The Green Room: Home Laundry & Garment Care
GfK’s Seema Boyd provides an overview of the laundry market
D
uring the recent tough economic period, washing machines have consistently outperformed other key durables markets and it is one of the top performing home appliance categories. The washing machine market is currently worth £946 million (Jul13-Jun14), which is a slight uplift on the same period last year. Fully automatic machines remain the dominant type, accounting for 86% of value sales, although washer dryers have seen a 5% uplift in sales over the past twelve months and generate almost £134 million. Despite retailing on average at £150 more than a fully automatic machine, they are a popular choice for consumers with limited space
opting for a larger drum size is becoming a relatively easy tradeup as the average price gap has narrowed. The average cost of a 9kg washer is only £17 more expensive than an 8kg so it is easy to see why these bigger products have been doing so well. Aside from capacity, online sales were the other significant factor behind the success of washing machines, as well as other major appliances. Value increased by 13% online over the past year and internet purchases now account for just over a third of all washing machine sales. As consumers become more comfortable making big ticket purchases online, many see the web as the best place to find a
Aside from capacity, online sales were the other significant factor behind the success of washing machines, as well as other major appliances.” in their homes as they eliminate the need for a tumble dryer. Despite the fact that total market volume sales have started to dip into negative territory, the growing popularity of large capacity machines (7kg and above) has been the driving force behind value growth for the overall category. Over three quarters of the washing machine market value is now generated by high capacity (7kg+) products, and in the past year even larger load sizes of 8kg and above have shown strong growth, making up 45% of total sales. Larger drum sizes for washer dryers also help improve the drying function of these products. From a consumer’s perspective,
bargain. The physical size of major appliances also lends itself well to this type of purchase as the delivery and installation of new products and the removal of old can be arranged at the point of purchase. These time-saving and convenience factors are helping to drive online purchases for today’s time-poor society, particularly when you consider that the majority of washing machines being bought are to replace ones that have broken down. Whilst the market is underpinned by this replacement cycle, the recent pickup in the housing market is also starting to stimulate initial purchases by first time buyers, which should support the market going forwards.
GfK Panelmarket Data
Great Britain (Data based on MAT value sales Jul13-Jun14)
Big capacity continues to fuel growth for Washing Machines
WASHING MACHINES Market Share by Drum Size
MAT Value Growth
Online Share 13%
16% 5% 1.5% Total Washing Machines
18
34%
29%
1% Full Auto Washers
22%
33%
Washer Dryers <=6KG
GET CONNECTED SEPTEMBER 2014
7KG
8KG
>=9KG
-4%
In-store
Ebac’s vision for its UK manufactured washing machine
But the introduction of heat pump technology has silenced all but the most carping critics. Blanca Castro De Liñán, Junior Category Manager UK & Ireland at Maytag, quotes AMDEA figures that show market penetration in tumble dryers has risen to just over half of UK households. “This has encouraged the great strides taken by manufacturers to increase the energy efficiency of the tumble dryer through exceptional innovation and design,” she asserts. “What’s more, as washing machines and tumble dryers incorporate increasingly intelligent design, between them they are taking on all aspects of a wash to ensure as little as possible preparation is required beforehand, with minimal creasing caused during a cycle to also reduce ironing loads after. Built-in intelligence and ease of programming enables consumers to tailor lifestyle programmes that work for them, and Maytag appliances offer a range of options to suit the individual as well as favourite options that allow the user to save their most frequently used programmes.” Electrolux’s Joe Oram, Head of Product Line, Laundry & Home Comfort, points out that, like the tumble dryer, washer dryers have also been subject to criticism. “Consumers think of them as less energy efficient and lower in performance than two separate appliances, but owning a washer dryer is no longer a compromise. The AEG ÖKOKombi Plus is the first washer dryer in the world to feature heat pump technology, meaning you can save around £70
per year in energy running-costs when compared to a traditional condenser washer dryer. You can also dry clothes with the utmost care and attention at around 50°C lower than in a standard washer dryer. This means that fabrics stay looking newer for longer.” The AEG ÖKOKombi Plus has Woolmark Blue accreditation.
CONSUMER APPROACH
County Durham-based Ebac, which is set to become the UK’s only manufacturer of washing machines, believes that the new approach to doing the laundry more often will drive a change towards a practical, flexible and smart way of washing. “As lifestyles become more hectic and busier we are seeing a change in the way people use washing machines,” says Darren Feasey, Senior Appliance Product Manager. “The traditional ‘wash day’ is becoming a thing of the past as washing more often is preferred to maximise the best use of time and money to suit the user’s lifestyle. Washing machines will become more intelligent, offering features such as touch screens and app-control and built-in diagnostics.” Feasey says the above features were high on the wish lists of consumers that Ebac consulted as part of its research to ensure it enters the market later this year with products that give consumers what they really want in an appliance that is not complicated to use. “All of the input provided has contributed in the development of our next generation washing machine, which really will be designed ‘by consumers, for consumers’.”