Who is winning in the US Furniture Market?
Recliners, sofas, tables, dressers, desks—these are the pieces that make life at home more convenient and comfortable. As of 2020, the average consumer spent roughly $534 annually on furniture, a price that has been steadily rising for more than a decade. But where are people buying furniture, and which brands do they prefer? Here is a quick look at some of the furniture market trends at the 4Q end for December 2021.
A Look at the Top Stores in the Furniture Market
At the 4Q end for December 2021, the top retailer for furniture by dollar share was Ashley Furniture at 11.5 percent. However, by unit share, Amazon had an overwhelming lead among the top furniture outlets with 17.6 percent of the unit share in the furniture market. Both Ashley Furniture and Amazon have experienced gains since the 4Q end for December 2020, while outlets such as Walmart and Wayfair have declined significantly year over year (YoY).
How many stores do customers visit before purchasing?
Across the industry, most buyers shopped at only one store before they made a furniture purchase. This was especially true for customers who shopped at Ikea. Only about a quarter of shoppers visited at least two stores before making a purchase, while a higher percentage of those who bought from Wayfair had been to three stores.
A Look at the Top Brands in the Furniture Market
Right in line with the top stores, the top brand in the furniture market by dollar shares was Ashley Furniture with 16.2 percent. Ashley Furniture also held the highest number of unit shares in terms of units sold. The Wayfair brand has experienced consistent gains in dollar share for the last several years but had a dip in brand dollar share between 2020 and 2021. Ikea experienced a significant gain in unit shares between December 2020 and 2021 after experiencing YoY losses between 2014 and 2019.
How many brands do customers consider before purchasing?
Regardless of the brand, the majority of buyers seem to know which brand of furniture they want before they shop. Around 81 percent of buyers considered only one brand, while 19 percent considered two brands or more. Oddly enough, most buyers who purchased the Mainstays brand of furniture shopped for only one brand, while just over half who shopped at Wayfair considered only one brand.
Regional Differences in the US Furniture Market
There are a few regional differences in the furniture market when it comes to where people buy their pieces. For example, Ikea held a higher percentage of the market in the West, second only to Amazon. Shoppers in the Northeast were most likely to buy from either Amazon or Wayfair. Target held the least share of the market in all regions.
Other Noteworthy Buyer Behaviors and Demographics
Check out a few other interesting bits of information about buyer behaviors in the furniture market:
- Why do people buy furniture to start with? - Most buyers are simply buying replacements
- Why choose a certain furniture store? - Competitive price, especially Wayfair shoppers
- Furniture pieces or sets? - Most buyers purchase furniture by the piece vs. as a collection
- Online vs in-store? Almost as many buyers purchased furniture online as in-store
Want a More Comprehensive Look at the US Furniture Market?
For many years, certain brands and outlets have dominated the furniture market. Brands such as Ikea, La-Z-Boy, and Ashley Furniture remain stable in today's market, but other key players in the industry are giving some of those big names in furniture a run for their money. These changes could be related to the fact that almost as many buyers are shopping online for furniture these days as in-store.
Want a closer look at the entire TraQline furniture market analysis? Be sure to check out our infographic.
Top 5 Examples of Market Research Failures
Famous Market Research Fails, Examples, and Stories
Conducting market research is crucial in helping businesses identify and reach their target audiences. One reward in doing so is a potential boost in profits. But this type of research also helps companies figure out marketing and advertising essentials, such as tag lines, value propositions, pricing, promotions, and metrics. Despite the care that goes into the work, there have been more than a few blunders in market research history. Big brand names can recover from these oversights, but this type of failure could prove fatal for small businesses. Looking at some notable market research failures highlights the importance of accurate and thorough market research.
1. New Coke: A Market Research Failure and Recovery
Coke’s prominence in the soft drink industry is well established, and its iconic marketing campaigns have contributed to its loyal following. But even Coke isn’t immune to making a marketing misstep. When sales began to fall off in the 1970s and the first part of the 1980s, the company thought taste was the cause of the decline. To fix the situation, they introduced New Coke, a beverage sweeter than both the original version of Coke and Pepsi.
Taste tests indicated that success was on the horizon. Market research indicated that more people preferred the taste of New Coke to original Coke and Pepsi. But the product’s introduction had many flaws. Market researchers did not factor in the emotional impact Coke, with its specific design, has on people. They also did not explain to taste test subjects that they would eventually have to choose between drinking original Coke and New Coke.
Disaster occurred when the company withdrew original Coke from shelves to sell only New Coke. Rather than boosting sales, this move proved a huge flop. Consumers missed their familiar beverage and were put off by a differently designed Coke announcing “NEW.”
How The Coke Brand Adapted and Recovered
Even restoring original Coke to sell alongside New Coke could not fix the issue. In time, New Coke disappeared. Marketing and sales should have designed their research into the decline in Coke sales to factor in consumers’ emotional connection to the brand’s products. The story has a silver lining. Customers asked for their Coke back (reincarnated as “Coke Classic”). Coca-Cola listened, and brand loyalty spiked. Conspiracy theories swirled that Coke had intentionally trashed its brand name to inspire loyal followers. The Coke Cult grew in its support of its brand.
