The housewares market is home to many

The Importance of a Brand Summer 29 By Peter Goldman, The NPD Group, Inc. The housewares market is home to many well-known brands; and more than a few quickly come to mind when thinking of categories from cookware and bakeware to cutlery and tabletop. However, brand is rarely the first thing that comes to mind when making a housewares purchase. In fact, The NPD Group s new Consumer Tracking Service for the housewares market ranks brand ninth among consumers top reasons for purchase. About Housewares MarketWatch Housewares MarketWatch reports both point-of-sale (POS) and consumer data from NPD databases. The quarterly data covers various product categories within the divisions of Small Appliances and Non-electric Housewares. The information contained on the following pages is offered as a snapshot of a category s performance, both from the retailer (POS) and consumer perspectives. The POS data covers the retail channels of mass/national chains, department store, specialty store and drug store (personal care and home environment only). Each issue of Housewares MarketWatch will feature several categories from the Small Appliances and Housewares divisions. Complete data on a category can be purchased by visiting NPD s website at www.npd.com.see the Data and Methodology section on page 8 for an explanation of how the data is compiled. Branding, one of the benchmarks of marketing, helps in generating awareness and recognition, with the goal of building loyalty among your customer base. In the small appliance categories, consumers rank brand as the third most important reason for making a purchase showing the weight a brand name can hold and the value brand marketing can add. In the non-electric housewares categories, where brand is not as crucial to purchase decisions, 4 percent of all housewares dollar sales between August 28 and April 29 came from brands that the consumers surveyed could not recall ( not specified ). That amounts to $2.9 billion in sales occurring without any brand recognition in a span of nine months. Top Reasons for Brand Purchases What role does brand play in the housewares market? How does this multi-billion dollar industry sustain itself with almost half of its sales coming from brands that are essentially question marks in consumers minds? Other basics still rule in housewares: functionality, design and cost are the most important elements for these categories. Consumers have told NPD their top reasons for purchasing a housewares product are price, good value, appearance, on sale/promotion and easy to clean. These products are truly focused on meeting consumers needs and appealing to them visually. Consumers have told NPD their top reasons for purchasing a housewares product are price, good value, appearance, onsale/ promotion and easy to clean. It really isn t a surprise that when it comes to cooking or preparation products such as pans, bakeware or knives, cost and functionality are key consideration drivers. Among tabletop items such as glasses, dinnerware and flatware, appearance plays a larger role, along with cost. These same things are important for purchases of not specified or unknown brands, showing continued on page 7

Small Appliances: KITCHEN ELECTRICS QUARTER ONE 29 2 2 1 1 TOTAL MARKET 21,66 COOKING ELECTRICS 9,63 12,62 FOOD PREP/ BEVERAGE 2 2 1 6 months ending March 29 ELECTRIC CAN OPENERS AGE OF BUYER Percentage purchased by age of buyer versus census ELECTRIC CAN OPENERS 13.9 % 16.8 % 2. % 18.9 % 2.3 % 17.2 % 17.6 % 2.4 % 14.7 % 1 9. % STAND MIXERS 2.4 % 4.9 % In Q1 9, stand mixers represented 7% of dollar sales of all mixers, down from 78% in Q1 8. 13 17 18 24 2 34 3 44 4 4 64 6 + BLENDERS In the first quarter of 29, blenders with plastic containers brought in only 2% of dollar sales for the category, down from 3% last year. TOASTERS 19% of toaster sales came from long-slot models in Q1 9, up from only 8% in Q1 8. 2 2 1 1 ESPRESSO/CAPPUCCINO MAKERS REGION Percentage purchased in region versus census 1. % 4.9 % New England 16.6 % 14.1 % Middle 16.6 % 1.9 % East North 4.7 % 6.8 % West North 22. % 18.6 % South ESPRESSO/CAPPUCCINO MAKERS 3.1 % 6. % East South 12. % 11.3 % West South 8.2 % 6.6 % Mountain 14. % 1.7 % Pacific 2

