Clarification of Answer by
claudietta-ga
on
27 Jul 2002 01:52 PDT
Dear CookGuy,
Thank you for your patience in receiving this clarification.
The status is that 1) after searching in more databases, I did not
find the number of ‘gourmet kitchens’ nor of ‘premium ovens’ sold by
Miele etc., as you recommended; 2) after attempting to infer what it
is that you are looking for, finding relevant information, and running
Choices II (by Simmons), I have determined very good numbers for you;
3) if after you are unhappy with my response, you are welcome to
submit for a request. Unfortunately for me, I may interpreted an
article incorrectly, which led me to believe that I had a good answer
for you.
Summary of relevant information (from attached articles):
1) “High-end” appliance sector = 15% of appliance sector (early 1990s)
2) “True high-end” = 1-2% of appliance sector (early 1990)
3) “True high-end” = 5% of appliance sector (1999)
4) “True high-end”= $1b (retail)
5) Cooking appliances sector = $2.42b (1998) (retail)
6) Cooking appliances sector = $2.54b (1999)
7) 35% of kitchen remodeling jobs included peninsulas
8) Demographics of “high-end” sector”
a. 92% of purchasers are urban/suburban
b. 45-69 years old
c. white-collar executives
d. annual incomes >$150,000
e. 63% have college education
Simmons (in millions of households; there are an estimated of 99m
households in the US) – I thought that keeping these numbers separated
into the three types of cooking devices would give you more
information e.g. if you think that owning a convection oven is an
indicator for gourmet kitchens
Answer: The end analysis of the data below is that <8.1m households
(or 8.2%) in the US have the demographics of high-end appliances
identified by GE. [the most relevant demographics were chosen]
Electric Gas Convection Gas&Conv Elec&Gas&Conv
Race: White 40 25 11 4.3 0.70
Professional 5.0 2.9 1.5 0.59 0.12
College 12 6.8 3.3 1.3 0.28
Age 45-64 14 8.8 4.0 1.6 0.29
Income 4.2 2.4 1.5 0.60 0.16
(>$100,000/hh)
All hh 44 29 13 5.1 -
- did not run this
Note: Apparently 13% of households did not answer affirmatively that
they had these three types of cooking appliances. Perhaps a) they
have a microwave oven or wood-burning oven/stove instead) or 2) did
not answer the question.
I hope this helps you out.
claudietta
ps: I am highly confident that the specific informatin that you are
looking for is not readily available.
Sourced articles:
November 22, 1999
HEADLINE: Demand Grows for High-End Appliances
HIGHLIGHT:
The premium segment of the appliance market now may be 5% or more,
about $1 bil at retail
BODY:
It was estimated that in the early 1990s, high-end appliances
accounted for 15% of the business at most, which includes the true
high end at 1-2%. The premium segment now may be 5% or more, about $1
bil at retail. Merrell Grant of GE Appliances says that it has
probably doubled in the last 3-4 years. Part of the growth in
high-end products is due to baby boomers' earnings peaking. HFN
Report--Everybody's cooking.
Demand for high-end major appliances is cooking, sizzling, outpacing
the industry's bull market. Manufacturers, distributors and even
retailers literally are cooking, offering gourmet classes for
consumers.
Shoppers have big bucks, desire nice appliances in their homes, and
seek out dealers willing to explain the product benefits and offer
support services. Folks on the business side have recognized these
opportunities. More companies are crowding the field. That's raising
the competitive temperature and lowering some margins, but in this
economy, there's ample business to go round.
Early this decade, estimates were the upscale segment was at most 15
percent of the business, including the true high end at i to 2
percent. Now, the word is the premium segment could be 5 percent or
more--around $1 billion at retail.
"In the last three or four years it's probably doubled," said Merrell
Grant, GE Appliances' brand manager for Monogram. "Consumers in the
high end have moved into the ultrahigh end. They are looking for ways
to personalize: allow me to make a statement about my tastes and
preferences and the way I like to cook."
photos omitted
Dave Becker, Viking's vice president of product management, noted the
commercial-style segment grew from zero little more than a decade ago,
when Fred Carl founded Viking. Numerous "imitators" have since
enlarged the business. The company is expanding its series of culinary
institutes, which among other things gives consumers an opportunity to
learn about the equipment in a non-selling environment.
High-end growth is fueled in part by baby boomers reaching peak
earnings. Paul Leuthe, Sub-Zero's manager of marketing services, noted
they feel they worked hard and want to enjoy the rewards. Boomers are
tending to stay home more, especially in their kitchens, and "they're
looking for nicer things in their homes."
For the older ones, "their kids are finally out of college," said
Becker. "That's the biggest pay raise you are ever going to get."
"It's the largest generational transfer of wealth in the history of
the world," reported Phil Uihlein, president of U-Line Corp. "People
are spending unbelievable money." Big-box retailers are not geared for
high-end business, but survivors among independents all are in that
segment to some degree.