2. Crystal Pepsi and Tab Clear: Same Taste, Higher Cost
In the early 1990s, consumer demand for clear and lighter soft drinks was increasing. Pepsi decided to tap into the growing market, and in 1992 produced Pepsi that was clear. The soda dubbed Crystal Pepsi showed initial promise, with first-year sales of nearly $500 million. Market research indicated potential, so Pepsi did not expect the consumer confusion that came next. Consumers wondered whether Crystal Pepsi was a lemon-lime soda, if it was healthier, and why a clear drink that tasted almost identical to Pepsi cost more. Pepsi should have caught this failure to connect with consumers during their market research phase.
After that first year of sales driven by curious consumers, Crystal Pepsi plummeted. Consumer confusion may have stemmed in part from the fact that Coca-Cola’s Tab Clear launched in late 1992. It was a sugar-free diet cola and failed as well. Ultimately, consumers didn’t understand why Pepsi expected them to pay more for what was essentially the sugary Pepsi they knew, except this one was transparent. Many consumers were also disoriented by the appearance and taste not matching up. Better and expanded market research may have brought these potential flaws to light.
3. Rocky Mountain Sparkling Water: More Consumer Confusion
Bottled water was huge when Coors put out Rocky Mountain Sparkling Water in 1990. Coors beer was also popular. Putting two and two together, the company believed that adding its brand to bottled water could lead to incredible sales. They ran with the idea instead of completing the market research necessary to understand the consumer response.
As with Crystal Pepsi, consumers were confused. The branding led consumers to wonder if the water was mixed with beer or alcohol. Another component that doomed the project was the fact that Coors relied on its big brand name to carry them in a new market. While Coors was a trusted name in the beer industry, the bottled water industry already had several brand names that customers preferred. Coors’ name and branding did not give any indication about why consumers should choose its water over these competitors’ products.
Despite the confusion, Coors kept the “Coors” branding instead of trying to find another way to market bottled water. So not only was this a marketing research failure, it signaled a company that may have had too much pride or inflexibility to adjust as needed (unlike the recovery made by Coke). But with the rise of alcoholic seltzer water, maybe they are due for a comeback.
4. Kodak: Ignoring Market Trends
Market research shows the importance of adjusting course to address changing consumer preferences and growing trends. One important example is Kodak and its problems in acknowledging the advent of digital photography. Kodak did the necessary research, but it chose to try and save money instead of listening to what the camera market research revealed.
In the 1980s, the company looked at factors such as the costs and flexibility of digital photography, and the research was right on point. Digital photography was indeed poised to become the next big thing. In fact, Kodak even developed a digital camera but shelved the project after it realized the camera would not help sales of film or its other products. The foundation of Kodak’s business model was traditional film photography. Due to heavy investment in paper and chemicals, the company felt it was unwise to pursue the results of the market research (and imminent reality).
Companies must prepare for their market research insights to give answers they may not like. Businesses need to keep in mind that the purpose of their research is to help please customers and provide consumer experiences, all while keeping pace as consumer tastes and technology evolve. Otherwise, there is no point in conducting the market research in the first place.
5. Arch Deluxe: McDonald's Market Research Disconnect
When someone says “McDonald’s,” many consumers think quick, consistent, cheap, and convenient. Also, they envision child-friendly fast-food experiences. Instead of continuing to do what worked, in 1996, McDonald’s marketed the Arch Deluxe burger. The target market was adults, and market research had indicated that adults wanted a burger designed for them. One potential problem with the data McDonald’s based its decision on may have been that the adults surveyed were not representative of McDonald’s market. Additionally, many McDonald’s customers value attributes such as price and convenience over taste. Marketing the Arch Deluxe with taste as a key focus ended up being an error. It was a big customer connection oversight, target market disconnect, and market research fail for the books. Commercials for the burger showed the burger’s taste turning off children, with taglines reading “It’s the burger with the grown-up taste.” When that move backfired, McDonald’s struggled on with advertisements showing Ronald McDonald playing pool and hitting the golf links. Again, the message was out of sync with the customers who frequent McDonald’s.
McDonald's Market Research Failure Continued with McLean Delux
The Arch Deluxe failed in a big way, but that didn’t stop McDonald’s from making similar marketing mistakes with its McLean Deluxe. The McLean Deluxe targeted health-conscious consumers, but research overestimated how many consumers were willing to go to McDonald’s for this burger. The burger was expensive, too. Reports also state that the McLean Deluxe fell flat in part due to McDonald’s rushing the product out to stores without a sufficient period of market research. Furthermore, the taste was inconsistent. One burger might taste fine, but the next would be dry and elastic. It was bad news for consumers who valued consistency. A burger in California should taste the same as one in Virginia.
Convenience was lacking too. The burgers were cooked to order due to their makeup. The McLean Deluxe also got a bad rep from McDonald’s competitors because it had small amounts of carrageenan, a seaweed derivative. “Seaweed burgers” and McDonald’s don’t mesh for American consumers. In the marketing of both its Arch Deluxe and McLean Deluxe, McDonald’s failed to apply its research findings to the expectations of its core customer base.
How to Avoid Market Research Failure
Even some of the world’s strongest brands, such as Coca-Cola, Pepsi, Coors, and McDonald’s, have fallen victim to incomplete or poorly thought-out market research. Other companies, such as Kodak, did a lot of things right but failed to acknowledge the reality of the research.
