How Does Menards Market Share Compare to National Retailers?
With people being forced to spend much more time at home during COVID, many have taken up new home improvement projects to keep themselves sane. However, between an increase in demand for products and a slowed supply line, not everything has been readily available when and where consumers are most used to making purchases. Consumers have handled this change not only by conducting more ecommerce, but also by increasing their shopping at regional retailers like Menards. Competing with national retailers is a challenge, however a rising tide lifts all boats.
David vs Goliath: Menards holds its own against National Retailers
Looking at only national performance runs the risk of overlooking key regional players like Menards. Nationally, Menards wins 3 percent market share for 2020. But by focusing only on the DMAs where Menards is located, a more nuanced view of the chain’s performance develops. For example, in the DMAs where the retailer is located, Menards leads unit share when it comes to all products sold at home improvement stores (16 percent TY 2020). While their share year over year (YoY) remained flat versus 2019, they maintained that lead over Home Depot, Walmart, and Lowe’s. All three retailers were all also flat or significantly down from 2019.
What’s more—consumers’ decision to shop at Menards over other retailers isn’t just due to pandemic necessities. While most consumers cite price as the primary reason they select a retailer, Menards shoppers are significantly more likely to cite price as a deciding factor compared to shoppers at THD or Lowe’s. And much like Home Depot, product selection is another common factor for where consumers at those retailers shop.
Breaking down performance by specific product categories, highlights categories in which Menards excels, and also products where they have opportunity to gain on their National retail competitors.
Where Does Menards Beat THD or Lowe’s for Market Share?
When going toe-to-toe with national Home Improvement retailers, there are a few places where Menards really shines in the regions where it operates. For example, Menards’ market share for lighting and fans has a strong lead on other retailers. Menards’ 24 percent marketing share in lighting and fans is up directionally YoY for 2020. The retailer experienced significant growth for Building Materials as well (rising from 35 to 38 percent YoY for 2020). This helped increase its lead over Home Depot. In Menard’s DMAs, Home Depot lost significant share among consumers in Building Materials. In flooring, despite being directionally down YoY, Menards still maintained its lead over other retailers with 23 percent unit share.
Where Does Menards Have Opportunities to Grow its Market Share?
Despite Menards having the chance to shine when looking at specific DMAs, there are spots where national retailers like Home Depot and Lowe’s still take the lead.
In some categories, like Paint (traditionally a category where Menards performs well) and Appliances, YoY growth was not enough to push Menards to number one for Menard’s regions. Nevertheless, Menards did see significant YoY growth in the Appliance category. Despite this, Lowe’s remained the number one retailer nationally for Appliances.
Menards saw YoY declines in categories such as power tools, hand tools, and nursery products. In cases like Hand Tools, this significant decline meant that they lost the lead they had to Home Depot. Additionally, Walmart is quickly catching up.
Even in cases where Menards held steady from 2019 to 2020, such as in Lawn and Garden, national retailer Home Depot remains ahead of the regional retailer. Other rivals like Lowe’s and Walmart had more difficult years and were both significantly down.
Quick Summary on Menards Market Share TY 2020
In regions where Menards is active, it has proven that it can compete directly with national Home Improvement retailers such as Lowe’s and Home Depot. COVID-driven home improvement projects propelled consumers to new heights as they looked for tools to complete their designs. Because of this, regional players were able to benefit as much as national players.
- When examining the DMAs where Menards is active, the retailer leads unit share among all outlets.
- This is flat from TY 2019.
- Home Depot, Walmart, and Lowe’s are all also directionally down or flat from 2019 to 2020.
- Looking at individual categories, Menards takes market share lead in the following:
- Building Materials.
- Flooring.
- Lighting and Fans.
- Categories where Menards has opportunities to grow its market share include:
- Power tools, where they take 3rd place.
- Appliances, where they take 4th place.
- Hand Tools, where they take 2nd place.
- Lawn and Garden, where they take 2nd place.
