Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Uncertain consumers may defer big ticket purchasing
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- Figure 1: Consumer spending on beds and bedroom furniture, 2011-21
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- Figure 2: Beds and bedroom furniture, Market segmentation, 2016 (est)
- Consumers encouraged to spend more
- Steady growth in household numbers
- Shifting age structure in the UK
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- Figure 3: Trends in the age structure of the UK population, 2011-21
- The impact of private renting
- 77 million UK bedrooms
- Quality of sleep
- Highly competitive market for beds and bedroom furniture
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- Figure 4: Channels to market, 2015
- 12% of the market by value is online
- Companies and brands
- Expansion of online selling
- Many changes of ownership among suppliers
- Health issues enjoy a raised profile
- The consumer
- Mattresses purchased by 24%
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- Figure 5: Purchases of beds and bedroom furniture, July 2016
- 23% of purchasers spent £750+ on bedroom furniture
- IKEA is the most-used retailer for bedroom furniture
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- Figure 6: Where bedroom furniture was bought, July 2016
- Where beds and mattresses were bought
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- Figure 7: Where beds and mattresses were bought, in-store or online, July 2016
- Multi-channel shopping journey
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- Figure 8: Factors influencing choice of retailer, July 2016
- Mattress purchasers focus on comfort, brand and posture
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- Figure 9: Factors influencing purchases of mattresses (Buyers), July 2016
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- Figure 10: Factors influencing purchases of mattresses (Non-buyers), July 2016
- Storage tops requirements for bedrooms
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- Figure 11: Attitudes regarding bedrooms, Agree, July 2016
- What we think
Issues and Insights
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- What is the role of online selling in the market for beds and bedroom furniture?
- The facts
- The implications
- Is better storage driving demand in the bedroom market?
- The facts
- The implications
- How is the rise of private renting influencing purchasing patterns for beds and bedroom furniture?
- The facts
- The implications
The Market – What You Need to Know
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- Market to grow by 18.5% between 2016-21
- Market segmentation
- Highly competitive market for beds and bedroom furniture
- 12% of spend on beds and bedroom furniture is online
- Steady growth in household numbers
- Impact of private renting
- Quality of sleep
Market Size and Forecast
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- Market to grow by 18.5% between 2016-21
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- Figure 12: Consumer spending on beds and bedroom furniture, 2011-21
- Figure 13: Consumer spending on beds and bedroom furniture, 2011-21
- The impact of the EU referendum vote
- Spending on beds and mattresses has been resilient in previous slowdowns
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- Figure 14: Alternative market scenarios for the post-Brexit beds and mattresses market, at current prices, 2016-21
- Figure 15: Detailed post-Brexit scenarios for the bed and bedroom furniture market, at current prices, 2016-21
- Savvy shopping behaviour
- Forecast methodology
Market Segmentation
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- Everyone has a bed
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- Figure 16: Consumer spending on beds and mattresses, forecast, 2011-21
- Figure 17: Consumer spending on beds and mattresses, 2011-21
- Bedroom furniture bounces back
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- Figure 18: Consumer spending on bedroom furniture, forecast, 2011-21
- Figure 19: Consumer spending on bedroom furniture, 2011-21
Channels to Market
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- Highly competitive market for beds and bedroom furniture
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- Figure 20: Channels to market, beds and bedroom furniture, estimate, 2015
- Market share concentrates into the hands of multiples
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- Figure 21: Distribution of beds and bedroom furniture, 2013-15
- Competition in the bedroom market intensifies
- Online browsing and shopping
- 12% of spend on beds and bedroom furniture is online
Market Drivers
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- Steady growth in household numbers
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- Figure 22: UK households, by size, 2011-21
- Shifting age structure in the UK
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- Figure 23: Trends in the age structure of the UK population, 2011-21
- One in three aged 25-34 rents from a private landlord
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- Figure 24: Housing tenure, UK, 2012-16
- Length of time in current home
- 77 million bedrooms in the UK
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- Figure 25: Number of bedrooms in homes, by tenure, England and Wales, 2015
- Spare rooms
- Quality of sleep
Companies and Brands – What You Need to Know
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- Dreams is the dominant specialist bed retailer
- Fitted bedroom specialists enjoyed strong trading in 2015
- Bensons for Beds is a market leader
- Carpetright grows sales of beds and mattresses
- Companies trim out too much space
- Store chains expanding
- Bed-in-a-box retailers emerge
- MFI makes a comeback as an online brand
- Silentnight is the largest specialist supplier
- IKEA introduces higher quality
- Changes of ownership
- Health issues enjoy a raised profile
- IKEA develops small footprint stores
