Each year, IHA sponsors the International Home + Housewares

Transcription

2014 State of the Industry Report
The International Housewares Association – The Home Authority® – is strategically positioned
to connect, inform, support and enable its international membership to lead in the global
marketplace. The International Housewares Association (IHA) is committed to maximizing the
success of the global home products industry on behalf of its membership by providing a worldclass home products marketplace, facilitating global commerce and the buyer-seller interface,
increasing consumer awareness and interest in home products, gathering and disseminating
essential marketplace intelligence and educating and supporting key constituencies to improve
their success.
Each year, IHA sponsors the International Home + Housewares Show. With 60,000 attendees,
the Show is one of the largest trade events in the world. Future Show dates:




March 7-10, 2015
March 5-8, 2016
March 18-21, 2017
March 10-13, 2018
Additional information, including registration, is available at www.housewares.org.
i
Dear Housewares Executive,
The 2014 IHA State of the Industry Report is a joint endeavor of the International Housewares
Association (IHA) and Raftery Resource Network, Inc. This publication includes a compilation of
data from the IHA annual membership survey as well as data from several authoritative sources,
including the U.S. Government, industry trade journals and industry data services.
The timing of the report coincides with the release of key data about consumer spending during the
previous year (2013). The methodology used to project housewares sales incorporates these data
and remains consistent with prior years’ reports, with one exception, which became effective with
the 2008 report.
The data that IHA member companies contribute are from the most current year available, i.e.,
2013. In years past, a small percentage of unique category and channel data from prior years were
included to expand the sample size. The most immediate year data sample has proven to be very
robust for the sixth consecutive year as the number of companies providing data has increased
each year since the change occurred.
Please forward any comments or suggestions for improvement so we can continue to meet your
information needs.
Sincerely,
Phil Brandl
President/CEO
International Housewares Association
6400 Shafer Court, Suite 650
Rosemont, IL 60018
Dan Raftery
President
Raftery Resource Network, Inc.
800 N. Main Street
Antioch, IL 60002
phone:
fax:
email:
website:
phone:
fax:
email:
website:
847.292.4200
847.292.4211
pbrandl@housewares.org
www.housewares.org
ii
847.838.1177
847.838.1188
Dan@RafteryNet.com
www.RafteryNet.com
How to Use this Report
Executive Summary
This section contains a succinct synopsis of the U.S. and global data analysis in this
report by Raftery Resource Network.
Macro Trends
This section looks at several major economic trends and forces affecting housewares
consumers: retail stores, raw materials, transportation costs, healthcare costs, inflation
U.S. household expenditures, advertising, the housing market and world economics.
Global & U.S. Housewares Markets
This section discusses size and trends in global markets and international trade. With a
focus on the United States, the largest housewares market per capita, this section includes
U.S. market size data by housewares category.
U.S. Distribution Channels
Find out which retail channels gained the most market share in 2013 and in which
housewares categories. This section includes analyses by retail channel.
Channel Focus: Digital Commerce
This is a special section with selected trend data about Internet retail and consumers who
shop online.
IHA Membership Profile
This final section includes key statistics about IHA member companies.
iii
Table of Contents
Executive Summary & Forecasts........................................................................................................ 1
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Key Findings .................................................................................................................................. 2
Top 10 Retailers Today vs. 1995 .................................................................................................... 3
Macro Trends ........................................................................................................................................... 4
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Retail Sales & Inventory ................................................................................................................... 5
Store Growth .................................................................................................................................... 6
Raw Materials .................................................................................................................................. 7
Transportation Costs ....................................................................................................................... 9
Healthcare Costs ........................................................................................................................... 11
Manufacturing ............................................................................................................................... 13
Consumer Economics ................................................................................................................... 14
Household Expenditures ................................................................................................................ 17
Housing Market .............................................................................................................................. 18
Advertising Budgets ...................................................................................................................... 19
Global Retail .................................................................................................................................. 21
Global & U.S. Housewares Markets ....................................................................................... 22
– Global Housewares Market .............................................................................................................. 23
– Size of U.S. Housewares Industry ................................................................................................... 24
– U.S. Housewares by Category ......................................................................................................... 25
U.S. Distribution Channels ................................................................................................... 26
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Housewares Category Share Estimates ........................................................................................ 27
Category Sales by Channel Distribution ........................................................................................ 28
Direct-to-Retail vs. Wholesale ....................................................................................................... 29
Direct-to-Retail Channels Overview .............................................................................................. 30
Mass Merchants & Supercenters ................................................................................................... 31
Specialty Stores ............................................................................................................................ 32
Department Stores ......................................................................................................................... 32
Supermarkets/Food Stores ............................................................................................................ 33
Hardware Stores & Home Centers ................................................................................................ 34
Warehouse Clubs........................................................................................................................... 34
Gourmet, Gift, Novelty & Souvenir Stores ..................................................................................... 35
Drug Stores ................................................................................................................................... 35
Variety & One Price Stores ............................................................................................................ 36
Home Furnishings & Appliances .................................................................................................... 37
Others............................................................................................................................................. 37
Catalogs & TV ................................................................................................................................ 37
Manufacturer Website .................................................................................................................... 38
Internet Retailers ............................................................................................................................ 39
Channel Focus: Digital Commerce ..................................................................................... 40
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Digital Commerce .......................................................................................................................... 41
IHA Membership ..................................................................................................................................... 44
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IHA Membership Base ................................................................................................................... 45
Publicly Held Housewares Companies .......................................................................................... 45
IHA Member Company Profile ....................................................................................................... 46
IHA Membership Manufacturing Practices..................................................................................... 47
Appendices ............................................................................................................................................. 48
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Appendix A:
Appendix B:
Appendix C:
Appendix D:
Appendix E:
Methodology ............................................................................................................. 49
Top 100 Domestic Housewares Retailers by Sales ................................................. 50
Top 50 Internet Properties (U.S.) ............................................................................ 52
Net Digital Ad Revenue Worldwide .......................................................................... 53
About the Author ....................................................................................................... 54
iv
EXECUTIVE SUMMARY AND FORECASTS
1
Executive Summary
Key Findings
Global housewares market data show an overall retail sales increase of 2.6% in 2013. This is
slightly lower than the increase posted in 2012 (2.9%). In keeping with past reports, this State of
the Industry Report provides a projection of global sales using current U.S. dollar valuations.
Several basic economic variations are reflected in the housewares global market projections,
including changes in Gross Domestic Product, population and currency for all available countries.
In the U.S., total housewares expenditures increased 5.9% in 2013. Average U.S. household
expenditures declined 2.5%, which was similar to four of the five major sets of categories where
IHA member companies compete for household spending. Average household expenditures
decreased in 2013 versus 2012 for restaurant meals, gasoline & motor oil, education and dairy
products, according to the U.S. Bureau of Labor Statistics (BLS). The BLS housewares
expenditures are combined with the data provided by IHA member companies to project the total
market.
The average (mean) size of IHA member companies decreased slightly to $18.2 million. The
median (mid-point) of the survey dropped to the $2 - 4.9 million range. Size distribution remained
similar to last year as 67% of these companies reported annual sales under $10 million in 2013.
Over half (60%) of IHA member housewares companies produce all of their products offshore. Another third (33%) make some products in the U.S. and some overseas. For these
companies, 87% of their products are manufactured outside of the U.S., similar to last year.
Most IHA member companies (91%) export product to other countries. Canada, Mexico,
Western Europe, Latin America, Australia and Asia are export destinations for over half of these
companies. Export destinations mentioned by larger percentages of IHA member companies this
year included, Latin America, Australia, Asia, Eastern Europe, Mideast and U.S.
The mass merchants/supercenters channel was the sales leader in all housewares categories,
for the second consecutive year. Retail channels where percentages of total housewares sales
versus last year increased include: Internet retailers, supermarkets, warehouse clubs, variety/one
price stores and the other classification (c-stores, garden centers, patio specialty and all others).
Wholesalers share slipped to 9.8% in 2013 from 11.7% in 2012. The largest share gain was posted
by Internet retailers, up 1.7% to 3.7% in 2013.
Non-store retailing represented the second largest share of housewares sales in 2013. Ecommerce retail sales continue to post yearly total sales gains. When combined, these housewares
