Who's Winning the US Computing Market?
Computers have grown to be a mainstay in the American home. And after the pandemic and lockdowns of 2020, computing devices practically became a necessity. Research shows that the average American household owns at least two computers. However, the computing market is ever-changing when it comes to where and what people prefer when shopping for new devices. Between the big brands and the big computer retailers, who took the lead of the total computing market as of the 4Q end at Q2 2021? Let's take a closer look.
Top Retailers in the Total Computing Market
Best Buy has held its top spot in both dollar and unit shares since 2014, with no other major computer retailer posing much of a threat. By the last 4Q end, Best Buy was at 27 percent in dollar shares and 24 percent unit shares. However, the well-known electronics retailer has actually had decreases in both dollar and unit shares since they peaked at 30 and 27 percent in June 2019. Apple held a slim margin over Amazon in dollar share, but Amazon has experienced YoY increases and could potentially overtake Apple by the next quarter.
How many retailers did consumers consider before purchase?
The bulk of shoppers (60%) checked inventory at just one outlet before closing the sale of a new computer. With Apple, as many as 73 percent of shoppers shopped only at Apple, possibly pointing toward brand loyalty among long-term customers. Customers who had shopped at four stores or more were most likely to end up at Costco.
What are the biggest purchase drivers?
The biggest purchase driver, no matter the retailer, was getting a replacement for a computer that needed service (49.5%). For customers who just wanted a new computer, they were most likely to shop with Amazon or Dell.
A Look at the Top Retailers by Region
Nationwide, Best Buy held the top spot in the computing market with 24 percent of the market. Best Buy does have a relatively large presence in most parts of the country, which may explain its dominance. Runners up nationally were Amazon and Walmart. Surprisingly, however, Best Buy also took the lead in market shares in every census region: the West, Midwest, South, and Northeast. Well-known branded technology retailers like Apple and Dell held between 5 and 10 percent of the market share across the four regions.
Look Who's Dominating Online Computer Sales
You may have guessed, but Amazon took the lead in online sales. However, Dell ran a relatively close second to the giant online retailer with 88 percent of sales being online. Walmart actually had the fewest online sales in the total computing market (32%).
What About Brands in the Computing Market?
Lenovo, ASUS, HP, Dell, Acer, Apple—most consumers know the top six computer manufacturers well. After all, these brands have fought for top vendor market shares for about a decade. In 2020, the six brands actually accounted for over 80 percent of all units sold worldwide.
As usual, the 4Q ending in Q2 2021 found these six brands holding the top ranks in dollar and unit shares. While Apple held the top dollar brand share at 27 percent, HP held steady at 22.8 percent. With unit sales, Dell has had the most significant decrease YoY, dropping 1.7 percent from 2020. Apple managed the biggest gains in unit sales YoY.
A few other interesting notes:
- Why people chose a certain brand - Competitive price, especially when buying Acer (61%)
- Number of brands considered - 59% shopped one brand before purchase, 27% considered two
- Why buy a computer to start with - Most people were buying a replacement, especially if they purchased HP
HP actually held the biggest numbers in national shares by brand at 29 percent. And, consumers in all four regions picked HP over all five of the Big 6.
Get a Closer Look at the Total Computing Market
So, who is the primary household computer shopper? What retailers offer the best price mix? Which brands are actually purchased according to features over price? For a more in-depth look at the total computing market, be sure to get your OpenBrand full market report for a more telling look.
7 Clues For Identifying Reliable Statistics
Key Takeaways
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Reliable statistics depend on transparency about who ran the study, who was surveyed, and how the questions were asked.
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Small sample sizes and wide margins of error can make results too uncertain to support strong marketing claims.
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A representative sample matters, since “cherry-picked” respondents can skew results even when the math is correct.
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Incentives and missing context can produce technically true numbers that still mislead the audience.
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If a statistic contradicts established evidence, treat it as a cue to verify sources and look for confirmation elsewhere.
Reliable statistics have become increasingly important as the world continues to put emphasis on quantitative results. They show up in medicine, education, politics, and our favorite, market research. Statistics are easily accessible to anyone anywhere with today’s technology. Companies are using these numbers to attract consumers with lines such as ‘9 out of 10 teachers recommend THIS product!’ or ‘#1 cancer care center.’ Likewise, statistics can make for a compelling hook in a blog post or a social media post.
What Are Reliable Statistics?
Reliable statistics come from clearly described studies with sound methods, appropriate samples, and context that makes the numbers meaningful.
How to Spot Unreliable Statistics: 7 Factors to Look For
Businesses love to use statistics. Using data helps them sound impressive and authoritative. However, that may sometimes confuse consumers who don’t know how to evaluate for reliable statistics. Even businesses that contract out their marketing research or consumer data research may not fully understand the statistics that are returned to them. Numbers can be misleading for anyone, that is why we have identified seven characteristics to look for and avoid when searching for reliable statistics:
1. Statistics Benefit the Group Who Collected the Information
Suppose a toothpaste company releases results from a study showing those who use their toothpaste have fewer cavities. Just because this study was carried out by a company that benefits from the results does not mean that the results are unreliable. But we are not provided with any information on the study itself: information that is crucial to judging whether the statistics are reliable. Consumers and even businesses need to look carefully at factors such as sample size, audience selection, and the slant of questions asked. It is important to know the questions asked, who was being asked these questions, and why.
When reporting findings, companies must ensure they are clear about how studies were conducted as well as their findings.
2. Small Sample Size
The sample size is the number of people that are being surveyed. This size is crucial to the ending results. Having a sample size that is too small will result in findings that are not conclusive, despite its convenience to businesses. Researchers, or those conducting the study, should always disclose the sample size to ensure the reliability of the findings.