Companies and Brands – Retailers
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- Bed and Bedroom Specialist Retailers
- Dreams is the dominant specialist bed retailer
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- Figure 26: Bed and bedroom furniture specialists, total turnover (excl VAT), 2011-15
- Buoyant market helps profit growth
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- Figure 27: Bed and bedroom furniture specialists, operating profit, 2011-15
- Turnaround at Dreams
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- Figure 28: Bed and bedroom furniture specialists, operating margin, 2011-15
- Focused efforts on store improvements
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- Figure 29: Bed and bedroom furniture specialists, store numbers, 2011-15
- Other Retailers with Beds
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- Figure 30: Retail chains with beds and bedroom furniture, total turnover, excl VAT, 2011-15
- Operating profits of other retailers with beds
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- Figure 31: Large retailers with beds and bedroom furniture, operating profit, 2011-15
- Vertically integrated retailers are more profitable
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- Figure 32: Large retailers with beds and bedroom furniture, operating margin, 2011-15
- Store numbers, other retailers with beds
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- Figure 33: Large retailers with beds and bedroom furniture, store numbers, 2011-15
- IKEA tops league for sales per outlet
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- Figure 34: Large retailers with beds and bedroom furniture, sales per store, 2011-15
- Bed-in-a-box mattresses simplify mattress choices
- Online sellers
Space Allocation Summary
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- IKEA dedicates more selling space to beds and bedroom furniture than to the living room
- Beds and bedrooms account for 18% of space at Oak Furniture Land
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- Figure 35: Furniture retailers – Detailed space allocation estimates, June 2016
Companies and Brands – Suppliers
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- Changes of ownership
- Airsprung produces 600,000 beds each year
- Silentnight displays impressive growth
- Other suppliers
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- Figure 36: Leading manufacturers of beds and bedroom furniture, Turnover 2011-15
- Silentnight makes substantial profit gains
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- Figure 37: Leading manufacturers of beds and bedroom furniture, operating profit, 2011-15
- Vi-Spring is the most profitable supplier
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- Figure 38: Leading manufacturers of beds and bedroom furniture, operating margin, 2011-15
- Other bed and bedroom suppliers
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- Figure 39: Selected other companies in the bedroom market
Competitive Strategies
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- Improving storage in bedroom furniture
- Exclusive lines
- Promotional strategies
- IKEA re-addresses product quality
Launch Activity and Innovation
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- Dunlopillo wins Which? Best Buy award
- Health issues enjoy a raised profile
- Sports mattresses promise better recovery post-exercise
- IKEA embraces innovation
- IKEA develops small footprint stores
- Furniture Village invests in training
Advertising and Marketing Activity
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- Bensons for Beds and Dreams dominate advertising spend
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- Figure 40: Share of above-the line, online display and direct mail advertising expenditure on beds and bedroom furniture, 2015
- 6.3% growth in advertising spend between 2014-15
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- Figure 41: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom furniture, 2011-15
- Bed-in-a-box sellers move up the ad rankings
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- Figure 42: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom furniture, Jan-September 2016
- Television dominates advertising spend
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- Figure 43: Advertising for beds and bedroom furniture, by media, 2015
- Bensons for Beds focuses on experience
- Dreams raises awareness with “replace every eight” campaign
- Simba adverts ruled as misleading
- Silentnight creates a VIP bed area at a cricket ground
- Mattress tie-ups with hotel brands
- Bed-in-a-box companies launch advertising
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- Figure 44: Example of advertising for the London underground by Eve, 2016
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 51% bought beds, mattresses or bedroom furniture in the last three years
- 23% of purchasers spent £750+ on bedroom furniture
- Spend on beds and mattresses
- Spend on beds and mattresses
- IKEA has a significant share of shoppers for bedroom furniture
- Multi-channel shopping journey
- Mattress purchasers focus on comfort, brand and posture
- Storage tops requirements for bedrooms
- Multi-use bedrooms identified as the most commercial target customer
Purchases of Beds and Bedroom Furniture
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- 51% bought beds or bedroom furniture in the last three years
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- Figure 45: Purchases of beds and bedroom furniture, July 2016
- 45% of purchasers only bought one item
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- Figure 46: Purchases of beds and bedroom furniture, repertoire, July 2016
- Younger and wealthier consumers are most likely to buy
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- Figure 47: purchases of beds and bedroom furniture, by age and socio-economic groups, July 2016
- Family lifestage influences purchasing patterns