Are you curious about how regional retailers are affecting the market in your area? Contact one of our Account Executives today to learn about how OpenBrand can help you develop a more nuanced understanding of the market.
LG Laundry Models Take Top Spot at Major Retailers in February 2021
OpenBrand's Hybrid POS™ system shows that for February 2021 LG again had the top model in two of three Laundry Product categories
LOUISVILLE, KY, UNITED STATES, March 30, 2021 /EINPresswire.com/ -- OpenBrand today released information on the top performing models (SKUs) for three Laundry 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 Front Load Washers, Top Load Washers, and Clothes Dryers. In two of three categories, LG held the top position for models this month.
The best selling model for Top Load Washers in February was Samsung WA50R5200AW, which captured a 6 percent of unit share at the big three retailers, one-half point higher than the next SKU. Also:
- Its performance was driven by its share (10 percent) at The Home Depot where, on average, it took the first page position on the website. This model was (and still is) featured in a banner for bundled washers and dryers on The Home Depot’s website along with its electric- and gas-dryer counterparts in February 2021.
- This model features built-in water heating, 10 wash-cycles, a capacity of 5.0 cubic feet and averaged $710 across retailers.
For the second consecutive month, the best selling model for Front Load Washers was LG’s WM3400CW, which commanded a unit share of 13 percent fo the big three - a 2 percentage point increase from January. It led the second place Front Load Washer in share by almost 5 percentage points. Additionally:
- LG Model WM3400CW was the leader at The Home Depot, Lowe’s, and Best Buy. Its performance was particularly strong at The Home Depot.
- The Front Load Washer was displayed prominently on all three retailers’ websites, which likely helped drive its strong performance.
- The model features a built-in water heater, 8 wash-cycles, has a capacity of 4.5 cubic feet, and averaged $733 across retailers.
LG also had the best selling Clothes Dryer model again in February, with model DLE3400W, which had a unit share of 6 percent for the major retailers, up slightly from January and more than twice that of its closest competitor:
- As in January, DLE3400W performed especially well at Home Depot, where it won almost 10 percent of unit share and had a prominent position on the website. This model is featured along with the top-ranking Front Load Washer on The Home Depot’s website.
- DLE3400W was (and still is) featured along with the top-selling Front Load Washer (WM3400CW shown above) on the Best Buy website.
- Its average price was $731, and the Electric Dryer has a capacity of 7.4 cubic feet.
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 - Stevenson Company
+1 502-271-5267
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Consumer Electronics: 2020 Market Share Insights
The consumer electronics industry is constantly evolving, which fosters an unpredictable market environment. Over the last year, we have seen an elevation in unpredictability across markets. So how did the pandemic affect the consumer electronics market share? OpenBrand is here with insight.
OpenBrand provides quarterly data updates to ensure we have the latest information, provided directly by consumers. While our quarterly reports with your OpenBrand subscription include much more detailed and actionable insights, we have put together a brief overview for businesses interested in learning more. Here is a closer look at 2020 consumer electronics market trends and statistics.
What Motivates Consumers to Buy Electronics?
What motivates individuals when they are buying electronics? Uncovering purchase motivation can help you boost sales and grow your market share. In the consumer electronics sector, our 2020 data shows that a majority of consumers (43%) were motivated to buy a certain brand based on its competitive pricing. That is also the leading motivation that 61% of consumers reported for choosing which retailer to buy from.
Where Do Consumers Spend the Most Money?
Ultimately, many brands and retailers measure their success based on the bottom-line earnings. So where do consumers spend the most money? Due to the mix of products sold, the largest spend for each individual sale goes to Apple, averaging $611 across consumers. However, the most consumer dollars towards electronics went to Best Buy, which earned 31% of the market share.
Do Consumers Buy Electronics Online or In-Store?
With COVID-19 and the increasing popularity of online purchasing, you might be wondering how 2020 in-store purchases stack up against online orders.