3. Error Margins Are Too Large
One way to get an idea about the sample size is by error margins. The smaller the sample size, the larger the error margins should be. It is also important to look at error margins for comparable research to see if the margins for the statistics in question are relatively small or large.
4. The Sample Representation Is Inaccurate or Biased
If a survey were conducted on how much businesses spent on marketing research, the findings would not be reliable if research were done only on small businesses. The cherry-picking of respondents does not lead to fair results. The best samples are probability samples because they are designed to account for the characteristics of only the group being studied. Other ways in which sample representation can be inaccurate or biased are if the survey was only carried out in one form or aren’t double-blind. For instance, if a survey were conducted through landline telephone calls only, those who only have cell phones, or no phone at all would not have been surveyed. As a caveat, such a project could be accurate if the study was for issues that only apply to landline telephone users. Double-blind studies are when participants in a study do not know which group they’re in. One example of this could be a double-blind taste test where participants do not know which cola drinks are in which glasses. This is the only way studies can avoid the risk of giving subtle cues to respondents or introducing biases, however unconscious, into the conclusions.
5. Incentives are Inappropriate for the Sample
Incentives are used, and sometimes required, to encourage people to participate in a research study. While this is not always the case, in some instances incentives can lead to poor participation and result in inaccurate reporting. A sign of biased and unreliable statistics is when respondents are only given incentives if they respond in a certain way. As an example, if a pollster says, “We will give you a free cellphone for answering this survey”, and the questions center on if consumers prefer that cellphone brand to other brands, the results cannot be conclusive.
There are other ways to look at incentives, to ensure reliable reporting. If a survey is listed to offer $30 cash for simply filling out the survey, respondents are most likely not going to put much thought into their answers. These answers may provide some results but are not fully reliable statistics.
6. The Context Is Not Reported
We often hear about a given statistic in the context of the end findings and results of research, but we are not given much more information. When looking for reliable statistics, this can be a red flag. Many times, journalists or news anchors are the ones reporting the findings, but these are not the ones who have conducted the study themselves. This means they may not fully understand the nature of the study, and this can sometimes be misleading.
Remember: just because something sounds authoritative does not mean it is authoritative or reliable. When a statistic says that people are now twice as likely to die from something, that could be an example of context not being reported. What were the odds of dying from that cause in the first place? If they were something like 0.00003 percent, then being two times more likely to die from it could technically be true but is still very misleading, as death from this cause is still rare.
7. The Statistic Flies in the Face of Precedent
What might someone think if a survey came out tomorrow saying that skin cancer is not all that common? (It is the most common of all cancers, according to the American Cancer Society and many other organizations.) Beware of statistics that go against the grain. They’re not necessarily wrong, but they are worth approaching with caution. Look at the groups sponsoring or carrying out the research. Are these reliable?
Why Do Reliable Statistics Matter for Businesses?
1. Many consumers are savvy. They know when something is not on the up and up, and it is often best for businesses to be straightforward about how they conducted research and reached their conclusions.
2. Businesses need to understand the statistics they quote or present to the world as well as how it was conducted. In this age of social media, it is too easy to share a cool statistic without doing due diligence.
3. Businesses need to be sure that the companies they work with for, say, tracking consumer data, are presenting information accurately and clearly.
FAQs
How Does Sample Size Affect Reliability?
Bigger samples reduce uncertainty, but quality matters too, since a large sample that is biased can still produce misleading results.
What Is Margin of Error, and Why Does It Matter?
Margin of error shows how much results could swing, so wide margins are a warning sign that the estimate may not support bold claims.
What Makes a Sample Representative?
A statistic is only as good as the people surveyed, so check whether the sample matches the population the claim is meant to describe.
How Can Incentives Skew Survey Results?
Incentives can help participation, but they become a problem when they attract low-effort answers or reward people for responding a certain way.
What Context Should Always Accompany a Statistic?
Numbers without baseline context can mislead, so ask what is being compared, over what timeframe, and how common the outcome is.
What Should You Do When a Stat Conflicts With Precedent?
When a stat clashes with established evidence, verify the source and look for replication before you treat it as a reliable signal.
Does Sponsorship Make Statistics Unreliable?
A sponsor’s stake in the outcome isn’t a dealbreaker, but you need to review the study details to judge methods, sampling, and question design.
Learn More About Proper Market Research With OpenBrand
By being aware of these pitfalls of misleading data and looking at signs such as sample size, methodology, and sample representation, a company can get a good idea of whether research is being performed accurately. Curious about what can happen when companies get the data wrong (or ignore the data entirely)? Check out our blog post: Top 5 Examples of How NOT To Do Market Research
Home Depot and Lowe's Win Each Region in the Plant and Flower Market
With summer upon us and gardens in bloom, there is no better time to explore the data that OpenBrand has on the plant and flower market, including: annuals and perennials, indoor plants, and trees and shrubs. There are regional differences in what choices consumers make for their plant purchases across the country. Here are a few of the insights we pulled from our analysis of the gardening market:
Key Information About the Plant and Flower Market:
While there are some regional differences, and differences between different types of plants and flowers, here are key takeaways about the market as a whole:
- Lowe’s and Home Depot are consistently top choices for buyers looking for plants and flowers of all types
- The vast majority of plants and flowers are sold in brick-and-mortar stores
- Despite this, consumers are becoming more comfortable making purchases online, with Amazon making it into the top retailers for both Indoor Plants and Shrubs and Trees
- Older women (Gen X and younger Boomers) make up the largest percentage of buyers
- Most buyers own their own homes rather than rent
Annuals and Perennials:
What Brands and Outlets in the Plant and Flower Market Are People Buying?
