Household Appliances (White Goods)

Household Appliances (White Goods)

In this Key Note Market Report, the UK household appliances (white goods) market consists of three sectors: home laundry appliances and dishwashers; cooking appliances; and cooling appliances. The total UK retail market for white goods was valued at £3.33bn in 2007, representing a 2.9% increase on 2003.

Electric and gas cookers comprise the most valuable subsector, accounting for 30.1% of the total market value in 2007, with the second-largest subsector being that of washing machines, including washer-dryers. Although the refrigerators subsector does not account for a significantly large share of the total white goods market, it is the fastest-growing subsector, increasing by 32.1% in value between 2003 and 2007.

Sales of washing machines, including washer-dryers, have been inhibited by high penetration levels and the credit crunch, as opposed to sales of tumble dryers, which have performed better owing to the fact that there is scope for penetration levels to rise. Dishwasher sales have been boosted by a change in consumer perception, which has moved away from considering these appliances to be a luxury non-essential item. The growing popularity of chilled foods and large larder-style refrigerators has driven sales of refrigerators; however, the popularity of combined fridge-freezers has cannibalised sales of freezers. Mounting interest in cooking has encouraged consumers to buy premium cookers, while price competition within the market has resulted in a fall in the value sales of microwave ovens.

Between 2008 and 2012, the tumble dryer subsector is forecast to show the strongest growth, with value sales driven by rising penetration levels and consumers trading up to premium appliances with large capacities and sensors that detect when clothes are dry. In comparison, value sales of microwave ovens are projected to continue to fall as the average price per appliance drops further. Overall, sales of white goods are expected to continue to grow over the forecast period.  
 

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Home Laundry Appliances and Dishwashers

Cooking Appliances

Cooling Appliances

MARKET TRENDS

Technological Innovation

The Housing Market

Table 1: Number of Property Transactions in Great Britain (000), 2002-2007

Average Size of Households

Table 2: Number of Households in Great Britain by Size (%, million and number), 1971, 1981, 1991, 2001 and 2007

ECONOMIC TRENDS

Gross Domestic Product

Table 3: UK Gross Domestic Product at Current Prices and Annual Chain-Linked Prices (£m), 2003-2007

Inflation

Table 4: UK Rate of Inflation (%), 2003-2007

Unemployment

Table 5: Actual Number of Unemployed Persons in the UK (million), 2003-2007

Household Disposable Income

Table 6: UK Household Disposable Income Per Capita (£), 2003-2007

Consumer Borrowing

Table 7: Number of UK Transactions on Credit and Charge Cards (billion), 1997, 2002 and 2007

Population

Table 8: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

MARKET POSITION

The UK

Table 9: UK Household Expenditure on Household Appliances by Value at Current Prices (£m at rsp), 2003-2007

Overseas

2. Market Size

THE TOTAL MARKET

Table 10: The UK Household Appliances (White Goods) Market by Sector by Value at Current Prices (£m at rsp and %), 2003-2007

Figure 1: The UK Household Appliances (White Goods) Market by Sector by Value at Current Prices (£m at rsp), 2003-2007

Table 11: The UK Household Appliances (White Goods) Market by Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Figure 2: The UK Household Appliances (White Goods) Market by Subsector by Value at Current Prices (%), 2007

BY MARKET SECTOR

Home Laundry Appliances and Dishwashers

Table 12: The UK Home Laundry Appliances and Dishwashers Sector by Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Washing Machines (Including Washer-Dryers)

Table 13: The UK Washing Machines† Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Dishwashers

Table 14: The UK Dishwashers Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Tumble Dryers

Table 15: The UK Tumble Dryers Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Cooking Appliances

Table 16: The UK Cooking Appliances Sector by Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Electric and Gas Cookers

Table 17: The UK Electric and Gas Cookers Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Microwave Ovens

Table 18: The UK Microwave Ovens Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Cooling Appliances

Table 19: The UK Cooling Appliances Sector by Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Fridge-Freezers

Table 20: The UK Fridge-Freezers Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Refrigerators

Table 21: The UK Refrigerators Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

Freezers

Table 22: The UK Freezers Subsector by Value at Current Prices (£m at rsp and %), 2003-2007

overseas trade

Table 23: UK Trade Imports and Exports of Household Electrical Goods by Value (£000), 2007†

Europe

Table 24: Retail Trade Index for Household Goods in Europe, December 2007

3. Industry Background

RECENT HISTORY

Role of the Home

Big versus Small

Energy

Importance of Brands

Smart Technology

NUMBER OF COMPANIES

Table 25: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Domestic Electrical Appliances by Turnover Sizeband (number and %), 2007

EMPLOYMENT

Table 26: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Domestic Electrical Appliances by Employment Sizeband (number and %), 2007