retail channels – Direct to Consumer via Manufacturer Website and Catalogs/TV and Internet
Retailers – reached 15.5% in share of total housewares retail sales versus 15.0% in 2012 and
13.1% in 2011.
The top three categories for 2013 were cook & bakeware (16.8%), kitchen tools & accessories
(13.2%) and kitchen electrics (12.2%). Tabletop slipped to number four (11.5%).
2
Executive Summary
Top 10 Retailers Today vs. 1995
Consolidation has concentrated the base of retail customers for the housewares industry.
Compared to 1995, the top 10 housewares retailers in 2013 captured 6% more of the sales from the
top 100. Their share decreased in 2013 to 65.2% from 65.6% in 2012.
Top 10 Retailers 2013 versus 1995
Company
Stores 2013
Housewares
Sales 2013
4,203
649
1,793
1,496
632
554
2,263
8,116
11,132
1,152
31,990
23.3%
$21,304
$11,828
$8,855
$4,933
$4,680
$3,392
$2,583
$2,304
$2,251
$1,821
$63,951
65.2%
Walmart
Costco
Target
Bed Bath & Beyond
Sam’s Club
Williams-Sonoma
Home Depot
Walgreen
Dollar General
Kmart
Totals
Percent of Top 100
Company
Stores 1995
Housewares
Sales 1995
2,234
2,477
240
433
670
2,306
398
240
423
1,650
11,071
15.7%
$7,775
$4,065
$2,125
$2,080
$1,825
$1,695
$630
$540
$510
$500
$21,745
59.4%
Walmart
Kmart
Price Costco
Sam’s Club
Target
Sears
Montgomery Ward
Williams-Sonoma
Home Depot
American Stores
Totals
Percent of Top 100
Sales in Millions
Source: HomeWorld Business September 2014 and September 19, 1996
Fifty-six companies have “disappeared” from the 1995 list due to mergers, acquisitions, and
bankruptcies. A comparison to the 56 which took their place on the HomeWorld Business 2013
list shows the following:
 27,898 stores were replaced by 49,495 stores, with Starbucks adding over 13,000.
 $9.1 billion housewares sales grew to $11.0 billion.
 Seven companies on the 2013 list have 0 stores. None had 0 stores in 1995.
Among Top 100 Retailers in 1995, but not in 2013
Rank
10
21
95
24
97
28
64
16
90
50
57
36
10
23
56
74
38
80
49
American Stores
Ames
Ann & Hope
Best Products
Boscov’s
Bradlees
Builders Square
Caldor
Carson Pirie Scott
Consolidated
Dayton Hudson
Eckerd
Federated
Fingerhut
Food Lion
Fortunoff
Fred Meyer
Giant Food
Hechinger
Rank
30
73
87
84
77
16
67
90
43
80
15
74
70
95
7
64
90
77
100
Hills
HomeBase
Home Express
H.W.I.
Kitchen Collection
Lechter’s
Linens’ n Things**
L.Luria
Longs
MacFrugal’s
May Department Stores
McCrory Stores
Mercantile Stores
Mervyn’s
Montgomery Ward
Pamida
Pathmark
Payless Cashways
Penn Traffic
** Now doing business on the Internet
Note: Identical rankings indicate ties.
Rank
90
90
43
64
14
48
86
63
58
82
79
35
71
34
76
60
38
62
Phar-Mor
Proffitt’s
Revco
Rose’s
Service Merchandise
ServiStar
Sharper Image**
Smith Food & Drug
Spiegel
Stop & Shop
Thrift
Thrifty/Payless
Value City
Venture
Vons
Waccamaw
Winn Dixie
Woolworth
Rank is 1995 rank
Source: HomeWorld Business September 19, 1996
3
MACRO TRENDS
4
Macro Trends
This section contains a selection of key statistical trends that affect the housewares industry in the
U.S. and around the world.
1. Retail stores’ inventory forecasting stabilizes as turns continue to decline.
Retail inventory turnover in the U.S. continued to pull back from its 2011 record in 2013.
9
Annual Retail Inventory Turns
8.96
8.74
8.5
8
7.94
7.5
8.68
8.56
8.15
8.02
8.03
7.81
7.63
7
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Annual Retail Trade Survey 2004-2013, U.S. Census Bureau
The ratio of retail inventory to sales, which typically swings from month to month, has been
declining since 2001, as a general trend, to 1.3 in March of 2014, the latest reading on this graph.
The use of inventory management technologies has become not only more widespread, but also
more sophisticated, as evidenced by the increased stability over the last two years.
Ratio of U.S. Retail Inventories to Sales
1.8
(Monthly)
1.7
1.6
1.5
1.4
1.3
1.3
1.2
Jan01
Jan02
Jan03
Jan04
Jan05
Jan06
Jan07
Inventory/Sales Ratio
Jan08
Jan09
Jan10
Jan11
Jan12
Jan13
Jan14
12-Month Rolling Average
Source: U.S. Census Bureau, Manufacturing and Trade Inventories and Sales
SOI INSIGHT
Since retail inventory turns started slowing at the same time that the ratio of inventory
to sales stabilized at historically low levels, it appears that retailers are both more
efficient and cautious in terms of inventory investment.
5
Macro Trends
2. Overall retail store growth has returned to the U.S.
Year over year changes in the total number of retail stores in the U.S. (i.e., all retail, not just
housewares retailers) have been positive for the last two years available (2011 and 2012), ending a
three-year streak of declines.
Annual Change in U.S. Retail Establishments
(% change from year before)
4.0%
2.6%
2.0%
1.1%
1.9%
0.0%
-1.7%
-2.0%
`85
`90
`95
`00
`05
`10
Sources: U.S. Census Bureau and Business Dynamics Statistics
For the second year in a row, in 2013 the top 100 U.S. housewares retailers added over 4,000
stores versus the year before.
Top 10 U.S. Housewares Retailers
Share of Stores
Top 100 U.S. Retailers Total
Number of Stores
23.6%
23.3%
`13
23.1%
137.5
`12
21.6%
133.2
`11
23.8%
128.8
`10
15.7%
127.6
70.6
50
87.2
100
108.7
150
20.4%
(thousands)
`11
`12
`13
0
`95
`00
`05
Source: HomeWorld Business September 2014
`95
`00
`05
`10
Versus Top 100 HWB Housewares Retailers
Source: HomeWorld Business September 2014
The top 10 U.S. housewares retailers continue to operate nearly a quarter (23.3%) of the retail
outlets selling housewares among the top 10 companies.
SOI INSIGHT
The housewares business continues to increase in complexity as retail sales are
distributed among traditional “brick and mortar” customers and the growing arena
of Internet outlets.
6
Macro Trends
3. Changes in prices were mixed in 2013 for major housewares raw materials.
Petroleum pricing, which drives polymer costs, increased to a new record high in 2013. Steel
prices declined slightly and remain below their 2008 peak. Both aluminum and copper have been
little changed over the last three years.
Petroleum Prices
$94.05
$91.09
$66.02
$97.98
$94.88
$88.58
$79.48
$41.51
$61.65
$56.64
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
U.S. Dollar per Barrel of Crude Oil: Cushing, OK WTI Spot Price FOB.
Source: U.S. Energy Information Administration
Steel Prices
$881
$657
Mar10
$691
$791
$677
Jul10
Nov10
$702
Mar11
Jul11
$734
$664
Nov11
$615 $651
$665
$648
$645
MarJulNov- MarJulNov- Mar12
12
12
13
13
13
14
World Prices, U.S. Dollars per Ton. Hot Rolled Steel Coil.
Source: Steelonthenet.com
Alum inum
Aluminum and Copper Prices
Copper
9 ,0 6 6 .8 5
10,000.00 7 ,5 14 .2 4 8 ,2 9 2 .0 0
6 ,5 0 1.5 0
4,000.00
1,000.00
Jun07
7 ,4 2 8 .2 9
5 ,0 13 .3 0
7,000.00
2 ,3 8 2 .8 3
Dec07
Jun08
2 ,18 1.2 6
1,5 0 4 .4 2
Dec08
Jun09
Dec09
2 ,3 5 6 .6 7
Jun10
Dec10
2 ,0 8 6 .7 6
2 ,0 2 4 .3 8
Jun11
Dec11
7 ,0 0 0 .2 4
Jun12
Dec12
6 ,8 2 1.4 4
1,7 3 9 .8 1
Jun13
Dec13
Jun14
Aluminum and copper price monthly per metric ton.
Source: Index Mundi, extracted from the CIA World Factbook
7
Macro Trends
The cost of electricity in cents per kilowatt-hour increased for producers, businesses and
homeowners to rates that are the highest in a decade.
Average Retail Price of Electricity
(Cents per Kilowatt-hour)
8.72
9.45
8.95
8.03
8.17
8.67
5.11
5.25
5.73
2003
2004
2005
10.40
10.65
9.46
9.65
6.16
2006
6.39
2007
11.36
11.15
10.74
11.30
11.61
11.54 11.76
10.28
10.09
9.77
9.99
9.88
9.93 10.51
6.84
6.54
6.46
6.53
7.01
2008
Residential
2009
2010
Commercial
6.62
2011
2012
2013
7.04
2014*
Industrial
*Through February 2014
Values for 2013 & 2014 are preliminary estimates based on a cutoff model sample.
Source: Energy Information Administration, Electric Power Reports
$6.0
PMI > 50 = Expanding factory sector
$5.0
$4.01
$4.0
$3.27
$3.19
$3.31
$4.29
$4.53
$4.77
$4.70
$4.87
70
$4.96
$4.24
$3.76
$3.60
50
$3.0
$2.0
$1.0
PMI < 50 = Shrinking factory sector
$0.0
Purchase Managers' Index
Annual Durable-Goods Orders
Purchasing managers continue to show cautious optimism with a PMI of 57.0 at the end of 2013.
The wide and rapid swing between extreme pessimism in September 2009 (32.9) and extreme
optimism in February 2011 (61.4) appears to have settled down. Similarly, the total annual durable
goods orders has increased modestly for two consecutive years to nearly $5 trillion, a record.
25
'01
'02
'03
'04
'05
'06
'07
Durable-Goods Orders ($ Trillions)
'08
'09
'10
'11
'12
'13
Purchasing Managers' Index
Sources: U.S. Census Bureau. Manufacturers’ Shipments, Inventories and Orders. For
nondefense capital goods excluding aircraft.
Institute for Supply Management
SOI INSIGHT
The divergent trends through 2013 in energy and materials costs for housewares
companies may have damped the outlook of purchasing managers in the last two
years. However, the last time durable goods orders increased while the PMI index
decreased, a sharp drop in durable goods orders followed. Current trend patterns are
similar.
8
Macro Trends
4. Overland transportation costs rise to record highs as container volume drops.
Diesel fuel costs continued the upward trend that started in 2010 and posted a record high in early
2014. (Diesel fuel and #2 fuel oil are essentially the same refined product).
Annual Average Price for a Gallon of #2 Fuel Oil
$2.51
$2.21
$1.02
$1.36
$0.88
$1.01
$0.90
$1.65
$1.16
$3.94
$3.75
$3.29
$2.95
$3.72
$3.71
$2.93
$2.22
$1.40
$1.31
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
*First four months. U.S. City Average. Source: BLS
Global oil consumption increased in 2013 versus 2012 in all regions except Europe. The Asia
Pacific region and the Middle East show the largest increases over historical levels.
Oil Consumption
35
30
25
20
Thousands of Barrels a Day
15
10
5
0
North
America
South &
Central
America
Europe
Middle East
Africa
1980
Asia Pacific
1990
2000
2013
Source: BP Statistical Review of World Energy 2013
Ocean-going freight volume dropped significantly through 2008 and rebounded somewhat in the
first half of 2009. The trend turned negative again in 2010 and again toward the end of 2013 and
into 2014.
Baltic Dry Index
Quarterly Volume
10000
8000 8756
6000
4000
2000
2990
3672
3140
2351
1013
1316
698
0
Source: Capital Link Shipping, Baltic Dry Index Charts
9
Macro Trends
Imports of goods into the U.S. goods outpace exports from the U.S. at 7 of 10 major ports.
Imports increased at six ports in 2013 versus 2012. Exports increased at seven ports.
Loaded Container Volume
2013 Outbound
1,418,527
1,125,619
uv
er
1,466,701
2,760,555
Va
nc
o
NJ
NY
/
Sa
va
nn
a
1,429,954
1,603,774
h
934,119
998,843
a
ni
Vi
rg
i
920,013
659,497
st
on
507,759
Ho
u
486,606
695,748
529,255
a
Ch
ar
le
st
on
543,655
Ta
co
m
Se
at
tle
s
Lo
Lo
ng
B
ea
ch
An
ge
le
s
468,253
1,704,932
1,921,069
3,455,323
3,976,691
Shipments of U.S. Goods to and From All Other Countries
2013 Inbound
Source: Seaport Statistics for each location
Railroad commercial volume within U.S.
borders increased in 2013 versus 2012,
approaching the levels seen in prior years.
A broader measure of internal U.S.
freight shipments shows moderately
health monthly increases versus the same
months in 2012.
U.S. Freight Transportation
U.S. Railroad Ton-Miles
Percent change from prior year
(Billion)
15.00%
1,772 1,771 1,777
1,691
1,729 1,713 1,741
Jan 08
10.00%
5.00%
0.00%
1,532
Dec 13
-5.00%
-10.00%
-15.00%
2006 2007 2008 2009 2010 2011 2012 2013
Includes goods shipped by truck, rail, air,
pipeline and inland waterways.
Source: Association of American Railroads,
Class I Railroad Statistics
Source: Bureau of Transportation Statistics
SOI INSIGHT
Since higher prices do not appear to have had a measurable effect on oil consumption, the
global down trend in ocean-going freight volume is likely driven by soft demand.
10
Macro Trends
5. Healthcare costs continue to increase for employers and employees.
The annual increase in health insurance premiums for workers continues to out-pace changes in
workers earnings.
Percentage Increase in Health Insurance Premiums and
Workers' Earnings, 2002-2013
15.0%
12.9%
13.9%
11.2%
9.2%
10.0%
9.0%
7.7%
6.1%
4.7%
5.0%
5.0%
4.0%
3.0%
4.0%
0.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Health Insurance Premiums
Workers' Earnings
Source: Kaiser Family Foundation, Employer Health Benefits 2013 Annual Survey, family coverage.
BLS, Labor Force Statistics from the Current Population Survey
One technique that employers use to manage their healthcare costs has been to increase employee
deductible levels. Average employee annual deductibles increased in 2013 for all three major
types of healthcare plans HMO, POS and PPO plans.
Average Annual Deductibles for
Single Coverage, by Plan Type
$1,300
$634
$675
$675
$733
$799
$691
$729
$500
$699
$601
$700
$911
$900
$1,061
$1,048
$928
$1,014
$1,314
2009
$1,100
2010
2011
2012
2013
$300
$100
-$100
HMO
PPO
POS
Source: Kaiser Family Foundation, Employer Health Benefits
2013 Annual Survey
11
Macro Trends
Companies paid more for both family plans and single person healthcare plans in 2013.
Average Annual Employer Contributions
$15,000
$10,000
$6,657 $7,289
$8,167
$8,508
$8,824
$9,325
$11,429 $11,786
$9,860 $9,773 $10,944
$5,000
$2,875 $3,136 $3,413 $3,615
$0
2003
2004
2005
2006
$3,785
$3,983 $4,045
$4,150
$4,508 $4,664
$4,885
2007
2008
2010
2011
2013
Single Coverage
2009
2012
Family Coverage
Source: Kaiser Family Foundation, Employer Health Benefits 2013 Annual Survey
Employers’ average premiums for various types of plans continue to be highest for PPOs and
HGHP/SO plans and lowest for POS plans, where average worker contributions are highest.
Average Annual Insurance Premiums
Family
$4,565
$11,786
All Plans
Single
HDHP/SO
Family
Single
POS
$999
$4,885
$3,649
$4,419
$887
Family
Single
$11,578
$5,590
$957
$10,840
$5,014
Family
$4,587
$12,084
PPO
Single $1,024
Family
$5,008
$5,124
$11,419
HMO
Single $1,081
$0
$4,948
$2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