- Brick-and-mortar retailers have the advantage of immediate order fulfillment, on-site expertise, and electronic tests/previews that let consumers try before they buy. They also alleviate any fears consumers may have about damage during shipping.
- On the other hand, online retailers have the advantage of convenience, research/review information, and often a wider inventory.
So are consumers buying electronics online or in-store? Brick-and-mortar stores still have a lead in the consumer electronics market. Our 2020 OpenBrand data suggests that 61% of consumers purchased their consumer electronics in-person compared to 35% online (and 4% other).
Demographics: Which Gender Buys the Most Electronics?
Understanding the target audience of electronic purchases can help your business when launching new products. So which gender buys the most electronics? In 2020, 47% of consumer electronic sales went to men, while 31% went to women. The remaining 22% of sales were joint purchases. OpenBrand also tracks regional and income-based insights. You can download our free infographic to read more about these and other statistics.
OpenBrand Market Research Insights
OpenBrand measures data across the consumer electronics industry, including the TV & Audio, Cellphone & Computing, and Auto Electronics sectors. These insights are just a small preview of all that OpenBrand has to offer. We also provide custom research services to help take your business to new heights. If you are ready to get our industry-leading market research, statistics, data, and support on your side, contact the professionals at OpenBrand to get started today!
Home Appliance Market Share: What You Need to Know
OpenBrand keeps you in the know about all of the latest consumer trends and market share data across industries. While the full OpenBrand report includes detailed data and expansive insights, our free infographics provide the data basics. Here is a short preview of the kind of information you can get from OpenBrand’s quarterly reports on the major appliance market.
What is a Major Appliance?
Major appliances are also called large appliances, large domestic appliances, large electric appliances, and (in more dated terms) white goods. These products are the more sizable appliances found in most homes. This umbrella encompasses refrigerators, dishwashers, washing machines, dryers, and ranges (ovens).
What is the difference between a large (or major) appliance and a small appliance? You might be surprised to find that it is not a matter of size. Instead, large and small appliances are often distinguished by their portability. If you can easily move an appliance from one place to another, it is generally considered a small appliance. If the mobility of your appliance is limited, it is generally considered a large appliance.
Major Appliance Data, Statistics, and Market Share Insights
Within the home appliance market, it is essential to keep a close eye on three main industry metrics: top-performing brands, regional players, and top-performing retailers.
Top-Performing Brands
What are the biggest brand names in the major appliance sector? Looking closely at how leading brands are performing can help you uncover growth opportunities and gain market share. As of the beginning of 2021 in the large appliances industry, the top-performing brands include Samsung (20%), LG (16%), General Electric (16%), Whirlpool (16%), and Maytag (8%).
Samsung Leads in Several Categories
SKU data can help you dive even deeper into top-performing brands, retailers, and even specific appliances. For example, Q1 2022 OpenBrand HPOS™ data revealed that Samsung holds 3 of the top 5 spots in the French Door Refrigerator category. The top SKU in this category was RF28T5001SR—to see the top 5, click here.
Regional Players
As the name suggests, regional players are brands and products that dominate a certain region. While you may not see them as a threat, these brands heavily impact sales and carry the potential to expand further into your domain. According to our most recent major appliances market data, 26% of customers chose the retailer with the most convenient location in their area.
Major Retailers
Tracking retailer performance is essential within any industry, but it is especially critical with major appliances. These are larger purchases (both in size and in expense), so consumers often want to visit a retailer and view their options in person rather than buying online. Our data found that 70% of consumers bought their major appliances from a retail store. This is almost a 10% difference from the small appliance market, where only 62% of purchases were from a retail store.
So where do consumers buy their large appliances? According to 2020 OpenBrand data, Lowe’s accounted for the most major appliance sales (26%) followed by Home Depot (20%) and Best Buy (12%). However, these specifics can vary when looking closely at different kinds of major appliances.
Consumer Motivation: Why Buy New Appliances?
