| KN31044 |
| KEY NOTE : Household Appliances (white goods) : January 2004 |
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This report covers: Household Appliances (white goods)
| Executive Summary |
| 1. Market Definition |
| report coverage |
| MARKET SECTORS |
| Home Laundry Appliances and Dishwashers |
| Cooking Appliances |
| Cooling Appliances |
| MARKET TRENDS |
| Technologies |
| The Housing Market |
| Table 1: Number of Property Transactions in England, Wales and Northern Ireland (000), 1998/1999-2002/2003 |
| Size of Households |
| Demographics |
| ECONOMIC TRENDS |
| Population |
| Table 2: UK Resident Population Estimates by Sex (000 and %), Mid-Years 1998-2002 |
| Gross Domestic Product |
| Table 3: UK Gross Domestic Product at Current and Constant 1995 Prices (£m), 1998-2002 |
| Inflation |
| Table 4: UK Rate of Inflation (%), 1998-2002 |
| Unemployment |
| Table 5: Actual Number of Unemployed Persons (million and %), 1998-2002 |
| Household Disposable Income |
| Table 6: Household Disposable Income (£ and %), 1998-2002 |
| Disposable Income |
| Table 7: Consumer Credit (£m), 1998-2002 |
| Market Position |
| The UK |
| 2. Market Size 11 |
| THE TOTAL MARKET |
| Manufacturers' Sales of Domestic Electrical Appliances |
| Table 8: The Total UK Domestic Electrical Appliances Market by Value at Current Prices (£000 at msp), 1999-2002 |
| Retail Sales of Household Appliances (White Goods) |
| Table 9: The Total UK Household Appliances (White Goods) Market by Value at Current Prices (£m at rsp), 1999-2003 |
| by MARKET SECTOR |
| Home Laundry Appliances and Dishwashers |
| Table 10: The Total UK Home Laundry Appliances and Dishwashers Retail Market by Value at Current Prices (£m at rsp and %), 1999-2003 |
| Cooking Appliances |
| Table 11: The Total UK Cooking Appliances Retail Market by Value at Current Prices (£m at rsp and %), 1999-2003 |
| Cooling Appliances |
| Table 12: The Total UK Cooling Appliances Retail Market by Value at Current Prices (£m at rsp and %), 1999-2003 |
| Overseas Trade |
| Table 13: Overseas Trade in Household Electrical Goods by Value (£000), 2002 |
| Imports |
| Table 14: Imports of Household Electrical Goods by Value (£000), 2002 |
| Exports |
| Table 15: Exports of Household Electrical Goods by Value (£000), 2002 |
| 3. Industry Background 19 |
| RECENT HISTORY |
| INDUSTRY SYNOPSIS |
| Table 16: Financial Results for Manufacturers of Electrical Domestic Appliances by Turnover and Pre-Tax Profit (£000,% and £) |
| number of companies |
| Table 17: Number of UK VAT-Based Enterprises Engaged in the Manufacturer of Domestic Electrical Appliances by Turnover Sizeband (£000,%), 2003 |
| Regional Variations in the Marketplace |
| DISTRIBUTION |
| Introduction |
| Home Laundry Appliances and Dishwashers |
| Cooking Appliances |
| Cooling Appliances |
| HOW ROBUST IS THE MARKET? |
| LEGISLATION |
| The European Communities (Low Voltage Electrical Equipment) Regulations 1992 |
| The Energy Labelling (Refrigerators and Freezers) Regulations 1994 |
| Waste from Electrical and Electronic Equipment Directive |
| European Ozone Depleting Substances Regulation |
| key TRADE ASSOCIATIONS |
| The Association of Manufacturers of Domestic Appliances |
| 4. Competitor Analysis 26 |
| THE MARKETPLACE |
| Table 18: Leading Manufacturers of Household Appliances (White Goods) by Turnover (£000), 2001 and 2002 |
| Market Leaders — Manufacturers |
| Aga Foodservice Group PLC |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Candy Holdings Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Crosslee PLC |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Electrolux Household Appliances Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Merloni Elettrodomestici UK Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Whirlpool (UK) Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| RETAILERS |
| Dixons Group PLC |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Kesa Electricals PLC |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| OUTSIDE SUPPLIERS |
| Components |
| Recycling |
| Marketing Activity |
| Table 19: Main Media Advertising Expenditure on Large Household Appliances (£000), Years Ending September 2002 and 2003 |
| Electric and Gas Cookers |
| Microwaves |
| Dishwashers |
| Large Appliance Ranges |
| Refrigerators and Freezers |
| Table 20: Main Media Advertising Expenditure on Refrigerators and Freezers (£000), Years Ending September 2003 |
| Washing Machines and Driers |
| Table 21: Main Media Advertising Expenditure on Washing Machines and Driers (£000), Years Ending September 2003 |
| RECENT PROMOTIONS |
| Currys |
| Hoover |
| OTHER MARKETING ACTIVITIES |
| The Internet |
| Sponsorship |
| Exhibitions |
| 5. Strengths, Weaknesses, Opportunities and Threats 37 |
| TOTAL MARKET |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
| Home Laundry Appliances |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
| Dishwashers |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
| Cooking Appliances |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
