Amazon is making great strides in the home and kitchen space with their Amazon Home store, which curates home and kitchen wares, furniture and appliances. The eCommerce giant’s investment in this market has helped housewares account for 15% of Amazon’s growth in 2016. During the first two quarters of 2017, the growth of the Home & Kitchen product group has continued steadily as more consumers make the shift from brick-and-mortar to Amazon.

The NumbersAmazon-YoY-home-and-kitchen-sales-growth

  • $7.6 billion: com total 2016 Home & Kitchen sales.
  • $3.8 billion: com 2017 YTD Home & Kitchen sales.
  • 25%: The YoY growth of Amazon.com Home & Kitchen.

From January 1st through Prime week, Amazon sold $3.8 billion worth of housewares in the US. Both the Home and Kitchen product groups are growing at a similar rate of roughly 25% YoY, though Home continues to be the larger of the two with $2.1 billion in YTD sales compared to Kitchen’s $1.7 billion. In Germany, the market is smaller with combined YTD sales of €460 million, but Amazon.de’s Home & Kitchen sales are growing at a higher rate of over 40% YoY.

According to CBRE’s Q2 2017 U.S. Retail Figures, retail sales of housewares in America grew by 4.2% YoY, with double-digit growth for online-only retailers, while sales for brick-and-mortar department stores have declined by an average of 6% over the last four quarters. With profits dwindling, Bed Bath & Beyond has announced the elimination of nearly 900 management positions while attempting to turn the tide with a renewed focus on experiential retail and in-store programming such as live music and product demonstrations. But the most successful brick-and-mortar chains are not the ones trying to capitalize on what makes them different from Amazon, but rather the stores that are emulating Amazon by investing in eCommerce. Macy’s and Kohl’s, for example, have each doubled their online revenue since 2012.

Let’s take a closer look at some of the trends driving Amazon’s Home & Kitchen sales in the first two quarters of 2017. (You can also read our previous analysis of Amazon.com’s 2016 Housewares sales.)

Top Categories: HomeAmazon-Home-Products-International-Data

U.S. Home(amazon.com)Germany Home(amazon.de)UK Home(amazon.co.uk)
TOTAL$2.1BTOTAL€250MTOTAL£170M
Upright Vacuums$150MCylinder Vacuum With Dust Bag€15MFood & Beverage Containers£6M
Robotic Vacuums & Accessories$100MRobotic Vacuums€15MWaterfilters & Accessories£6M
Home Environment$370MLighting€50MLinens£16M
Portable Air Conditioners$10MLED Bulbs€15MBedding£4M
Fans$80MCeiling Lighting€10MBedspreads£3M
Home Storage$320MLinens€30MHome Decor£15M
Storage$80MBedding€5MAccessory & Decoration£3M
Storage & Organization$50MCurtains€5MBathroom Accessory£3M
Arts, Crafts, & Sewings$270MHome Decor€20MLighting£13M
Craft Supplies$60MBathroom Accessory€5MClassic Bulbs£3M
Scrapbooking$50MAccessory & Decoration€5MLED Bulbs£2M
Bedding$260MIroning€10MArts, Crafts, & Supplies£13M
Window Treatments, Hardware, & Accessories$70MSteam Iron Stations€5MCraft Supplies£3M
Bed Pillows$20MSteam Irons€5MScrapbooking£3M

Key Trends:

  • Floorcare

Floorcare leads other categories both the US and Germany by a significant margin. In the US, this is primarily driven by Roomba, with two different models of their iRobot vacuum comfortably landing as the bestselling items in the product group. In Germany, more traditional vacuums from Miele and Dyson still outperform Roomba, which only makes number 13 in Germany’s top Floorcare items. While vacuums dominate the category in both countries, carpet cleaners from Hoover and Bissell also rank highly in the US, with the former ranking as the 5th bestselling item in the Home product group.

  • Home Environment

In the US, Home Environment has been the next most valuable category. American consumers are investing heavily in home air quality, with 5 of the top 25 bestselling Home items coming from the Home Environment category, including air conditioners, dehumidifiers and air purifiers.