When it comes to understanding any market, it is essential to explore consumer motivation, as it can heavily impact buying decisions. According to OpenBrand data, most customers (61%) bought a major appliance because their old one was broken. This motivation can impact consumer purchases; for example, when spending hundreds of dollars replacing a broken appliance, consumers may be motivated to seek out a new brand that they feel may last longer.
Other leading motivations behind this consumer purchase decision include moving to a new location (14%), remodeling (8%), and simply wanting an upgrade (8%). If you would like to test your major appliances knowledge, you can take the OpenBrand quiz: How Much Do You Know About Major Appliances?
OpenBrand: Home Appliance Market Data
OpenBrand is your source for market share information. Of the top 10 brands within the appliance industry, 100% trust OpenBrand for their market research data. We also offer industry-leading SKU-level data with our Durable IQ, SKU Metrix™ and OpenBrand HPOS™ offerings. OpenBrand HPOS leaves traditional POS systems in the dust, providing more insight than ever for the major appliance industry. If you are ready to unlock the data your business needs to track competitive share, stay ahead of evolving major appliance trends, and execute your strategy, contact our experts today.
Bringing Home Baby (Care Products)
Products for infants, toddlers, and small children must meet a lot of standards and win a lot of trust from buyers. Products like Car Seats, Strollers, Cribs, and Highchairs are an important part of caring for some of the most vulnerable members of the population. When caring for these new humans, what brands of products are their parents purchasing and at what outlets are they making these purchases? And what are they considering as they make those choices (which probably feel extra fraught because they are designed for such small children)?
Which Retailers and Brands do buyers shop for childcare products?
When buying products for infants, toddlers, and small children, the adults in their lives most commonly turn to Walmart, Amazon, and Target, in that order. When looking at online only purchases, Amazon and Walmart trade places, while Target stays steady at third. Prior to the pandemic, close to two thirds of children’s products were purchased in brick-and mortar stores (61 percent in the 3ME Jan 2020). Online sales trended slowly upward during the pandemic (peaking at 46 percent in the 3ME Jul 2020), though they have decreased slightly as more stores are open to shoppers and shoppers feel safe enough to go to stores. That said, the mix of online to brick-and-mortar unit shares is similar, with 48 percent in-store and 45 percent online.
There are a wide variety of smaller brands that cater to childcare needs, but the brand that rises to the top is Graco, with 21 percent of unit share for the market. Notably, buyers have a low incidence of not knowing what brand of product they have purchased, sitting at 6 percent for 3ME Jan 2021. This suggests that brand matters for purchases in this category.
What childcare products are people buying most often?
The two child-care products that top unit share among OpenBrand respondents are infant/toddler/booster car seats (32 percent of purchases), with highchairs coming in just behind at 31 percent. One possible reason for such high purchase incidences is due to the roles they fulfill in caring for very small children. Car seats play a vital role in keeping infants, toddlers, and small children safe in moving vehicles. As children grow, their safety needs change, as detailed by health organizations such as the Mayo Clinic. And due to their size, infants and toddlers cannot sit in chairs designed for adults, and their caretakers need a way to feed them that is both safe and convenient. Additionally, safety guidelines for child-care products shift over time. A car seat or highchair that was considered safe for one child may no longer meet those guidelines when the next child is born.
Infant/Toddler/Booster Car seats keep kids on the move
Like other childcare products, Infant/Toddler/Booster Car Seats have a similarly low number of purchasers who report that they do not know brand. This acute knowledge of brand names is one part of why buyers choose their car seats. The top two reasons are Good Brand Name and Competitive Price. Interestingly, only 5 percent of buyers indicated that recommendations were an important factor in deciding what brand of Car Seat to purchase. It would be easy to assume that recommendations would play a larger role, given the proliferation of parenting groups one can find online.
Another thing to note about Infant/Toddler/Booster Car seats is that they can be purchased as part of “travel systems”, which typically combines both a stroller and a car seat. Approximately half (48 percent) of OpenBrand respondents indicate that the car seat they purchased was part of a travel system. Stroller buyers more frequently choose travel systems for themselves, at closer to a 60/40 split. This higher percentage of travel systems for stroller buyers could possibly be attributed to needing more car seats than strollers. A family with a very young child may only need one stroller but require two car seats—one for each parent’s car.
