homewares: trends and opportunities around the world in 2015 and beyond
TRANSCRIPT
M. CRUZ DEL BARRIO
HEAD OF HOME AND GARDEN RESEARCH
7 March 2015
HOMEWARES: TRENDS AND OPPORTUNITIES AROUND THE WORLD 2015 AND BEYOND
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Our Services Syndicated Market Research Custom Research and Consulting Expansive Network On the ground researchers in 80 countries Cross-comparable data across every market Our Expertise Consumer Trends & Lifestyles Product Categories & Distribution channels Economics & Forecasting
Who Is Euromonitor International?
INTRODUCTION
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Euromonitor International’s Network and Coverage
INTRODUCTION
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Euromonitor International’s Research Methodology
INTRODUCTION
HOMEWARES: MARKET OVERVIEW
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
FUTURE CHALLENGES AND OPPORTUNITIES
KEY TAKEAWAYS
US$84bn GLOBAL RETAIL SALES OF
HOMEWARES (2014)
13%
GLOBAL GROWTH
(ANNUAL AVERAGE 2008-2013)
0.1%
OF TOTAL SALES
COME FROM THE US (2014)
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Homewares
US$84 bn
Dining
US$37 bn
Dinnerware
US$17bn
Beverageware
US$13 bn
Cutlery
US$7 bn
Kitchen
US$47 bn
Cookware
US$26 bn
Kitchenware
US$21 bn
The Building Blocks of the Global Homewares Industry
HOMEWARES: MARKET OVERVIEW
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Homewares value sales by region (2014)
Western Europe
32%
Australasia 1% Middle East and
Africa 4%
Asia Pacific
30%
Eastern Europe
8%
North America
16%
Latin America
8%
China Leads Growth in Emerging Economies…
HOMEWARES: MARKET OVERVIEW
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Homewares value sales by region (2014)
Developed
markets
48%
Middle East and
Africa 4%
Asia Pacific
30%
Eastern Europe
8%
Latin America
8%
… but Developed Countries Remain Key Players
HOMEWARES: MARKET OVERVIEW
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How does Homewares Compare with other Industries?
HOMEWARES: MARKET OVERVIEW
70
75
80
85
90
Global Retail Sales by Industry, US$ billion, 2014
US
$ B
illio
n
Coffee Laundry Care
Ice Cream
Vitamins and Dietary
Supplements
Traditional Toys and Games
Homewares
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Homes = Homewares: Rising Ownership Drives Sales
HOMEWARES: MARKET OVERVIEW
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
China Turkey Brazil Russia S. Korea US
Net New Housing Completion (Selected Markets, 2008-2013)
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-30 -25 -20 -15 -10 -5 0 5 10 15 20
Spain
Mexico
US
France
Brazil
Turkey
S. Korea
Russia
China
New Housing Completions Growth: Top and Bottom Countries, 2012-2014 % CAGR
2012-2014 % CAGR
Homes = Homewares: My Home is My Castle
HOMEWARES: MARKET OVERVIEW
Housing
construction
growing
fastest
Housing
construction yet
to recover to
pre-recession
levels
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Cooking is More than a Necessity HOMEWARES: MARKET OVERVIEW
-2
-1
0
1
2
3
-2
-1
0
1
2
3
Stove TopCookware
Food Storage KitchenUtensils
Ovenware Beverageware Cutlery Dinnerware
% A
nnual G
row
th
US
$ B
illio
n
Homewares Growth by Category (2008-2013)
2008-13 absolute 2008-13 CAGR %
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-3
-2
-1
0
1
2
3
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
% V
alu
e G
row
th
Homewares retail sales growth by category (World, 2013)
Beverageware Cutlery Dinnerware Cookware Kitchenware
Growing Cooking Interest Boosts Sales
Growth
Drivers
HOMEWARES: MARKET OVERVIEW
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15
20
25
2008 2009 2010 2011 2012 2013
US
$ p
er
ho
use
ho
ld
World: Dining and Kitchen Expenditure per Household, US$, 2008-2013
Dining Kitchen
Cooking Related Products Prove to Be More Resilient
HOMEWARES: MARKET OVERVIEW
US$105
US$94
US$90
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0%
25%
50%
75%
100%
Brazil Russia India Germany China France Japan UK US
Never prepare Less than 5 minutes 5-15 minutes 15-30 minutes 30+ minutes
How much time do you spend preparing lunch?