OpenBrand found that nearly half of all purchases come from Lowe’s and Home Depot. Regionally, buyers align with Lowe’s and Home Depot’s regional strengths – buyers in the South prefer purchasing from Lowe’s, while buyers in the West gravitate towards Home Depot.
With branding on plants often relatively hard to find, a relatively high number of buyers (over one third) report that they do not know brand they purchased. However, buyers in the South are significantly less likely to report not knowing brand than their compatriots in other regions of the US.
What Annuals/Perennials are being purchased and Who’s Buying them?
- Purchasers in the Northeast and Midwest are significantly more likely to purchase only annuals.
- Buyers in the West and South under-index on purchasing only annuals. They are more likely than average to buy a mixture of both annuals and perennials.
The average annual/perennial “plant parent” is a married woman in her late 50s or early 60s, who is retired and lives in a home her family owns. That said, buyers living in the West are significantly more likely to rent rather than own their homes than buyers in other regions. Shoppers in the Northeast tend to have lived in their homes for five or more years.
Indoor Plants:
What Houseplant Brands and Outlets Are People Buying? Trader Joe’s and Amazon make appearances
In the houseplant market, there is a lot of crossover with the plant and flower market as a whole: Home Depot, Lowe’s, and Walmart take the top three spots for both Indoor plants and Annuals/Perennials. Numbers 4 and 5 on the top outlet list are a bit different. Home improvement and garden centers make way for less traditional plant retailers like Trader Joe’s (#4) and Amazon (#5). And while they draw in comparatively few potential buyers, their ability to close the sale are as high as larger competitors. As shown by Amazon making the top 5 retailer list, consumers are more willing to purchase indoor plants online (7 percent of the indoor plant industry’s purchases are made online, compared to 3 percent of Annuals/Perennials. Shrubs and Trees are slightly higher than indoor plants, at 8 percent).
Indoor plant buyers are also not necessarily well versed in brand names for their purchases. Bonnies brand is the most often recognized brand in the South. Costa Farms is the other most commonly cited brand (tied with Bonnies at 2 percent market share for Q1 2021).
What Indoor plants are being purchased and Who’s Buying them?
Despite being referred to as “Indoor”, the most recent / historical OpenBrand data indicates buyers in the South enjoy displaying their indoor plant purchases on their patios. Most buyers do keep their indoor plants indoors. Very frequently, indoor plants are meant to be a part of the décor in a house.
When thinking of the stereotypical indoor plant buyer, you may be picturing someone in their late 20s or early 30s flooding an apartment with greenery. However, OpenBrand’s data indicates that most buyers are in their early 50s. More often than not, they are women who live in homes they own, usually with one other person.
Shrubs and Trees:
What Brands and Outlets in the Plant and Flower Market Are People Buying?
People purchasing trees and shrubs most commonly make their purchases at Lowe’s and Home Depot (24 percent and 23 percent, respectively, making up almost half of the shrubs and trees market’s unit share). Similar to Indoor Plants, Amazon also cracks the top retailer list, indicating buyers’ willingness to go online for live plants. The top outlets are:
- Lowe’s
- Home Depot
- Lawn & Garden Center
- Walmart
- Costco
- Amazon
Like Annuals and Perennials and Indoor Plants, consumers tend to be unsure of brand names in the shrub and tree subsection of the plant and flower market. Over a third of buyers report that they do not know the brand.
What Shrubs and Trees are being purchased and Who’s Buying them?
Buyers are more likely to purchase shrubs than trees across the board- 63 percent indicate that they purchased one or more shrubs. Nearly a quarter of OpenBrand respondents indicated that they had purchased one or more trees.
The buyer demographics for Shrubs and Trees are similar to that of Annuals/Perennials and Indoor Plants. Buyers are usually female, in their late 40s to late 50s, and are homeowners. Shrub/tree buyers are more likely to own their homes than either indoor plant buyers or annual/perennial buyers. Given the long-term investment that planting a tree or shrub represents, this makes sense that homeowners would be more likely to make a purchase than someone renting a home or apartment.
If you would like more in-depth information about the plant and flower market, this is just a sample of what OpenBrand has available. By being able to examine data at the national, regional, or local level, you can get a firm grasp on who is buying plants and flowers, what they’re buying, and how. For more information on how OpenBrand can help, contact one of our account executives today!
What Happened When the Path to Purchase Met Social Media
The process of purchasing goods and services is always evolving—especially over the last 15 months during the COVID pandemic. One constant in a shopper’s journey is consumers seeking others’ opinions before making purchases. In the past, someone might pick up the phone and call a trusted relative or watch a live demo from a salesperson. Today, people go online to read user reviews, compare products, or find pricing. They ask questions on social media sites like Twitter and Facebook looking for input from both their friends and product experts. Buyers choosing to research and validate their purchases is a constant, but the methods they use to research and validate have shifted since the days of yore. Let’s do a quick examination of how the path to purchase has changed since the rise of social media.
Consumer Empowerment and a Balanced Picture
People feel more secure when they feel confident they have made a good decision. Self-directed research is one way in which they can do that. The internet has hugely empowered consumers to do that research.
