NPD: Gifting May Be Small Appliance Segment’s Untapped Opportunity

When it comes to small appliance sales, wedding and bridal showers represent a significant opportunity, accounting for nearly 10% of category sales, according to figures released by NPD Group. Consumers in the United States spent $1.8 billion on small appliances as gifts from June 2012 to May 2013, according to NPD.

Engagement, bridal shower, and wedding gifts accounted for $112 million of those sales, and the average price paid for those gifts was 39% higher than what was spent on gifts for non-bridal occasions. Among all gift-giving occasions, wedding and bridal shower gifts topped the list in terms of average amount spent.

“While the holiday season accounts for more than half of the annual small appliance sales, weddings present a unique opportunity for recipients to request premium products at a special time in their lives when friends and families are likely to splurge on presents, regardless of available promotions,” said Debra Mednick, executive director and home industry analyst, The NPD Group, Inc.

Gift purchases represented 12% of total small appliance dollar sales, across all occasions. When consumers bought a small appliance as a gift for someone else, they spent an average of 7% more than they did on items for themselves. Small kitchen appliances continue to be the most gifted segment, with 16% of unit sales coming from gift purchases, and the average spend 18% higher than on non-gift items.

“Essential or fun, premium or basic, small kitchen appliances of all types are popular present options, appealing to cooks and non-cooks alike,” added Mednick.

Website sales accounted for 15% of total small appliance dollars from June 2012 to May 2013. During this same time, 20% of small appliance gift dollars came from online sales, and among bridal related gifts this shopping channel claimed slightly more of the market.

“Online shopping makes gift-giving easy, with the ability to buy and ship in just a few clicks. Registry websites simplify the process even further when looking for a gift that a bride and groom actually want and need,” said Mednick.

The average price paid for a small appliance purchased online was 56% higher than was paid in traditional brick-and-mortar stores. Even though consumers are already spending more on wedding and bridal shower gifts in general, the average online spend was 14% more than gifts purchased in a store.

“Getting in the minds of consumers at key gift-giving times, be it a wedding or holiday, can be beneficial to the top and bottom line for all types of appliances, whether it is for the kitchen, the hair, or the floor,” concluded Mednick.


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