homewares in india

HOMEWARES IN INDIA

Euromonitor International

June 2015

H O M E W A R E S I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 2 Prospects ..................................................................................................................................... 2 Category Data .............................................................................................................................. 2

Table 1 Sales of Homewares by Category: Value 2009-2014 ................................... 2 Table 2 Sales of Homewares by Category: % Value Growth 2009-2014 .................. 3 Table 3 Sales of Homewares by Material: % Value Breakdown 2009-2014 ............. 3 Table 4 NBO Company Shares of Homewares: % Value 2010-2014 ....................... 3 Table 5 LBN Brand Shares of Homewares: % Value 2011-2014 .............................. 4 Table 6 Distribution of Homewares by Format: % Value 2009-2014 ......................... 4 Table 7 Forecast Sales of Homewares by Category: Value 2014-2019 .................... 5 Table 8 Forecast Sales of Homewares by Category: % Value Growth 2014-

2019 ............................................................................................................. 5

H O M E W A R E S I N I N D I A P a s s p o r t 1


HOMEWARES IN INDIA

HEADLINES Homewares grows by 11% in 2014 to reach Rs115.5 billion

Consumers looking for the functional aspects of products helps drive growth for homewares

Ovenware is the most dynamic category in 2014 with current value growth of 15%

TTK Prestige Ltd continues to lead homewares in 2014 with a value share of 6%

Homewares is expected to increase at a constant 2014 value CAGR of 3% over the forecast

period, to reach Rs134.8 billion in 2019

TRENDS Growth in homewares in 2014 was driven mainly by the functional aspects of products, with

form only a factor at the higher price end. Homewares was dominated by unorganised players

during the review period with low brand awareness and loyalty, especially amongst the lower-

and-mid-priced products.

Homewares grew by 11% in current value terms in 2014. This was slightly lower than the

review period current value CAGR of 12% and was attributed to various reasons, but mainly

due to a decline in the supply stove top cookware from manufacturers. However, growth

within dinnerware was led by a growing preference for products with a better style and design

and rising disposable incomes. This helped stabilise the growth of homewares in 2014.

Ovenware was the most dynamic category within homewares in 2014. It witnessed current

value growth of 15% in 2014 mainly because of the derived demand from retail sales of

ovens. According to Euromonitor International consumer appliances research, ovens grew by

12% in volume terms in 2014, which was attributed to growing demand for modern and

modular kitchens. This has also driven demand for other kitchen equipment such as cooker

hoods and dishwashers.

The modernisation of kitchens and the growing popularity of the modular kitchen concept and

microwaves has also driven growth within food storage, wherein consumers are looking for

food storage products to match their kitchen colour themes. These factors helped food

storage to witness the second highest current value growth of 14% in 2014.

Metal remained the dominant material used for homewares products holding a 71% value

share in 2014, among which stainless steel was the most popular. Stove top cookware and

dinnerware were the biggest contributors to this, accounting for 58% and 25% of metal

homewares value sales respectively in 2014. Metal was the natural choice for stove top

cookware because of its ability to withstand high temperatures, whereas the durability of

metal made it Indian consumers preferred choice for dinnerware.

Homewares and home furnishing stores dominate sales of homewares and accounted for a

70% value share in 2014. These small shops are located in local neighbourhoods and

account for the majority of sales of both branded and unbranded products. The hypermarkets

channel is also popular in the distribution of branded homewares products and it provided

dedicated shelf space during the review period. Direct selling accounted for a 4% value share

in 2014 and this channel was dominated by Tupperware India Pvt Ltd.



COMPETITIVE LANDSCAPE TTK Prestige Ltd continued to lead homewares in 2014 with a value share of 6%. The

company remained the leading player in stove top cookware, with its pressure cooker brand

Prestige a household name in southern India. It continued to leverage on this brand loyalty

and the product replacement cycle of pressure cookers, with this product present in

households across India.

Although TTK Prestige Ltd remained the leader in homewares, its value share fell in 2014.

This was attributed to various reasons ranging from a change in Government policies to

weaker economic conditions, especially in southern India. TTK Prestiges induction cookware

was negatively affected by a new Government policy on subsidised gas cylinders for cooking.

The Government of India raised the quota of subsidised gas cylinders for cooking to 12 from

nine and also scrapped the monthly limit on the same.

Homewares remains fragmented with unorganised domestic players. This was mainly

because of low product and brand differentiation within the mid-and-low-priced ranges. TTK

Prestige Ltd and Hawkins Cookers Ltd were the leaders within homewares among the

domestic players in 2014. However, international player Tupperware India Pvt Ltd increased

its value share by one percentage point over the review period, as it leveraged on the faster

growth of the premium end of the category through direct selling.