Highchairs give babies a seat at the table
Once babies and toddlers are started down the path towards eating solid foods, caretakers tend to invest in highchairs. Most buyers cite price and brand name as the top two reasons they choose a specific highchair brand, just as they do with car seats. Much like other children’s products, this emphasis on brand name means that there is a low incidence of buyers who report that they do not know brand (6 percent 3ME Jan 2021). And when choosing a highchair, one of the more sought-after features is a safety harness to keep small, wriggly children securely in their seats for the duration of a meal.
Childcare Products Quick Summary
Again, making decisions on what to purchase for infants, toddlers, and children can feel especially fraught, so knowing where and what consumers are purchasing can hep retailers position themselves to win trust. As of the 3ME Jan 2021, here are the Childcare Product Leaders and Stats you need to know:
- Walmart, Amazon, and Target are the top three outlets, with 29, 21, and 12 percent unit share, respectively.
- For online only shopping, the top three outlets are Amazon, Walmart, and Target, respectively.
- Of the multiple baby products included in OpenBrand, Infant/Toddler/Booster Car Seats are the most frequently purchased products, with 32 percent of the mix. Highchairs come in a close second with 31 percent.
- Graco is the number one children’s products brand, winning 21 percent unit share.
- Children’s Products have a low incidence of consumers not knowing brand name—only 6 percent report not knowing brand.
If you are looking for more insights like this, contact us today!
5 Unbeatable Sources for Consumer Data
Data is Knowledge, and Knowledge is Power.
Good data can help you make better business decisions. However, there can be a significant difference between the kinds of information that different data sets can provide. Data is definitely not “one size fits all”.
When you are doing market research, you need to make sure you are using the correct data for the situation at hand. That is why so many companies trust OpenBrand with their consumer durables research. It takes experience to determine the right data to use and expertise to uncover the insights you need for your unique business objectives.
High Quality Sources for Consumer Data
When it comes to consumer durables data sources, there are five major categories of data used in consumer research:
Internal Sales Data
Internal Sales Data is a high-quality source for digging into consumer insights and can be a great starting point for customer research. Even better, it is easy to use because internal sales data will be familiar to people within the organization.
Examples: YOY comp sales, sales by feature, pricing trends, promotional effectiveness, 10(K) / Earnings calls
Consumer Data
Custom research consumer data is a reliable source of data that will allow you to map consumer characteristics and behavior to purchases. It can be an excellent independent source to measure retailers or brands and competitors’ shares within consumer channels.
Examples: Customer satisfaction, preference tests, tradeoff analyses, segmentation
Point of Sale Data
Point of Sale (POS) data may be a part of your internal sales data, or you may be able to access collections from retailers, third-party companies, and manufacturers that partner with retailers. Comprehensive POS Data can be utilized to benefit marketing teams by indicating which features and SKUs are selling best and at which price point.
Examples: Category captain data and retailer POS extraction
Government Data
Government data is widely available and can provide a wealth of information about shipments, trade activity, business formation, patents, pricing, and economic trends. It is reliable in providing sales by retailer classifications, sales to non-residential construction, producer and consumer price indices, housing permits, housing starts, and completions.
Examples: Census data, Census of Retail Trade, CPI, Housing Starts/Completions, etc.
Industry Association Data
Sales data collected from member companies are typically collected and aggregated by trade organizations. Data includes the estimation of industry sales and may include breakdowns by revenue, geography, and other filters. This data is utilized when measuring sales in terms of shipments from manufacturers to their customers on a monthly or weekly basis.