Big companies are in a good position to weather such storms, which can make risks worth taking once in a while. For smaller businesses, such blunders can be fatal. TraQline gives detailed consumer insights to ensure satisfactory results. These results are divided by industry and updated quarterly. Check out our suite of market research products including Durable IQ, SKU Metrix, and HPOS to avoid market research failure. When you are ready to get serious about successful market research, contact our research specialists. Well-designed market research is critical to success. Businesses need to use it and listen to it.
How Home Improvement Shortages Impacted Market Trends
Over the past two years, the COVID-19 pandemic has caused groundbreaking supply line disruptions, labor shortages, manufacturing delays, and distribution troubles. These changes have caused supply shortages and higher prices across several industries. The home improvement industry seems to be among those hardest hit. The market data and research professionals at TraQline are here with a look at how these shortages have impacted the home improvement market trends.
Shifts in Home Improvement Brand Priority and Awareness
Brand awareness has a long history of motivating certain purchases. Customers often want to know that they are getting high-quality products they can rely on—especially when speaking of home upgrades. However, supply shortages and price increases seem to have reduced the importance of brand-name in the home improvement industry.
Through the course of the pandemic, we have seen a significant jump in the number of home improvement purchases where users report not knowing the brand name of the product they purchased. Ultimately, this accounted for 16.9 percent of home improvement purchases in Q2 2021—compared to just 12.5 percent of purchases during Q4 2019.
Significant Rise in Online Home Improvement Sales
Beyond the impacts of the pandemic, our home improvement industry data has been showing downward trends for in-store purchases for years now. However, the home improvement industry has had more resilience than others in maintaining in-store sales. According to our most recent insights, online purchases now account for a quarter of all home improvement purchases. Meanwhile, online purchases accounted for just 16.6 percent of sales during the third quarter of 2019.
Market Changes: Remodeling and the Pandemic
With more time stuck inside, many people used this as an opportunity to complete some home projects. Our data reflected this in consumer motivation. While replacement of broken units remained steady as the leading consumer motivator, remodeling and redecorating both saw increases:
- Remodeling accounted for 9 percent of home improvement dollar share during Q2 2021, compared to 7.7 percent in Q4 2019.
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- Redecorating accounted for 6.2 percent of Q2 2021 sales, compared to 4.8 percent in Q4 2019.
These non-vital consumer purchase motivations prevailed even among price increases and market insecurities.
Changes in Retailer Performance in the Home Improvement Industry
With a rise in home improvement online sales, online retailers are steadily gaining market share in this industry. Even with home improvement projects on the rise, major retailers, such as Home Depot, Lowe’s, and Walmart, saw decreases in home improvement sales during the height of the pandemic.
We also saw shifts in why consumers chose a particular home improvement retailer. While price is still the biggest motivator, it has been steadily declining since before the pandemic. Meanwhile, good product selection has been seeing growth.
Consumer Shopping Patterns Shifting in the Home Improvement Industry
Historically, men have been the major players in the home improvement market. In terms of shopping, men and women are now nearly tied in their home improvement market impact. During the second quarter of 2021, women accounted for 38.3 percent of home improvement shoppers—while men accounted for 41 percent. Meanwhile, 20.7 percent of shopping was done by men and women together.
Home Improvement Market Share Data from TraQline
TraQline’s data can help your company stay ahead of shifts in the home improvement industry. Our market research services provide in-depth insights that will help your business take advantage of new trends and gain share. We invite you to contact the professionals at TraQline to get started today.
The ‘Goliaths’ of the Replacement Tire Industry Are Getting Bigger. How Can The ‘Davids’ Compete?
When you think of the tire industry in the United States, there are probably three names that come to mind: Goodyear, Michelin, and Bridgestone. Together, these three make up two thirds of the US replacement tire market unit share. In fact, with its recent acquisition of Cooper Tires, Goodyear now owns over 25% of the replacement tire market unit share. What does that mean for competition in the tire industry as a whole? We turn to TraQline’s data to find out.
Current State of the Tire Industry
Which brands make up the Big Three in the Tire Industry?
The top three tire manufacturers currently make up almost 64 percent of the entire replacement tire market. Each of the Big Three also encompasses subsidiary brands:
- Goodyear: Goodyear, Cooper Tires, Dunlop, and Kelly
- Michelin: Michelin, BF Goodrich, and Uniroyal
- Bridgestone: Bridgestone and Firestone
Who are other players in the Tire Industry?
The remaining 36 percent of the market includes smaller manufacturers such as Toyo Tire, Kumho, Yokohama, Falken, and Nitto. However, none of these individual manufacturers has more than 5 percent unit market share. The top smaller manufacturers are:
- Continental- 4.6 percent
- Hankook- 4.0 percent
- Yokohama- 3.6 percent
How the industry is shifting
Over the past 10 years, Goodyear, Michelin, and Bridgestone combined have lost over 4 percent market share. This loss may be the impetus behind these industry “Goliaths” acquiring smaller companies. Organic share growth has been challenging. Additionally, the cost of replacement passenger tires has gone up 35 percent in the past 10 years. Maintaining strong revenue streams is critical in this very competitive market.