DISTRIBUTION

Home Laundry Appliances and Dishwashers

Cooking Appliances

Cooling Appliances

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATIONS

The Association of Manufacturers of Domestic Appliances

The British Refrigeration Association

The Microwave Technologies Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Table 27: Selected Leading Manufacturers of Household Appliances (White Goods) by Turnover (£000), 2006/2007

MANUFACTURERS

Beko PLC

Company Structure

Current Developments

Financial Results

BSH Home Appliances Ltd

Company Structure

Current Developments

Financial Results

Electrolux PLC

Company Structure

Current Developments

Financial Results

Glen Dimplex Home Appliances Ltd

Company Structure

Current Developments

Financial Results

Hoover Ltd

Company Structure

Current Developments

Financial Results

Indesit Company UK Ltd

Company Structure

Current Developments

Financial Results

Panasonic Manufacturing UK Ltd

Company Structure

Current Developments

Financial Results

Whirlpool (UK) Ltd

Company Structure

Current Developments

Financial Results

RETAILERS

DSG International PLC

Company Structure

Current Developments

Financial Results

KESA Electricals PLC

Company Structure

Current Developments

Financial Results

OUTSIDE SUPPLIERS

Components

Recycling

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 28: Main Media Advertising Expenditure on Large Household Appliances (£000), Years Ending March 2005-2008

Home Laundry Appliances and Dishwashers

Washing Machines and Tumble Dryers

Table 29: Main Media Advertising Expenditure on Washing Machines and Tumble Dryers (£000), Year Ending March 2008

Dishwashers

Table 30: Main Media Advertising Expenditure on Dishwashers (£000), Year Ending March 2008

Cooking Appliances

Table 31: Main Media Advertising Expenditure on Cooking Appliances (£000), Year Ending March 2008

Cooling Appliances

Table 32: Main Media Advertising Expenditure on Refrigerators and Freezers (£000), Year Ending March 2008

Current Advertising

Beko

BSH

Electrolux

Glen Dimplex

Indesit

Other Marketing Activities

Sponsorship

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION

Home Laundry Appliances and Dishwashers

Table 33: Penetration of Home Laundry Appliances and Dishwashers by Sex, Age and Social Grade (% of adults), 2007

Cooking Appliances

Table 34: Penetration of Cooking Appliances by Sex, Age and Social Grade (% of adults), 2007

Cooling Appliances

Table 35: Penetration of Cooling Appliances by Sex, Age and Social Grade (% of adults), 2007

PURCHASING PATTERNS

Table 36: Purchasing Levels of White Goods Bought in the Last 12 Months (% of adults), 2007

EXPENDITURE

Table 37: Total Expenditure on White Goods in the Last 12 Months (% of adults), 2007

7. Current Issues

CORPORATE ACTIVITY

Electrolux

Indesit

Panasonic

Whirlpool

NEW PRODUCTS

Beko

Electrolux

Glen Dimplex

Hoover

Indesit

Whirlpool

AWARDS

Indesit Moon

Other Awards

IMPORTANT CHANGES IN THE MARKETPLACE

Energy Efficiency

8. The Global Market

THE US

THE world

Table 38: Key Economic Indicators for the Emerging BRIC Economies (000, $m and %), 2006

SELECTED PRINCIPAL GLOBAL COMPETITORS

Bosch & Siemens Hausgeräte GmbH

Candy SpA

Electrolux AB

General Electric Company

Indesit Company

Whirlpool Corporation

9. Forecasts

INTRODUCTION

The Economy

Population

Table 39: Forecast UK Resident Population Estimates by Sex (000), Mid-Years 2008-2012

Gross Domestic Product

Table 40: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2008-2012

Inflation

Table 41: Forecast UK Rate of Inflation (%), 2008-2012

Unemployment

Table 42: Forecast Actual Number of Unemployed Persons in the UK (million), 2008-2012

FORECASTS 2008 TO 2012

Table 43: The Forecast UK Household Appliances (White Goods) Market by Sector by Value at Current Prices (£m at rsp), 2008-2012

Figure 3: The Forecast UK Household Appliances (White Goods) Market by Sector by Value at Current Prices (£m at rsp), 2008-2012

Table 44: The Forecast UK Household Appliances (White Goods) Market by Subsector by Value at Current Prices (£m at rsp), 2008-2012

Market Growth

Figure 4: Growth in the Total UK Household Appliances (White Goods) Market by Value at Current Prices (£m at rsp), 2003-2012

Future trends

10. Company Profiles

Beko Plc

Bsh Home Appliances Ltd

Electrolux Plc

Glen Dimplex Home Appliances Ltd

Hoover Ltd

Indesit Company Uk Ltd

Panasonic Manufacturing Uk Ltd

Whirlpool (uk) Ltd

11. Further Sources

Associations

General Sources

Government Publications

Other Sources

Bisnode Sources