Examples: OPE, AHAM, PCRP, RMA, HPBA, ISPA, PTI
Other sources for consumer data
While these sources are a good start, as you continue on your journey to collate and analyze data, there are other avenues to explore. Company websites, annual reports, and other business filings can be a resource of insight into industry and competitor performance. Some groups publish market research that is available for a fee. Other sources, like OpenBrand, may provide some market research reports online for free. You may begin monitoring social media as a source of data. However, it is important to be aware of the biases this can introduce (such as selection bias — not everyone is on social media).
Using the Right Data Sources for Market Research
In most cases, data diversity will be important. Single datasets can have gaps, blind spots, or biases. For example, if you are only using current customer feedback to assess product enhancements, you will not be able to tell if these enhancements will attract new customers — only the impact on existing customers.
It is also important to avoid data duplication. Even from different sources, some data can be present in multiple places and can skew results if you do not deduplicate it prior to analysis.
Using the right data tools, you can:
- Defend against competitive threats
- Find opportunities to build share
- Launch new products
- Track brand and retailer performance
- Track regional and national brands and retailers
- Learn about buyer motivations
- Prepare for line reviews
- Track online and offline shopping and buying trends
- Create custom research to make better decisions
Demystifying Consumer Data
It can be complex. That’s why businesses turn to OpenBrand solutions to provide the right data, using the right data sources, to provide consumer data and market insights. We track the entire retail market—both online and brick-and-mortar—across brands and outlets to provide a comprehensive market view. We can combine demographic, geographic, and behavioral data collected from the consumers that buy your products and provide up-to-date information on your industry and your biggest competitors.
Contact the data experts at OpenBrand today for more information on consumer research, market research, or to schedule a free demo. Let us show you how to demystify consumer data and how it can lead to insights that become powerful competitive advantages.
Auto Electronics Infographic
What are the best brands and outlets in the US Automobile Electronics market share? – An infographic
OpenBrand answers the “who”, “what”, “where”, “when”, “why”, and “how” for Automobile Electronics market shares. Our quarterly survey will help you understand who’s buying Automobile Electronics, where they’re buying them, and what drives their decisions. Our Automobile Electronics Market infographic will help you answer the following questions about the market and how it is changing…
Who is leading sales in the Automobile Electronics market?
Our infographic will give you greater details, but for now, here’s what you need to know about the market leaders:
- Walmart continues to lead unit share in Automobile Electronics but is down about 1 point versus 2016 share. Amazon (third highest retailer) increases over 5 points versus 2016 – likely due to pandemic concerns.
- Sony is the brand leader for the category both online and in brick & mortar stores. However, overall Sony share is down almost two points versus 2016.
- 2020 share of traditional brands like Pioneer (-7 points) and Kenwood (-4 points) are down significantly versus 2016.
How much do consumers spend on Automobile Electronics?
When buying Automobile Electronics, the 2020 industry average price paid is $142. However, the average amount spent at different retailers can vary. For example:
- Shoppers buying from Bose spend $249 on average.
- Shoppers buying from Crutchfield spend an average of $204.
What demographic is buying Automobile Electronics?
Just who buys Automobile Electronics? OpenBrand’s census-balanced respondent pool has given us insights like:
- 69% of 2020 Automobile Electronics purchasers are men – down slightly from 70% in 2016.
- Purchaser age is fairly consistent since 2016, with almost one-quarter (24%) of 2020 purchasers in the 35 to 44 age range.
Automobile Electronics Market – Online vs. Brick & Mortar Sales Trends:
Brick & Mortar remains the most popular sales channel, but 2020 sales (47%) has decreased year over year since 2016 (61%). Here are just some of the trends that OpenBrand has uncovered:
- Online sales have increased steadily the past five years. 2020 online sales increase to 40% – likely due to pandemic concerns.
Automobile Electronics Market Share Facts:
Curious about other information OpenBrand’s survey has uncovered? Here’s a preview for you:
- “Competitive price” remains the top reason for store purchase. 47% of purchasers mention as a reason for store selection.
- Amazon saw increases in draw and close rate over 2019 (one of the few retailers to see an increase in both measurements).