How Can Smaller Tire Manufacturers Compete?
While market share challenges may seem insurmountable, TraQline’s data offers unique insights that smaller tire manufacturers can leverage to become more competitive. There are five specific areas these tire industry “Davids” should focus on:
- Online Sales: While most tire purchases are made in brick-and-mortar locations, online retail is beginning to pick up. Consumers buy tires online from smaller manufacturers at a higher rate than The Big Three
- Census Region: Consumers in the West Census region buy tires from smaller manufacturers at a higher rate than from “the big guys”
- Tire Type: Consumers buy auto/minivan tires from smaller manufacturers at a higher rate than they buy from larger manufacturers
- Price: Price is a more important consideration for consumers when they’re purchasing from smaller manufacturers. As such, lower-income consumers buy tires from smaller manufacturers at a higher rate than they buy from the Big Three.
- Channel: Consumers buy tires from small tire manufacturers at mass retailers at a higher rate than they purchase tires from big manufacturers. Smaller players in the tire industry perform better at retailers such as Discount Tire, Walmart, and Big O Tires but do not sell as well at club retailers such as Costco and Sam’s Club.
TraQline’s Market Insights Can Help Manufacturers Succeed
TraQline’s Tire Market data is representative of the entire tire industry in the US (as well as Canada). This makes the insights available in TraQline’s reports valuable to industry giants and smaller players alike. Whether you’re seeking to enter the market or looking to identify underserved communities who buy your products, TraQline’s data can help. For more information, please contact one of our representatives today.
US Furniture Market Infographic
What are the best brands and outlets in the US Furniture market share? – An infographic
TraQline answers the “who”, “what”, “where”, “when”, “why”, and “how” for Furniture market shares. Our quarterly survey will help you understand who’s buying Furniture, where they’re buying it, and what drives their decisions. Our Furniture Market infographic will help you answer the following questions about the market and how it is changing…
Who is leading sales in the Furniture market?
Our infographic will give you greater details, but for now, here’s what you need to know about the market leaders for Furniture:
- Amazon continues to lead for unit share in the Total Furniture market, growing significantly from this time last year (up almost 3 points from 4Q ending December 2020. Amazon leads the unit share category by 9 points.
- The leader in dollar share is Ashley Furniture, about 5 points over the next highest – Amazon and Wayfair.
- Wayfair is down significantly (over 1 point) from this time last year in both unit and dollar share.
How much do consumers spend on Furniture?
When purchasing Furniture, the 2021 industry average price paid is $690. However, the average amount spent at different retailers vary. For example:
- Purchasers at Ashley Furniture spent almost twice the industry average, $1,346.
- Shoppers buying Furniture on Amazon have an average price paid that is significantly less than the industry average ($254).
What demographic is buying Furniture?
Just who buys Furniture? TraQline’s census-balanced respondent pool has given us insights like:
- Women make solo decisions on what to buy for 51% of Furniture purchases.
- About 40% of furniture purchases are made by those who have lived at their current address for 5 years or more.
- Over 70% of purchasers don’t have children in household – 47% have two adults with NO children in residence, 25% are single adult households.
Furniture Market – Online Sales Trends:
With almost half of Furniture purchases now being made online (48% of 4Q ending December 2021), it is important to keep track of online sales trends. Here are just some of the trends that TraQline has uncovered:
- The percentage of 2021 Furniture purchases made online (48%) is down versus a high of 50% in 2020 –due to more in person shopping because of more positive attitudes toward pandemic concerns.
- While total 2021 online Furniture purchases have decreased versus 2020, Amazon share of those 2021 online Furniture purchases has increased from 30% in 2020 to almost 37% in 2021 – mostly at the expense of Wayfair and Ikea.
Furniture Market Share Facts:
Curious about other information TraQline’s survey has uncovered? Here’s another preview for you:
- The 2021 average price paid for Furniture ($690) is up about 20% compared to last year’s average price ($575).
- 58% of all 2021 Furniture purchases are made by homeowners. Those purchasing Furniture at Walmart and Target are more likely to be renters (57% and 49% respectively).
- The most important reason for purchasing Furniture at a particular outlet in 2021 continues to be “competitive price”.
To see everything we’ve included on our infographic, fill out the form below and download your own copy:
Head-to-Head (to Head): Walmart vs Best Buy vs Amazon
This article was originally published on February 12, 2018. It has been updated to reflect current market trends. You can read the original article here.
It’s time for a good, old-fashioned showdown! We decided to examine how Walmart, Amazon, and Best Buy compare with one another in three competitive categories: Consumer Electronics, Small Kitchen Appliances, and Cell Phones. We will look at both total and online-only sales within each category. Online options have become a vital component for shopping due to the ongoing pandemic.
Consumer Electronics:
Encompassing purchases of everything from laptops and e-readers to video game systems and wi-fi routers, American consumers spent an average of $315 per product in the 4 quarters ending September 2021. Here, we break down how consumers shopped at these three retailers.