Worker contribution
Employer contribution
Source: Kaiser Family Foundation, Employer Health Benefits 2013 Annual Survey
HDHP/SO – High Deductible Health Plan with a Savings Option
HMO – Health Maintenance Organization
PPO – Preferred Provider Organization
POS – Point of Service
SOI INSIGHT
Prior to any observable effects of the Affordable Care Act on personal or corporate
expenditures, healthcare costs continue to add a double inhibitor to housewares
businesses – increased operating costs for manufacturers and decreased consumer
expenditure as more employee wages go toward healthcare costs.
12
Macro Trends
6. Capital expenditures in the U.S. grew 14.1% in the fourth quarter of 2013, but
Asia continued to surpass the U.S. in R&D spending for the second year.
U.S. production of goods as a percentage of U.S. Gross Domestic Product was 26.3% in the fourth
quarter of 2013, after a fairly significant drop in the first quarter. Expenditures on capital
equipment and software recovered in mid-2009 from six straight quarters of declines during the
height of the recession. Spending increased for each quarter since.
2009
U.S. Production of Goods and Cap Ex Spending
30%
(Quarterly Data)
26.3%
20%
14.1%
10%
2009
0%
2011
2010
-1.7%
2012
2013
-10%
2008
-20%
-30%
Capital Equipment Spending - Quarterly change at an annual rate
U.S. Production of Goods as a Share of GDP
Source: Bureau of Economic Analysis
Asian countries’ spending research and development surpassed the annual U.S. amount in 2011,
for the first time and continued to be higher, although the U.S. figure also rose.
R&D Spending
$500
(USD in billions annually)
$400
$300
U.S.
Asia
$200
EU
$100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Main Science and Technology Indicators, Organisation for Economic
Co-operation and Development
All three major economies have returned to increasing R&D spending, with Asia now leading.
SOI INSIGHT
Asian partners of housewares companies may be in better positions now to invest in
R&D spending on new product development.
13
Macro Trends
7. Consumers saved considerably less in 2013, even though the gas pump offered
some relief.
Over the last 30 years, the personal savings rate peaked in 1984 at 11.1% and steadily declined to a
low point of 2.2% in 2005. Consumers appeared to reduce debt by saving more of their disposable
income through 2012, when the most recent peak of 8.6 occurred. By the end of 2013 the savings
rate had declined to 4.4% of disposable income.
Personal Savings as a Percentage of Disposable Income
12%
11.1%
9.4%
10%
8.6%
8%
6%
4%
4.4%
2%
2.2%
0%
1983
1993
2003
2013
Disposable Personal Income (DPI) is personal income less personal current taxes.
DPI measures the income that is available to be either spent or saved.
Source: Bureau of Economic Analysis
One of the most-watched consumer expenditures is gasoline and oil, as an indicator of available
spending power or consumer mood. As a percentage of personal expenditures, gasoline and oil
reached record levels in 2007. Wallet pressure eased somewhat since then, dropping to 3.5% by
the end of 2013.
Gasoline and Oil as a Percentage of Quarterly
Personal Consumption Expenditures
5.50%
4.50%
3.50%
2.50%
3.50%
2.69%
1.50% 2002
2006
2013
Through December 2013. Billions of chained dollars; seasonally adjusted at annual rates. Source: BEA.gov
$100 in 1982 had the same buying power as $245.67 in 2014
$100 in 2002 had the same buying power as $131.78 in 2014
Source: BLS CPI Inflation Calculator
14
Macro Trends
Median household income rose to a new
record of $53,046 in 2013, surpassing the
previous record of $52,163 in 2007.
Households continue to gain ground in their
efforts to reduce debt. However, debt remains
over 100% of income.
Household Debt as Percent of
Personal Disposable Income
Median Household Income
$54,000
$52,000
$50,000
$48,000
$46,000
$44,000
$42,000
$40,000
$53,046
$52,163
135%
132%
125%
115%
100%
105%
95%
104%
89%
$43,346
85%
1995 1998 2001 2004 2007 2010 2013
1996
2002
2013
2008
Income in 2013 CPI-U-RS adjusted dollars.
Households as of March the following year.
Source: 2013 Current Population Survey, U.S. Census Bureau
Source: Federal Reserve
The number of unemployed workers per available job continued to decline in 2013. Private sector
jobs have been created monthly since the beginning of 2010, when the peak of 6.2 unemployed
workers per job was reported. This statistic remains above pre-recession levels.
Unemployed Workers per Available Job
7
6.2
6
5
4
2.6
3
2
1.6
1
0
Jan-07
Jul-07 Jan-08
Jul-08 Jan-09
Jul-09 Jan-10
Jul-10 Jan-11
Jul-11 Jan-12
Jul-12 Jan-13
Jul-13
Source: Bureau of Labor Statistics
15
Macro Trends
Companies less than one-year-old – a common
definition of a start-up – added more jobs
versus the prior year, for the third year in a
row.
Although companies typically spend more for
wages and salaries than they do for employee
benefits the annual change for each cost became
comparable in 2012 and remains around 2%.
Private Sector Costs
Number of Jobs Created by
Establishments Less Than One-Year-Old
Year-over-year percentage change
8%
7%
5,000,000
4,163,828
6%
4,000,000
5%
3,000,000
4%
2,000,000
2,794,185
1,000,000
3%
2%
1%
0
1998
2003
2008
2013
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Wages & Salaries
Source: U.S. Bureau of Labor Statistics
Benefits
Source: U.S. Bureau of Labor Statistics
Both the number of recipients and the cost of
the food stamp program rose again last year.
The U.S. poverty rate declined to 14.5% in 2013,
the first significant decrease since 2006. This
represents 45.3 million people, statistically
similar to 2012
Food Stamp Program Cost and Usage
Percent of U.S. Population
Below Poverty Level
60,000
20.0%
80,000
12.7%
11.3%
60,000
40,000
40,000
10.0%
1997
2001
2005
2009
2013
20,000
Source: 2013 Current Population Report, U.S. Census Bureau
20,000
2007 2008 2009 2010 2011 2012 2013
Source: United States Department of Agriculture,
Supplemental Nutrition Assistance Program
SOI INSIGHT
Although new job creation is trending higher, it remains below historic levels while
poverty and public aid programs are above past levels. It remains to be seen whether
costs of corporate benefits will decline enough to influence these other factors.
16
Billions of $
14.5%
Thousands
13.3%
Average # Recipients
Billions of $
15.1%
15.0%
Average # Recipients
Macro Trends
8. Household expenditures for housewares declined slightly in 2013.
The average U.S. household spent $584 on housewares in 2013, according to U.S. government
data. This is less than 2012 ($599) and 2011 ($596) and little changed since 2005 ($578). To put
annual housewares spending in perspective, it is helpful to compare it to consumer spending in
other areas using the U.S. government data. For example, U.S. households spent more on
housewares than they did on dairy products and less than on fruits and vegetables, but four times
the average housewares expenditure on restaurant meals.
Among the six broad categories, only fruits and vegetables saw increased spending per household
in 2013 versus 2012. Restaurant meals and gasoline & motor oil declined the most, dropping
12.6% and 9.8% respectively.
2013 Household Expenditures in Key Industries
($ per U.S. Households)
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
$2,611
$2,236
$1,138
$414
$584
$751
Dairy
Products
Housewares
Fruits &
Vegetables
Education
Gasoline &
Motor Oil
Restaurant
Meals
Source: Bureau of Labor Statistics Consumer Price Index for all Urban Consumers
Government data show that consumer spending on food at home remained little changed month to
month through most of 2013.
Change in CPI for Meals at Home and Away
Change from month to month in CPI
4
3
Meals at home
Meals away from home
2
1
0
-1
-2
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14
Source: Consumer Price Index, seasonally adjusted
SOI INSIGHT
Consumers appear to be more cautious and conservative in their spending on major
necessities, which could have negative implications for impulse purchases of housewares.
17
Macro Trends
9. The housing market gained strength in 2013.
The total value of real estate holdings in the U.S. was $19.6 trillion in 2013 – up 11% from 2012
but still down from the 2006 high of $22.70 trillion. However, housing starts remain at the lowest
levels in the last 50 years.
Value of Household
Real Estate Holdings
2,500
Billions of Dollars
2,000
Housing Starts
2,357
Thousands of Housing Units
2,068
$19,631
$17,691
$22,718
1,500
1,000
1,014
1,252
587
500
-
2006
2012
1960
2013
1970
1980
1990
2000
2010
Source: Census Bureau
Annual data.
Source: Federal Reserve
At market value. All types of owneroccupied housing including farm houses,
mobile homes, plus second homes not
rented, vacant homes for sale, vacant land.
Sales of all homes on the market rose again in 2013 and the percentage represented by new homes
increased to 7.8%. It was 15.4% in 2004. New home sizes rose to a record in 2013.
Average Sq. Ft. of New
Single-Family Houses
Home Sales
In thousands
5,398
12.1% 4,714
4,566
4,512
7.9%
7.1%
5,519
5,028
7.8%
7.3%
1975
1980
6.7%
1985
1,645
1,740
1,785
1990
2,080
1995
2,095
2,266
2000
2008
2009
2010
Existing homes sold
Percentage of new homes is
to the right of each bar.
2011
2012
2013
New homes sold
2,434
2005
2,392
2010
2,598
2013
Sources: U.S. Census Bureau,
National Association of Realtors
Source: U.S. Census Bureau
SOI INSIGHT
Although total U.S. real estate equity has shrunk, larger single-family new homes
have returned to the spotlight. However, housewares companies can still focus new
product development on the larger portion of homeowners who may be staying put
until their home values climb back up and want to modernize or remodel their
homes.
18
Macro Trends
10. Advertising budgets expanded modestly, driven by spot TV and network TV.
Overall advertising spending increased 0.9% between 2012 and 2013. Over half of the categories
declined in 2013, with national radio losing the largest share.
Ad Spending by Media: Full Year 2013 vs. Full Year 20121
Media
NETWORK TV
2
CABLE TV
3
CONSUMER MAGAZINES
4
SPOT TV
6
INTERNET (DISPLAY ADS)
5
NEWSPAPERS (LOCAL)
8,10
LOCAL RADIO
SYNDICATION – NATIONAL
7
SPANISH LANGUAGE TV
OUTDOOR
9
FOOD SUPPLEMENT INSERTS
5
NATIONAL NEWSPAPERS
3
B-TO-B MAGAZINES
10
NATIONAL SPOT RADIO
3
SUNDAY MAGAZINES
10
NETWORK RADIO
3
LOCAL MAGAZINES
5
SPANISH LANGUAGE NEWSP
3
SPANISH LANGUAGE MAG
TOTAL
(Millions)
2013
$23,475.03
$22,340.07
$19,376.35
$16,516.81
$13,862.88
$13,834.22
$5,674.15
$5,145.53
$5,134.07
$4,389.27
$2,136.95
$2,126.22
$2,044.68
$1,872.47
$1,459.26
$911.62
$298.68
$285.00
$275.32
$141,158.58
2012
$23,126.36
$21,877.94
$18,885.33
$15,084.74
$14,275.55
$14,380.68
$5,353.57
$5,119.93
$5,514.24
$4,204.28
$2,066.68
$2,121.04
$2,162.99
$1,936.37
$1,498.22
$1,083.97
$300.18
$270.19
$278.59
$139,540.86
$ Change
% Change
$1,597.09
-$786.30
$491.02
$2,241.26
-$1,221.86
-$546.47
$159.91
$25.60
-$219.50
$184.99
$70.27
-$36.77
-$76.36
-$63.90
-$38.95
-$172.35
-$1.50
$6.41
$5.13
$1,617.72
7.3%
-3.4%
2.6%
15.7%
-8.1%
-3.8%
2.9%
0.5%
-4.1%
4.4%
3.4%
-1.7%
-3.6%
-3.3%
-2.6%
-15.9%
-0.5%
2.3%
1.9%
0.9%
Source: Kantar Media
1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media,
including: Network TV (5 networks); Spot TV (738 stations in 125 DMAs); Cable TV (75 networks); Syndication TV;
Hispanic Network TV (4 networks); Consumer Magazines (192 publications); Business-to-Business Magazines (282
publications); Sunday Magazines (8 publications); Local Magazines (30 publications); Hispanic Magazines (19
publications); Internet display (2,779 sites monitored at least one year);Local Newspapers (133 publications); National
Newspapers (3 publications); Hispanic Newspapers (45 publications); Local Radio (36 markets); Network Radio (5
networks); National Spot Radio (205 markets); and Outdoor(194 market). Figures do not include public service
announcements (PSA) or house advertising
2. Cable TV figures based on 71 English language networks and do not include any Hispanic cable networks
3. Magazines include Publishers Information Bureau (PIB) data and reflect print editions of publications.
4. Spot TV figures based on 663 English language stations and do not include any Hispanic stations
5. Newspapers figure reflect print editions of publication
6. Internet expenditures reflect the value of desktop display advertising only. Video ad formats and mobile ad formats
are specifically excluded
7. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 75 local Hispanic TV
stations
8. Local Radio includes expenditures for 36 markets
9. FSI data represent distribution costs only
10.Radio media figures only reflect commercial spot sales
19
Macro Trends
Part of the decline in Internet display ad spending may be due to the large increase in digital video ad
spending, projected to be over $12 billion by 2018. This forecast by eMarketer was raised from their
forecast last year. They predict YouTube’s net U.S. video ad revenue to be $1.13 billion in 2014, up from
$810 million in 2013 - about 20% of the total spend in each year.
U.S. Digital Video Ad Spending
Billions
$14.00
$12.82
$11.25
$12.00
$9.59
$10.00
$7.37
$8.00
$5.96
$6.00
$4.00
$3.82
$2.00
$0.00
2013
2014
2015
2016
2017
2018
Note: includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets; data
through 2011 is derived from IAB/PwC data; includes in-banner, in-stream (such as pre-roll and overlays) and in-text (ads
delivered when users mouse-over relevant words).
Source: eMarketer, September, 2104
Google retained half of the mobile Internet ad revenue in 2013, but slipped a little from 2012 .
Net Mobile Internet Ad Revenue Worldwide, by Company
2011
Revenues
Google
2012
Revenues
2013
Revenues
2011
Share
2012
Share
2013
Share
$1.53
$4.61
$8.93
38.11%
52.6%
50.4%
Facebook
-
$0.47
$3.15
-
5.4%
17.8%
Twitter
-
$0.13
$0.50
-
1.5%
2.8%
Pandora
$0.12
$0.23
$0.28
2.99%
2.6%
1.6%
YP
$0.09