  • Philips

In Germany, Lighting has taken the runner-up spot behind Floorcare, with a strong performance in the UK as well. The success of Lighting in these countries falls squarely on the shoulders of Philips: the brand has earned the top 9 Lighting items in Germany by focusing on “healthy” lighting. Their best-selling items are LED bulbs, valued for their reputation as environmentally friendly, and many of the other top sellers are categorized as Mood Lights or Health & Wellness Lamps, capitalizing on the growing consumer interest in the potential health and psychological benefits of mindful lighting. Amazon-International-Home-Products-Revenue-Growth

US Top Products: HomeCategory
iRobot Roomba 650 Robotic Vacuum Cleaner Floorcare - Robotic Vacuums & Accessories
iRobot Roomba 652 Robotic Vacuum Cleaner Floorcare - Robotic Vacuums & Accessories
Frigidaire 70-Pint Dehumidifier with Effortless Humidity Control Home Environment - Dehumidifiers
Dyson V8 Absolute Cord-Free Vacuum Floorcare - Handheld Vacuums
Hoover Carpet Basics Power Scrub Deluxe Carpet CleanerFloorcare - Carpet and Upholstery Cleaners
Germany Top Products: Home Category
Philips Hue LED Lampe E27 Starter Set 3. Generation inkl. Bridge Lighting - LED Bulbs
Miele Ecoline Bodenstaubsauger, 1200 Watt, AirClean-Filter Floorcare - Cylinder Vacuum with Dust Bag
Dyson DC62 beutel- & kabelloser Staubsauger inkl. schmaler Elektrobürste Floorcare - Handheld Vacuum Bagless
Dyson V8 Absolute beutel- & kabelloser Staubsauger Floorcare - Stick Vacuum Cleaners
SodaStream Wassersprudler-Set Crystal - mit dem Glaskaraffen Sprudler ohne Housewares - Home Soda Makers
UK Top Products: HomeCategory
BRITA MAXTRA Water Filter Cartridges - Pack of 6 Housewares - Waterfilters & Accessories
BRITA MAXTRA Water Filter Cartridges - Pack of 12 Housewares - Waterfilters & Accessories
Brabantia Lift-O-Matic Rotary Airer with Accessories, 50 m - Silver Housewares - Rotary Clothes Dryers & Accessories (outdoor)
Brother LS14 Metal Chassis Sewing Machine Arts, Crafts & Sewing - Sewing Machines
Philips Hue White and Colour Ambiance Wireless Lighting E27 Starter Kit, 3 Lighting - Classic Bulbs
  • Food Storage

Though they fall under different parent categories, the Food Storage subcategories are among the leaders in all three countries, with Food & Beverage Containers being the largest Home & Kitchen subcategory in the UK.  As millennials enter home-ownership in record numbers, many are investing in food storage to allow them to save on food costs by purchasing and preparing food in bulk, while economic concerns are having a similar affect across demographics.

  • Drinking Water

In the UK and Germany, the growing interest in improving the household environment comes in the form of water purifiers. The success of Brita brand water filters in both countries, combined with the popularity of the SodaStream brand on Amazon.de (which earned the top two spots in the Housewares category), indicates a strong demand for quality drinking water among European consumers.

Top Categories: KitchenAmazon-Home-Kitchen-US-Germany-UK

US Kitchen(Amazon.com)Germany Kitchen(Amazon.de)UK Kitchen (Amazon.co.uk)
TOTAL$1.7B TOTAL€210MTOTAL£135M
Cooking Appliances $320M Hot Beverage Makers €55M Hot Beverage Makers £23M
Pressure Cookers $110M Espresso Fully Automatic €30M Coffee Capsule Machines £4M
Toaster Ovens $30M Filter Coffee Machines €10M Kettles£8M
Bar, Beverage & Storage $230M Housewares €50M Food Preparation £21M
Food Storage & Organization $60M Food & Beverage Containers €10M Blenders£8M
Insulated Beverage $40M Home Soda Makers €10M Food Processors £4M
Hot Beverages $210MFood Preparation €35M Electric Cookware £17M
Coffee Machines $90MFood Processors€10MDeep Fryers£3M
Espresso Machines$40MBlenders€10MOvens£9M
Cookware$170MCookware€25MToasters, Waffle & Crepe Makers£6M
Cookware Sets $40MPans€10MSandwich Makers £1M
Skillets & Fry Pans $30MCookware Sets€5MToasters£5M
Blending and Juicing$130MElectric Cookware€15MHot Beverage Makers Accessories£1M
Countertop Blenders$80MIndoor Grills€5MCoffee Machine Accessories£1M
Centrifugal Juicers $10MDeep Fryers€5MMilk Frothers£0.5M
  • The Smart Kitchen

