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Small Domestic Appliances 2017

Small Domestic Appliances 2017

  • December 2017
  • 81 pages
  • ID: 4146195
  • Format: PDF
  • GlobalData


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Small Domestic Appliances 2017

Sales of vacuum cleaners are on the rise, with the market expected to grow by around 2.9% over the next five years.Heating & cooling appliances are expected to be the best performing category in the SDA market and are set to grow by more than 7.5% over the next five years, driven by innovation in the market.

Sales of handheld stick vacuum cleaners, which were first made popular by Dyson, has led to more consumers purchasing these models in addition to their existing full size vacuum cleaners, driving sales in the market. Despite still costing roughly two thirds of the price of a full size vacuums both retailers and brands have been successful when marketing these products, encouraging consumers to purchase these items to complement their existing full size vacuum cleaners.

Heating & cooling market is heavily influenced by the weather. Retailers should capitalise on this by targeting certain regional demographics which are forecast to experience extreme weather, highlighting heaters and fans on homepages and sending marketing emails featuring these products.However, more consumers are entering the market, with the proportion of shoppers purchasing a new product rising by about 17.9 ppts on 2016 to around 36.5%. This has driven up penetration among consumers aged 16-24, particularly for products such as irons and heating & cooling appliances.

Grocers, Tesco, Sainsbury’s and ASDA have all lost market share over the past year, and this trend is set to continue into 2018.Although each of these retailers reported top line year-on-year growth in their most recent results, they have primarily focused growth plans on food propositions at the expense of home and electrical sales. Space allocated in stores has been reduced, pushing more of their SDA range online.

The report "Small Domestic Appliances 2017", offers comprehensive insight and analysis of the UK market, the major players, the main trends, and consumer attitudes. It also provides forecasts to 2022.

In particular, this report provides the following -
- Analysis of the key strategies for success in this market, as well as the most important market issues.
- Detailed data on the size of the market, the key drivers, and how spend is distributed.
- Profiles of the major players, and analysis of the key trends driving the market.
- Insight on who is consuming, what they are buying, where are they buying, and what makes consumers purchase.

Companies mentioned in this report:Amazon, AO.com, ASDA, B&M, B&Q, Currys, Dixons Carphone, Dyson, Home Bargains, John Lewis, Sainsbury’s, Shop Direct, Tesco, Lidl, Aldi, Home Bargains, Very.co.uk, Littlewoods, Wilko, Robert Dyas, Argos, Homebase, Vax, Phillips, Morphy Richards, Hoover, Russell Hobbs, Bosch, Tefal, Samsung, Shark

- As real income continues to decline, retailers must entice consumers with attractive promotions to stimulate demand. Retailers should offer value-added promotions, such as cash back, to encourage sales without damaging average selling price.
- Argos’ position as market leader is threatened, vulnerable to competitors during a transitional period as a result of its merger with Sainsbury’s. By the end of 2017, the gap between Argos and its closest rival Dixons Carphone will have narrowed to only 1.1ppts.
- The growing trend towards consumers using external services for their cleaning needs, driven by an influx of low-cost UK labour and growth in full-time employment, means fewer consumers are purchasing products such as floor cleaners or irons.

Reasons to buy
- Identify how the important macro-economic changes in 2017 will impact both the small domestic appliances market and consumers.
- Discover which market sub-sectors will outperform the overall SDA market, and what factors are influencing the poor growth forecasts for irons and floor cleaners.
- Examine the changing performance of leading retailers, including full financial comparisons, three to five year outlooks and a detailed analysis of likely future activity.
- Reveal the impact of Argos’ merger with Sainsbury’s and what opportunity this presents for other SDA retailers.
- Receive detailed analysis of small domestic appliances consumer behaviour, including research processes and driving store-choice factors split across demographic and channel use.

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