Euromonitor Survey on Eating Habits Around the World in 2013 (I)
HOMEWARES: MARKET OVERVIEW
% o
f re
sp
on
de
nts
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0%
25%
50%
75%
100%
China Japan India US UK Russia Brazil France Germany
Never prepare Less than 5 minutes 5-15 minutes 15-30 minutes 30+ minutes
How much time do you spend preparing dinner?
Euromonitor Survey on Eating Habits Around the World in 2013 (II)
HOMEWARES: MARKET OVERVIEW
% o
f re
sp
on
de
nts
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Stove Top Cookware vs Ovenware: Tale of Two Products
HOMEWARES: MARKET OVERVIEW
-1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5
Asia Pacific
Latin America
Australasia
North America
Middle East and Africa
Eastern Europe
Western Europe
US$ billion
Stove Top cookware Vs. Ovenware absolute growth (2008-2013)
Stove Top Cookware Ovenware
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Roasting and Baking are Regional Preferences
HOMEWARES: MARKET OVERVIEW
93% of households have a microwave
0 20 40 60 80 100
China
Japan
Mexico
Chile
US
Brazil
Russia
UK
Ovens: Household penetration (2014)
0.1% of households have an oven
% o
f household
s
100%
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China Shows No Interest in Microwaves
HOMEWARES: MARKET OVERVIEW
93% of households have a microwave
0 20 40 60 80 100
China
Mexico
Russia
Brazil
Japan
Chile
UK
US
Microwaves: Household penetration (2014)
Negligible household penetration
91%
% o
f household
s
93%
HOMEWARES: MARKET OVERVIEW
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
FUTURE CHALLENGES AND OPPORTUNITIES
KEY TAKEAWAYS
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Groupe SEB: A History of Success
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
• Net Sales in Small Appliances (2013)
US$ 5.4 billion
• Net Sales in Homewares (2013)
US$ 2.8 billion
• Sales growth between 2008-2013
+6.5% CAGR
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1,800
1,900
2,000
2,100
2,200
2,300
2,400
2009 2010 2011 2012 2013
US
$ m
illio
n
Groupe SEB Cookware Sales 2009-2013, US$ million, Retail Value RSP
Groupe SEB a leading player in cookware
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
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Acquisition of leading local brands
Control of retail network
Introduce other SEB brands to market
• Supor
• Imusa
• Maharaja Whiteline
• Company operated stores
• Third party retailers
• Imusa and Home & Cook outlets
Groupe SEB global strategy
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
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0
50
100
150
200
250
300
2009 2010 2011 2012 2013 2014
Consumer Appliances: Imusa brand volume sales 2009-2014 (‘000 units)
Vo
lum
e s
ale
s (
‘00
0 u
nits)
Company
operated stores in
Colombia (2014)
22
Largest cookware
company in the
US by value sales (2014)
3rd
SEB’s Acquisitions to Bolster Retailing Presence (I): The Americas
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
Groupe SEB
takeover
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Company operated stores in China
+1,000
Cookware brand in China by sales,
2014
1st
SEB’s Acquisitions to Bolster Retailing Presence (II): China
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014
Kitchen: Supor Brand Sales in China (US$ mn) 2009-2014
Va
lue
sa
les (
US
$ m
illio
n)
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Currency Fluctuations Hit SEB
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
-20
-15
-10
-5
0
5
10
Japan Russia Turkey
% y
-o-y
va
lue
gro
wth
Sales Growth Performance: Local Currency and Euro Y-o-Y Exchange Rates 2012-2013