Small Appliances: PERSONAL CARE QUARTER NE 29 4 3 2 1 TOTAL MARKET 42,616 19,94 HAIR CARE/ GROOMING ORAL CARE & OTHER PERSONAL CARE 22,712 ORAL CARE APPLIANCES Rechargeable oral care appliances gained some share in Q1 9, now 16% of unit sales, up from almost 1% the same time last year. 2 2 1 1 4. % 4.9 % New England 6 months ending March 29 HAIRDRYERS REGION Percentage purchased in region versus census 14.2 % 14.1 % Middle 14. % 1.9 % East North 6.6 % 6.8 % West North 21. % 18.6 % South 7.3 % 6. % East South HAIRDRYERS 11.8 % 11.3 % West South 6.2 % 6.6 % Mountain 14.2 % 1.7 % Pacific PERSONAL WELLNESS Manicure/Pedicure beauty service items gained 7 share points, now accounting for 17% of personal wellness category dollars in Q1 9. 7 6 4 IRONS BUYER GENDER Percentage purchased by buyer gender versus census IRONS 38.6 % 48.9 % 61.4 % 1.1 % SHOWERHEADS Pulsating showerheads accounted for half of the category dollars in the three months ending March 29. 3 2 1 Male Female 3

Small Appliances: HOME ENVIRONMENT (EXCLUDING VACS) QUARTER ONE 29 2 1 1 TOTAL MARKET 16,73 2 1 1.9 % 4.9 % WATER FILTRATION DEVICES REGION Percentage purchased in region versus census 1.3 % 6 months ending March 29 14.1 % 14.8 % 1.9 %.8 % 6.8 % 19.2 % 18.6 % 8.9 % 6. % WATER FILTRATION DEVICES 11.9 % 11.3 % 1. % 6.6 % 13.1 % 1.7 % WATER FILTRATION REPLACEMENT FILTERS Single packs of replacement filters lost share to multi-pack options, though they still represent 7% of unit sales in Q1 9. 6 4 New England Middle WATER FILTRATION DEVICES BUYER GENDER Percentage purchased by buyer gender versus census WATER FILTRATION DEVICES 46.2 % East North 48.9 % West North South East South 3.8 % West South Mountain 1.1 % Pacific 3 2 1 Male Female 4

Small Appliances: FLOOR CARE QUARTER ONE 29 1 8 6 4 2 TOTAL MARKET 8,3 3 2 2 1 1 UPRIGHT VACUUMS AGE OF BUYER Percentage purchased by age of buyer versus census 9. % 6 months ending March 29 7.7 % 22. % 16.8 % 19.3 % 18.9 % 2.9 % 17.2 % UPRIGHT VACUUMS 1.9 % 8. % 14.7 %.7 % 13 17 18 24 2 34 3 44 4 4 64 6 + STICK VACUUMS Fixed stick models now account for the largest share of the category, at 49% of units in Q1 9, with 2-in-1 conversion models at 36%. 3 3 2 2 1 1 UPRIGHT VACUUMS HOUSEHOLD SIZE Percentage purchased by household size versus census 13.6 % 1.3 % 32. % 26.3 % 18.2 % 19.3 % UPRIGHT VACUUMS 19.3 % 22.6 % 16.4 % 21.4 % Single Member Two Members Three Members Four Members Five or More Members

Housewares: NON-ELECTRIC QUARTER ONE 29 1 8 6 4 2 8,862 4,774 3,81 DINNERWARE BEVERAGEWARE COOKWARE BAKEWARE FLATWARE CUTLERY 3,22 1,7 1,4 DINNERWARE HEAD OF HOUSEHOLD AGE Percentage purchased by age of head of household versus census 2 2 1 6 months ending March 29 17. % 16.8 % 22.7 % 18.9 % 21.7 % 17.2 % 18.6 % DINNERWARE 13.1 % 14.7 % COOKWARE 1 6.4 % Dollar sales of pressure cookers grew by 22% in Q1 9, compared to Q1 8 18 24 2 34 3 44 4 4 64 6 + BEVERAGEWARE HEAD OF HOUSEHOLD GENDER Percentage purchased by gender of head of household versus census FLATWARE Open stock flatware sales increased by 26% in Q1 9, compared to dollar sales the same time last year. 8 6 48.9 % BEVERAGEWARE 82.1 % 1.1 % OVEN OR MICROWAVE BAKEWARE In the six months ending March 29, the #1 reason for purchase of a bakeware product is price, followed by good value and easy to clean. 4 2 17.9 % Male Female 6