The Winner:
In unit share, Walmart is slightly ahead of its competitors. The retailer currently wins 21.3 percent of unit share in Q3 of 2021. This most recent quarter was one of significant growth for the retailer. Amazon takes second place with 21.1 percent of the unit share. Best Buy is third with 20 percent. For dollar share, Best Buy’s and Walmart’s positions reverse. Best Buy takes home 27 percent of consumer dollars as compared to Walmart’s 15.1 percent. Amazon takes home 14.8 percent of total consumer dollars.
The Online Winner:
Online, consumers spend an average of $322 per product. Once brick-and-mortar purchases are filtered out, Amazon is victorious. In the 4 quarters ending September 2021, The Everything Store took home 41.6 percent of the Consumer Electronics unit share. In comparison, Best Buy won 13.8 percent and Walmart won 11 percent. Additionally, Amazon and Best Buy tend to gain or lose share at the sake of one another. In the last 2 quarters, Amazon’s share has risen significantly while Best Buy’s has fallen. In the 2 quarters previous to that, their roles were reversed. Some of this change may be due to availability of products, as the consumer electronics industry has been hard hit by chip shortages.
Small Kitchen Appliances:
In the 4 quarters ending September 2021, consumers spent an average of $69 on Small Kitchen Appliances like coffee makers, blenders, toaster ovens, and more. Here’s how Walmart, Amazon, and Best Buy stack up when consumers go shopping for Small Kitchen Appliances.
The Winner:
With just under 34.5 percent of the Small Kitchen Appliance unit share, Walmart is the clear winner. But Amazon is gaining ground, coming up 3.6 percentage points year-over-year. In 2021, Amazon wins nearly 21.2 percent of unit share. Best Buy trails behind the other two retailers, winning 2.2 percent of share. In terms of dollar share, Amazon has surpassed Walmart and brings home 25 percent of consumer dollars. Walmart comes in second, with Best Buy much further behind.
The Online Winner:
Online shoppers spent an average of $83 on Small Kitchen Appliances. Amazon dominates online sales in this category. In the 4 quarters ending September 2021, the e-commerce behemoth took home just over half (51 percent) of the online unit sales of Small Kitchen Appliances. Walmart comes in a distant second with just over 12 percent of online unit share. Best Buy’s online-only shares are comparable to its overall unit shares—winning 2.5 percent. This same pattern holds true in dollar shares.
Cell Phones:
The average price paid for Cell Phones, whether through a carrier or from a retailer or manufacturer, is $469. The majority of American consumers buy cell phones from mobile carriers rather than from other outlets. That said, Walmart, Amazon, and Best Buy all rank in the top 10 outlets for Cell Phone Purchases.
The Winner:
In terms of unit share, Walmart edges out the competition with 8.5 percent of share in 2021. Amazon comes in a few places behind with 4.4 percent of share, and Best Buy slipped to third with 4.1 percent unit share. In terms of dollar share, Best Buy brings home 5.1 percent of consumer dollars, while Amazon and Walmart trail with almost 3.4 percent and 3.2 percent dollar share, respectively.
The Online Winner:
When shopping online for cell phones, consumers spend an average of $477. Once brick-and-mortar sales are filtered out, Amazon becomes the clear leader among the three retailers. It takes home 12.2 percent of the online unit share and almost 9 percent of dollar share. Walmart and Best Buy take home 4 and almost 3 percent of the online unit share, respectively.
The Champion(s):
In all three categories—Consumer Electronics, Small Kitchen Appliances, and Cell Phones—Walmart wins the top prize in taking home unit share. Despite this edge, Best Buy gives Walmart a good run for its money and often outdoes its rival for dollar share. For example, the average price paid for Consumer Electronics is $200 higher at Best Buy than it is at Walmart. While a different category mix might tell a different story, it is clear that each retailer has its strengths.
Online, it is still Amazon’s game. The e-tailer comes out on top in all three categories. However, the last 18 months have seen a rapid shift in consumers embracing online shopping. Retailers with responsive sites and product on hand will have an advantage. Want to know how you stack up against other major retailers? Contact the team at TraQline today to learn more with industry-wide consumer behavior and competitive insights.
Bathroom Fixture Market Infographic
What are the best brands and outlets in the US Bathroom Fixture market share? - An infographic
TraQline answers the “who”, “what”, “where”, “when”, “why”, and “how” for Bathroom Fixtures market shares. Our quarterly survey will help you understand who’s buying Bathroom Fixtures, where they’re buying it, and what drives their decisions. Our Bathroom Fixtures Market infographic will help you answer the following questions about the US Bathroom Fixtures market and how it is changing…
Who is leading sales in the Bath Fixture market?
Our infographic will give you greater details, but for now, here’s what you need to know about the market leaders for Bathroom Fixtures:
- The Home Depot holds the lead for unit share in the Bathroom Fixtures market,
- Their share has declined significantly from last year.
- Moen is brand leader for Bathroom Fixtures with 16 percent of unit share.
- The Home Depot’s share decrease is largely at the expense of Amazon.
How much do consumers spend on Bathroom Fixtures?
When buying Bathroom Fixtures, the industry average price paid for these products is $111. However, the average amount spent at different retailers can vary. For example:
- Shoppers buying Bathroom Fixtures from Amazon spend $78 on average.
- Shoppers at The Home Depot, on the other hand, spend about $112 on average.
What demographic is buying Bathroom Fixtures?