Local Currency Euro Y-o-Y Exchange Rates
HOMEWARES: MARKET OVERVIEW
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
FUTURE CHALLENGES AND OPPORTUNITIES
KEY TAKEAWAYS
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Commoditization of homewares
Competition from private label
Unclear brand segmentation
The Future Comes with Many Challenges
FUTURE CHALLENGES AND OPPORTUNITIES
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Strong growth forecast
Buoyant housing market
Strong social mobility
Young population
Strong growth in
multiple retailers
Contrasting Factors Shaping the Future of the Regions
Weak growth forecast
Struggling property market
Uncertain economic situation
Ageing population
Distribution networks saturated but good
growth in online sales • Asia Pacific
• Latin America
• Middle East and Africa
• North America
• Australasia
• Western
Europe
FUTURE CHALLENGES AND OPPORTUNITIES
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Fastest Growing Markets
-2
0
2
4
6
0
50
100
150
WesternEurope
Australasia NorthAmerica
EasternEurope
LatinAmerica
AsiaPacific
MiddleEast and
Africa
20
13
-18 C
AG
R%
US
$ p
er
household
(2013
)
Homewares: Inverse correlation between spend per household and forecast growth
2013 US$ per household spend 2013-18 CAGR%
China Indonesia
Brazil UAE
Thailand
Growth will Come from Emerging Economies
FUTURE CHALLENGES AND OPPORTUNITIES
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0
2
4
6
8
10
12
0
10
20
30
40
50
60
70
Brazil US Russia Germany South Korea Argentina
% s
ha
re
US
$ m
n
Highest growth countries in Ovenware and Share of Silicone in 2013
2009-13 absolute growth Ovenware 2013 silicone share in Ovenware %
Growth Through Innovation: Silicone in Ovenware
FUTURE CHALLENGES AND OPPORTUNITIES
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0
5
10
15
20
25
0
100
200
300
400
500
China Germany Russia US Canada South Korea
% s
hare
US
$ m
n
Highest growth countries in Kitchen Utensils and Share of Silicone in 2013
2009-13 absolute growth Kitchen Utensils 2013 silicone share in Kitchen Utensils %
Growth Through Innovation: Silicone in Kitchen Utensils
FUTURE CHALLENGES AND OPPORTUNITIES
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■ Hygienic
■ Light
■ Easy to clean and store
■ Safer for baby food
■ Cheaper than glass and ceramics
■ Limited cooking usage (mainly baking)
■ Greater loyalty to metal and wood in both developed and developing countries
The Pros and Cons for Silicone
FUTURE CHALLENGES AND OPPORTUNITIES
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Smart Objects and the Internet of Things
FUTURE CHALLENGES AND OPPORTUNITIES
US (2014)
SKE Lab Neo Smart Jar
112%
Tablet Penetration
162%
Smartphone Penetration
SEB Groupe: 40% of R&D allocated to
Smart Objects and Connectivity in 2014
Source: www.Indiegogo.com
HOMEWARES: MARKET OVERVIEW
CASE STUDY: GROUPE SEB – HOW TO BECOME A LEADER
FUTURE CHALLENGES AND OPPORTUNITIES
KEY TAKEAWAYS
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Key Takeaways
Emerging
Markets
• Growth potential
• Lower expenditure per household
Developed
Market
• Stagnant growth
• Higher expenditure per household
Creating Value
• New Product Development
• Materials and formats
Smart Home
• Homewares as part of the “Internet of Things”
FUTURE CHALLENGES AND OPPORTUNITIES
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THANK YOU FOR LISTENING
M. Cruz del Barrio
Head of Home and Garden Research
Euromonitor International
60-61 Britton Street
London EC1M 5UX
www.euromonitor.com
Note: 2013 figures are based on part-year estimates. 2014 data is preliminary. Both are subject to change. Final data to be published May 2015