To see everything we’ve included on our infographic, fill out the form below and download your own copy:
Exercise Equipment Infographic TY 2020
What are the best brands and outlets in the US Exercise Equipment market share? – An infographic
OpenBrand answers the “who”, “what”, “where”, “when”, “why”, and “how” for Exercise Equipment market shares. Our quarterly survey will help you understand who’s buying Exercise Equipment, where they’re buying it, and what drives their decisions. Our Exercise Equipment Market infographic will help you answer the following questions about the US Exercise Equipment market and how it is changing…
Who is leading sales in the Exercise Equipment market?
Our infographic will give you greater details, but for now, here’s what you need to know about the market leaders for Exercise Equipment:
- Amazon takes the lead for unit share in the Exercise Equipment market, growing significantly from last year.
- Peloton is now the brand leader for Exercise Equipment with 9 percent of unit share.
- Amazon and Peloton’s share increase is largely at the expense of Walmart and Dick’s Sporting Goods.
How much do consumers spend on Exercise Equipment?
When buying Exercise Equipment, the industry average price paid for these products is $641. However, the average amount spent at different retailers can vary. For example:
- Shoppers buying Exercise Equipment from Amazon spend $378 on average.
- Shoppers at Peloton, on the other hand, spend about $2012 on average.
What demographic is buying Exercise Equipment?
Just who buys Exercise Equipment? OpenBrand’s census-balanced respondent pool has given us insights like:
- In approximately one third of all Exercise Equipment purchases women take the lead (33%).
- The South under-indexes on Exercise Equipment buyers.
Exercise Equipment Market – Online Sales Trends:
With 66% of Exercise Equipment purchases being made online, it is vital to keep track of online sales trends. Here’s just some of the trends that OpenBrand has uncovered:
- The percentage of Exercise Equipment Purchases made online has increased dramatically from this time in 2019 (66 percent this year vs 52 percent in 2019).
- Possibly contributing to Amazon’s growth, 71 percent of Exercise Equipment buyers have Amazon Prime.
Exercise Equipment Market Share Facts:
Curious about other information OpenBrand’s survey has uncovered? Here’s another preview for you:
- The average price paid for Exercise Equipment ($641) is up 13 percent compared to last year’s average price.
- Walmart saw significant decreases in unit and dollar shares as well as draw and close rate for Exercise equipment.
To see everything we’ve included on our infographic, fill out the form below and download your own copy:
Fitness Equipment Market: 1, Pandemic: 0
One way that consumers across the country sought out endorphins during long stretches at home full of uncertainty has been through investing in fitness equipment. And with stay-at-home orders affecting much of the country for various lengths of time, many consumers turned to online shopping to fill the gym-sized holes in their social schedules. News outlets reported on the challenges of finding desired equipment (especially dumbbells) at reasonable prices. After my own fraught and expensive attempts to source fitness equipment at the height of the pandemic, I decided to look to OpenBrand’s data to put quantifiable data to my own anecdotal experience. Below, I dig into the data around how the Fitness Equipment market has grown during the pandemic, as well as what specific products are resonating with consumers looking to exercise at home.
Online Goes for Gold
While the percentage of Fitness Equipment sold online has been increasing steadily year over year since Q1 2019, the last three quarters have seen significant growth. In fact, 69 percent of all Fitness Equipment was purchased online in Q4 2020, up from 56 percent a year ago in Q4 2019. Perhaps unsurprisingly, Amazon has grown significantly in unit share for the last 4 quarters and currently wins 31 percent of the total market. Amazon’s unit share growth is not reflected in its dollar share.
When isolating just online sales, Amazon is not showing such significant growth in unit share and is losing share in online dollar share. This is a strong indication that as shoppers are shifting to purchasing online overall, they are not averse to looking at traditional brick-and-mortar retailers’ online offerings.
While the necessity of staying home probably has played an important role in this shift, availability of products also played a role. “Product Selection” has seen a significant increase as a reason that consumers choose to buy from specific retailers. Additionally, the number of consumers who reported that they shopped three or more stores has significantly increased year over year (9.4 percent in R4Q Q4 2020 vs 7.9 percent the prior R4Q).