There remains differentiation too among manufacturers: the Dacors and
Sub-Zeros and Thermadors that have been long-time specialists, and
also the full-line giants that positioned the Monograms and
KitchenAids to compete there. Kent Baker, Maytag's vice president of
strategic marketing, said his company's strategy was to extend both
ends.
But premium goods still have a value equation. "There has to be
something that makes a connection to the consumer," he stated.
Dick Detrick, Marvel's general manager, pointed to a "growing need for
innovation in the high-end market. The consumer is looking for
something different, something better, not just bells and whistles
that don't really carry much meaning."
"While stainless steel is still a very hot commodity in the kitchen,
we still find a need for our products to blend in," he added.
Among distributors, Joel Zillioux, chief operating officer of Carl
Schaedel and Co., noted that as giant manufacturers moved in,
specialty firms moved higher. "The challenge is to support retail
profitability in the face" of greater competition and coming
challenges such as e-commerce, he noted. That's where distributor
services and enhancements such as Schaedel's monthly cooking classes
help.
Tim Boyd, vice president of Delia Inc., said the nature of the
business is a tough sale: explanations, three or four consumer visits.
Retailers are looking for proper displays and other help.
Leuthe saw the high-end boom persisting for a minimum of six to eight
years. The Sub-Zero specialist pointed to Home Depot's Expo and Sears'
Great Indoors. "They are not planning to put up 200 stores because
they are speculating," he said.
------------------
The One-Stop Meal Time
In 1995, some 66% of kitchen remodeling jobs were for areas over 150
sq ft and 35% of kitchen jobs included peninsulas
HFN, page S5
January 20, 1997
Kitchen Fast Facts
66% of kitchen remodeling jobs in 1995 were for areas over 150 square
feet
35% of the kitchen jobs included peninsulas
33% of the kitchen jobs included more than one sink
81% of the kitchen designs included pull-out shelving
Source: National Kitchen & Bath Association
-------------
HFN
May 1, 1995
HIGHLIGHT:
GE Appliances to cut number of dealers of high-end Monogram line to
build volume high-end market growing, Monogram has clout
BODY:
GE Appliances said it plans to cut the number of dealers of its
high-end Monogram line to build volume. According to Stuart Keeping,
Monogram brand manager, GE plans to evaluate its customers abilities
to support the brand and will discontinue business with those who
won't agree to mutually determined goals. GE cited two reasons for
interest in the topmost niche: the growth of that segment in general
and Monogram's clout. Keeping said Monogram demographics show
purchasers are 92% urban and suburban, 45-69 years old, are
white-collar executives and have incomes generally exceeding $150,000
63% have college educations. There are three basic styles of high-end
appliances: traditional, typified by American products contemporary,
predominantly of European design and the growing
professional-commercial look. Keeping said to be successful in the
high-end appliance market, GE believes it must offer products for all
three basic styles. Full text gives opinions/responses to the
distribution pl..
--------------
Conspicuous Consumerism In the '90S Leans Toward An Electronic Dream
House
Survey reveals 14.5% of consumers plan to buy a 25 inch or larger
color TV in 1998
Research Alert, page 1+
January 17, 1997
[What follows is the full text of the article.]
The increase in ownership of a wide spectrum of electronic products
and services in recent years has been astounding. As a result, today's
American home is designed for both convenience and leisure, according
to Conference Board research. The survey points to an increasing
ability and willingness on the part of consumers to spend --
particularly on household items that enhance and create more leisure
time.
The electronic appliance of choice in the '90s is the microwave, which
can be found in more than 85% of all homes, up from almost 75% in
1990. VCRs, the second most-popular item, are owned by 84% of all U.S.
households. In fact, the trend is now toward ownership of more than
one VCR (close to 40% have a second unit in their home). Home
computers, cordless phones, answering machines and CD players are now
much more commonplace than they were in 1990, and the trend in TV
ownership has shifted to large-screen sets.
Slightly less than one third of all respondents express an intent to
make a purchase of a household item in the coming year. The most
likely purchase will be the personal computer, with over one quarter
of all consumers who plan to make a purchase expressing a desire to
buy one this year.
The second most-popular item is the large-screen TV; almost 15% of
respondents plan to purchase one in the next 12 months. One the other
end of the intent-to-buy spectrum, the least likely addition to the
home is more pay cable TV channels. Under 4% of respondents plan to
expand their viewing choices by adding more premium channels.
[Consumer Spending/Attitudes, Home/Home Shopping]
SOURCE
"Special Consumer Survey Report," Nov. 1996, The Conference Board, 845
Third Ave., New York, NY 10022-6679; phone: 212-759-0900. For a copy:
Customer Service Dept.; phone: 212-339-0345. Price: $195 for
non-members, $95 for Conference Board members.
WHICH ITEMS DO YOU INTEND TO PURCHASE IN THE NEXT YEAR?