The majority of homewares sales are still driven by the functional aspects of the products,

wherein the form and design is only visible at the premium end. This has led to a highly

fragmented competitive landscape with many unbranded products, as there is no brand

differentiation or loyalty amongst consumers.

Lakeland Ltd entered India by launching its first store in May 2014. Lakeland is positioned as

a premium brand providing kitchen products ranging from cookware, kitchen utensils, food

storage and cleaning products.

PROSPECTS Cookware, which facilitates healthy eating habits, is anticipated to perform better during the

forecast period. There are expected to be launches of products that utilise less oil, retain

nutrients and use minimal heat for cooking. The influence of international cuisine should also

lead to the introduction of a wide range of cookware and cutlery products, which were not

previously popular in Indian cuisine.

Homewares is expected to increase at a constant 2014 value CAGR of 3% over the forecast

period to reach Rs134.8 billion in 2019. This predicted growth is slightly higher than the

constant 2014 value CAGR of 2% seen during the review period. This growth is expected to

be mainly driven by consumers switching from unbranded to higher-priced branded products.

Switching from stainless steel homewares products will help drive growth for ceramic and

plastic products. This switch is expected because of their advantages, such as being more

airtight and more visually appealing, as well as the status that comes with owning such

products.

Companies within homewares are expected to launch more premium products over the

forecast period.

CATEGORY DATA

Table 1 Sales of Homewares by Category: Value 2009-2014



INR million 2009 2010 2011 2012 2013 2014 Dining 22,671.5 25,140.1 27,857.5 31,080.0 34,826.6 39,180.3 - Beverageware 1,212.3 1,398.6 1,585.2 1,778.6 2,006.8 2,269.4 - Cutlery 2,307.6 2,655.5 3,014.6 3,369.1 3,780.8 4,254.7 - Dinnerware 19,151.6 21,085.9 23,257.8 25,932.4 29,039.1 32,656.3 Kitchen 44,291.3 50,231.0 56,579.5 62,501.6 69,671.5 76,328.9 - Cookware 28,332.7 32,143.4 36,386.5 40,208.3 44,632.5 48,116.4 -- Ovenware 19.4 21.9 25.0 28.9 33.3 38.5 -- Stove Top Cookware 28,313.3 32,121.5 36,361.5 40,179.4 44,599.2 48,077.9 - Kitchenware 15,958.6 18,087.6 20,193.1 22,293.3 25,039.0 28,212.5 -- Food Storage 12,191.3 13,804.2 15,400.0 17,126.3 19,258.6 21,889.3 -- Kitchen Utensils 3,767.2 4,283.3 4,793.1 5,166.9 5,780.5 6,323.2 Homewares 66,962.8 75,371.0 84,437.0 93,581.6 104,498.2 115,509.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Sales of Homewares by Category: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total Dining 12.5 11.6 72.8 - Beverageware 13.1 13.4 87.2 - Cutlery 12.5 13.0 84.4 - Dinnerware 12.5 11.3 70.5 Kitchen 9.6 11.5 72.3 - Cookware 7.8 11.2 69.8 -- Ovenware 15.5 14.7 98.1 -- Stove Top Cookware 7.8 11.2 69.8 - Kitchenware 12.7 12.1 76.8 -- Food Storage 13.7 12.4 79.5 -- Kitchen Utensils 9.4 10.9 67.8 Homewares 10.5 11.5 72.5


Table 3 Sales of Homewares by Material: % Value Breakdown 2009-2014

% retail value rsp 2009 2010 2011 2012 2013 2014 Ceramic 2.6 2.8 3.1 3.3 3.3 3.4 Glass 7.0 6.8 6.6 6.5 6.4 6.6 Metal 72.7 72.5 72.3 72.1 72.0 71.4 Plastic 17.1 17.2 17.3 17.5 17.6 18.1 Silicone - - 0.0 0.0 0.0 0.0 Wooden 0.6 0.7 0.7 0.7 0.7 0.6 Others - - - - - - Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 4 NBO Company Shares of Homewares: % Value 2010-2014



% retail value rsp Company 2010 2011 2012 2013 2014 TTK Prestige Ltd 4.8 5.9 6.4 6.4 5.7 Hawkins Cookers Ltd 3.5 3.5 3.6 3.7 3.6 Sivanesan Co Pvt Ltd 1.7 2.2 2.5 2.6 2.7 Tupperware India Pvt Ltd 0.9 1.3 1.9 2.2 2.2 AMC Cookware India Pvt 1.4 1.4 1.5 1.6 1.6 Ltd World Kitchen Asia 0.4 0.4 0.4 0.4 0.4 Pacific Pte Ltd FnS International Pvt Ltd 0.1 0.2 0.2 0.2 0.2 Kishco Cutlery Ltd 0.2 0.2 0.2 0.2 0.2 Others 86.8 85.0 83.3 82.7 83.4 Total 100.0 100.0 100.0 100.0 100.0