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- Figure 48: purchases of beds and bedroom furniture in the last three years, by age of children, July 2016
- Higher purchasing patterns up to five years after moving house
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- Figure 49: Purchases of beds and bedroom furniture in the last three years, by length of time in current home, July 2016
Bedroom Furniture Spend
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- One fifth of purchases at prices below £200
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- Figure 50: Spend on bedroom furniture, July 2016
- ABs are the highest spenders on bedroom furniture
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- Figure 51: Spend on bedroom furniture in the last three years, by socio-economic group, July 16
Spend on Beds and Mattresses
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- High level of purchasing at lower price points
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- Figure 52: Spend on beds and mattresses, July 2016
- Wealthier consumers are the highest spenders
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- Figure 53: Spend on beds and mattresses, by socio-economic group, July 2016
Where They Bought Bedroom Furniture and Beds
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- IKEA is most used for bedroom furniture
- Dreams and Bensons for Beds level-pegging
- Significant online activity
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- Figure 54: Where bedroom furniture was bought, in-store/online, July 2016
- Comparing shopping patterns for bedroom furniture with 2014
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- Figure 55: Where they bought bedroom furniture, percentage point change, July 2014-16
Retailers Used for Purchases of Beds and Mattresses
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- Dreams is the dominant bed specialist
- Significant proportion of purchasers buy online
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- Figure 56: Retailers used for purchases of beds and mattresses, in-store/online, July 2016
- Comparing shopping patterns for beds and mattresses, 2014-16
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- Figure 57: Where they bought beds and mattresses, percentage-point change, July 2014-16
- Shoppers most inclined to just use one outlet
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- Figure 58: Where bedroom furniture was bought, repertoire, July 16
- 70% of purchasers of beds and mattresses use just one store
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- Figure 59: Where beds and mattresses were bought, repertoire, July 2016
- All age groups are shopping online
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- Figure 60: Where beds and mattresses were bought (summary), by age group, July 2016
- ABs most inclined to buy in-store
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- Figure 61: Where beds and mattresses were bought (summary), by socio-economic group, July 2016
Factors Influencing Choice of Retailer
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- Low prices are a driving force
- 32% judge products in-store
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- Figure 62: Factors influencing choice of retailer, July 2016
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- Figure 63: Factors influencing choice of retailer, by age group, July 2016
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- Figure 64: Factors influencing choice of retailer, by retailer used for bedroom furniture, selected retailers, July 2016
Factors Influencing Purchases of Mattresses
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- Influential factors for buyers of mattresses
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- Figure 65: Factors influencing purchases of mattresses (buyers), July 2016
- Influential factors for those who have not bought mattresses in the last three years
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- Figure 66: Factors influencing purchases of mattresses (non-buyers), July 2016
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- Figure 67: Factors influencing purchases of mattresses (non-buyers), by age group, July 2016
Attitudes Regarding Bedrooms
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- 84% mention importance of plenty of storage
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- Figure 68: Attitudes regarding bedrooms (summary), July 2016
- Using technology in the bedroom
- Four main target groups
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- Figure 69: Customer target groups, bedrooms, July 2016
- Multi-use Bedrooms (32%)
- Attitudes towards the bedroom
- Bedroom Organisers (23%)
- Attitudes towards the bedroom
- Underwhelmed Bedroomers (24%)
- Attitudes towards the bedroom
- Quality Bedrooms
- Attitudes towards the bedroom
- Multi-use Bedrooms are the most active shoppers for beds and bedroom furniture
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- Figure 70: Bedroom furniture purchases, by customer target groups, July 2016
- IKEA is a destination for bedroom furniture for every target group
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- Figure 71: Retailers used for purchases of bedroom furniture, by target group, July 2016
- Shoppers use a broader range of retailers for beds than for bedroom furniture
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- Figure 72: Retailers used for purchases of beds and mattresses, by target group, July 2016
- What drives store choice for the target groups?
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- Figure 73: Factors influencing choice of retailer, by target group, July 2016
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- Figure 74: Factors influencing choice of mattress, purchasers, by target group, July 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Consumer research methodology
- Abbreviations
Appendix – Market Size and Forecast
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- Forecast Methodology
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