HHs planning to make a purchase 30.3%
Color TV (25" or larger) 14.5%
Color TV (less than 25") 9.2%
VCR 10.2%
Second VCR 12.8%
TV satellite dish 9.0%
Cable TV (basic) 5.1%
Cable TV (pay) 3.8%
Video camcorder 11.1%
CD player 10.8%
Home Computer 25.7%
Fax machine 5.7%
Personal copier 4.2%
Cordless telephone 13.6%
Answering machine 7.2%
Car phone 12.3%
Home security system 4.5%
Washing machine 5.3%
Microwave oven 6.5%
Dishwasher 6.4%
Air conditioner 6.1%
Indoor exercise equipment 11.8%
Source: The Conference Board
WHICH ITEMS DOES YOUR HOUSEHOLD CURRENTLY OWN?
1996 1990
Color TV (25" or larger) 60.6% 40.8%
Color TV (less than 25") 74.2% 76.9%
VCR 84.1% 67.7%
Second VCR 39.1% 17.4%
TV satellite dish 7.1% 3.0%
Cable TV (basic) 60.8% 50.1%
Cable TV (pay) 23.0% 25.8%
Video camcorder 26.8% 10.2%
CD player 51.9% 15.0%
Home computer 40.0% 21.7%
Fax machine 9.1% 0.9%
Personal copier 5.3% 2.7%
Cordless telephone 65.1% 32.8%
Answering machine 70.0% 37.5%
Car phone 26.6% 3.1%
Home security system 11.6% 7.7%
Washing machine 79.2% 72.1%
Microwave oven 85.2% 74.4%
Dishwasher 54.6% 46.5%
Air conditioner 62.6% 52.9%
Indoor exercise equipment 40.3% 29.7%
Source: The Conference Board
-------------------
High and Low End, White Goods Thrive
Major appliances sold in unprecedented numbers in 1999; refrigerator
sales reach $5.319 bil for the year
HFN, page 60
March 13, 2000
By Gerry Beatty
Dollars were hard-pressed to keep up with units in 1999 as major
appliances sold in unprecedented numbers. Prosperous consumers were
eager to buy, often trading up from units that were 10 or 15 years old
and less feature-laden. Premium goods continued to expand as a
percentage of the whole. But it's an old lament within the industry
that pricing has not kept pace with innovation.
Much of that can be attributed to consolidation and competition, which
is as much a fact of economic life and death in this business as any.
Manufacturers report quarterly results by saying the upscale segment
is going great guns, but the value brands are more like blazing guns
producing margin carnage.
On the retail side, big-box merchants are adding to their volume,
independents as a group are holding their own, and regional chains are
significant among the casualties. More than ever, the question in 2000
is whether some of the retail giants finally will take on major
appliances and whether they can be successful in a business that
requires some sales help on the floor and installation in the home.
cooking appliances
Retail Sales
1999: $2.544B
1998: $2.420B
Change: 5.2%
Electric continued to outsell gas by nearly three to two in ranges
last year. Speed-cooking ovens and two-oven ranges commended much of
the attention, but consumers still voted with their dollars for such
features as easily cleaned glass surfaces. These totals cover ranges,
wall ovens and cooktops, but not microwave ovens, another
billion-dollar category.
laundry appliances
Retail Sales
1999: $4.719B
1998: $4.290B
Change: 10.0%
These are the utilitarian workhorses that traffic heavily in
agitators, limited cycles and electro-mechanical controls. Large-load
capacity remains a powerful selling incentive. Tumble-action, while
gaining market share, is still only a small fraction of the business.
refrigerators
Retail Sales
1999: $5.319B
1998: $5.190B
Change: 2.5%
Units and dollars produced the biggest numbers in history, but the
rate of growth slowed somewhat in '99. Dollar totals might have been
higher but for a familiar story: The priority for some suppliers in
this and other categories was to hold market share, even if it meant
slashing prices. Upscale features also helped build volume.
room air conditioners
Retail Sales
1999: $1.658B
1998: $1.300B
Change: 27.5%
That blistering summer of '99 caused more than 6 million units to be
shipped for the first time, and everyone shared in the selling frenzy.
Some shared more than others: It's been evident for some years now
that various mass channels have plucked the business in popular
smaller sizes.
channels of distribution
electric & gas cooking appliances 1999 1998
National Chains 31% 32%
Mass Merchants & Clubs 3% 5%
Home Improvement Centers 9% 7%
Other 2% --
Appliance/Electronics Stores 55% 56%
laundry appliances 1999 1998
Chains 37% 36%
Mass Merchants & Clubs 3% 4%
Home Improvement Centers 8% 5%
Appliance/Electronics Stores 52% 55%
refrigerators 1999 1998
National Chains 31% 33%
Mass Merchants & Clubs 3% 5%
Home Improvement Centers 8% 7%
Other 1% --
Appliance/Electronics Stores 56% 55%
room air conditioners 1999 1998
Chains 31% 37%
Mass Merchants & Clubs 18% 16%
Home Improvement Centers 15% 13%
Appliance/Electronics Stores 36% 34%
Note: Table converted from pie charts.
Sourced Software and datasource: Choices II (by Simmons Study of Media
&Markets)- please read this on what this data means
http://wesley.stanford.edu/library/databases/dbguides/ChoicesII.pdf.
This is basically how it is determined that say 99% of all households
in the US have TVs.
