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Since the mid-1990's, the overall market showed consistent levels of
growth. This was particularly boosted by the building society windfalls in
1997. There is still signs of growth in the market, however, due to slower
economic growth and lower consumer confidence, the growth level is at a
much lower rate than in the mid-late 1990's.
The overall UK Kitchen Appliance Market By
Value is £2.3bn at msp.
The trend towards build-in appliances is growing. The increase
in this
sector is particularly due to improved new build sector throughout the
1990's, improvements in consumer confidence and to some degree the lower
level of household penetration.
In terms of volume, the free-standing sector improved throughout the
1990's, although, in terms of value, the market has shown lower levels of
growth, reflecting the increasing level of imports and the high level of
price competition. However, there has been growth at the upper-end of the market, as an increasing
proportion of consumers are trading up to higher specification appliances.
This is particularly the case within the cooking and laundry sector.
The major sector within build-in appliances is cooking (including
microwaves) with 79% by volume and 63% by value. Within the free-standing
market, cooking takes 28% by volume, 24% by value, compared to
refrigeration (31% and 30%), laundry (33% and 38%) and dishwashers (8% and
8%).
Build-In Appliances
The build-in cooking market is comprised of ovens, which account for
£164m at MSP and 1million units, hobs (£68m and 697,000 units) and hoods
(£31m and 1.1 million units). Definition of build-in microwaves is
difficult, as a proportion of microwaves are included with a build-in kit,
although in the majority of cases this is optional therefore the microwave
can either be built-in or free-standing.
The build-in oven sector is the largest by value being primarily electric,
estimated at 65%, though gas has made some gains in share in recent years.
Unlike ovens, the hob sector is primarily gas, which accounts for around
59%, with electric accounting for the balance. Dual-fuel appliances, with
gas hob and electric oven, are becoming increasingly popular. The build-in
cooking market has experienced considerable growth in terms of volume, and
this has spread to increase demand for extractor hoods.
Build-in refrigeration products are led by refrigerators with 243,000
units and £40m at MSP, freezers (£17m) and
fridge/freezers.
The build-in dishwasher market was worth £52m at MSP in 2002. The product is still low in terms of penetration and growth
potential still exists. Build-in dishwashers represent around 20% 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 £22m at MSP, followed by washer-dryers
at £9m and
tumble dryers with £1.2m. The build-in laundry
sector holds a very low share of total laundry appliance sales at around
3%, reflecting their use in utility rooms and generally out of the
kitchen.
Key suppliers include Whirlpool (UK), Bosch, Siemens, Electrolux (Zanussi,
Tricity Bendix, Parkinson Cowan, AEG), Merloni (Indesit, Ariston,
Scholtes),General Domestic Appliances, recently acquired by Merloni, (Creda,
Hotpoint, Cannon), and Bernstein/Homark. In addition there are a large
number of other suppliers.
The distribution profile is widespread with kitchen distributors
significant while retail multiples (e.g. Magnet, MFI), kitchen
specialists, DIY multiples and builders merchants are also important.
However the REC's have lost share in recent years as a result of
consolidation within the sector and in addition there has been the closure
of the British Gas Energy Centres.
Free-Standing Appliances
The free-standing cooking appliance market is comprised of cookers with £325m at MSP and microwaves (2.0m units and
£106m). Free-standing cookers are comprised of gas with 55%, dual fuel,
and electric. The increasing trend towards larger cooking
appliances has resulted in the growth of range cookers.
General Domestic Appliances, now owned by Merloni Elettrodomestici, are
the overall market leaders in cookers including the Creda, Hotpoint and
Cannon brands. The Electrolux organisation incorporating Tricity Bendix,
Zanussi, Parkinson Cowan, AEG are also significant in this sector. In
addition The Glen Dimplex Group which incorporates Burco Dean Appliances,
Belling Appliances and more recently, Stoves and New World Appliances has
also emerged as a major company.
The supplier profile of the microwaves is very different to that of the
other kitchen appliances, with the leaders being Sharp and Sanyo. Other
major brands are Hinari, Panasonic and Samsung. In addition there is a
wide range of other brands, though the products are often manufactured by
Far Eastern companies on an own brand basis.
The free-standing refrigeration sector is comprised of refrigerators with
£132m, freezers (£110m) and
fridge/freezers (£288m).
The refrigeration market is saturated, with overall penetration at 99%.
The
trend towards larger appliances has resulted in significant growth within
the fridge/freezer sector. Within fridge/freezers, the 'larger fridge
smaller freezer' products are gaining market share.
Key suppliers in this sector are General Domestic Appliances with the
Hotpoint brand. Followed by Electrolux, Lec Refrigeration and Merloni in
addition to a range of companies, a number which specialise in
refrigeration eg. Norfrost, Gram Refrigeration etc.
Distribution is led by the Electrical Multiples. Electrical Wholesalers
and kitchen and bathroom distributors are also important, as are freezer
centres, particularly in the chest freezer market.
There were some 934,000 free-standing dishwashers sold in 2002, worth
£155m. Compared to other household appliances, the dishwasher market
remains at a relatively low level of household penetration. The wider available product range,
including slim-line and compact dishwashers, and increased consumer
awareness of the benefits the dishwasher can offer, have contributed to
growth in this sector.
Key suppliers of dishwashers are General Domestic Appliances with the
Hotpoint brand followed by Electrolux with Zanussi and AEG, Merloni,
Bosch/Siemens and Whirlpool. Distribution is dominated by the electrical
multiples, with the general multiples and electrical wholesalers also
significant.
The free-standing laundry products are comprised of washing machines worth
£453m at MSP in 2002, dryers (£114m) and washer dryers (£107m). Automatic washing machines dominate this sector, and high spin-speed
models are accounting for an increasing share of the market. Tumble dryers
take over 90% share of the dryer market with condenser dryers growing in
popularity.
Leading suppliers within the laundry market are General Domestic
Appliances with the Hotpoint and Creda brands, Candy and Hoover,
Electrolux, Merloni and Whirlpool. Crooslee are particularly strong in the
drying market.
The major channels of distribution for laundry appliances include
electrical multiples, followed by the general multiples and electrical
wholesalers. The REC's, DIY multiples and discount warehouses are also
important within this sector.
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