Particularly in the US, the smart kitchen trend is reflected in Amazon’s top-selling items. For years, Instant Pot has dominated the category with their line of pressure cookers, which still account for the two bestsellers YTD, but Anova is emerging as a strong challenger with their Sous Vide Precision Cooker. This Bluetooth-enabled device automates the Sous Vide cooking method and can be started, stopped and monitored from one’s smartphone. This is just the most successful (so far) in a growing lineup of “smart” kitchen devices on Amazon and portends a new major trend.

  • Bullet Blenders

Bullet blenders have revitalized the blender market. With a refined design and a boost in power, bullet-style blenders have become one of the most popular housewarming gifts in recent years. There are four leading brands in this category all performing very well on Amazon: Ninja, the 5th bestselling kitchen item in both the US and the UK, NutriBullet, the bestselling blender in the UK, Magic Bullet, with two top 20 items in the US, and Breville, which is performing well with both blenders and coffee machines.

  • Coffee

The top Kitchen category in both the UK and Germany YTD is Hot Beverage Makers, which is to be expected since Amazon Grocery is dominated by Coffee and Beverages across all countries. While Keurig is the leading brand in the US, the top coffee maker manufacturer in the UK and Germany is De’Longhi Magnifica, responsible for the top selling item in both countries.Amazon-top-international-kitchen-sales

US Top Products: KitchenCategory
Instant Pot 7-in-1 Multi-Use Programmable Pressure Cooker, 8 Quart, 1200WCooking Appliances - Pressure Cookers
Instant Pot 7 In 1 Multi-Use Programmable Pressure Cooker, 6 Quart, 1000WCooking Appliances - Pressure Cookers
Keurig Single Serve Programmable K-Cup Pod Coffee MakerHot Beverages - Coffee Machines
Anova Culinary Bluetooth Sous Vide Precision Cooker, 800WSpecialty Electrics - Other
Ninja Professional Blender & Nutri Ninja CupsBlending and Juicing - Countertop Blenders
Germany Top Products: KitchenCategory
De'Longhi Magnifica S ECAM Kaffeevollautomat Hot Beverage Makers - Espresso Fully Automatic
Bosch Küchenmaschine Styline MUM5 Food Preparation - Food Processors
Tefal Optigrill, Standard-Modell, 2000 W, automatische Electric Cookware - Indoor Grills
Philips Gaia Filter - Kaffeemaschine mit Thermo-KanneHot Beverage Makers - Filter Coffee Machines
KRUPS Kaffeevollautomat Hot Beverage Makers - Espresso Fully Automatic
UK Top Products: KitchenCategory
De'Longhi Magnifica Bean to Cup Espresso/Cappuccino Coffee Machine Hot Beverage Makers - Espresso Fully Automatic
Instant Pot Duo 7-in-1 Electric Pressure Cooker, 6 Litre, 1000WElectric Cookware - Rice Cookers
NUTRiBULLET 600 Series Extractor Blender, 0.68 L, 600W Food Preparation - Blenders
Breville Blend-Active Personal Blender Family PackFood Preparation - Blenders
Nutri Ninja Blender Duo with Auto-iQ Food Preparation - Blenders

Amazon’s growth rate in Home & Kitchen is no fluke: the Amazon Home store makes a point of enticing shoppers with not only competitive prices but also with added services and conveniences. These include the ability to shop by category or room, seasonal curated “gift guides,” Kitchen Shorts which offer video recipes, and others. With more members of the eCommerce generation entering homeownership, Amazon is targeting their platform accordingly. Traditional retailers who still view brick-and-mortar as the primary retail channels will see sales dwindle and those who invest in Amazon now will earn the loyalty of this demographic.

 

 

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