$0.25
$0.28
2.32%
2.9%
1.6%
Millennial Media
$0.04
$0.07
$0.07
1.00%
0.8%
.4%
Other
$2.23
$2.99
$4.30
55.58%
34.1%
24.3%
$4.02
$8.76
$17.71
Total
Note: Net ad revenues after companies pay traffic acquisition costs (TAC) to partner sites; including display
(banners and other, rich media and video) and search; ad spending on tablets is included; excludes SMS MMS
and P2P messaging-based advertising; numbers may not add up to total or 100% due to rounding.
Source: Company reports, eMarketer June 2013 & June 2014
SOI INSIGHT
The trend toward video ads and the increasing popularity of mobile ads provide
increasingly available opportunities for housewares to reach an increasingly large
portion of the population world-wide .
20
Macro Trends
11. Modest improvement is forecast for the global economy.
Looking to the future, the Organisation for Economic Co-operation and Development (OECD)
reports a flat trend in the OECD Composite of Leading Indicators (CLI). The CLI is designed to
show early signs of economic expansion (above 100) or contraction (below 100).
OECD Composite of Leading Indicators
105.0
102.3
102.5
97.8
100.0
100.4
100.3
95.0
90.0
85.0
Jan08
92.7
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
JanJulJan12
12
13
Source: OECD
Jul13
JanJul14
14
As of July 30, 2014
This global indicator is affected by the individual country CLIs that are developed by the OECD.
A review of the country-level trends shows signs of economic recovery for most of the mature
markets.
The OECD projections for mature markets predict the strongest growth in GDP for the U.S. and
the highest inflation for China. Unemployment in Europe is predicted to remain above 11%,
decline the U.S. and remain low in Japan. Moderate inflation is expected for Europe.
Summary of Projections
2014
Q4
2015
Q1
Q2
Q3
Q4
2.6
1.2
1.2
2.2
7.4
3.4
1.6
1.7
2.8
n/a
3.6
2.1
1.7
2.9
n/a
3.7
2.4
1.8
3.0
n/a
3.7
-2.4
1.9
2.5
n/a
1.3
2.6
0.7
1.6
2.4
1.5
2.9
1.0
1.9
2.9
1.6
1.1
1.1
1.7
3.0
1.7
1.2
1.2
1.8
3.0
1.8
2.7
1.2
2.0
3.0
6.5
3.8
11.7
7.5
6.2
3.7
11.6
7.3
6.1
3.7
11.4
7.3
6.0
3.7
11.3
7.2
5.9
3.7
11.2
7.1
Real GDP growth
United States
Japan
Euro area
Total OECD
China
1
Inflation
United States
Japan
Euro area
Total OECD
China
2
Unemployment rate
United States
Japan
Euro area
Total OECD
1
USA; price index for personal consumption expenditure, Japan and China; consumer price
index and the euro area; harmonized index of consumer prices. 2 Percent of the labor force.
Source: OECD; Economic Outlook, Volume 2014, Issue 1 – No.95, May 2014
SOI INSIGHT
OECD forecasts for the immediate future of mature markets may not be a cause of
concern for the established core business of housewares manufacturers but may
signal challenges in building new business.
21
GLOBAL & U.S. HOUSEWARES MARKETS
Global housewares market sales are estimated in current U.S. dollars. In
addition to sales, these data are influenced by world economic factors such as the
relative strength of the U.S. dollar versus the currencies of other nations and
relative inflation rates, for example.
22
Global Housewares Market
The global market size of the housewares industry is (US) $322.6 billion, up 2.6% from 2012.
North America, Western Europe and Asia make up 82% of all housewares spending by consumers.
North America and Asia accounted for most of the worldwide growth, increasing 5.3% and 2.9%
respectively.
Worldwide Housewares Expenditures
(US $322.6 Billion)
Western Europe
$76.7
North America
(U.S. & Canada)
$83.4
Eastern Europe
$17.2
Asia
$105.2
Middle East
$9.2
Africa
$13.2
Latin America
$12.8
Oceania
$5.0
• The estimated size of the housewares market for all regions except the United States was calculated using International Labor Organization (ILO) expenditure
data, United Nations population statistics, Central Intelligence Agency (CIA) exchange rates and Gross Domestic Product (Purchasing Power Parity Method).
• These regional estimates represent all housewares categories in the IHA definition of the industry.
China’s 6.2% growth in GDP (Purchasing Power Parity Method) continued to slow from 10.2% in
2012 and 13.4% in 2011. India’s GDP growth also slowed to 4.9% from 5.4% in 2012. Vietnam
recorded a 10.1% increase. (Source: CIA World Factbook, September 2012, 2013 and 2014).
2013 Housewares Expenditures and Market Share
Region
($ Millions)
Housewares
Expenditures*
Asia
North America
$105,208
83,396
73,409
9,987
76,683
17,156
13,194
12,782
9,240
4,971
$322,630
United States**
Canada
Western Europe
Eastern Europe
Africa
Latin America
Middle East (includes India)
Oceania
TOTAL
Housewares
Market Share
32.5%
25.9%
22.8 %
3.1%
23.8%
5.3%
4.1%
4.0%
2.9%
1.5%
100.0%
*Based on the IHA definition of the housewares industry. ** Calculated using the Department of
Labor Bureau Labor Statistics data. Sources: ILO Total Consumer Expenditures, United Nations
“World Population Prospects,” CIA World Factbook population estimates and projections and
National Statistical offices of Eurostat/Euromonitor International, CIA World Factbook (September
2014 update) for Gross Domestic Product (Purchasing Power Parity Method), Wall Street Journal, US
Dollar Foreign Exchange Rates.
23
Size of U.S. Housewares Industry
Overall, U.S. consumers spent $73.4 billion dollars on housewares in 2013 in categories where
IHA member companies participate.
As the global housewares market saw a 2.6% year-to-year increase as measured in dollars, U.S.
Housewares Expenditures increased 5.9% from the prior year. These data are significantly
influenced by changes in population, currency exchange rates and changes in Gross Domestic
Product. (Figures are not adjusted for inflation).
2013 U.S. Housewares Expenditures
IHA Definition
($ Billions)
Year
Total
Expenditures
% Change
in 1 Year
2013
2012
2011
2010
2009
2008
2007
$73.4
$69.3
$67.1
$66.8
$65.8
$74.1
$76.3
5.9%
3.3%
0.4%
1.5%
-11.2%
-3.0%
4.8%
Traditionally, the definition of the housewares industry used by government agencies includes a
broad variety of categories, many of which are not offered by IHA members. For increased
relevance of the information in this report to its membership, IHA uses a subset of the traditional
definition, which more accurately reflects the IHA membership categories. This subset is used in
the development of all tables and graphs in this report.
24
U.S. Housewares by Category
Continuing with the methodology change initiated in 2004, the U.S. housewares industry statistics
represent “the IHA subset” of more traditional market definitions in order to better reflect product
categories manufactured by IHA member companies.
2013 U.S. Housewares Expenditures
Furniture
Infants
Outdoor
Occasional
Appliances
Electric Floor Cleaning
Sewing Machines
Miscellaneous Household Appliance
Small Electric Kitchen
Portable Heating & Cooling Equipment
Microwaves
Housewares
Flatware
Dinnerware, glassware, serving pieces, textiles (1)
Non-electric Cookware (2)
Tableware, Non-electric Kitchenware (2)
Misc. Household Equipment
Infant Equipment
Laundry & Cleaning Equipment
Outdoor Equipment
Lamps & Lighting
Other Household Decorative
Telephone & Accessories
Small Misc. Accessories
Closet & Storage
Telephone Answerers
Other Household Appliances
Personal Care Products
Non-electric Articles for the Hair
Oral Hygiene
Shaving Needs
Electric Personal Care
Total Expenditures
Number of Households
2013
Total Expenditures
(millions)
$8,529
$1,268
$2,390
$4,871
$9,606
$1,937
$613
$718
$3,441
$1,263
$1,635
$8,541
$449
$3,999
$1,761
$2,332
$36,633
$1,876
$2,598
$3,795
$3,995
$12,914
$7,344
$1,418
$1,759
$13
$921
$10,100
$1,328
$4,517
$2,843
$1,413
$73,409
126 million
Avg. Annual
% Change
Past 5 Years
-0.7%
4.9%
-3.0%
-0.5%
5.1%
0.3%
16.6%
33.6%
8.1%
7.3%
15.1%
-3.3%
2.1%
-2.0%
2.7%
-7.9%
0.0%
-3.8%
6.3%
10.9%
4.6%
-2.2%
19.1%
3.3%
-6.4%
-5.1%
-0.1%
4.0%
13.1%
2.5%
5.7%
3.3%
0.0%
(1) was previously reported as plastic dinnerware, china & other, glassware, and Other serving accessories.
(2) were previously reported as non-electric cookware
Values are rounded for presentation purposes.
Source: U.S. Department of Labor/Bureau of Labor Statistics Consumer Expenditures Study for 2013,
unpublished (sample of 5,000 U.S. consumers).
25
U.S. DISTRIBUTION CHANNELS
26
Housewares Category Share Estimates
The housewares industry is comprised of a number of diverse categories for use in the home, with
53.7% of industry sales falling into the cook & bakeware, kitchen tools & accessories, tabletop and
kitchen electrics categories. These same top four categories represented 52.0% of industry sales in
2012.
Housewares Category Share Estimates
(Share of Reported Companies' Sales)
Bathroom & Personal Care
2.7%
Cleaning Products & Stick Goods
6.5%
Cook & Bakeware
Furniture
Home Décor
Home Office/Office Supplies
16.8%
1.5%
2.1%
1.3%
Household Electrics
Household Textiles
Juvenile Products
6.7%
2.4%
0.6%
Kitchen Electrics
12.2%
Kitchen Tools & Accessories
13.2%
Outdoor & Hardware
Personal Electrics
Pet Supplies
Seasonal & Holiday Promotional Goods
Space Organizers, Closets & Clothing Care
3.4%
2.1%
1.1%
1.6%
3.1%
Storage
7.0%
Tabletop
Other
11.5%
4.2%
The data in this chart are from 791 IHA member companies who answered the “2014-2015 Membership Profile”
survey and represent 27.8% of the projected total housewares industry volume for 2013. The data should not be
interpreted as “national” or “industry-wide” benchmarks. These numbers are most useful as general “ball-park”
directional indicators of category performance.
27
Category Sales by Channel of Distribution
($ Millions)
Category
Cook & Bakeware
Electrics Subtotal
Household Electrics
Kitchen Electrics
Personal Electrics
Furniture
Home Decor
Household Textiles
Juvenile Products
Outdoor & Hardware
Pet Supplies
Storage
Tabletop
Other
TOTAL
Category
Cook & Bakeware
Electrics Subtotal
Household Electrics
Kitchen Electrics
Personal Electrics
Furniture
Home Decor
Household Textiles
Juvenile Products
Outdoor & Hardware
Pet Supplies
Storage
Tabletop
Other
TOTAL
Mass
Merchants/
Super
Centers
$482
$981
$2,433
$3,283
$915
$1,977
$391
$303
$298
$216
$331
$125
$2,038
$502
$168
$269
$539
$1,402
$87
$318
$1,540
$1,554
$424
$1,041
$89
$50
$106
$40
$154
$22
$1,028
$127
$70
$81
$106
$318
Supermarkets/
Food
Stores
$139
$689
$1,244
$499
$152
$287
$60
$66
$192
$62
$143
$40
$952
$293
$79
$117
$166
$531
Hardware
Stores/
Home
Centers
$75
$513
$415
$721
$340
$354
$27
$44
$88
$53
$66
$20
$434
$221
$38
$48
$201
$292
$984
$884
$811
$150
$7,978
$144
$6,629
$125
$6,148
Specialty
Stores
Department
Stores
$191
$436
$1,456
$1,612
$592
$849
$171
$53
$169
$109
$233
$69
$1,221
$179
$98
$100
$319
$599
$1,856
$669
$15,895
$94
$147
$549
$797
$278
$461
$58
$43
$58
$25
$68
$16
$496
$76
$29
$43
$81
$177
Variety/
One
Price
Stores
$72
$280
$308
$227
$75
$109
$43
$22
$59
$22
$56
$18
$297
$100
$54
$71
$103
$217
$343
$395
$368
$193
$212
$3,784
$55
$3,149
$21
$2,295
$68
$2,257
Warehouse
Clubs
Drug
Stores
$120
$204
$235
$502
$155
$213
$134
$52
$84
$48
$71
$33
$250
$84
$44
$68
$50
$151
Gourmet/
Gift/
Novelty &
Souvenir
Stores
Home
Furnishings,
Appliance
Stores
Catalogs,
TV
Direct to
Consumer
via Your
Web
Internet
Retailer
Wholesale
Other*
Rounded
Total
$47
$97
$393
$364
$81
$263
$20
$23
$59
$14
$74
$12
$372
$78
$14
$39
$48
$116
$313
$47
$2,110
$17
$80
$335
$795
$296
$461
$38
$61
$29
$53
$90
$10
$140
$30
$10
$16
$28
$129
$160
$41
$2,024
$170
$196
$794
$1,415
$530
$763
$122
$99
$119
$58
$125
$20
$701
$217
$49
$92
$220
$306
$471
$255
$5,307
$135
$108
$354
$1,082
$284
$769
$29
$15
$27
$60
$35
$9
$227
$94
$12
$19
$68
$72
$152
$56
$2,525
$59
$113
$438
$493
$175
$247
$71
$49
$59
$35
$63
$14
$286
$105
$26
$51
$64
$158
$280
$120
$2,413
$205
$421
$1,226
$1,548
$474
$857
$217
$176
$118
$120
$169
$20
$812
$205
$77
$116
$182
$414
$874
$642
$7,331
$88
$189
$614
$522
$146
$303
$73
$46
$77
$37
$82
$12
$435
$187
$37
$45
$100
$258
$357
$478
$3,564
$1,981
$4,772
$12,334
$15,414
$4,917
$8,954
$1,543
$1,102
$1,542
$952
$1,760
$440
$9,689
$2,498
$805
$1,175
$2,275
$5,140
$8,441
$3,083
$73,403
Sample sizes: 791 companies; 2,147 data points.
.
*Other includes convenience stores, garden centers, patio specialty stores and all others.
28
Source: IHA 2014-2015 Membership Survey
Direct-to-Retail vs. Wholesale
For companies participating in IHA surveys, the proportion of direct-to-retail versus wholesale
sales has varied only slightly over recent years. In 2013, 9.8% of housewares volume was sold
through the wholesale channel. This is the second highest level in recent years.
Channels of Distribution
Direct-to-Retail vs. Wholesale
(% of Domestic Housewares Sales)
Direct-toRetail
Channel
91.2%
9.8%
Wholesale
Channel
Prior Years Wholesale Channel Share
2012
2011
2010
2009
2008
2007
11.7%
6.9%
8.5%
5.5%
6.2%
8.5%
Source: IHA SOI & Membership Surveys
For the remainder of this report, all sales percentages refer to only the direct-to-retail channel, i.e.,
they exclude the sales to wholesalers.
29
Direct-to-Retail Channels Overview
Housewares manufacturers continue to distribute most domestic housewares (91.2%) through 14
retail channels. The major 14 direct-to-retail channels include “non-brick-and-mortar” outlets such
as Internet Retailers, Catalogs/TV and Direct to End-user.
2013 U.S. Housewares Industry
Direct-to-Retail Channels*
Channel
Mass Merchants/ Supercenters
Specialty Stores
Department Stores
Supermarkets/ Food Stores
Hardware Stores/Home Centers
Warehouse Clubs
Variety/One-Price Stores
Drug Stores
Gourmet/Gift/Novelty & Souvenir Stores
Home Furnishings/Appliance Stores
Catalogs/TV
Direct to End-User/ Consumer via Your Web
Internet Retailer
Other
TOTAL
Channel Sales
(Millions)
$15,895
$7,978
$6,629
$6,148
$3,784
$3,149
$2,295
$2,257
$2,110
$2,024
$5,307
$2,525
$2,413
$3,564
$66,078
Share of
Housewares
Retail Market
24.0%
12.1%
10.0%
9.3%
5.7%
4.8%
3.5%
3.4%
3.2%
3.1%
8.0%
3.8%
3.7%
5.4%
100.0%
Annual Change
Channel Sales
Annual Share
Change




























