design
Upstyling to broaden appeal
Advertising and marketing activity
Advertising spend doubles in five years
Figure 34: Total above-the line, online display and direct mail advertising expenditure on fridges and freezers, 2011-15
Advertising for fridges and freezers gains share
Figure 35: Total above-the line, online display and direct mail advertising expenditure on all large kitchen appliances,
fridges and freezers, 2011-15
Retailers take over as top advertisers
Figure 36: Share of above-the line, online display and direct mail advertising expenditure on fridges and freezers,
top 10 players, 2013-15
Press loses share to television
Figure 37: Total above-the-line, online display and direct mail advertising expenditure on fridges and freezers,
by medium, 2011-15
Advertising and marketing campaigns
Nielsen Media Research coverage
Brand research
What you need to know
Figure 38: Attitudes towards and usage of selected brands, January 2016
Key brand metrics
Figure 39: Key metrics for selected brands, January 2016
Figure 40: Attitudes, by brand, January 2016
Figure 41: Brand personality – Macro image, January 2016
Figure 42: Brand personality – Micro image, January 2016
Brand analysis
Figure 43: User profile of Bosch, January 2016
Figure 44: User profile of Miele, January 2016
Figure 45: User profile of John Lewis own-label, January 2016
Figure 46: User profile of Hotpoint, January 2016
Figure 47: User profile of Beko, January 2016
Figure 48: User profile of Zanussi, January 2016
Figure 49: User profile of Indesit, January 2016
Figure 50: User profile of Smeg, January 2016
THE CONSUMER
What you need to know
Universal ownership
35% of owners have bought an appliance in the last three years
Average price for fridge-freezer is £341
Currys is the dominant retailer
More purchased online than in-store
Replacement is the biggest driver of demand
Innovation adds value
Ownership of fridges and freezers
Refrigeration is universal
Conventional fridge-freezers in two thirds of households
Separates appeal to older consumers
ABs most likely to own American style
Figure 51: Ownership of fridges and freezers, by type, January 2015 and February 2016
Only 8% have three or more refrigeration appliances
Figure 52: Repertoire of refrigeration appliances in the household, February 2016
Purchases of fridges and freezers
35% of owners have bought an appliance in the last three years
Private renters are in the market for refrigeration
Combined fridge-freezers dominate
People most commonly buy one appliance
Figure 53: Fridges and freezers purchased in the last three years, February 2016
55% of the most recent purchases were combined fridge-freezers
Figure 54: Fridges and freezers purchased in the last three years, most recent, February 2016
Price paid for fridges and freezers
Premium American style
Figure 55: Price paid for most recent purchase of fridges or freezers, average, February 2016
Wide spread of prices
Figure 56: Price paid for most recent purchase of fridges or freezers, combined fridge-freezer, average, February 2016
Retailers where bought fridges or freezers
Currys stands apart as a destination store
Argos is key for 25-34s
AO.com is popular with home owners
A long tail of other retailers
Figure 57: Most recent purchase of fridges or freezers, where bought, February 2016
How they shopped for fridges and freezers
50% bought online
Conventional computers remain important
Figure 58: How they bought most recent fridge or freezer, February 2016
Currys captures high proportion of in-store shoppers
The customer journey for fridges and freezers
Price comparisons are important to customers
Customer ratings most important to ABs
Only 16% asked for advice
Figure 59: The customer journey for fridges and freezers, February 2016
Reasons for purchasing fridges/freezers
Replacement drives demand
Figure 60: Reasons for purchasing fridges/freezers, February 2016
Interest in innovation for fridges and freezers
Fresher food for longer
Better hygiene
The smart kitchen
Figure 61: Interest in innovation for fridges and freezers, strongly agree and agree, February 2016
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Consumer research methodology
Market size and forecast
Forecast methodology
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

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