The Importance of a Brand Continued from page 1 surprising similarities in reasons for purchase compared to the industry as a whole. Could there be an opportunity to build on consumers practical and emotional responses by affiliating those key characteristics with a brand? When asked if the statement willing to spend more on brands described them, 9 percent of consumers said it did. On average, consumers spent $4 more on housewares purchases where they knew the brand than they did on the unknown brand purchases. Those branded purchases represent more than half of the dollar sales in the market $3.6 billion over nine months. Brand Effect is Mixed Whether for a set of pots and pans or a fine china placesetting, brand didn t make it to the top five reasons for any of the housewares categories NPD tracks. However, many brands that were recognized and ranked tops in terms of sales also, logically saw brand as one of the top five reasons for purchase. This is particularly evident in the cookware, bakeware, dinnerware and cutlery categories. It is important to note that approximately 4 percent of consumers surveyed said they would definitely purchase the same brand again in these categories; when looking at the top brands, that number increases to 6 percent. While the data are clearly mixed, purchases influenced by brand have a few things going in their favor the likelihood of repeat purchases, consumers willingness to spend more and, with nine months of data collected, greater than percent of sales. In addition, we ve already seen a number of brand and line extensions come about as a result of casualization and a changing economic climate. These extensions bring new competition from more formal brands, established brands and those successful in other categories and industries. Traditional thinking tells us brand loyalty leads to repeat purchases, but the housewares industry may be different, responding to a different set of stimuli. The importance of brand in this marketplace is still in question, split almost down the middle based on sales figures for the August 28 to April 29 period. With this unique balance and the changes occurring around us, the housewares industry should pay close attention to its consumers and their preferences, in an effort to better understand the importance of brand as an influence on the consumer s decision-making process. Peter Goldman is president of the Home Section at The NPD Group. These are the opinions of Goldman and NPD. For more information, contact Goldman at 16-62-6136. 7

DATA AND METHODOLOGY NPD has a standard data model that is used for all categories that incorporates both consumer and point-of-sale (POS) databases. These two data sources are highly complementary and are used to support one another. Point-of-Sale (POS) databases are assembled from retailers' records of actual sales by product as collected at the cash register. These databases are highly reliable and provide census counts of sales by product and price for participating retailers. The completed sales data are valuable to clients trying to understand which products or items are selling well and which are not, at which prices and in which channels. The finished POS data describe the product, retail channel and price. They do not, however, address the buyer of the product. Consumer databases are developed using product purchase surveys completed by a large-scale rotating sample of consumers. These data also produce estimates of sales by product and retail channel. More importantly, the consumer surveys capture information about each purchase, such as buyer demographics, the product's intended use and a variety of other characteristics. These facts help clients understand why products are selling and consumers' motivations. CONSUMER METHODOLOGY Most consumer data in the U.S. are gathered from periodic samples of individuals who are asked about their recent purchases. Respondents report certain details about the type and nature of their purchases in a survey administered via the Web. The responding sample is demographically weighted and projected through a series of steps to represent the Total Adult (18+) and, for appliances, Total Teen (13-17) U.S. population. Each week, over 3, individuals are selected from the NPD online consumer panel to participate in the appliance study. Each month, over 3, U.S. households are selected for the housewares study. The NPD online consumer panel is composed of prerecruited individuals who have agreed to participate in NPD online surveys and have completed a comprehensive demographic questionnaire. The use of an established online panel assures good cooperation levels and predictable demographic balance among cooperators. POS METHODOLOGY NPD collects point-of-sale retailer data from selected retailers. These data are the actual sales for the chain on an SKUby-SKU basis. The data are combined with data from other retailers to produce reports on certain categories by channel, where a sufficient number of retailers are cooperating and where sufficient market demand exists for the database. 8 ABOUT THE NPD GROUP, INC. The NPD Group, Inc. (NPD) is a global market information company that measures product movement and consumer behavior across a broad range of industries -- apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys and music. NPD's clients, many in the Fortune, use this insight to uncover market opportunities, strengthen channel relationships and benchmark industry performance. Since 1967, NPD has introduced numerous industry firsts, most recently combining and calibrating information from consumer panels and point-of-sale tracking via its flagship services, the NPD Worlds. The firm has offices and affiliations in 6 countries. For more information on The NPD Group, visit www.npd.com. Deborah A. Teschke, Senior Editor Peter Goldman, Contributing Editor Janine Marshall-Bolton, Contributing Editor Tom Goodman, Design Published by IHA For more information, contact Debbie Teschke at 847-692-11; or dteschke@housewares.org 64 SHAFER COURT, STE. 6 ROSEMONT, IL 618 USA TEL: 847-292-42 FAX: 847-292-4211 www.housewares.org