Jamie’s Pre-Social Media Path to Purchase
Here is what the path to purchase was like for an average consumer (we’ll call them Jamie) before the internet:
- Jamie sees advertising or marketing for a product. For example, on the TV, radio or billboard advertisements, by word of mouth, salesperson demos, and/or walking into a store (window shopping)
- Jamie asks a few trusted people about their opinions of the product, and satisfied enough as to tis quality, purchases the product (either in a store or through a catalog)
- Jamie uses the product, and whatever their experience, positive or negative, may tell a few people about it. If the experiences were positive, Jamie will probably consider the business again in the future
The path to purchase involved a handful of people joined together in a loose social network, and product and store choices were limited. Furthermore, much of the information the consumer had was tailored and shaped by the business marketing the product: TV/Print/Radio advertisements and salespeople may not have presented a balanced picture.
Pat’s social-media influenced Path to Purchase
Here is a snapshot of the path to purchase for an average consumer (who we’ll call Pat) buying a lawnmower in the internet age:
- Pat reaches out to their friends on Facebook, asking for recommended shops or brands that their friends have liked
- While waiting for responses to come in, Pat turns to a search engine like Google. Maybe they type in “buying lawnmower online.” The search algorithm then presents Pat with links to Big Box stores, local lawncare shops, or perhaps Instagram or Twitter posts of influencers singing the praises of a particular store or brand
- In the meantime, Pat starts seeing ads for lawnmowers across the internet as they browse
- Not content to rely on fellow consumers, Pat also searches for agnostic or expert viewpoints and other relevant information on sites like Consumer Reports.
- Pat peruses stores’ websites to research what shipping times are, whether the mower they want is available in store, and whether or not there are any special deals or coupons available
- After Pat makes their purchase, they may leave feedback to highlight a particularly positive (or a particularly negative) experience. Maybe they leave a review on the site where they made their purchase, or perhaps they tweet about how happy they are, or post an image on Instagram
- If Pat expresses a particularly negative opinion, the store or brand has an opportunity to reach out to Pat and find a way to repair Pat’s opinion of them – maybe by offering a replacement or refund along with a sincere apology
- If Pat is satisfied with their experience, Pat may decide to keep up with the store or brand on social media or read blogs they contribute to. This gives the business(es) an opportunity to build loyalty with Pat along the rest of its consumers. It is an ongoing relationship, and the business has opportunities to reach a wider audience as Pat reshares or retweets posts that they found helpful
Thanks to the transparency of the internet, consumers have a lot of power and use it to ensure that they (and their social networks) are treated fairly. In return, they are more inclined to help the businesses with whom they have good experiences.
The More Minds, the Better – Social Proof
There are a few key takeaways from observing the evolution of the purchase process First is the importance of online reviews. For example, while numbers vary, some research indicates that as many as 90 percent of consumers check out online reviews, with 88 percent finding them as reliable as recommendations from someone they know and trust. That’s not all: most consumers do not check out a business until they read reviews of the business. Most businesses need to have at least a four-star rating for many people to use it. Shoppers often read anywhere from two to 10 reviews before deciding to purchase products or services from a business, and negative reviews give hem pause. On the other hand, rave reviews may prompt a consumer to spend even more money than they planned.
Psychologically, this all makes sense. Social proof makes us feel that the more minds involved, the more secure we feel about purchasing decisions. For one thing, online reviews cover many scenarios and are posted by people hailing from all walks of life. So, if people want to purchase a camping tent, a host of reviews can answer many questions from personal experience that one person alone cannot. For example: How long will the tent last? How sturdy is it? How well does it withstand extreme weather? Is it worth the money that might be spent? What potentially better alternatives exist? Has anyone used the tent in the snow or in the wind?
By turning to the internet for reviews, consumers can hear from hundreds or thousands of other shoppers.
Engagement, Content Marketing, and Continued Relationships Matter
Building trust and credibility are critical in the decision making and customer loyalty process for attracting and maintaining consumers. Businesses who are initially able to a) establish credibility and b) build a relationship are those that will win the war of customer loyalty (having quality products notwithstanding). The importance of content marketing and engagement with consumers cannot be overlooked. When consumers type in phrases such as “organic pet products NYC,” a business is more likely to rank higher in search results if it has relevant content matching that key phrase. Google has made it clear that they are interested in having only the most relevant websites appear first- and that relevance is judged by how much you contribute to the web. This not only makes content marketing a critical component of business strategy, but it arguably makes a better experience for the consumer by giving them access to content that engaged, educates, or entertains- all with the goal of converting that prospect into a customer.
B2C Businesses also need to be available on platforms such as Twitter and Yelp to retail consumers. As an example, Twitter statistics say that 50 percent of Twitter users have “visited or shopped at the websites of SMB [small businesses] they follow.” Once a business has a customer it can help keep that customer loyal by providing quality content as well as market through social media. Another way B2C (and in some cases, B2B) companies can connect with potential leads is to partner with influencers who are popular with the businesses’ ideal customer demographics. In fact, when influencer partnerships are created in a thoughtful manner, the ROI for businesses can be as high as the ROI that a business might get from other paid ads, organic searches, and other forms of marketing.
How Does Social Commerce Fit into Consumers’ Path to Purchase?
While you may be familiar with content marketing and how social media helps you reach and engage consumers in new ways, you may also have recently heard about social commerce. If you aren’t familiar with the term, social commerce is an outgrowth of e-commerce. Rather than seeing an online ad within an app like Instagram or Twitter and then leaving that app to visit a webpage or different shopping-focused app, consumers are encouraged to make their purchase right then and there within the app itself. You can read an excellent explanation of the topic on Vox.
Consumers are already accustomed to seeing highly targeted ads, whether inserted into their social media feeds as actual advertisements or perhaps being highlighted by an influencer they follow. I know I’ve been susceptible to persistent and well-targeted ads on more than one occasion, and the extra lack of friction by being able to make a purchase directly from a social media site like Instagram or TikTok does not bode well for my budget.