As noted before, online unit shares had been increasing since Q1 of 2019. Additionally, 72 percent of Fitness Equipment buyers have Amazon Prime memberships, which could also be continuing to nudge buyers towards making online purchases.
Stationary Bikes Cruise to the Top
As consumers looked to stock their personal gym setups, certain pieces of equipment saw significant increases of unit share. For example, Elliptical machines, Multipurpose Machines, Rowing Machines, Stationary Bikes, and Treadmills all saw significant online unit share increases.
Of all these pieces of equipment, Stationary Bikes in particular increased their overall unit and dollar shares, while also seeing significant growth in online sales (27 percent unit share overall, 30 percent online unit share). The next most popular piece of equipment was the Treadmill, winning 19 percent of unit share overall (and 17 percent of online share). And while no one fitness equipment brand specifically took home the crown, Peloton has had steadily increasing YoY growth and has handled the shift with aplomb. Of all stationary bike brands, Peloton took home 25 percent unit share, driven in part by “recommendation”. Perhaps Peloton’s infamous commercial from last holiday season helped create a buzz around their bikes after all! In fact, the relatively high cost of Peloton bikes may be a contributing factor to the online dollar share increase for Stationary Bikes as a whole.
Recap:
While already comfortable shopping online for Fitness Equipment, this year saw an increase in consumers making purchases online. Amazon topped the retail unit share list with 31 percent in Q4 2020 (and won 43 percent of the online only share). Stationary Bikes won 27 percent of unit share overall in Q4 2020 (30 percent online only share).
How Online Shopping is Affecting the Bath Fixtures Market
With homeowners pouring so much care and attention into their living spaces during extended time at home, we thought that it was time to investigate the data we have available on how homeowners are making purchases to fit the needs of their new “normal”. Specifically, we wanted to know what the Bath Fixtures Market is currently looking like, especially since hygiene is a top priority during the COVID-19 Pandemic.
Who are the top players in the Bath Fixtures Market?
At the close of Q4 2020, Home Depot and Lowe’s sit at the top of the Bath Fixtures market, with 35 percent and 27 percent unit share respectively. Amazon takes third place with 8 percent. Walmart and Menards are also top players, with just over 4 percent of the market each. Looking at how the Bath Fixtures market has shifted over the last five years, both Amazon and Home Depot have increased their share. Lowe’s, on the other hand, has lost share in the past five years, decreasing from 30 percent to 27 percent in that time.
The three brands that consumers gravitate towards are Moen, Delta, and Kohler, who have 16 percent, 15 percent, and 14 percent unit share, respectively.
Has the shift to online shopping affected the Market?
While 71 percent of Bath Fixtures are purchased in brick-and-mortar stores, online sales are gaining momentum. Currently, consumers purchase 23 percent of all Bath Fixtures online. As online sales have increased year over year, brick-and-mortar sales have seen a commensurate decline. This year specifically has seen a dramatic increase in online purchases, up from almost 18 percent last year. This increase in online shopping is a primary driver of Amazon’s Bath Fixture Market share increases.
Online Shopping Trends in the Bath Fixture Market
Around 41 percent of consumers report that they do some shopping online before making a Bath Fixtures purchase. While more than half of those customers choose to make their final purchase online (55 percent R4Q Q4 2020), the activities of those who ultimately purchase in store is illuminating. Online shoppers who buy their Bathroom Fixtures in brick-and-mortar stores are more likely to report that they were doing basic product research and searching for promotions before making their purchase. Retailers and Brands alike can capitalize on this by making sure that product information is easy to find and understand on their sites, as well as highlighting any promotional deals they have available.
Overall, the increasing shift to online is not causing a major threat for traditional Bath Fixture Retailers and Brands yet. However, looking at how consumers are shopping and making their choices will give an additional edge as consumer behavior is undergoing rapid change.
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