Table 5 LBN Brand Shares of Homewares: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Prestige TTK Prestige Ltd 5.9 6.4 6.4 5.7 Hawkins Hawkins Cookers Ltd 3.5 3.6 3.7 3.6 Sivanesan Sivanesan Co Pvt Ltd 2.2 2.5 2.6 2.7 Tupperware Tupperware India Pvt Ltd 1.3 1.9 2.2 2.2 AMC AMC Cookware India Pvt Ltd 1.4 1.5 1.6 1.6 Corelle World Kitchen Asia 0.4 0.4 0.4 0.4 Pacific Pte Ltd FnS FnS International Pvt Ltd 0.2 0.2 0.2 0.2 Kischo Kishco Cutlery Ltd 0.2 0.2 0.2 0.2 Others 85.0 83.3 82.7 83.4 Total 100.0 100.0 100.0 100.0


Table 6 Distribution of Homewares by Format: % Value 2009-2014

% retail value rsp 2009 2010 2011 2012 2013 2014 Store-Based Retailing 97.0 96.8 96.5 96.2 95.9 96.1 - Grocery Retailers 3.8 4.0 4.3 4.4 4.7 4.8 -- Supermarkets - - - - - - -- Hypermarkets 3.8 4.0 4.3 4.4 4.7 4.8 -- Discounters - - - - - - -- Other Grocery - - - - - - Retailers - Mixed Retailers - - - - - - -- Department Stores - - - - - - -- Mass Merchandisers - - - - - - -- Variety Stores - - - - - - -- Warehouse Clubs - - - - - - - Non-Grocery Specialists 93.2 92.7 92.2 91.8 91.2 91.3 -- Home and Garden 68.9 69.4 69.5 69.5 69.6 69.8



Specialist Retailers --- Home Improvement - - - - - - and Gardening Stores --- Homewares and Home 68.9 69.4 69.5 69.5 69.6 69.8 Furnishing Stores -- Other Home and 24.3 23.3 22.8 22.2 21.7 21.6 Garden Non-grocery Specialists Non-Store Retailing 3.0 3.2 3.5 3.8 4.1 3.9 - Homeshopping - - - - - - - Internet Retailing - - - - - - - Direct Selling 3.0 3.2 3.5 3.8 4.1 3.9 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 7 Forecast Sales of Homewares by Category: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 Dining 39,180.3 41,115.1 42,986.5 45,025.6 47,150.7 49,241.0 - Beverageware 2,269.4 2,392.2 2,520.1 2,653.8 2,786.4 2,917.7 - Cutlery 4,254.7 4,465.1 4,683.1 4,909.5 5,131.7 5,349.3 - Dinnerware 32,656.3 34,257.8 35,783.2 37,462.3 39,232.7 40,974.0 Kitchen 76,328.9 77,706.1 79,261.8 81,207.2 83,292.3 85,530.9 - Cookware 48,116.4 48,225.6 48,207.9 48,155.4 48,035.6 47,769.0 -- Ovenware 38.5 41.5 45.0 48.9 53.4 58.4 -- Stove Top Cookware 48,077.9 48,184.1 48,163.0 48,106.6 47,982.2 47,710.6 - Kitchenware 28,212.5 29,480.4 31,053.9 33,051.8 35,256.8 37,762.0 -- Food Storage 21,889.3 23,084.2 24,584.6 26,470.3 28,642.7 31,118.0 -- Kitchen Utensils 6,323.2 6,396.2 6,469.4 6,581.5 6,614.1 6,643.9 Homewares 115,509.2 118,821.2 122,248.3 126,232.8 130,443.0 134,771.9

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 8 Forecast Sales of Homewares by Category: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL Dining 4.4 4.7 25.7 - Beverageware 4.7 5.2 28.6 - Cutlery 4.2 4.7 25.7 - Dinnerware 4.4 4.6 25.5 Kitchen 2.7 2.3 12.1 - Cookware -0.6 -0.1 -0.7 -- Ovenware 9.4 8.7 51.8 -- Stove Top Cookware -0.6 -0.2 -0.8 - Kitchenware 7.1 6.0 33.8 -- Food Storage 8.6 7.3 42.2 -- Kitchen Utensils 0.5 1.0 5.1 Homewares 3.3 3.1 16.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

homewares in india

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