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The faucet category is one of the more artistic areas of home improvement. Many of the manufacturers treat their products as high art -- displaying them in expensive press kits or in luxurious tradeshow booths.
Consumer research from Port Washington, N.Y.-based NPD Group shows the average price of faucets increased to $67.30 in 2008, up $4 from $63.30 in 2007. But there are signs that consumers may be choosing more practical, middle-of-the-road styles.
“This is a style-driven category, but we’re beginning to see a little more function over fashion,” said Mark Delaney, NPD Group’s director of home improvement.
For instance, sales of faucets over $75 peaked in the third quarter of 2007 at 40.9 percent, and have declined since, to the most recent figure of 30.3 percent. About 43 percent of the faucets sold from January 2006 to March 2008 were under $50.
Meanwhile, chrome’s position at the top of the preference list is being challenged by stainless steel, nickel and pewter, which gained 5.2 percentage points. While chrome is still the leading material choice, it dropped 8.6 points to 41.7 percent.
“When you start looking at finishes, faucets are one of the few home improvement categories that are very heavily advertised -- it’s all about sexy elegant finishes and brands,” Delaney said.
Brand increased in importance as a purchase motivator, up 2.1 points to 20.5 percent, trailing price and features.
As in most home improvement categories, the warehouse home centers dominate the action -- with 68.3 percent market share. The domination is seen across all income categories.
As the consumer’s income increases, so do his or her chances of shopping in a kitchen and bath specialty outlet. Likewise, as the consumer’s income decreases, so do his or her chances of shopping in a mass merchant. Interestingly, the warehouse home centers have a near identical share -- 65 percent -- of both the under 45K market and the over 100K market.
Regardless of retailer, faucet consumers showed a dramatic increase in selecting a retailer based on proximity. Close to home is now neck and neck with product availability as a reason to chose a retailer.