RTA Cabinet Market trends

Overall customer satisfaction with cabinet brands has increased notably from 2010, primarily due to improved satisfaction with cabinet design, performance and value, according to the J.D. Power and Associates 2011 U.S. Kitchen Cabinet Satisfaction Study. The study measures customer satisfaction with kitchen cabinets by measuring five factors: Design features (such as the variety of cabinet colors/finishes and range of sizes and shapes available) Operational performance (including smoothness of drawer slides and sturdiness of cabinet joinery) Ordering and delivery (including ease of ordering, condition of products at delivery and timeliness) Price; and warranty.

Customer satisfaction index on a 1000 point scale over last three years shows a gradual rise in sales and stability in RTA cabinet market in USA.

Customer Satisfaction Index

Customer Satisfaction Index 760 755 750 745 740

735
730 725 2009 2010
Figure 1 Customer Satisfaction Index

2011

Source: J.D. Power and Associates

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Major Players in the RTA Market

Major Players in the industry are 1. KraftMaid 2. Thomasville 3. Merillat 4. IKEA 5. Armstrong 6. Industry Average 7. .American Woodmark 8.. American Classics

The following graph represents their customer satisfaction index and consequently put their future sales and market share in the lime light

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Customer Satisfaction Index ranking 2011 (Based on 1,000-Point Scale)

780 771 770 767 765 759 760 754 755

750

740

734

730

720 711 710

700

690

680

Figure 2 Major Player market share

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Fast Facts
1. 8 in 10 Customers Pick Own Cabinet Brand
The study finds that eight in 10 cabinet purchasers (81%) personally made the decision of which brand to buy, rather than having an installer, contractor, retailer or architect decide. A sizable proportion of these customers relied on either their past experience with a brand or in-store product displays while shopping for kitchen cabinets. Cabinet purchasers cite price, quality and cabinet styling and feel as the primary reasons for selecting a particular brand.

2. 6 in 10 Cabinet Purchasers Buy Stock-sized Units

In 2011, six in 10 (59%) cabinet purchasers say they bought stock-sized units, rather than semi- or fully custom cabinets. In comparison, 46% of cabinet purchasers in 2010 said the same, meaning the popularity of stock-sized units has grown 28% year-over-year. Analysis indicates this shift suggests budgetary constraints are becoming increasingly influential in the cabinet selection process.

3. Average Purchaser Spends $4.5K

The study finds that 45% of purchasers are replacing their cabinets as part of a full kitchen remodel and are spending approximately $4,500, on average, for RTA cabinets.

4. 2 in 3 Homeowners Plan Renovations

Nearly two-thirds (64%) of homeowners say they will invest in renovation projects this year, according to the March 2011 American Express Spending & Saving Tracker.

About the Data: The 2011 U.S. Kitchen Cabinet Satisfaction Study, published by J.D.
Power and Associates, measures customer satisfaction based on responses from more than 1,200 consumers who purchased kitchen cabinets within the previous 12 months. The study was fielded in March and April 2011 and is the source of the enclosed chart.

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