* Excluding wholesale channel.
Notes: Directional changes based on IHA definition of the housewares industry. The “other” channel includes convenience stores, garden
centers, patio specialty stores and all other retail formats.
The Internet Retailer channel was added in last year’s report. It was previously reported in the Catalogs,
Internet, TV channel.
Total non-store retailing (Catalogs/TV, Direct-to-End-User/Consumer via Your Web and Internet Retailer)
accounted for 15.5% of the total retail volume, which is the second largest share, when combined. Their
combined share in 2011 was 13.1%; in 2012 it was 15.0%.
30
Mass Merchants & Supercenters
Mass merchants and supercenters continue to be the leaders of housewares retailing. Their overall
share was relatively flat versus 2012.
Mass Merchants & Supercenters Channel Sales
(% of Industry Sales)
2013
24.0%
2012
23.8%
This channel sees the majority of its housewares sales in cook & bakeware (15.3%), kitchen tools
& accessories (12.8%) and kitchen electrics (12.5%). For the second consecutive year, this
channel is the sales leader in all categories.
Supercenters continue to drive the majority of this channel’s overall growth with large increases in
total store sales over last year for larger operators. These total store sales gains, combined with
this format’s strong but consistent share of housewares sales, indicate that consumers have likely
been spending a larger portion of their budget on food and drug items in these stores for the last
three years.
Large Format Value Store Housewares Sales Growth
Selected Companies
2013 vs. 2012
Housewares Sales ($ Millions)
% Change
Top Discount Store Chains
2013
2012
vs. 2012
Walmart (Bentonville, AR)
Target (Minneapolis, MN)
Kmart (Hoffman Estates, IL)
Meijer (Grand Rapids, MI)
Shopko (Green Bay, WI)
$21,304
$8,855
$1,821
$793
$340
$20,925
$8,940
$2,010
$755
$325
1.8%
-1.0%
-9.4%
5.0%
4.6%
% of Total
In 2013
7.6%
12.4%
13.8%
4.8%
12.1%
Source: HomeWorld Business “Top 100 Retailers,” September 2013 and 2014
Selected companies performance snapshot (2013 vs. 2012) as a group:
 $33,113,000,000 - Total housewares sales in 2013.
 0.5% – Total annual housewares sales increase.
Note: HomeWorld Business Total Store Sales include Internet sales for several companies.
Internet sales for 2013 are shown in Appendix B of this report.
31
Specialty Stores
Specialty stores accounted for 12.1% of all direct-to-retail housewares sales, down from 12.6% in
2012.
Specialty Stores Channel Sales
2013
12.1%
2012
12.6%
This channel sees the majority of its housewares sales in cook & bakeware, kitchen tools &
accessories and tabletop.
All of the top five specialty store operators reported strong housewares sales increases in 2013.
Housewares-Dominant Specialty Stores Housewares Sales Growth
Top Chains
2013 vs. 2012
Top Discount Store Chains
Bed Bath & Beyond (Union, NJ)
Williams-Sonoma (San Francisco, CA)
Crate & Barrel (Northbrook, IL)
The Container Store (Dallas, TX)
Sur La Table (Seattle, WA)*
2013
2012
% Change
vs. 2012
$4,933
$3,392
$1,057
$615
$172
$4,680
$3,125
$1,005
$569
$150
5.4%
8.5%
5.2%
8.1%
14.7%
% of Total
In 2013
42.9%
77.3%
74.2%
93.2%
56.4%
Department Stores
Department stores accounted for 10.0% of all direct-to-retail housewares sales, down from 11.0%
in 2012.
Department Stores Channel Sales
2013
10.0%
2012
11.0%
32
This channel sees the majority of its housewares sales in cook & bakeware, kitchen electrics and
kitchen tools & accessories.
Department Store Housewares Sales Growth
Top Chains
2013 vs. 2012
2013
2012
% Change
vs. 2012
$1,715
$1,377
$1,307
$738
$240
$1,725
$1,365
$1,425
$700
$280
-0.6%
0.9%
-8.3%
5.4%
-14.3%
Chain
Kohl’s (Menomonee Falls, WI)
Macy’s (Cincinnati, OH)
Sears (Hoffman Estates, IL)
TJMaxx/Marshall’s (Framingham, MA)
JC Penney (Plano, TX)
% of Total
In 2013
9.0%
4.9%
6.8%
4.1%
2.0%
Supermarkets/Food Stores
Supermarkets/Food Stores Channel Sales
2013
9.3%
2012
8.5%
Supermarkets/food stores accounted for 9.3% of housewares sales in 2013, up from 8.5% in 2012.
This channel sees the biggest share of its housewares sales in cook & bakeware, kitchen tools &
accessories and tabletop. All of the top five chains reported sales increases in 2013.
Supermarket Housewares Sales Growth
Top Chains
2013 vs. 2012
Chain
Kroger (Cincinnati, OH)
Safeway (Pleasanton, CA)
Publix (Lakeland, FL)
Ahold USA (Quincy, MA)
H.E.B. (San Antonio, TX)
% Change
% of Total
2013
2012
vs. 2012
In 2013
$1,680
$716
$489
$390
$228
$1,650
$715
$465
$385
$225
1.8%
0.1%
5.2%
1.3%
1.3%
1.7%
2.0%
1.7%
1.5%
1.2%
33
Hardware Stores & Home Centers
Hardware stores & home centers accounted for the same share (5.7%) of housewares sales in 2013,
versus 2012.
Hardware Stores & Home Centers Channel Sales
2013
5.7%
2012
5.7%
This channel sees the majority of its housewares sales in cleaning products & stick goods, kitchen
tools & accessories and cook & bakeware. Four of the top five operators reported total store sales
increases in 2013.
Hardware and Home Center Retailers Housewares Sales Growth
Top Chains
2013 vs. 2012
% Change
% of Total
Chain
2013
2012
vs. 2012
In 2013
Home Depot (Atlanta, GA)
Lowe’s (Wilkesboro, NC)
Ace Hardware (Oak Brook, IL)
TrueValue (Chicago, IL)
Menard’s (Eau Claire, WI)
$2,583
$1,462
$1,055
$393
$216
$2,450
$1,390
$1,020
$400
$205
5.4%
5.2%
3.4%
-1.8%
5.4%
3.3%
2.8%
9.9%
2.4%
2.4%
Source: HomeWorld Business “Top 100 Retailers,” September 2013
Warehouse Clubs
Warehouse clubs accounted for 4.8% of housewares sales in 2013, up slightly from 4.5% in 2012.
Warehouse Clubs Channel Sales
2013
2012
4.8%
4.5%
34
This channel sees the majority of its housewares sales in cook & bakeware and kitchen tools and
kitchen electrics. All of the top five retailers reported total store sales increases in 2013.
Warehouse Club Retailers Housewares Sales Growth
Top Chains
2013 vs. 2012
Chain
Costco (Issaquah, WA)
Sam’s Club (Bentonville, AR)
BJ’s (Westborough, MA)
Bi-Mart (Eugene, OR)
PriceSmart (San Diego, CA)
% Change
% of Total
2013
2012
vs. 2012
In 2013
$11,828
$4,680
$1,239
$100
$97
$11,160
$4,620
$1,190
$98
$87
6.0%
1.3%
4.1%
2.0%
11.5%
11.5%
8.2%
9.5%
11.8%
4.3%
Gourmet, Gift, Novelty & Souvenir Stores
Gourmet, gift, novelty & souvenir stores saw their share of housewares sales decrease to 3.2% in
2013 from 3.9% in 2012.
Gourmet, Gift, Novelty & Souvenir Stores
Channel Sales
2013
2012
3.2%
3.9%
This channel sees the majority of its housewares sales in cook & bakeware and kitchen tools &
accessories. No public data are available about retailers in this channel who are primarily privately
held companies.
Drug Stores
Drug Stores’ share of housewares sales in 2013 to 3.4% from 3.9% in 2012.
Drug Stores Channel Sales
2012
3.9%
2011
3.8%
35
This channel sees the majority of its housewares sales in kitchen tools, cook & bakeware and
cleaning products & stick goods. Four of the top five operators reported higher total store sales in
2013. Channel leader Walgreens is ranked as the 8th largest housewares retailer by HomeWorld
Business magazine for 2013. CVS is ranked 19th.
Drug Stores Housewares Sales Growth
Top Chains
2013 vs. 2012
% Change
% of Total
Chain
2013
2012
vs. 2012
In 2013
Walgreen (Deerfi IL)
CVS (Woonsocket, RI)
Rite Aid (Camp Hill, PA)
Good Neighbor (Chesterbrook, PA)
HealthMart (San Francisco, CA)
$2,304
$1,134
$734
$200
$145
$2,285
$1,100
$730
$230
$144
0.8%
3.1%
0.5%
-13.0%
0.7%
3.2%
1.7%
2.9%
2.7%
2.0%
Variety & One-Price Stores
Variety & One-Price Stores housewares shares increased to 3.5% from 3.1% in 2012.
Variety & One-Price Stores Channel Sales
2013
2012
3.5%
3.1%
This channel, also known as Extreme Value Stores, sees the majority of its housewares sales in
tabletop, cook & bakeware and kitchen tools. Three of the five major retailers in this channel
posted strong total store sales gains in 2013.
Variety & One-Price Stores Housewares Sales Growth
Top Chains
2013 vs. 2012
Chain
Dollar General (Nashville, TN)
Family Dollar (Matthews, NC)
Dollar Tree (Chesapeake, VA)
Fred’s (Memphis, TN)
Big Lots (Columbus, OH)
% Change
% of Total
2013
2012
vs. 2012
In 2013
$2,251
$1,310
$548
$372
$346
$2,060
$1,215
$517
$375
$350
9.3%
7.8%
6.0%
-0.8%
-1.1%
12.9%
12.6%
7.0%
19.2%
6.5%
36
Home Furnishing & Appliance Stores
Share of housewares sales held steady for this channel for the third year in a row.
Home Furnishings/Appliance Stores Channel
Sales
2013
3.1%
2012
3.1%
This channel sees most of its housewares sales in kitchen electrics and cook & bakeware.
Others
Share of housewares sales increased this year to 5.4% for this channel, which includes
convenience stores, garden centers, patio specialty stores and all others.
Other Channel Sales
2013
2012
5.4%
4.9%
This channel sees the majority of its housewares in cook & bakeware and kitchen tools.
Catalogs & TV
Housewares sales through catalogs, and TV marketing programs in 2013 accounted for 8.0% of
retail sales, down from 8.9% in 2012.
Catalogs & TV Channel Sales
2013
2012
8.0%
8.9%
37
Example companies include:
 Catalogs: Lillian Vernon, Skymall, Hammacher Schlemmer, etc.
 TV: QVC Network, Home Shopping Network, infomercials, etc.
This channel’s top categories are cook & bakeware, kitchen electrics and kitchen tools.
Catalog & TV Companies Housewares Sales Growth
Top Chains
2012 vs. 2011
Chain
QVC Network (West Chester, PA)
HSN (St. Petersburg, FL)
Wayfair/CSN Stores (Boston, MA)
Brookstone (Merrimack, NH)
% Change
% of Total
2012
vs. 2012
In 2013
% Change
$977
$927
$339
$43
$900
$890
$220
$48
8.6%
4.2%
54.1%
-10.4%
16.7%
27.2%
37.0%
8.9%
Manufacturer Website
In order to more accurately account for the virtual retail channels in the IHA Membership survey,
data on the Direct to Consumer via Manufacturer Website channel has been collected since 2007.
Direct to consumer via manufacturer website decreased slightly in housewares sales share in 2013.
Direct to consumer via Manufacturer Website
Channel Sales
2013
2012
3.8%
4.1%
This channel’s strongest categories are kitchen electrics and cook & bakeware.
38
Internet Retailer
