Gas and Electric Cookers - UK - November 2007

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• Built-in segment bucks overall market decline
• DIY sheds are gaining distribution share
• Interest in home décor and fashion is driving sales and innovation
• Population and PDI trends bode well for premiumisation
• Internal Market Environment
• Key Points
• Celebrity chefs drive cooking renaissance
  • Figure 1: Agreement with selected lifestyle statements, 2003-07
• DIY interest and home entertaining boosts kitchen spend
• Broader Market Environment
• Key Points
• Keeping up appearances
  • Figure 2: PDI and consumer expenditure, at constant 2002 prices, 2002-12
• Ageing UK population poses challenges
  • Figure 3: UK population 2002-12
• As households get smaller, cookers get bigger...
  • Figure 4: Trends in household size, UK, 2002-12
• Gas installation comes under scrutiny
• Consumers look for the ' A' grade
• Competitive Context
• Key Points
• Heat storage cookers offer hot competition
• Microwaves are muscling in on functionality
• Market signals from the US
• Lost in translation
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key Points
• Added value softens blow to volume
  • Figure 5: UK retail sales of gas and electric cookers, by volume and value, 2002-07
  • Figure 6: Percentage change in volume and value y-o-y, 2002-07
• The future of the market
  • Figure 7: Forecast of UK retail sales of gas and electric cookers, by volume and value, 2007-2012
  • Figure 8: UK retail sales of gas and electric cookers*, value and volume, 1997-2012 (five year forecast)
  • Figure 9: Year on year change, %, volume and value of gas and electric cookers, 2002-12
• Future peak due to product cycle
• Premiumisation drives value
• The future of the market
• Factors used in the forecast
• Market Segmentation
• Key Points
• Consumers are turning down the flame on gas
  • Figure 10: UK retail sales of gas and electric cookers, by fuel, 2004, 2006 and 2007
• Built-in continues to build market share
  • Figure 11: UK retail sales of gas and electric cookers, by sector, 2004, 2006 and 2007
• Built-in fuels electric growth
  • Figure 12: UK retail sales of gas and electric cookers, by segment, 2005, 2006 and 2007
• Electric freestanding cookers struggle
• Freestanding gas cookers suffer from identify crisis
• Does built-in gas cookers suffer from being a niche?
• Market Share
• Key Points
  • Figure 13: Leading cooker suppliers to the UK market, 2007
  • Figure 14: UK manufacturer shares for gas and electric cookers, by volume, 2006
• Manufacturer shares by sub-category
• Indesit leads freestanding sales
  • Figure 15: UK manufacturer shares for freestanding cookers, by volume, 2006
• Market share more evenly distributed across built-in
• Figure 16: UK manufacturer shares for built-in cookers, by volume, 2006
• Company Profiles
• Aga-Rayburn
• Baumatic
• Beko
• Britannia
• BSH Home Appliances
• Candy
• Electrolux Group
• Glen Dimplex Home Appliances
• Indesit Company UK Ltd
• Miele
• Smeg
• Whirlpool Domestic Appliances
• Other companies
• Brand Communication and Promotion
• Key Points
• Adspend on cookers
  • Figure 17: Main monitored media advertising expenditure on cookers, 2002-07
• Adspend by media type
  • Figure 18: Main monitored media advertising expenditure on gas and electric cookers, by media type, 2003-2007
• Adspend by advertiser
  • Figure 19: Main monitored media advertising expenditure on gas and electric cookers, by advertiser, 2003-2007*
• Below-the-line marketing initiatives
• Cooker companies care...
• Ads focus on ranges, built-in ovens and induction hobs
  • Figure 20: Top ten brands advertised in 2006
• Figure 21: Top ten brands advertised in 2007*
• A dash of fashion works for some
• Channels to Market
• Key Points
• Are consumers ready to buy cookers online?
  • Figure 22: UK retail sales of freestanding electric cookers, by outlet, 2004 and 2006
• Consumers look to DIY sheds for built-in expertise
  • Figure 23: UK retail sales of built-in electric cookers, by outlet, 2004 and 2006
• No winners in freestanding gas cooker sales
  • Figure 24: UK retail sales of freestanding gas cookers, by outlet, 2004 and 2006
• Kitchen specialists consolidate built-in gas position
  • Figure 25: UK retail sales of built-in gas cookers, by outlet, 2004 and 2006
• The Consumer -- Purchasing Attitudes and Motivations
• Key Points
• Changing rooms -- changing cookers
• Third age consumers are ready to indulge
• Cult appliances at heart of refit trend
  • Figure 26: Purchase motivations for buying a new cooker, oven or hob, September 2007
• Marketers should look to men, oldies and forward-thinking families
  • Figure 27: Purchase attitudes towards the last cooker, oven or hob purchased, September 2007
• Shoppers choose real over virtual shops
• Who shops online?
  • Figure 28: Features to be the most considered in the purchase of a new cooker, oven or hob, September 2007
• Cleaning before colour
• Freestanding stands up to built-in
• Only a quarter say: "I' m with the brand"
• News flash: men aren' t cleaning cookers!
• Oldies have very specific needs
• Fledgling families: A key market?
• Demands fall along with salary and status
• Appendix
• Advertising data
• Abbreviations
• Broader market environment
  • Figure 31: Trends and projections in UK population (' 000s), by age group, 2002-12
• Market segmentation
  • Figure 32: Household ownership of kitchen appliances, 2003-07
  • Figure 33: Household ownership of electric hob units, by demographic sub-group, 2007
  • Figure 34: Household ownership of electric built-in-ovens, by demographic sub-group, 2007
  • Figure 35: Household ownership of electric cookers (free standing), by demographic sub-group, 2007
  • Figure 36: Household ownership of gas hob units, by demographic sub-group, 2007
  • Figure 37: Household ownership of gas built-in-ovens, by demographic sub-group, 2007
  • Figure 38: Household ownership of gas cookers (freestanding), by demographic sub-group, 2007
  • Figure 39: Household ownership of microwave ovens, 2003-07
  • Figure 40: Household ownership of microwave ovens, by demographic sub-group, 2007
• Consumer -- Purchase attitudes and motivations
  • Figure 41: Cooker, oven or hob purchased in the last seven years, by socio-demographic, 2007
  • Figure 42: Purchase motivations for buying a new cooker, oven or hob, by socio-demographic, September 2007
  • Figure 43: Purchase motivations for buying a new cooker, oven or hob, by socio-demographic, September 2007
  • Figure 44: Purchase attitudes towards the last cooker purchased, by socio-demographic, September 2007
  • Figure 45: Features to be considered in the purchase of a new cooker, oven or hob, by socio-demographic, September 2007
  • Figure 46: Features to be considered in the purchase of a new cooker, oven or hob, by socio-demographic, September 2007
  • Figure 47: Features to be considered in the purchase of a new cooker, oven or hob, by socio-demographic, September 2007
• Consumer typologies -- Further analysis
  • Figure 48: Gas and electric cookers consumer typologies, by socio-demographic, September 2007
  • Figure 49: Gas and electric cookers consumer typologies, by purchase motivation for buying the last cooker, oven or hob, September 2007
  • Figure 50: Gas and electric cookers consumer typologies, by purchase attitude towards the purchase of the last cooker, oven or hob, September 2007
  • Figure 51: Gas and electric cookers consumer typologies, by purchase of a cooker, oven or hob in the last seven years, September 2007