Just who buys Bathroom Fixtures? TraQline’s census-balanced respondent pool has given us insights like:
- In over one third of all Bathroom Fixtures purchases women take the lead (39%).
- 58% bought their Bathroom Fixtures because of Routine Maintenance.
Bathroom Fixtures Market - Online Sales Trends:
With 25% of Bathroom Fixtures purchases being made online, it is vital to keep track of online sales trends. Here’s just some of the trends that TraQline has uncovered:
- The percentage of Bathroom Fixtures Purchases made online has increased significantly from this time last year (25 percent this year vs 21 percent in 4Q Ending Q320).
- Possibly contributing to Amazon’s growth, 63.4 percent of Bathroom Fixtures buyers have Amazon Prime.
Bath Fixtures Market Share Facts:
Curious about other information TraQline’s survey has uncovered? Here’s another preview for you:
- The average price paid for Bathroom Fixtures ($111) is up almost 9 percent compared to last year’s average price.
- Even though they lead in shares The Home Depot saw significant decreases in unit and dollar shares as well as draw and close rate for Bathroom Fixtures.
To see everything we've included on our infographic, fill out the form below and download your own copy:
How TraQline Helps You Perform a SWOT Analysis
A SWOT Analysis is a standard tool used to help businesses determine both how they’re performing and to clarify their position in the market. It can also be a key component of performing a competitor analysis. Conducting regular “SWOT” (Strengths, Weaknesses, Opportunities, and Threats) analyses adds context to your positioning and outlines a path to continue to grow and outperform competitors. To identify strengths, weaknesses, opportunities, and threats, you need data beyond what is available in your own POS. Using analysis, data, and insights from TraQline will give you extra information that adds value to your SWOT analysis.
Uncovering Your Strengths
You may be able to identify your company’s or products’ strengths with internal data. But it’s important to look at external data as well, lest you fall prey to confirmation bias. To identify your strengths, ask yourself the following questions:
What are you doing right?
Data such as store comps, revenue growth, and market share will show your company's strengths. Your team may identify additional key performance indicators (KPIs) as strength markers.
What is unique about your business or product?
One of your key strengths is how you stand out in the market. This may be with an enhanced online presence or a feature or price point your competitors don’t have. To help with this step, check out our piece on how to perform a competitive analysis.
Is your message reaching the correct audience?
When laying out the marketing strategy for your products, you probably established buyer personas to identify your ideal customer. Having detailed demographic data about shoppers and purchasers will inform you about how well your message is reaching your ideal customer. If those demographics are different from your target, it may indicate that either your messaging is unclear or it appeals to a group you didn’t expect.
How TraQline can help uncover your strengths:
While you may be familiar with using TraQline to discover your dollar and unit share in the market, it can highlight much more information about the consumer durables market. Reports that can help enhance the “Strengths” section of your analysis include:
- Draw and Close Rates: Retailers: Are shoppers coming to your stores? Brands: are consumers looking at your products? Are they shopping the stores that carry your brands? More important, do they choose to purchase from you rather than a competitor?
- Price Buckets/Price Quintiles: What price points are you performing well in? How does that compare to your competitors’? Do you have products at price points they’re ignoring?
- Buyer Demographics: How do actual buyer demographics map to your buyer personas? Are there other groups you can market to who seem interested in your product?
- Product Features: Do your products include the features that customers want? Are you offering something that no one else in the market has thought of?
Identifying Your Weaknesses
Although it can be uncomfortable, when performing a SWOT Analysis, you need to be honest about your weak points. Many of the same analyses you perform to uncover your strengths will help highlight areas in need of improvement.
Where can you make improvements?
As you review your KPIs, take note of where you’re missing the mark.
What are your competitors doing that you aren’t?
Consider what your rivals in the market are doing. What can you learn from their successes? They may have uncovered a demographic niche whose needs weren't met, or they introduced a feature that has proven unexpectedly popular. Pay attention to what your competitors are doing and see what you can improve upon.
What resources are you lacking?
After you’ve identified KPIs where you aren’t performing as strongly and/or taken notes about what the competition is doing, it’s time to uncover what you need to succeed. If a competitor beat you to market with a new feature, maybe it’s time to invest more heavily in R&D. If consumers aren’t aware your product is available in their region, maybe your marketing team needs additional support.
How TraQline can help find weaknesses:
Much like TraQline’s reports can help pinpoint your strengths, you can also add quantitative data to your understanding of your weaknesses compared to the market or your competitors. Reports that can help you develop the “Weaknesses” section of your analysis include:
- Draw and Close Rates: How do your draw and close rates compare to the top players in your industry? Which of your competitors is most successful at closing sales? Do shoppers consider your competitors more frequently than you?
- Price Buckets/Price Quintiles: What price points are most popular? What price points are your competitors capturing? Do they have products at price points you don’t? Does that fit with your pricing strategy?
- Buyer Demographics: Is your product appealing to your target buyer? Are they looking to other brands and products to fill their needs? Are your competitors succeeding with buyers you aren’t targeting?
- Product Features: Are your competitors offering product features that you don’t? Are the features you’re offering ones that consumers purchase most frequently?
Highlighting Your Opportunities
After you’ve identified your strengths and weaknesses as part of your SWOT analysis, you can discover opportunities to grow your position or maintain your lead in the market. This is an area in which external data will play a much more important role in defining your goals.