The Internet Retailer channel was reported separately for the first time in last year’s report.
Previously, this channel was included with the Catalogs & TV channel.
Internet Retailer sales accounted for 3.7% of total housewares direct to retail sales in 2013, nearly
double the 2012 share of 2.0%.
Combined channel sales for 2013 (i.e., Internet Retailer plus Catalog & TV) were 11.7% of total
housewares direct to retail sales, compared to 10.9% in 2012 and 8.8% in 2011.
Internet Retailer Channel Sales
2013
2012
3.7%
2.0%
Example companies include Amazon, Target.com, Walmart.com, Overstock.com.
Internet Retailers Sales Growth
Top Chains
2013 vs. 2012
Chain
Amazon.com (Seattle, WA)
Overstock.com (Salt Lake City, UT)
Newegg.com (City of Industry, CA)
ShopHQ (Eden Prairie, MN)
% Change
% of Total
2013
2012
vs. 2012
In 2013
$1,375
$98
$64
$50
$1,075
$84
$64
$42
27.9%
16.7%
0.0%
19.0%
3.1%
7.5%
2.1%
7.8%
39
CHANNEL FOCUS:
DIGITAL COMMERCE
40
Earlier in this report (on page 30), all Digital Commerce is shown to represent 15.5% of all
housewares categories’ sales (Direct to End-User via Manufacturer Website plus Catalogs, TV and
Internet Retail). When combined, this is the second largest share of sales for housewares
companies, behind Mass Merchants (24.0%) and ahead of Specialty Stores (12.1%).
These results reflect several marketplace dynamics, including the ease of shopping online and the
convenience of home delivery, which has been increasingly marketed as “free.” This section of
the report reviews several important trends in Digital Commerce for consideration by housewares
companies.
1.6%
1.7%
1.8%
1.8%
1.9%
2.0%
2.1%
2.1%
2.2%
2.3%
2.4%
2.5%
2.6%
2.7%
2.8%
2.9%
3.0%
3.1%
3.2%
3.3%
3.3%
3.3%
3.4%
3.4%
3.5%
3.6%
3.7%
4.6%
4.2%
3.9%
4.0%
5.1%
4.6%
4.2%
4.3%
5.6%
4.9%
5.1%
5.2%
5.4%
5.5%
5.8%
5.9%
6.0%
6.2%
6.4%
Total Digital Commerce sales to consumers grew from $5.8 billion in the first quarter of 2000 to
$75.0 billion in the second quarter of 2014 according to U.S. Census Bureau. The significant spike
in the fourth quarter sales that occurred for three years (2009-2011), did not occur in 2012 or 2013.
Billions
$80
$60
$40
$20
Digital Commerce Sales
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
$
0.0%
Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014
Digital commerce % of Total Retail Sales
Digital commerce $ (in Billions)
Source: Quarterly Retail Digital Commerce, Census Bureau
For the full year, U.S. digital commerce sales of products and services increased 13% in 2013 to
$211 billion.
Digital Commerce Consumer Dollar Sales Growth (non-travel)
($ Billions)
$102
2006
$123
+2 0 %
$130
+6 %
$130
+0 %
+10 %
+14 %
$142
$162
2010
2011
+13 %
+15 %
$186
$211
+2 4 %
2007
2008
2009
2012
2013
Source: comScore, State of the U.S. Online Retail Economy
41
In addition to digital commerce, Internet usage also includes time spent with a range of digital
media. Social networks and email occupy more than an hour per day for U.S. consumers.
Daily Time Spent with Digital Media According to U.S. Consumers
2010
2011
2012
Social networks
0:26
0:30
0:37
Email
0:26
0:28
0:33
Online video
0:10
0:17
0:24
Using search
0:16
0:20
0:22
Blogs
0:05
0:06
0:07
Online radio
0:07
0:06
0:06
Online newspapers
0:06
0:06
0:06
Online magazines
0:02
0:03
0:03
Other
0:42
0:44
0:31
2013
0:37
0:29
0:23
0:23
0:08
0:08
0:05
0:03
0:31
Note: Ages 18-64
Source: “MultiMedia Mentor” 2010 – 2013 releases, Interactive Advertising Bureau (IAB) and GfK,
Original Digital Video Consumer Study, April 2014
All of the five days which have become heavily influenced by time spent by consumers on the
Internet saw increased sales traffic in 2013. Popular digital market places Amazon and eBay
experienced different patterns, possibly due to different promotional efforts.
ChannelAdvisor Same Store Sales for 2013 Five Cyber Days
2013 Sales Percent Increase Versus Same Day in 2012
ThanksBlack
Cyber
Cyber
Cyber
All 5 Cyber
giving
Friday
Saturday
Sunday
Monday
Days
Amazon
30.7%
34.7%
23.7%
22.9%
46.2%
34.9%
eBay
26.2%
38.7%
28.1%
12.4%
32.0%
29.7%
Comparison Shopping Engines
30.2%
18.0%
13.2%
19.4%
14.3%
17.7%
Google Shopping
145.2%
126.0%
110.9%
99.1%
134.8%
125.8%
Search Engines
37.3%
13.0%
-0.1%
13.9%
6.7%
11.6%
Source: ChannelAdvisor, “Holiday 2013 – Cyber Monday and Cyber Five Final” December 3, 2013
When they are not online, traditional media continues to command consumer attention. People in
the U.S. spend the most time watching television (an average of 5 hours and 3 minutes per day in
2013), with time spent on the Internet (3:07) taking the second largest part of the day.
Daily Time Spent with Media According to U.S. Consumers
2010
2011
2012
TV
5:27
5:06
5:05
Internet
2:34
2:56
3:07
Radio
1:52
2:00
1:50
Video games
0:26
0:39
0:48
Newspapers
0:20
0:19
0:18
Magazines
0:15
0:14
0:14
2013
5:03
3:07
1:45
0:46
0:16
0:11
Note: Ages 18-64
Source: “MultiMedia Mentor” 2010 – 2013 releases, Interactive Advertising Bureau (IAB) and GfK,
Original Digital Video Consumer Study, April 2014
42
While Facebook is the main stage for sharing Internet content, younger posters are more likely
than the general population to use Twitter and Pinterest.
Primary Channel Used To Share Content
By U.S. Internet Users
Channel
Millennials
Total Users
Facebook
55%
70%
Twitter
10%
7%
Pinterest
10%
5%
Email
8%
5%
reddit
7%
4%
Blogger
4%
2%
Tumblr
2%
2%
Other
4%
5%
Note: Millenials ages 18-34. Represents activity on ShareThis Network only.
Source: ShareThis, “Consumer Study: Millenials,” September 23, 2014, as
referenced by eMarketer, October 24, 2014
Online consumer-created content - including product ratings, content sharing, and other activities
that can effect housewares products sales – continues to become more influential. Purchase
decisions made in stores were influenced more often than online purchases and TV ads appear to
be the most influential mode of communication.
U.S. Internet Users Who Are Most Influenced by TV Ads,
Internet Ads, and Social Media Chatter
Percent of Respondents in Each Group
20%
30%
23%
34%
30%
37%
23%
23%
16%
15%
12%
9%
Internet Ads
Social Media
Chatter
16%
All or almost all in stores
Majority in stores
Half online, half in stores
Majority online
All or almost all online
9%
5%
TV Ads
Source: CivicScience, “Insight Report: Social Media Now Equals TV Advertising in Influence Power on Consumption
Decisions,” October 16, 2014, as referenced by eMarketer.com, October 24, 2014
SOI INSIGHT
Housewares manufacturers can expand their reach when advertising their products
by using the new channels of communication without abandoning traditional
electronic media. However, control of content is becoming increasingly more
challenging as consumers post and respond to peer ratings of product.
43
IHA MEMBERSHIP PROFILE
44
IHA Membership Base
International Housewares Association (IHA) is composed of approximately 1,600 member
companies of all sizes. Among the representative sample of companies surveyed this year, twothirds had annual sales of less than $10 million (U.S.) in 2013.
Size of IHA Member Companies
(Annual Sales Distribution)
24.3%
20.0%
33.2%
13.2%
9.3%
$1-$1.9
Million
$2-$4.9
Million
$5-$9.9
Million
5.0%
3.4%
3.1%
<$1
Million
n=861
8.1%
7.5%
6.1%
$10-$14.9 $15-$19.9 $20-$34.9 $35-$49.9 $50-$99.9
$100+
Million
Million
Million
Million
Million
Million
Publicly Held Housewares Companies
Publicly held companies comprise about 5% of IHA membership (n=1114). An analysis of 2013
financial reports and 10K reports from a representative sample of housewares manufacturers
provides financial and operational benchmarks.
Financial Benchmarks of Publicly Held Companies
Total
Sample
Gross Margin
Selling Expense
Receivables
Inventory
Net Profit
Weighted Average
(as a % of Annual $ Sales)
Under
$500 Million$500 Million
$1 Billion
$1 Billion-$10
Billion
Over
$10 billion
(n=20)
(n=4)
(n=4)
(n=7)
(n=5)
39%
21%
15%
13%
8%
37%
22%
15%
19%
5%
44%
32%
12%
16%
3%
34%
18%
15%
16%
7%
41%
21%
16%
12%
9%
Sample of 20 randomly selected, publicly held companies.
Some portion of these companies’ sales may fall outside the housewares industry.
No companies reporting loss are included.
Gross Margin:
Selling Expense:
Receivables:
Inventory:
Net Profit:
(Net Sales - Cost of Goods Sold) ÷ Net Sales
General and administrative expenses from corporate financial statements
Does not include Short-term Notes
Inventory on Hand ($) ÷ Net Sales
Net Income ÷ Net Sales
45
IHA Member Companies Profile
The 2014-2015 IHA annual membership registration process included a few questions about
company operations. Selected data are presented here as a profile of typical IHA member
companies and are not intended to represent industry averages or benchmarks.
Selected IHA Membership Data
$18.2 million Average annual gross sales per company in 2013 (n=1086)
16.4% Weighted average sales growth versus 2012 (n=575)
Percentage of Total Sales Which Is Housewares
All Sales
33.5%
Over 3/4
22.4%
Half to 3/4
15.4%
1/4 to Half
13.4%
Less Than 1/4
15.3%
0.0%
10.0%
20.0%
30.0%
Percentage of companies surveyed
40.0%
n=1075
The average (mean) annual gross sales of $18.2 million decreased from $21.8 reported last year.
Average Number of Employees by Company Size
(Full Time Equivalents)
387
25
25
30
<$ 1
Million
n=84
$1-$1.9
Million
n=68
$2-$4.9
Million
n=123
70
85
103
$5-$9.9
Million
n=174
$10-$14.9
Million
n=52
$15-$19.9
Million
n=18
143
$20-$34.9
Million
n=41
$35-$49.9
Million
n=22
Companies with annual sales above $100 million averaged 1,093 FTEs. Companies with sales in
the $50-99.9 million range averaged 874. Excluding companies with sales above $100 million, the
average number of FTEs per company is 112, up from 99 last year.
46
Selected IHA Membership Manufacturing Practices
Make all products in U.S.
Make some in US, some outside U.S.
Make all products outside U.S.
7%
33%
60%
(n=1,000)
Make all products themselves
Make some products themselves
Other companies make all their products
33%
31%
36%
(n=957)
Among all the companies answering these questions with a value other than zero:

