Fridges and Freezers - UK - March 2007

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• Historical trend
• Sales growth up
• Newcomers continue to target the UK market
• Consumers demand more, and will pay more
• Retailer share static across all sectors
• The future
• Internal Market Environment
• Key points:
• The role of fashion
• Prices increase
  • Figure 1: Expenditure on combined fridge-freezers bought new in the last 12 months, 2002-06
• Eco-friendliness scores highly
  • Figure 2: Agreement with selected lifestyle statements, by socio-economic grade, 2006
• Chilled food/more space
• Repair or replace
• Appetite for gadgets and gizmos
• Broader Market Environment
• Key points:
• Healthy growth in PDI
  • Figure 3: PDI and consumer expenditure, at constant 2000 prices, 2001-11
• Household penetration set to increase
  • Figure 4: UK households and one-person households, 2001-11
• The housing market
  • Figure 5: UK housing stock, by tenure, 2000-11
  • Figure 6: UK housing market, 1996-2006
• Fashion more important than functionality
• Other factors
• The DIY option
• Integrated kitchens
• Competitive Context
• Key points:
• The influence of other markets
  • Figure 7: Sales of kitchen furniture and appliances, 2001-06
• White goods market holds its own
• Germany, France and Spain vs. UK
• Kitchen upgrades have positive influence
• Fresh foods take on chilled foods
  • Figure 8: Retail sales of chilled and frozen ready meals, 2001-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Value and Forecast
• Key points:
• Value sales outpace volume sales
  • Figure 9: UK retail sales of refrigeration appliances, by volume and value, 2001-06
• Reversal of average prices
  • Figure 10: Average unit price of all refrigeration and freezer appliances, 2001-06
• Fridges are the Jewel in the Crown
  • Figure 11: UK retail sales of refrigeration and freezer appliances, by type, by volume, 2002-06
  • Figure 12: UK retail sales of refrigeration and freezer appliances, by type, by value, 2002-06
• Future growth potential
  • Figure 13: Forecast of the total refrigeration and freezer appliances market, by value and volume, 2001-11
  • Figure 14: Forecast of the fridge-freezer sector, by value and volume, 2001-11
  • Figure 15: Forecast of the refrigerator sector, by value and volume, 2001-11
  • Figure 16: Forecast of the freezer sector, by value and volume, 2001-11
• Factors incorporated in the forecast
• Segment Performance
• Key points:
• Fridge-freezers volume sales fall
  • Figure 17: UK retail sales of fridge-freezers, by volume and value, 2001-06
• Fridge-freezers -- standard units
• Fridge-freezers -- side-by-side units
• Defrosting -- an unpleasant chore
  • Figure 18: UK retail volume of fridge-freezers, by type, 2002-06
• Refrigerators -- sales gallop ahead
  • Figure 19: UK retail sales of refrigerators, by volume and value, 2001-06
• Larder fridges continue to grow
  • Figure 20: UK retail volume sales of refrigerators, by type, 2002-06
• Freezers freeze over
  • Figure 21: UK retail sales of freezers, by volume and value, 2001-06
• Chests on the way out
  • Figure 22: UK retail volume sales of freezers, by type, 2002-06
• Influence of US-style models
• Product ranges repositioned
• Market Share
• Key points:
• Parent companies diversify their portfolio
  • Figure 23: Brand map of selected refrigeration appliance brands with a notable UK presence, 2006
• Established brands lose share
  • Figure 24: Estimated brand shares in the fridge-freezer sector, by volume, 2004 and 2006
• Beko surges ahead with fridges
  • Figure 25: Estimated brand volume shares in the fridge sector, by volume, 2004 and 2006
• Freezers: volume sales stagnate
  • Figure 26: Estimated brand shares in the freezer sector, by volume, 2004 and 2006
• Increasing competition could change the face of suppliers
• Companies and Products
• Key points:
• Arçelik
• Beko
• Product range
• The Indesit Company
• Hotpoint
• Indesit
• The Electrolux Group
• Electrolux/Zanussi
• BSH Home Appliances
• Bosch
• Siemens
• Candy Domestic Appliances
• Hoover
• Candy
• Whirlpool Domestic Appliances
• Whirlpool
• Others
• Liebherr
• Smeg
• Miele
• LG
• Samsung
• Brand Communication
• Key points:
• US sets the tone
• Advertising declines in the UK
  • Figure 36: Main monitored media advertising expenditure on all refrigeration appliances, 2001-06
• Established brands have lower spends
• Top advertiser in 2006 is AEG
  • Figure 37: Advertiser spend, 2002-06
• Channels to Market
• Key points:
• Electrical multiples -- the dominant force
• Little geographical difference
• Retail share of fridge-freezers
  • Figure 38: UK retail distribution of fridge-freezers, by volume, 2004 and 2006
• Retail share of refrigerators
  • Figure 39: UK retail distribution of refrigerators, by volume, 2004 and 2006
• Retailer share of freezers
  • Figure 40: UK retail distribution of freezers, by volume, 2004 and 2006
• Shopping around to get the best deal
• The Internet
• Retailers could enhance their websites
• The Consumer -- Ownership
• New purchases tailing off
  • Figure 41: Household ownership of fridges and freezers, 2002-06
• Typical buyers of fridges
  • Figure 42: Purchase of refridgeration appliances in the last 12 months, by age, 2006
• How different are refrigerator owners?
• How different are freezer owners?
• How different are fridge-freezer owners?
• First-time buyers on the march -- but slowly
  • Figure 43: First-time buyer or bought as replacement, 2002-06
• The Consumer -- Purchase Habits
• Upgrading or redecorate the kitchen
  • Figure 44: Things done in household in the last three years, November 2006
• Over half stock up the freezer
  • Figure 45: How consumers use their fridges and freezer, November 2006
• Brand- and energy-conscious consumers
  • Figure 46: Important factors when buying a fridge, freezer or combiend fridge-freezer, November 2006
• Seeking energy-efficiency
  • Figure 47: Energy-efficient net, November 2006
• Wealthy ABs attracted to energy-efficiency
• Appearance is King
  • Figure 48: Cross-analysis of changes made in the home and important factors considered when purchasing a refriderator, November 2006
• Making the most of fridge space
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Internal market environment
  • Figure 53: Agreement with selected lifestyle statements, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage, Mintel' s Special Groups and tenure, 2006
  • Figure 54: Agreement with the statement ' The kitchen is the most important room in my home' , by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
• Broader market environment
  • Figure 55: Trends and projections in UK population, by age group, 2000-10
• The Consumer -- Ownership (Detailed Demographics)
  • Figure 56: Household ownership of fridges and freezers, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
• The Consumer -- Purchase Habits (Detailed Demographics)
  • Figure 57: Things done in household in the last three years, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 58: How consumers use their fridge and freezer, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 59: How consumers use their fridge and freezer, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 60: Factors considered when buying a fridge, freezer or combiend fridge-freezer, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 61: Factors considered when buying a fridge, freezer or combiend fridge-freezer, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 62: Factors considered when buying a fridge, freezer or combiend fridge-freezer, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, November 2006
  • Figure 63: Cross-analysis of how consumers use their fridge-freezers, by factors considered when buying a fridge, freezer or combined fridge-freezer, November 2006
• Consumer -- Further Analysis (Detailed Demographics)
  • Figure 64: Energy-efficient net, by gender, age, socio-economic group, marital status, Mintel' s Special Groups, presence of children, lifestage, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, November 2006
  • Figure 65: Clusters, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, November 2006
  • Figure 66: Correlations of things done in the home in the last three years, by important factors when buying a fridge, freezer or combined fridge-freezer, November 2006