PORT WASHINGTON, NEW YORK, November 21, 2005 – The NPD Group, a leading consumer and retail information company, has released its 2005 survey of consumer buying intentions for holiday spending. Practical purchases, particularly for housewares and home improvement items, are definitely part of gift-giving plans.
According to the survey respondents, 14% plan to purchase housewares as holiday gifts this year. The survey indicates that 62% of those who plan to give housewares gifts will spend up to $100. Those who planned to spend $100-$499 (34%) were half as many as those who planned on spending under $100 (67%). Significant increases were seen in the housewares category for bakeware, beverageware, cutlery, dinnerware, and cookware sets during the 2004 holiday season.
When asked if appliances had any place on their shopping lists this year, just 7% indicated that they plan to purchase appliances as holiday gifts. Nearly half of the panelists responding (47%) said they plan to spend less than $100 on appliance items as gifts. The new NPD data suggests that small kitchen and personal care appliances are most likely to be the items of choice for holiday giving. Last year’s top five small appliance gifts included electric massagers, electric toothbrushes, men’s electric shavers, beard/mustache trimmers, and drip coffee makers.
Growing Interest in Home Improvement Gifts
And what about home improvement products as gift selections? About half (48%) of all consumers planning to purchase home improvement items as holiday gifts intend to spend up to $200 on such products. Another 45% feel that $100 to $499 will be in their spending range.
Mark J. Delaney, Director of Home Improvement for The NPD Group, expanded on the importance of the data supporting home improvement products as seasonal gifts. “As consumers continue to pour money into their homes, home improvement products are an attractive and practical option for this holiday season.”
He adds, “The affordability of new high voltage cordless technology and air powered tools that for years were only for the pros are increasingly popular items for gifts. Retailers who can merchandise products like this effectively this season will certainly benefit from the apparent trend towards practical gift-giving,” Delaney concludes.
Where Are They Shopping?
Not surprisingly, the survey showed at least 80% of those who plan to give housewares, home improvement, or appliance gifts will shop at discount stores. Over half of consumers buying appliances as gifts will shop for their purchases at national chains (57%) and electronic stores (53%). Online shopping continues to pick up momentum among busy holiday shoppers, The NPD Group notes, rounding out the top three consumer purchasing channels, specifically for housewares and home improvement products.
About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive consumer and retail information for a wide range of industries. Today more than 1,400 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys, video games, and wireless. For more information visit www.npd.com.