87% of their products are manufactured outside of the U.S. (n=1,000)

71% of their products are manufactured by other companies (n=957)
The predominant countries of origin mentioned by those companies whose products are
manufactured outside of the U.S. are: China (65% of respondents); Italy, France and
India/Pakistan (3% each). A total of 43 countries, including these four, were identified.
Most (91%) IHA members export to markets outside of their headquarters country (n=1,094). For
those companies who export products, more than 4 in 5 export to Canada and over half export to
Mexico, Western Europe, Latin America, Australia and Asia.
Export Destinations
% of Sample Exporting to Each Country
86%
Canada
Mexico
65%
W Europe
65%
Latin America
64%
59%
Australia
54%
Asia
48%
E Europe
Mideast
43%
US
44%
29%
Africa
n=1,002
Within the full population of IHA companies participating in this survey,

80% are headquartered in the U.S.

20% are headquartered in 39 other countries, led by Canada (5%) and China (2%).
The states with the highest concentration of housewares company headquarters (among U.S.
headquartered companies) are: California (24%); New York (11%); and Illinois (10%).
47
APPENDICIES
48
Appendix A: Methodology
The International Housewares Association has published a State of the Industry Report every year
since 1996. Beginning with the 2008 report, all category and channel sales data are collected in
IHA’s current year membership survey.
Methodology
This publication is a compilation of IHA membership annual survey data and other sources of
industry information. This report uses the same data sources as previous years for trend analyses.
In addition, the same measurement techniques as in years past are followed except where
otherwise noted. Raftery Resource Network provided the research, analysis and content
development.
The information is consistent with previous years and includes new sections and content. External
data sources used for this report include:
– U.S. Government data services
– Industry trade journals
– Industry trade associations
– International data services
The IHA data source used for this report is the 2014-2015 IHA Membership Survey, which
includes:
− 2,147 data points for category and channel data
− 791 companies provided these data
The data and findings developed from IHA surveys reflect the performance and business activities
of IHA members participating in those industry surveys. These findings should not be interpreted
as national or industry-wide statistics but rather guidelines of housewares performance. For a
profile of IHA membership, please see the final section in this report.
49
Appendix B: Top 100 Domestic Housewares Retailers by Sales
Top 100 Domestic Housewares Retailers
By Sales (in Millions)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Chain
Walmart (Bentonville, AR)
Costco (Issaquah, WA)
Target (Minneapolis, MN)
Bed Bath & Beyond (Union, NJ)
Sam’s Club (Bentonville, AR)
Williams-Sonoma (San Francisco, CA)
Home Depot (Atlanta, GA)
Walgreen (Deerfi IL)
Dollar General (Nashville, TN)
Kmart (Hoffman Estates, IL)
Kohl’s (Menomonee Falls, WI)
Kroger (Cincinnati, OH)
Lowe’s (Wilkesboro, NC)
Macy’s (Cincinnati, OH)
Amazon.com (Seattle, WA)
Family Dollar (Matthews, NC)
Sears (Hoffman Estates, IL)
BJ’s (Westborough, MA)
CVS (Woonsocket, RI)
Crate & Barrel (Northbrook, IL)*
Ace Hardware (Oak Brook, IL)
QVC Network (West Chester, PA)
HomeGoods (Framingham, MA)
HSN (St. Petersburg, FL)
Meijer (Grand Rapids, MI)*
Sally Beauty (Denton, TX)
TJMaxx/Marshall’s (Framingham, MA)
Rite Aid (Camp Hill, PA)
Safeway (Pleasanton, CA)
The Container Store (Dallas, TX)*
Dollar Tree (Chesapeake, VA)
IKEA (Conshohocken, PA)*
Publix (Lakeland, FL)
Tuesday Morning (Dallas, TX)*
Yankee Candle (South Deerfi MA)
TrueValue (Chicago, IL)
Ahold USA (Quincy, MA)*
Fred’s (Memphis, TN)
Do-It-Best (Fort Wayne, IN)
Big Lots (Columbus, OH)
Shopko (Green Bay, WI)*
Wayfair/CSN Stores (Boston, MA)*
Best Buy (Eden Prairie, MN)
Pier 1 Imports (Fort Worth, TX)
Albertson’s (Boise, ID)*
Delhaize America (Salisbury, NC)*
Army Air Force Exchange (Dallas, TX)
Ross Stores (Newark, CA)
Ulta Beauty (Bolingbrook, IL)
JC Penney (Plano, TX)
Retailer
Type
LFV
LFV
LFV
Spec
LFV
Spec
HC/Hdw
Drug
SFV
LFV
Dept
Groc
HC/Hdw
Dept
Etail/TV
SFV
Dept
LFV
Drug
Spec
HC/Hdw
Etail/TV
Spec
Etail/TV
LFV
Spec
Dept
Drug
Groc
Spec
SFV
Spec
Groc
SFV
Spec
HC/Hdw
Groc
SFV
HC/Hdw
SFV
LFV
Etail/TV
Spec
Spec
Groc
Groc
MX
Spec
Spec
Dept
# Stores
2013
4,203
649
1,793
1,496
632
554
2,263
8,116
11,132
1,152
1,158
2,640
1,834
840
0
7,916
828
201
7,660
178
4,170
0
450
10
203
4,487
2,021
4,587
1,335
63
4,992
40
10,79
812
560
4,500
768
704
3,800
1,570
313
0
1,495
1,072
1,020
1,513
157
1,276
675
1,094
# Stores
2012
4,005
634
1,778
1,471
620
566
2,256
7,930
10,506
1,221
1,146
3,538
1,754
841
0
7,442
852
200
7,458
114
4,105
0
415
17
200
4,315
1,940
4,623
1,346
58
4,671
39
1,069
828
566
4,550
772
712
4,000
1,574
333
0
1,510
982
193
1,553
182
1,198
550
1,104
E-Commerce
Sales
2013
$10,000
$3,050
$2,500
$25
$2,025
$2,115
$2,800
$950
N
$1,000
$1,700
$45
$1,000
$4,200
$44,517
N
$4,000
$60
$395
$425
N
$2,501
$75
$1,500
$60
$27
$65
$35
$200
$65
N
$85
N
$24
$20
N
N
N
N
N
$36
$916
$3,100
$35
N
N
$180
N
$106
$1,075
Total
Sales
2013
$279,406
$102,870
$71,279
$11,504
$57,157
$4,388
$78,812
$72,217
$17,504
$13,194
$19,031
$98,375
$53,147
$27,931
$44,517
$10,392
$19,198
$12,975
$65,618
$1,425
$10,650
$5,844
$2,994
$3,404
$16,625
$3,662
$17,930
$25,526
$36,139
$660
$7,840
$4,310
$28,917
$850
$472
$16,350
$26,120
$1,939
$6,500
$5,302
$2,800
$916
$35,831
$1,772
$19,400
$18,820
$8,300
$10,230
$2,671
$11,859
Housewares
Sales
2013
$21,304
$11,828
$8,855
$4,933
$4,680
$3,392
$2,583
$2,304
$2,251
$1,821
$1,715
$1,680
$1,462
$1,377
$1,375
$1,310
$1,307
$1,239
$1,134
$1,057
$1,055
$977
$955
$927
$793
$741
$738
$734
$716
$615
$548
$514
$489
$456
$422
$393
$390
$372
$370
$346
$340
$339
$334
$281
$253
$250
$250
$242
$241
$240
Housewares
Sales
2012
$20,925
$11,160
$8,940
$4,680
$4,620
$3,125
$2,450
$2,285
$2,060
$2,010
$1,725
$1,650
$1,390
$1,365
$1,075
$1,215
$1,425
$1,190
$1,100
$1,005
$1,020
$900
$900
$890
$755
$618
$700
$730
$715
$569
$517
$465
$465
$450
$405
$400
$385
$375
$405
$350
$325
$220
$310
$270
$48
$250
$265
$230
$200
$280
% Chg
Housewares
Sales
1.8%
6.0%
-1.0%
5.4%
1.3%
8.5%
5.4%
0.8%
9.3%
-9.4%
-0.6%
1.8%
5.2%
0.9%
27.9%
7.8%
-8.3%
4.1%
3.1%
5.2%
3.4%
8.6%
6.1%
4.2%
5.0%
19.9%
5.4%
0.5%
0.1%
8.1%
6.0%
10.5%
5.2%
1.3%
4.2%
-1.8%
1.3%
-0.8%
-8.6%
-1.1%
4.6%
54.1%
7.7%
4.1%
427.1%
0.0%
-5.7%
5.2%
20.5%
-14.3%
Housewares
% Total
Sales
7.6%
11.5%
12.4%
42.9%
8.2%
77.3%
3.3%
3.2%
12.9%
13.8%
9.0%
1.7%
2.8%
4.9%
3.1%
12.6%
6.8%
9.5%
1.7%
74.2%
9.9%
16.7%
31.9%
27.2%
4.8%
20.2%
4.1%
2.9%
2.0%
93.2%
7.0%
11.9%
1.7%
53.6%
89.4%
2.4%
1.5%
19.2%
5.7%
6.5%
12.1%
37.0%
0.9%
15.9%
1.3%
1.3%
3.0%
2.4%
9.0%
2.0%
Source: HomeWorld Business “Top 100 Retailers,”
September 2014
Dept – Department store,
Etail/TV – Internet Retail/TV,
LFV – Large-Format Value,
Groc – Grocery/Supermarket,
HC/Hdw – Home Center/Hardware,
MX – Military Exchange,
SFV – Small-Format Value, Spec – Specialty Store,
N - Negligible
*HomeWorld estimates
50
Appendix B: Top 100 Domestic Housewares Retailers by Sales
Top 100 Domestic Housewares Retailers
By Sales (in Millions)
Rank
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Chain
H.E.B. (San Antonio, TX)*
Starbucks (Seattle, WA)
Menard’s (Eau Claire, WI)*
Good Neighbor (Chesterbrook, PA)
Kitchen Collection (Chillicothe, OH)
Sur La Table (Seattle, WA)*
P.C. Richard (Hauppauge, NY)*
ShopRite (Keasbey, NJ)
Giant Eagle (Pittsburgh, PA)*
Wegman’s (Rochester, NY)*
HealthMart (San Francisco, CA)
SuperValu Retail (Minneapolis, MN)
Belk (Charlotte, NC)
Dillard’s (Little Rock, AR)
Bi-Lo (Jacksonville, FL)
hhgregg (Indianapolis, IN)
Whole Foods Market (Austin, TX)
99 Cents Only (City of Commerce, CA)
Hy-Vee (West Des Moines, IA)*
The Bon-Ton Stores (York, PA)
Aldi (Batavia, IL)*
Staples (Framingham, MA)
Roundy’s (Pewaukee, WI)*
Bi-Mart (Eugene, OR)*
Overstock.com (Salt Lake City, UT)
PriceSmart (San Diego, CA)
Save Mart (Modesto, CA)*
A&P (Montvale, NJ)
Harris-Teeter (Charlotte, NC)
Michaels Stores (Irving, TX)