| cooling appliances |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
| 6. Buying Behaviour 43 |
| HOUSEHOLD EXPENDITURE ON HOUSEHOLD APPLIANCES BY GROSS INCOME DECILE GROUP |
| Table 22: Average Weekly Household Expenditure on Household Appliances by Gross Income Decile Group (£), 2002 |
| HOUSEHOLD EXPENDITURE ON HOUSEHOLD GOODS BY AGE OF HOUSEHOLD REFERENCE PERSON |
| Table 23: Average Weekly Household Expenditure on Household Appliances of Household Reference Person by Age(£), 2002 |
| PENETRATION OF HOUSEHOLD APPLIANCES (WHITE GOODS) |
| Home Laundry Appliances and Dishwashers |
| Table 24: Penetration of Laundry Appliances and Dishwashers by Sex, Age and Social Grade (% of adults), 2003 |
| Cooking Appliances |
| Table 25: Penetration of Cooking Appliances by Sex, Age and Social Grade (% of adults), 2003 |
| Cooling Appliances |
| Table 26: Penetration of Cooling Appliances by Sex, Age and Social Grade (% of adults), 2003 |
| Purchasing Patterns |
| Table 27: Purchasing Levels of White Goods Bought in the Past 12 Months (% of adults), 2003 |
| 7. Current Issues 51 |
| CLOSURES, MERGERS AND ACQUISITIONS |
| PowerHouse Retail Ltd |
| General Domestic Appliances Holdings Ltd |
| BOARD AND SENIOR MANAGEMENT CHANGES |
| Dixons Group PLC |
| Crosslee PLC |
| NEW PRODUCTS |
| ISSUES OF RELEVANCE TO THE WHITE GOODS MARKET |
| Extended Warranties |
| Fridge Mountains |
| 8. The Global Market 54 |
| INTRODUCTION |
| MAJOR COMPETITORS |
| Bosch-Siemens Hausgeräte GmbH |
| Candy SpA |
| General Electric Company |
| Merloni Elettrodomestici Group |
| Miele & Cie GmbH |
| ElcoBrandt Groupe |
| SMEG SpA |
| Beko |
| Daewoo Electronics Company |
| 9. Forecasts 58 |
| ECONOMIC FORECASTS |
| FORECASTS 2004 TO 2008 |
| Table 28: The Forecast Total UK Household Appliances (White Goods) Market by Value at Current Prices (£m at rsp), 2004-2008 |
| FUTURE TRENDS |
| Home Laundry Appliances and Dishwashers |
| Cooking Appliances |
| Cooling Appliances |
| 10. Company Profiles 61 |
| Candy Holdings Ltd |
| Dixons Group Plc |
| Merloni Elettrodomestici Uk Ltd |
| Whirlpool (uk) Ltd |
| 11. Further Sources 70 |
| General Sources |
| Government Publications |
| Other Sources |
| Bonnier Information Sources |
| Understanding TGI Data 73 |
| Number, Profile, Penetration |
| Social Grade |
| Standard Region |
| Key Note Research 75 |
| The Key Note Range of Reports 76 |
| This report on household appliances covers the so-called white goods of home laundry and dishwashers, cooking appliances and cooling equipment. The total market value for household appliances (white goods) reached £2.76bn in 2003, only a 1.7% increase from 2002. The UK market for such goods is one of maturity where only the categories of dishwashers and tumble driers have much potential to increase volume sales. The main opportunity to increase the value of the white goods market is through technological innovation. |
| The largest sector by value is home laundry appliances and dishwashers (37%) of the total market. |
| The state of the economy and of the housing market are particularly important to the demand for white goods, since purchases may often be deferred, consumers can opt for cheaper items than they may have wanted and it is a move to a new house that frequently triggers the purchase of household goods, whether for the first time or as a replacement. |
| If value growth is difficult to achieve, so is volume growth. However, one of the key global areas for growth is Central and Eastern Europe, a large region with a population of some 400 million people and where penetration levels of household appliances are still low. The UK has a substantial, and rising, trade deficit in electrical household goods, the only product category where exports exceeded imports in 2002 being that of clothes drying machines. This is thanks, in no small part, to the high level of exports from Crosslee PLC, Europe's largest tumble dryer manufacturer. |
| The white goods market of 2003 is dominated by a small number of multinational manufacturers with well-known brands. Consolidation among them continues, with the most recent shake-up being the UK operations of General Domestic Appliances Ltd and Merloni Domestic Appliances Ltd, which have come together as Merloni Elettrodomestici UK Ltd, part of the Italian Merloni Group. Jobs have already been lost at the company's Hotpoint factory in Denbighshire. The retail side of the industry, meanwhile, saw the UK's third-largest, and biggest independent, electrical retailer placed into receivership in the summer of 2003. |
| Moreover, the outlook for retailers is likely to get even bleaker as the Competition Commission is expected to introduce new rules on the marketing of extended warranties, a lucrative market for retailers but arguably an unnecessary expense from the consumers' point of view. |
| The total white goods market is expected to enjoy a modest growth in value of around 1.7% in 2004, increasing by 6.5% between 2003 and 2008. |
Text © 2004 Key Note
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Last updated by Amanda Porteous 2004