The internet has made the world huge and balanced the playing field between businesses and consumers. Businesses need to be aware of the ways in which the purchase process has changed and make it easier for consumers to find the information they want, post and read reviews, and reach out to those businesses for more details. How have you seen the path to purchase change in your business? We’d love to have your feedback!
Home Depot Retains the Lead in the Outdoor Products Market
From shovels and wheelbarrows to pesticides and grass seed, the outdoor products market is filled with all those non-powered products that make outdoor living even more of an extension of the home. When it comes to buying these products, Home Depot maintains. A few other retailers are not far behind, however, and some retailers have stepped into the arena.
Let's take a closer look at just where Home Depot was hanging out in the outdoor products market as of the 4Q end in March 2021.
A Look at the Top Retailers in the Outdoor Products Market
In the 4Q ending March of 2021, Home Depot remained the leader in both dollar and unit shares (21 and 23 percent, respectively). However, both shares have experienced a slight downtick since the year before. Lowe's and Walmart have also seen declined shares. Amazon had the most significant increase in both dollar and unit shares between 4Q end March 2020 and 4Q end March 2021. The online retailer had a 3 percent increase in the dollar and unit shares year over year (YoY).
How many retailers were considered before a purchase?
Sixty-nine percent of consumers shopping for outdoor products found just what they wanted at one store. Those numbers were actually higher if they shopped at Ace Hardware, Walmart, or Menards. Interestingly, those shopping for outdoor products with online-dominant retailers like Amazon were slightly more likely to have shopped at 3 stores or more.
What about online sales of non-powered outdoor products?
Online sales in every market had a major uptick in 2020 due to the pandemic. Internet sales for outdoor products leveled off by Q1 2021. Most consumers surveyed (81 percent) purchased products in-store, while only 17 percent purchased what they needed online. The retailer with the most online sales was Amazon, but Walmart had 10 percent online sales for outdoor products. On the other hand, Ace Hardware and Menards had the most in-store sales, tied at 97 percent.
Why Consumers Buy from One Retailer Over Another
So, why did shoppers prefer to shop at one retailer over another? Even though good selection and previous experience with a retailer have grown increasingly important YoY, a competitive price remained the top reason for retailer choice in the 4Q ending March 2021. Unsurprisingly, the bulk of shoppers who bought at Home Depot (67 percent) chose the retailer because of the competitive price. By comparison, 36 percent of Ace Hardware shoppers were there because of the price. Ace was one of the few retailers that people preferred primarily because of its convenient location (49 percent).
Who shops where for outdoor products, geographically speaking?
Because so many consumers prefer to shop in-store for non-powered outdoor products, geography and store availability are closely linked to who buys products at what retailer. Nationwide, Home Depot was the leading retailer in the 4Q ending March 2021 at 23 percent, but Lowe's was close behind at 20 percent. These numbers reflect the fact that both stores have a significant presence across the country. Nevertheless, people preferred Lowe's in the south. Menards, a primarily Midwest-based retailer, only had a significant regional share in the Midwest, the retailer tied with Walmart at 15 percent.
Get an In-Depth Look at the Outdoor Products Market
Home Depot has long been the go-to retailer for outdoor products, and it doesn't appear that will change any time soon. While other retailers like Lowe's and Walmart also have their stable places in the market, market analysis shows a slight uptick in more localized, small-scale retailers like Ace Hardware closing sales. Want a closer look at the outdoor products market? Be sure to get the OpenBrand infographic for a more in-depth look.
Craftsman Maintains Top Spot in the Hand Tools & Accessories Market
Tape measures, screwdrivers, wrenches, sockets, and hammers—these hand tools and accessories commonly fill even a novice tool owner's toolbox. The average shopper will eventually need to pick up a hand tool or two, whether from a brand with cultural cachet or a hardware store’s in-house selection.
From Craftsman to Stanley to DeWalt, some buyers have their preferences and always buy a specific brand. However, when you take a deep look at the hand tools & accessories market, certain tool brands continually retain their top spots. Craftsman happens to be the top-spot holder at the end of Q1 2021, but how is everyone else stacking up? Let's take a closer look.
A Look at the Leading Brands in Hand Tools & Accessories
Craftsman has held the highest unit share in the hand tool market since 2014. Between the R4Q end in March of 2020 and the R4Q end in March of 2021, the brand saw significant decreases in both dollar and unit share. Despite other brands like DeWalt seeing increases to unit and/or dollar share, Craftsman still holds steady at the top for unit share, and comes in second behind Stanley for dollar share.
What Drives Purchase in the Hand Tools & Accessories Market?
Most consumers were buying a hand tool to replace a lost tool or a tool that didn't work. More people who purchased a hand tool for the first time actually went with Husky (20 percent). Surprisingly, only 13 percent of first-time tool purchases were Craftsman brand, but 42 percent of those buying a replacement selected the brand.
How Many Brands Are Considered Before Making a Purchase?
The bulk of shoppers appeared to know which brand they wanted before making a purchase. An impressive 82 percent shopped for only one brand before making a buying decision. Surprisingly, 91 percent of shoppers who bought a store brand considered only one brand as well, compared to 80 percent of those who bought Craftsman.
Where Are People Buying Their Hand Tools?
The hand tools & accessory market analysis showed that 80 percent of buyers picked up hand tools in a retail store, while only 17 percent bought hand tools online. DeWalt was the top hand tool brand purchased online.