BrandsMart USA (Hollywood, FL)*
Stater Bros. (Colton, CA)
Price Chopper (Rotterdam, NY)*
Neiman Marcus (Dallas, TX)
Burlington Coat (Burlington, NJ)
Ingles Markets (Asheville, NC)
Nexcom (Virginia Beach, VA)
Newegg.com (City of Industry, CA)*
Winco (Vancouver, WA)*
Raley’s (W. Sacramento, CA)*
Marc’s (Cleveland, OH)*
ShopHQ (Eden Prairie, MN)
Tractor Supply (Nashville, TN)
Defense Commissary Agency (Arlington)
W.W. Grainger Direct (Lake Forest, IL)
Gordmans (Omaha, NE)
ALCO (Abilene, KS)
Brookstone (Merrimack, NH)
Sears Hometown (Hoffman Estates, IL)
Office Depot (Boca Raton, FL)
Retailer
Type
Groc
Spec
HC/Hdw
Drug
Spec
Spec
Spec
Groc
Groc
Groc
Drug
Groc
Dept
Dept
Groc
Spec
Groc
SFV
Groc
Dept.
Groc
Spec
Groc
LFV
Etail/TV
LFV
Groc
Groc
Groc
Spec
Spec
Groc
Groc
Dept
Dept
Groc
MX
Etail/TV
Groc
Groc
Drug
Etail/TV
Spec
Groc
Etail/TV
Dept
LFV
HC/Hdw
GM/Hdw
Spec
# Stores
2013
340
13,493
284
3,200
304
102
66
312
229
83
3,180
1,520
299
296
685
228
362
343
235
271
1,325
1,515
162
75
31
230
277
216
1,147
9
166
132
85
521
203
101
90
119
65
1,275
180
87
212
242
1,260
1,912
# Stores
2012
325
12,813
273
3,450
312
101
66
300
228
81
3,000
1,446
301
302
688
228
335
319
245
274
1,260
1,547
160
74
29
240
291
208
1,229
9
167
130
78
500
203
100
86
123
62
1,176
180
369
83
217
290
1,245
1,106
E-Commerce
Sales
2013
N
$25
$44
N
N
$60
$32
N
N
N
N
N
$195
$200
N
$50
N
N
N
$135
N
$3,000
N
N
$1,304
N
N
N
N
$33
N
N
N
$1,025
$22
N
$11
$3,090
N
N
N
$268
$75
N
$3,000
N
N
$109
N
$1,600
Total
Sales
2013
$19,700
$11,793
$8,890
$7,300
$196
$305
$1,800
$14,125
$9,300
$7,000
$7,425
$8,879
$4,038
$6,439
$9,085
$2,339
$12,917
$1,487
$7,675
$2,770
$10,900
$8,883
$3,945
$850
$1,304
$2,239
$4,900
$5,831
$4,710
$4,570
$1,000
$3,860
$3,775
$4,648
$4,462
$3,600
$2,600
$3,090
$5,210
$3,275
$1,300
$640
$5,165
$5,025
$9,440
$620
$474
$481
$2,422
$4,614
Housewares
Sales
2013
$228
$222
$216
$200
$192
$172
$160
$159
$153
$152
$145
$134
$133
$123
$122
$120
$116
$115
$114
$106
$102
$101
$100
$100
$98
$97
$97
$87
$84
$80
$79
$77
$76
$73
$72
$71
$71
$64
$63
$56
$55
$50
$49
$48
$45
$44
$43
$43
$42
$42
Housewares
Sales
2012
$225
$210
$205
$230
$220
$150
$156
$154
$153
$147
$144
$135
$130
$124
$120
$132
$105
$125
$114
$111
$94
$106
$99
$98
$84
$87
$101
$93
$81
$76
$77
$78
$73
$68
$67
$70
$77
$64
$60
$59
$54
$42
$44
$50
$43
$43
$44
$48
$40
$40
% Chg
Housewares
Sales
1.3%
5.7%
5.4%
-13.0%
-12.7%
14.7%
2.6%
3.2%
0.0%
3.4%
0.7%
-0.7%
2.3%
-0.8%
1.7%
-9.1%
10.5%
-8.0%
0.0%
-4.5%
8.5%
-4.7%
1.0%
2.0%
16.7%
11.5%
-4.0%
-6.5%
3.7%
5.3%
2.6%
-1.3%
4.1%
7.4%
7.5%
1.4%
-7.8%
0.0%
5.0%
-5.1%
1.9%
19.0%
11.4%
-4.0%
4.7%
2.3%
-2.3%
-10.4%
5.0%
5.0%
Housewares
% Total
Sales
1.2%
1.9%
2.4%
2.7%
98.0%
56.4%
8.9%
1.1%
1.6%
2.2%
2.0%
1.5%
3.3%
1.9%
1.3%
5.1%
0.9%
7.7%
1.5%
3.8%
0.9%
1.1%
2.5%
11.8%
7.5%
4.3%
2.0%
1.5%
1.8%
1.8%
7.9%
2.0%
2.0%
1.6%
1.6%
2.0%
2.7%
2.1%
1.2%
1.7%
4.2%
7.8%
0.9%
1.0%
0.5%
7.1%
9.1%
8.9%
1.7%
0.9%
Source: HomeWorld Business “Top 100 Retailers,”
September 2014
Dept – Department store,
Etail/TV – Internet Retail/TV,
LFV – Large-Format Value,
Groc – Grocery/Supermarket,
HC/Hdw – Home Center/Hardware,
MX – Military Exchange,
SFV – Small-Format Value, Spec – Specialty Store,
N - Negligible
*HomeWorld estimates
51
Appendix C: Top 50 Internet Properties (U.S.)
Top 50 Internet Properties (U.S.)
Total U.S. – Home, Work and University Locations
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Property
Unique Visitors (000)
Total Internet : Total Audience
Google Sites
Yahoo Sites
Microsoft Sites
Facebook
AOL, Inc.
Amazon Sites
Glam Media
Turner Digital
CBS Interactive
Wikimedia Foundation Sites
Ask Network
Apple Inc.
eBay
Weather Company, The
Comcast NBCUniversal
About
Gannett Sites
Linkedin
Answers.com Sites
craigslist, inc.
Demand Media
Twitter.com
Viacom Digital
Hearst Corporation
Yelp
WebMD Health
Wal-Mart
ESPN
Fox News Digital Network
New York Times Digital
Dropbox Sites
Conde Nast Digital
YP Local Media Network
T365 - Tribune
Netflix.com
Adobe Sites
Federated Media Publishing
Meredith Digital
Defy Media
Time Warner (Excl. Turner/WB)
Pinterest.com
Tumblr.com*
BuzzFeed.com
Ziff Davis Tech
WordPress.com*
TechMedia Network
Disney Online
IDG Network
AT&T, Inc.
Dictionary.com Network
227,169
193,033
192,290
174,078
137,895
114,948
103,096
84,842
83,438
75,794
69,420
66,759
66,484
64,905
64,071
62,371
61,428
57,517
49,451
48,184
41,024
39,652
39,535
38,945
37,791
36,846
35,321
34,152
33,837
33,058
31,796
30,993
30,649
30,232
30,119
30,112
29,563
29,402
28,689
27,846
27,647
26,739
26,406
26,161
25,166
24,955
24,235
23,783
23,525
23,202
23,110
Source: comScore Media Metrix,
Total U.S. – Home, Work and University Locations (Desktop Only)
March, 2014
52
Appendix D: Net Digital Ad Revenue Worldwide
Net Digital Ad Revenues Worldwide, by Company
2012
Revenues
Google
Facebook
Yahoo!
Microsoft
IAC
AOL
Amazon
LinkedIn
Pandora
Twitter
Yelp
Millennial Media
Other
Total digital (billions)
2013
Revenues
$32.73
$4.28
$3.51
$2.55
$1.40
$1.07
$0.55
$0.39
$0.36
$0.27
$0.13
$0.07
$57.26
104.57
$38.32
$6.99
$3.43
$2.94
$1.52
$1.13
$0.76
$0.56
$0.52
$0.34
$0.22
$0.11
$62.95
120.05
2012 Share
31.30%
4.09%
3.36%
2.44%
1.34%
1.02%
0.53%
0.37%
0.34%
0.26%
0.12%
0.07%
54.76%
2013 Share
31.92%
5.82%
2.86%
2.45%
1.27%
0.94%
0.63%
0.47%
0.43%
0.28%
0.18%
0.09%
52.44%
Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets and
includes all various formats of advertising on those platforms; net ad revenues after companies pay traffic acquisition
costs (TAC) to partner sites; numbers may not add up to total or 100% due to rounding.
Source: Company reports, eMarketer, June 2014
53
Appendix E: About the Author
Raftery Resource Network (R2N) is a cross-functional team of independent
professionals led by Dan Raftery. Dan has authored over 40 reports on a
variety of subjects for food, drug and housewares industry associations.
For individual companies, he delivers custom assignments for manufacturers, wholesalers, retailers and service providers to the industry. Dan
regularly contributes to industry conferences and facilitates executive share
groups and solution action teams inside client organizations. Venture
capital groups often call on Dan to support due-diligence research.
Dan has personally contributed to the development and application of industry initiatives such as
Efficient Consumer Response, Category Management, Direct Product Profitability, Activity Based
Costing, Frequent Shopper Program Development, Invoice Accuracy, Unsaleables Cost
Management, Scan-Based Trading and Direct Store Delivery Operations.
Since 2002, Dan has authored the IHA State of the Industry Report. He facilitates three executive
share groups (CORE) for IHA and facilitates IHA’s annual executive conference (CHESS).
In addition to the annual State of the Industry Report, Raftery Resource Network has developed the
following reports for International Housewares Association:

Leveraging Housewares Categories in Supermarkets: IHA White Paper

Sustainability Options for Housewares Companies

Reverse Auctions: An Industry White Paper
The above publications are available upon request.
The following publications were also developed by Dan Raftery for other related industries and
may be of interest to housewares companies:

Reverse Supply Chain Improvement: A Joint Industry Project
(https://www.fmi.org/docs/supply/fmi_reverse_sc_improvement.pdf)

Improving Efficiencies in Product Discontinuation
(http://www.gmaonline.org/downloads/research-and-reports/final.pdf)

Scan Based Trading for Retailer-distributed Products: A Feasibility White Paper
(Dan@RafteryNet.com)

Variety or Duplication: A Process to Know Where You Stand (Dan@RafteryNet.com)
Dan has also published a strategic guidebook for manufacturers interested in developing a new
approach to managing costs associated with unsaleable products, called The Hybrid Program
Principles, available at www.HybridProgramPrinciples.com.
Raftery Resource Network, 800 North Main Street, Antioch, IL 60002 Dan Raftery, President,
tel: 847-838-1177, fax: 847-838-1188, e-mail: Dan@RafteryNet.com
54

Each year, IHA sponsors the International Home + Housewares

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