| WWW.THE-LIST.CO.UK |
| REPORTFINDER |
Worldwide Business Information and Market Reports
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk
Table of Contents Executive Summary
Back to Electrical Equipment Index and Shopping
Cart
Back
To REPORTFINDER home page and Search
Engine
Back to Top
The overall Kitchen Appliance market showed good growth through to 1988 but subsequently deteriorated reflecting the economic situation, the poor housing market, high interest rates and reduced interest in home improvement. The recession affected the build-in products more dramatically, due to their relatively lower household penetration level, the subsequent low level of replacement purchase and the declining house building market.
Since 1992, the overall market has improved, though only slightly. The build-in sector has recovered at a faster rate than free-standing, reflecting the lower levels of household penetration and the stable level of replacement free-standing appliance sales.
The build-in sector has shown greater improvement reflecting a slightly improved new build sector, improvements in consumer confidence and to some degree the lower level of household penetration.
While free-standing volumes have improved from 1992, the value of the market has shown little change, reflecting the high level of price competition.
The major sector within build-in appliances is cooking with 80 percent by volume and 65 percent by value. Within the free-standing market, cooking takes 30 percent by volume, 29 percent by value, compared to refrigeration (34 percent and 31 percent), laundry (31 percent and 34 percent) and dishwashers (5 percent and 6 percent).
The build-in cooking market is comprised of ovens, which account for £87m at MSP and 420,000 units, hobs (£45m and 470,000 units), hoods (£19m and 630,000 units) and microwaves (estimated at 50,000 units and £9m).
The build-in oven sector is the largest by value being primarily electric at 82 percent, though gas is making gains in share. The hob sector is primarily gas which accounts for around 57 percent, with electric 35 percent and mixed fuel 8 percent. The market has polarised subsequent to the recession, though the shares taken by halogen, ceramic etc. in the premium sector, remain small.
The extractor hood sector has also been effected by the recession but changes in the building regulations have underpinned the market. Build-in microwaves are growing in popularity, though as most are integrated using an optional kit, definition of a build-in product is often difficult.
Build-in refrigeration products are led by refrigerators with 135,000 units and £22m at MSP, freezers (95,000 units and £17m) and fridge/freezers (20,000 units and £5m). There is increasing demand for larger capacity refrigeration appliances, reflecting changing lifestyles and improved awareness of health issues.
The build-in dishwasher market was worth £24m at MSP in 1994 and 80,000 units. The product is regarded by many as a luxury though sales have improved subsequent to the recession. Build-in dishwashers represent around 17 percent of the total dishwasher appliance market, a higher level than either refrigeration or laundry appliances.
Build-in laundry appliances are led by washing machines with 35,000 units and £10m at MSP, followed by washer-dryers with 15,000 units and £6m and tumble dryers with only 5,000 units and £1m. The build-in laundry sector holds a very low share of total laundry appliance sales at around 2-3 percent, reflecting their use in utility rooms and generally out of the kitchen.
Key suppliers include Whirlpool (UK), followed by the Neff, Bosch, Siemens organisation. Other key brands include Electrolux/Zanussi/AEG, Creda/Hotpoint, Merloni and Homark. In addition there are a large number of other suppliers.
The distribution profile is widespread with kitchen distributors significant while discount houses (eg. Magnet, MFI), kitchen specialists and DIY multiples are also important. Builders merchants, department stores and increasingly British Gas/REC's are also taking share.
The free-standing cooking appliance market is comprised of cookers with 830,000 units and £190m at MSP and microwaves (1.45m units and £123m). Free-standing cookers are comprised of gas with 53 percent, dual fuel, 7-8 percent and the balance electric. Slot-in cookers have taken share and account for some 60 percent of the overall market, but are more prevalent in the electric sector.
General Domestic Appliances are the overall market leaders in cookers including Creda, Hotpoint and Cannon brands. The Electrolux organisation incorporating Tricity Bendix, Zanussi, Parkinson Cowan, AEG are also significant in this sector. Stoves and Merloni (incorporating New World) also take substantial shares.
The microwave supplier profile is very different with Sharp and Panasonic leading followed by Hotpoint, Samsung, Goldstar and a wide range of other brands, though the products are often manufactured by Far Eastern companies on an own brand basis.
Distribution of free-standing cookers is led by the gas and electricity showrooms who dominate their respective sectors. Microwave distribution is led by the electrical multiples.
The free-standing refrigeration sector is comprised of refrigerators with £84m and 800,000 units, freezers (£82m and 800,000 units) and fridge/freezers (£160m and 910,000 units).
Free-standing refrigerators are largely of the larder type which take 55-60 percent. In the freezer sector, chest freezers account for 45 percent and are taking a growing share. Within fridge/freezers, the 'larger fridge smaller freezer' products are taking market share.
Key suppliers in this sector are Hotpoint with an estimated 20 percent, Electrolux/Zanussi, Lec and Merloni followed by a range of companies, a number which specialise in refrigeration eg. Norfrost, Frigidaire, Gram Refrigeration etc.
Distribution is led by REC's. Electrical Wholesalers are also important as are freezer centres, particularly in the chest freezer market.
There were some 395,000 free-standing dishwashers sold in 1994, worth £63m. The household penetration of dishwashers in some 17 percent in 1994. Slimline dishwashers take around 20 percent market share and are considered to be slowly growing.
Key suppliers of dishwashers are Hotpoint with 26 percent followed by Zanussi/Electrolux, Merloni, Bosch/Siemens and Whirlpool. Distribution is dominated by the electrical multiples, with the gas and electricity showrooms, general multiples and electrical wholesalers also significant.
The free-standing laundry products are comprised of washing machines worth £290m at MSP and 1,425,000 units in 1994, dryers (£55m and 610,000 units) and washer dryers (£6m and 265,000 units).
Automatic washing machines dominate with 750-850 rpm models taking almost half the market. Tumble dryers take some 90 percent share of the dryer market with reverse action dryers continuing to grow in popularity.
Washing machine and washer dryer market leaders are Hotpoint with over 34 percent, Hoover/Candy, Zanussi, Merloni and Whirlpool. The dryer market leaders are Hotpoint and Creda taking 35 percent between them, followed by Crosslee, Candy/Hoover and Zanussi.
The major channels of distribution for laundry appliances include electrical multiples with some 36 percent, general multiples, gas and electricity showrooms and electrical wholesalers.
This comprehensive report represents a detailed assessment of the market, reviewing major trends, key factors influencing developments and future prospects for the sector. Analysis is both quantitative and qualitative, based on our substantial experience of the building and home improvement markets.
Text © 1995 AMA Research
Back to TopBack
To REPORTFINDER HOME PAGEAriadne - working together with our customers to enhance productivity and increase knowledge
© 1999 www.the-list.co.uk Ariadne
Last updated by Duncan Nottage 1st February 1999