- Preferred retail outlet among all buyers - Home Depot
- Preferred online retailer for hand tools - Amazon
- Why buy a hand tool from a certain retailer - Competitive price
Hand Tools & Accessories Market Analysis by Region
Craftsman may be the industry leader in hand tools on a national level, holding 14 percent of the market, but the brand was also a top choice regardless of what region we examined. Craftsman hand tools were preferred across the board, including in the West, Midwest, South, and Northeast. Stanley was the only major competitor, holding 10 percent of the market nationwide, and only second place by between 2 and 4 percentage points in each region.
Get a Closer Look at the Hand Tools & Accessory Market
Some brands have become so synonymous with their markets that they stick around as key players for decades: Craftsman holds such a role in the hand tools and accessories market. Other names like Husky, Stanley, DeWalt, and Kobalt do give Craftsman a run for their money in some respects, however. Want a closer look at hand tools and consumer buying behaviors? You can get a sneak preview with our infographic. Otherwise, you can contact us to learn how to get the full OpenBrand report for an in-depth market analysis.
Power Tool Market Analysis: DeWalt and Home Depot Take Top Spots
From home renovation and everyday projects to commercial construction, power tools make complex tasks easier to manage. According to the North American Precis Syndicate, 55 percent of Americans have at least five power tools in their possession, and 23 percent own double that. Where are people buying those tools and what makes a consumer pick one brand over another? We dug into OpenBrand's survey data for a thorough power tool market analysis.
Top Power Tool Retailers So Far in 2021
For the first quarter of 2021, Home Depot led the way as the go-to power tool outlet, holding 26 percent of the market across the country. Lowe's, however, wasn't far behind with 19 percent of the US market. Lowe's was the more prominent retailer in the southern region of the country, while Amazon and Home Depot are more prominent in the west. Even though Harbor Freight doesn’t hold the largest market share (6%), the outlet was almost as popular in the west as Walmart for power tools.
The one retailer with the sharpest increases in unit and dollar shares in the last few years is Amazon. The online retailer has experienced a 3 percentage point dollar share increase and a 4 percentage point increase in unit shares among the top outlets since March 2019.
Online vs. In-Store Power Tool Sales
For the first few months of 2021, the majority of shoppers were buying their power tools in-store. Only 27 percent of shoppers purchased their drills, power saws, and other tools online. Some usual brick-and-mortar stores did have significant online sales for power tools, however. For example, 19 percent of Home Depot power tool sales occurred online. As far as brands go, Black & Decker experienced the highest number of online sales at 33 percent, while Craftsman was the number one brand purchased in-store.
Leading Brands in the Power Tool Market
For many years, five key players in power tool brands have pretty much dominated the market:
- Dewalt
- Ryobi
- Black & Decker
- Craftsman
- Dremel
- Milwaukee
While low-priced Black & Decker and mid-priced Craftsman power tools have always been key players, the two brands have dropped significantly where brand consideration is concerned over the last four years. Ryobi and Milwaukee have experienced significant YoY increases in both dollar and unit shares of the power tool market. By far, DeWalt has experienced the most significant long-term increase in dollar shares since 2014 (a 5 percentage point increase since 2014).
What's Driving Consumer Purchasing Behavior with Power Tools?
Our analysis of the power tool market for the first quarter of 2021 gives good insight into what was driving consumer purchasing behaviors. Let's take a closer look.
Why buy a power tool to start with?
The bulk of people buying power tools early in 2021 were buying that tool for the first time but replacing a tool was a close-second purchase driver. First-time power tool buyers were more likely to purchase Ryobi, but those buying replacements preferred Black & Decker. The majority of shoppers considered only one power tool brand before making their purchase (74% across the industry).
Why buy power tools from a specific store?
When shopping for power tools, 59 percent of consumers turned to certain outlets primarily because of competitive prices. Those shopping at Amazon and Harbor Freight were most likely to buy a tool at these outlets because of a good price (73 percent and 78 percent). More Amazon shoppers (38 percent) than any others purchased tools at Amazon due to a good selection of products. By comparison, only 28 percent of buyers industry-wide bought their power tools from a certain outlet because of a good selection.
Why buy a specific power tool brand?
Hands down, the number one reason consumers bought a specific power tool brand over another is competitive price—50 percent of all consumers went for a good price no matter what brand they were buying. Features desired and good brand name were two other big purchase drivers. Interestingly, more shoppers buying Dremel were drastically more concerned about features desired over price (47 percent vs. 29 percent).
A Final Word on OpenBrand's Power Tool Trends
From electric-powered saws to battery-powered drills, we Americans do love our power tools. Purchasing behaviors change over the years, specifically where brand preferences and outlets are concerned. Further, the numbers are showing some tried-and-true brands may be slowly fading into the backdrop, just as some more modern outlets step into the spotlight. To get the full report, be sure to check in with us here at OpenBrand where we are constantly digging up new market insights using our suite of market research products including Durable IQ, SKU Metrix, and HPOS. You can also download an infographic with more details about the market here
Major Home Appliance Retailers: Where Does Costco Rank?
While consumers increasingly turned to online shopping in 2020, one category that continues to be the domain of retailers is large appliances. 68 percent of the consumers buying major home appliances did so at a retail store — much higher than other retail categories.
In the case of Costco, the sixth largest retailer in the world with 100 million club memberships showed significant growth in large appliance sales over last year but wins only two percent of the total home appliance market. OpenBrand’s data has Costco coming in at number seven on the top 10 list of major appliance retailers.
Costco’s 2 percent market share in the major home appliance category compares to market leader Lowe’s, which holds a commanding 26 percent market share, followed by Home Depot (21 percent) and Best Buy (12 percent). Among Costco club members, its market share for home appliances lifts to almost 6 percent.