What do you want to be doing?
Examine your weaknesses carefully to determine what actions you can take to improve them. This may entail allocating additional resources to a project or perhaps even designing a new project or campaign from scratch.
Who else can you target?
By this time, you have had plenty of opportunity to dig into your buyer demographics as well as those of your competitors. Now find underserved segments who can benefit from your products and services.
What can you do to stand out?
In your analysis, you may discover that there are areas where both you and your competitors have had a blind spot. What can you do to fill empty niches in the market and stand out there? You can use the pricing, features, or demographics data you’ve gathered while finding strengths and weaknesses to become more visible in the market.
Track Threats in the Marketplace
As the pandemic of 2020 has taught us, the threats you identify in your SWOT analysis should go beyond merely listing your current competitors. Here are some of the challenges to consider in your Threats assessment:
Are there internal roadblocks?
Not every threat is external. You may find in your SWOT analysis that there are processes in place that don’t help you reach your goals. Or you may find that there aren’t additional resources currently available for initiatives. While you might be able to clear some of these internal hurdles, you may have to find other ways to work around constraints within your own company.
How robust is your supply chain?
Global supply chains can be fragile. You should note whether you have any redundancies in place in the face of shipping challenges. It takes only one firmly wedged cargo ship to disrupt global shipping patterns after all!
What happens if there are material shortages?
In addition to knowing how you get parts and materials for your products and services, you need to know if those raw materials or parts are available in the first place. If a supplier can’t ship your materials, is there another supplier who can?
How is the market shifting?
Whether it’s the shift to omni-channel and e-commerce or a change in consumers’ perceptions and desires, being caught unawares can give your competitors an advantage. You need trusted sources of market data to stay up to date with how your industry is changing.
Who are your competitors in the market?
You’ve probably already identified your top competitors as you’ve benchmarked your strengths and weaknesses, but look beyond the obvious. Is there a brand or outlet that’s been making a buzz around their products? Is someone growing their market share more quickly than expected? Are there brands operating in similar niches who could potentially compete with you? Identifying these potential threats will help keep you from being caught off guard.
TraQline Can Help Your Next SWOT Analysis
Creating your SWOT Analysis is just the first step. Using the data you’ve gathered, look for connections within that data as you create your business strategy. TraQline will help you quantify potential ROIs as you explain to stockholders how you plan to succeed and what resources you will need. If you want more information about how to use consumer durables data in your next SWOT analysis, contact us today!
How Club Memberships Are Expanding Their Reach
Consumer club memberships were once primarily the domain of warehouse retailers such as Costco and Sam's Club or automobile associations such as AAA. However, over the last few decades, that fact has changed. With the boom in online shopping, more club memberships have also surfaced. From Amazon Prime to Walmart+, club memberships are now available to consumers from some of the biggest-known retail entities. Today, most consumers have at least one club membership. In fact, an estimated 200 million people belong to Amazon Prime, and 32 million subscribe to Walmart+.
The question is, how do club members shop compared to consumers who don't hold memberships? Let's take a closer look.
Who Are Club Members?
A variety of factors, including income and education levels, appears to influence whether consumers become club members.
For the most part, every club membership has its own mix of demographics when it comes to participants. The variances can be interesting. Here is a look at a few noteworthy findings from data over the last year:
- Sam’s Club members do the least amount of shopping online
- Costco and BJ Wholesale members are very similar to Sam’s Club members in almost every way
- Their memberships tend to match the overall demographics of club memberships, with just under 30 percent of their members being Gen X and about 36 percent being Baby Boomers
- Amazon Prime members are a relatively "middle of the road" group with a healthy mix of people from all demographics
- AAA has the largest percentage of baby boomers (over 50 percent), the most retirees, and the highest number of homeowners
- Walmart+ members do more online shopping, represent the biggest mix of both Gen Xers and Millennials, and about 80 percent own their first homes
Consumers with no memberships are more likely to be single. Additionally, more than half of this group has an income of less than $35k annually. More people in this group are also likely to have an education level of a high school diploma or less.
The demographics of different groups—both members and non-members—can drive such decisions as which brands to purchase or even which outlets to shop. Therefore, this information can be especially useful in making marketing decisions.
Do Club Memberships Influence What Consumers Buy?
Overall, non-membership holders shop for relatively the same products and product mixes that club members shop for, but with a few differences in buyer behaviors. Over the last year, for example, there have been some minor changes regarding what people buy or where they shop according to what club memberships they have. People who don’t hold club memberships are less likely to have made their purchase online than those who have memberships, especially if that membership is Amazon Prime or Walmart+. AAA members are more likely to buy home improvement products than people who have other memberships. Another example, Walmart+ members purchase more consumer electronics.
One striking fact from TraQline’s data on club membership is the sheer ubiquity of these warehouse club memberships. An average of 15 percent of consumers have no membership across all consumer durables purchases. One category where non-member purchases are higher than those of club member purchases is Cell Phones.
Members' vs Non-Members' Buyer Behaviors in a Specific Product Market
To really see how members differ from non-members in what they buy, it is helpful to focus on one product group. For instance, Total Core Majors offers a good, consistent mix of all membership groups (9 percent to 10 percent of products purchased). Let's look at a few noteworthy findings.