In the latest survey by OpenBrand, Costco also increased its draw rate to 4 percent. Draw rate measures the percentage of buyers in a category that are shopping a store.
Costco is a retail giant by any measure. With 803 locations in the US, Canada, Mexico, and nine other countries, it employs more than 273,000 employees. In the fiscal year ending August 30, 2020, Costco reported net sales of $163 billion with a gross margin of 11.2 percent and net income of $4 billion, a 9 percent increase over 2019.
Despite the pandemic, Costco’s comparable sales were up 8 percent year over year in the US and 9 percent overall while gross margin percentages increased 18 basis points.
What Buyers Are Getting from Costco (And How They Are Buying)
Washers, dryers, and refrigerators make up the bulk of major appliance purchases at Costco. Here are the top Major Appliance brands at Costco:
- Samsung: 29 percent of sales
- LG: 28 percent of sales
- Whirlpool: 19 percent of sales
Compared to Costco's top performers, the leading industry brands are GE (17 percent), Samsung (17 percent), and Whirlpool (16 percent).
While the majority of major appliance market sales for all retailers happen on the sales floor, Costco customers are more likely to begin their search online. On average, 62 percent of consumers shop online for appliances but for Costco 81 percent of shoppers go online before buying.
When it comes to making a purchase online, Costco flips the typical sales pattern. The industry average for online purchasing of a major appliance is at 28 percent. Compare that to the 64 percent of Costco shoppers that report the purchase of a major appliance online.
Another place where Costco exceeds the marketplace is in average sales price. With an average sales price of $1022 for a major home appliance, Costco has one of the highest average prices paid for home appliances (compared to the industry average of $850). That’s fueled in part by the fact that the prices for major appliances at Costco tend to fall into higher price ranges ($600+) with the largest percentage coming in at $1100 and above.
Who’s Buying from Costco?
Costco buyers have a fairly unique position in the marketplace. Half of all Costco home appliance buyers live in the West. Costco shoppers also tend to be in higher income brackets, although the mix of income brackets for shoppers at Costco is comparable to shoppers at Best Buy.
Costco makes a substantial amount of revenue from its membership program, surpassing 100 million members worldwide in 2020 according to the company’s August 2020 Annual Report. Second only to Amazon Prime in terms of the percentage of respondents that have a membership, Costco earned $35.4 billion in membership revenue in 2020.
Why Shoppers are Buying Major Appliances at Costco
While features and price are the top reasons shoppers choose the major appliances they buy at Costco, they also place significantly more importance on guarantees/warranties and recommendations than the industry average.
In the broader appliance market, competitive pricing is the top reason buyers cite as the reason for their choice of retailer. 60 percent of purchasers mention price as a reason for retailer selection.
Costco buyers are also more likely to make their purchase because they wanted a new one, not because an appliance had broken beyond repair. That’s a significant difference from the total market where 61 percent of consumers bought a major appliance after an old one was broken and either required repairs or was beyond repair.
OpenBrand: Your Market Research Data Provider
OpenBrand is the most trusted source for market insights and consumer data in the US and Canada, including trending about Costco market share information. In the appliance category, all of the top 10 leading brands trust OpenBrand for their market research data using our suite of market research products including Durable IQ, SKU Metrix, and HPOS.
We measure the entire retail market — online, brick & mortar, brands, and outlets — to give you a comprehensive market view. OpenBrand also offers advanced insight into major appliance industry trends and performance tracking with our Hybrid POS™ system—which is trailblazing past traditional POS systems. You can access in-depth product and feature comparisons at the SKU level with OpenBrand SKU Mextrix™. If you are ready to unlock the major appliance industry data your business needs to track competitive share and execute your strategy, contact our experts today.
Samsung Refrigerator Models Maintain Top Spot at Major Retailers in March 2021
OpenBrand’s Hybrid POS™ system shows that for March 2021 Samsung had the top refrigerator model in two of three refrigerator types (French Door and Side-by-Side)
LOUISVILLE, KY, UNITED STATES, April 22, 2021 /EINPresswire.com/ -- OpenBrand this week released information on the top-performing models (SKUs) for three Refrigerator Product categories at the leading major appliance retailers in the US (Lowe’s, Home Depot, & Best Buy). Using data from their newly released next generation share tracking system, OpenBrand Hybrid POS™, the team identified top performers for French Door Refrigerators, Side-by-Side Refrigerators, and Top-Freezer Refrigerators. Samsung held the top positions in two of three categories for the month of March.
French Door Refrigerator Best Selling Model in March
In March, and for the fifth consecutive month, the best-selling model for French Door Refrigerator was Samsung RF28T5001SR. Its unit share at the big three retailers was 5 percent, approximately one point higher than the next SKU. This was a decrease in its advantage versus February, which is most likely due to the 22 percent increase in the average price throughout the month. Also:
- Samsung RF28T5001SR performance was driven by its unit share (7 percent) at The Home Depot where it is featured prominently on the website and in-store.
- This model had an average price of $1,804 across the three retailers and is a standard depth model with a capacity of 28 cubic feet.
Side-By-Side Refrigerator Best Selling Model in March
In the Side-by-Side Refrigerator category, the best-selling model was also a Samsung, model RS27T5200SR. This is the ninth consecutive month this model has held the top spot and its 12 percent share of units sold this month at the three major retailers is more than 6 points higher than the runner up model. Additionally:
- Samsung RS27T5200SR was the unit share leader at both The Home Depot and Best Buy. It performed particularly well at The Home Depot with a 10-point unit share advantage over the second-place model and a strong position on both the website and the floor.
- This lead is due, at least in part, to its lower price at The Home Depot (average price of $1,277) and being prominently featured on the website. At Best Buy, the average price ($1,260) was slightly lower than at The Home Depot. Prices at both retailers were significantly lower than at Lowe’s, which was $1,399.
- The model is a standard depth model with a capacity of 27.4 cubic feet and had an average price of $1,312 across the three retailers.
Top-Freezer Refrigerator Best Selling Model in March
The leading Top-Freezer Refrigerator model was LG LTCS20020W. It had a unit share of 9 percent at the three major retailers, nearly 3 points higher than its closest competitor.
- LG LTCS20020W is one of the top three sellers at both The Home Depot and Lowe’s - driving its overall leadership position. At both retailers it was featured prominently in-store.
- With an average selling price across the three retailers of $679, this model is 20.2 cubic feet and features glass shelves.
About the OpenBrand Hybrid POS™ System-This unique and proprietary methodology provides monthly updates on model and brand share for Major Appliances within 3 major retailers (The Home Depot, Lowe’s, and Best Buy). For more information, please contact Eric Voyer at ericv@traqline.com.
Eric Voyer
OpenBrand - The Stevenson Company
email us here
Sony and Pioneer Are Helping Drive Mobile Audio Market
According to research published in 2019, the average person spent 10 hours and 50 minutes in their vehicle every week—up 12 percent from the year before. With drive-through and curbside services on an uptick during the chaos of 2020, that number probably climbed higher. Further, people now use their car stereos for everything from streaming music and podcasts to answering phone calls. This offers an opportunity for the mobile audio market to grow.
Here at OpenBrand, we wanted to see where people have been buying their auto electronics, how prices have changed with technological advancements, and what is driving purchases. Here is a look at some of the insights from our quarterly survey.
A Look at Top Retailers in the Mobile Audio Market
At the time of article publish, OpenBrand collected information from consumers on mobile audio such as: car stereos, amps, and CD changers. Which retailers took the lead in the auto electronics market for 2020? The number one retailer was Walmart, commanding an average of 20 percent of the total market across the country. Online retailer Amazon wasn’t far behind. By Q4 of 2020 Amazon held 18 percent of the market, and Best Buy was holding steady at 16 percent. Looking at regional total market share numbers, both Amazon and Best Buy beat out Walmart in the Western and Northeastern regions of the country.
The dollar and unit shares of the biggest outlets for 2020 also offer a glimpse into how the market is shifting. Unsurprisingly, Amazon saw the biggest Year over Year (YoY) gains from 2019 to 2020. Dollar shares were both up 3 percent. Target, not as well-known for auto electronics, also had a significant increase in unit sales.
While Walmart has remained relatively stable in dollar share between 2015 and 2020, the retail giant did see a slight dip in mobile audio dollar share over the past year (directionally down 0.5 percent). Best Buy had the most significant drop between 2019 and 2020, with a 4 percentage point decrease in dollar shares. Both retailers also saw unit share losses, with the most significant drops between 2019 and 2020.
Online vs. Brick and Mortar for Mobile Audio
With the marked shift to e-commerce affecting ever category from exercise equipment to lawn and garden, it is easy to assume that auto electronics are more commonly purchased online. Surprisingly, only 40 percent purchased online during 2020. Walmart and Best Buy saw more in-store purchases compared to the industry average. Target and Sony stores were more in line with the industry as a whole.
Price Trends Have Remained Stable
The brand with the most significant price increase over the last five years is Kenwood ($163 in 2016 vs. $210 in 2020). Other than Kenwood, most brands have maintained relatively stable prices. For instance, a Sony product would cost an average of $130 in 2016 and had only increased to an average of $134 in 2020. Among the top brands, Kenwood, Bose, and Pioneer are the most expensive; Sony and JBL have remained at lower prices and are more in-line with industry averages.
Mobile Audio Market Brand Trends
Sony had a substantial lead for the top market share spot in 2020, holding 16 percent of the market. Pioneer has a slim lead over other brands to hold the number two position with 8 percent of the US market.
Some mainstay brands in mobile audio like Sony, Pioneer, Kenwood, and Bose saw decreases in both dollar and unit share between 2019 and 2020. Many top industry brands have been on a decline for years. Pioneer, for example, has seen a sharp decline in shares, falling from almost 19 percent in 2019 to less than 10 percent by the end of 2020. On the other hand, JBL saw a significant increase in dollar and unit share between 2019 and 2020.
What Drives Consumers to Certain Outlets, Brands, and Products?
What drives consumers to buy auto electronics at specific stores? Let’s take a closer look:
- Why they bought a product: Top reason was to get a replacement for a unit that needed work or didn't work.
- Why they bought one brand over another: Top reasons were competitive price, quality product, and appearance, specifically when buying JBL or Samsung brands.
- Why consumers bought from certain outlets: Competitive price and good selection ranked highest, most notably in reference to Amazon or Crutchfield.
How many brands did consumers shop before settling? Across the industry, 66 percent of survey respondents said they shopped for one brand, and 33 percent reported shopping for two or more brands before making a purchase.
Final Words on the Mobile Audio Market
Competitive pricing is a major purchase driver for consumers, whether it’s the price of a certain brand or the price offered via a certain outlet. And while some of those top auto electronics brands are still going strong, some up-and-comers are giving mainstay brands a run for their money. One thing is for certain, mobile audio grows more important by the year. It will be interesting to see how the market shifts to accommodate those values in the future.
Are you looking for more insights into the Automotive or Electronics market? Reach out to one of our Account Executives for more information on how OpenBrand data will give you a competitive edge in the market.