Online vs in-store appliances
People with online club memberships, such as Amazon Prime and Walmart+, are more likely to purchase appliances online. By contrast, Sam's Club members are more likely to purchase appliances in a retail store. Those without any warehouse club membership are the most likely to have made their purchase in a brick-and-mortar store rather than online.
Appliance delivery and installation
AAA members are more likely to opt for delivery after purchasing an appliance and for the installation of an appliance with delivery. About 2 out of 3 people who are not AAA members still opt for delivery, but more often than not opt for self-installation. Sam's Club members show similar preferences for installing appliances on their own. Non-membership owners are more likely than those with memberships to do their own installation of major appliances. While the majority of non-warehouse club members have their appliances delivered (as is the norm for most buyers in the US), they are more likely to pick up their major appliance purchases themselves than buyers with club memberships.
Buying appliance service contracts
Even though both club members and non-members are offered service contracts on new appliances at generally the same rate, Walmart+ members seem to be most likely to purchase a service contract with a new appliance.
Smart appliance purchases
Customers who hold a Walmart+ membership show more preference for smart appliances than customers who have other types of club membership. Non-club members who buy appliances are the least likely to purchase a smart appliance.
Today's Shoppers Are Mostly Club Members
Club memberships are popular with today’s consumers. Over the last 10 years, more than 75 percent of all product purchases were made by a consumer who held at least one club membership. In the last few years, that number has grown even more—as high as 85 percent and above. At the same time, the number of buyers who don’t own any club memberships has been steadily decreasing. In 2012, more than 40 percent of consumers were not club members, whereas that number is about 15 percent today.
The impressive numbers should come as no surprise when Amazon Prime has a membership rate that averages better than 60 percent. TraQline data indicates that other club membership rates have also remained largely consistent. By getting to know how different club members shop, where they shop, and what they buy, targeted marketing can be even further refined.
TraQline offers industry-leading market insights. We have three incredible offerings to help you excel in the major appliance industry. Our quarterly survey offers unmatched market insights and trend data directly from consumers. You can track major appliance industry performance with TraQline HPOS™. This system engages world-class data aggregation to calculate the top-selling SKUs and the factors that led to their success. SKU Metrix™ lets you compare major appliance models at the SKU level with a comprehensive, synthesized product database. For more information on how TraQline can give you insights into consumer behavior and targeted marketing, contact us today!
US TV Market Infographic
What are the best brands and outlets in the TV market? – An infographic
TraQline answers the “who”, “what”, “where”, “when”, “why”, and “how” for Total TV market share. Our quarterly survey will help you understand who’s buying, where they’re buying it, and what drives their decisions. Our infographic will help you answer the following questions about the market and how it is changing…
Who is leading sales in the TV market?
Our infographic will give you greater details, but for now, here’s what you need to know about the market leaders for Total TV:
- For unit share in 3Q 2021, Walmart and Best Buy continue to be the lead outlets. However, both outlets are down significantly YoY for the rolling 4 quarters ending Sept 2021
- The brand leaders across Total TV are Samsung and LG. Samsung unit share is significantly higher than all other brands but is down versus the R4Q ending 3Q 2020. Meanwhile, LG is flat compared to this time last year
How much do consumers spend?
When buying a TV, the average price for Q3 2021 is $490. However, the average amount paid at different outlets vary: For example:
- While having a much smaller unit/dollar share than top outlets, Costco average price the last few years has been consistently higher than other outlets ($729 for R4Q end Q3 2021)
- Best Buy consistently shows the next highest average price paid with $611
- Walmart consistently has the lowest price paid – $338
Different brands also have a dramatically different average price paid vs. the industry. For example:
- In the past few years, Sony consistently has the highest average price paid ($703 in R4Q end Q3 2021).
- Samsung and LG consistently show the next highest average prices paid, $633 and $628 respectively.
What demographic is buying TVs?
Just who is the typical TV buyer? TraQline’s census-balanced respondent pool has given us insights like:
- Most purchases in Q3 2021 are made with a male involved in the decision (82 percent). Around 43 percent of purchases are male-only decision makers
- About 63 percent of purchasers are homeowners – up this year after two years of significant declines.
Online Sales Trends:
The majority of TV purchases have historically been made in a retail store.
- For Q3 2021 that trend continues with retail store purchases at 65 percent, however, that rate has been falling year over year for the past four years.
- Online purchases are up significantly from this time last year.
TV Market Share Facts:
Curious about other information TraQline’s survey has uncovered? Here’s another preview for you:
- Walmart draw and close rates are historically at the top of all outlets. While that continues to be the case, both draw and close rates at Walmart are down vs. this time last year. Best Buy is one of the benefactors of this drop at Walmart, with a Best Buy draw rate up significantly from Q3 2020 (2 points).
- The popularity of Ultra HD continues to rise from previous quarters, with 4K or 8K resolution capturing almost half of the Q3 2021 market.
- The main reasons to purchase from a particular outlet have historically been “competitive price” and “good selection of products”. That remains the case, but “competitive price” is trending down, and “good selection of products” is trending up the past few quarters.
To see everything we've included on our infographic, fill out the form below and download your own copy: