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
- Market to grow by 14.8%, 2016-21
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- Figure 1: Consumer spending on products for the home, 2011-21
- Living and dining is the largest market segment
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- Figure 2: Consumer spend on the home, by segment, 2016
- Growth in numbers of homes will boost spending on the home
- 23% of private renters moved in the last year
- Complex housing market in 2016
- Surplus space at home creates opportunities for a wider range of interiors and usage
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- Figure 3: Usable floor area, by tenure, England, 2015
- Change to private renting will reduce demand for garden goods
- Improved consumer confidence
- Intentions to spend on the home slightly down in 2016
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- Figure 4: Trends in activities done and considering to do, June 2012-December 2016
- Launch activity and innovation
- Retailers ready for the connected home
- DIY retailers are repositioning to overcome lacklustre performance
- Investment in online developments
- Technology to help visualise products/plans
- The consumer
- Enthusiastic intentions for spending on the home
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- Figure 5: Purchases and home improvement in the last three years; intentions to spend on the home in the next twelve months, November 2016
- Enjoying the home life
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- Figure 6: Reasons for spending on the home, November 2016
- Enthusiasm for connected homes
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- Figure 7: Interest in the smart home, November 2016
- Multi-channel shopping and browsing
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- Figure 8: Shopping preferences for the home: browsing in-store or online, November 2016
- Speaking to sales people is a key reason for a store visit
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- Figure 9: Shopping preferences for the home: speaking to staff, November 2016
- Peer group reviews influence shoppers
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- Figure 10: Shopping preferences for the home, looking at catalogues, reading reviews, November 2016
- Home is a centre for leisure time
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- Figure 11: Attitudes regarding the home, November 2016
- What we think
Issues and Insights
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- What is the impact of private renting on spending on the home?
- The facts
- The implications
- Is the smart home of interest to the British consumer?
- The facts
- The implications
- Will internet shopping take the place of visiting stores for homewares?
- The facts
- The implications
The Market – What You Need to Know
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- 2016 was a strong year for spending on the home
- Consumers’ spending will grow by 14.8% from 2016-21
- Diverse market with many elements
- High growth for beds and bedroom
- Growth in numbers of homes will boost spend on the home
- Shift in structure of household tenure
- Spending on the home is closely linked to the housing market
- Confident consumers will spend on the home
- Future trends include more use of technology
- Retailers adapting for the future
Market Size and Forecast
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- 2016 was a strong year for spending on the home
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- Figure 12: Consumer spend on the home, 2011-21
- Forecast methodology
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- Figure 13: Consumer spend on the home, 2011-21
- The impact of the EU referendum vote
- Spending on the home has been dented by previous slowdowns
Market Segmentation
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- Market segmentation
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- Figure 14: Consumer spend on the home, by segment, 2016 (est)
- High growth for beds and bedroom furniture
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- Figure 15: Consumer spend on the home, 2011-16
Market Drivers
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- Number of UK homes will grow 4.7% between 2016-21
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- Figure 16: UK households, by size, 2011-21
- High growth of the private rented housing sector
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- Figure 17: Housing by tenure, 2004-15, London and the reminder of England, 2004-15
- Profile of private renters is young
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- Figure 18: Age group, by tenure, November 2016
- 23% of private renters moved in the last year
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- Figure 19: Length of time in current home, by tenure, November 2016
- Housing transactions remained strong in 2016
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- Figure 20: UK Housing transactions, 2012-16
- 2016 stamp duty changes disturbed buying patterns
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- Figure 21: UK Housing transactions, 2015-16 – 2016-17
- Close link between buying furniture and moving house
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- Figure 22: Bought any furniture, by length of time in current home, June 2016
- Opportunities for alternatives to buying new homewares
- Surplus space at home creates opportunities for a wider range of interiors and usage
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- Figure 23: Usable floor area, by tenure, England, 2015
- Owner-occupiers most likely to have gardens
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- Figure 24: Presence of gardens and allotments, by household tenure, April 2016
- Improved consumer confidence
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- Figure 25: How consumers describe their financial situation, February 2009-December 2016
- Intentions to spend on the home slightly down in 2016
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- Figure 26: Trends in activities done and considering to do, June 2012-December 2016
- Consumer credit continues to rise
- Scope to extend
- Floods and storm damage
Launch Activity and Innovation
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- Getting ready for the connected home
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- Figure 27: Part of the smart home department, John Lewis Oxford Street, 2016
- DIY retailers repositioning to overcome lacklustre performance
- Bunnings begins its UK conversion from Homebase
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- Figure 28: Bunnings St Albans, February 2017
- B&Q’s new superstore formula
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- Figure 29: B&Q, Cribbs Causeway, July 2016
- B&Q introduces scaled back format
- Wickes focuses on projects
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- Figure 30: Wickes, new store, 2016
- Voice of the customer
- IKEA rolls out user generated content
- Online developments
- Dunelm’s takeover of WorldStores doubles its online business
- B&Q ramps up analysis of online behaviour
- Visualising/3D software
- Wayfair develops 3D visualiser
- Retailers adapting to the multi-channel environment
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- Figure 31: IKEA, Order and Collection Point, 2016
- Rise of the home store
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- Figure 32: Next Home and Garden, 2016
- Adapting to the compact home
- Catering for the ageing population
- Faster deliveries
The Consumer – What You Need to Know
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- Decorating is the most popular home improvement
- Positive intentions to spend on the home
- Replacement influences 46%
- 48% are interested in using smart meters which measure energy use
- Customer journey for the home is multi-channel
- Home is a centre for leisure time
Purchases and Home Improvement
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- Decorating is the most common home improvement activity
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- Figure 33: Purchases and home improvement in the last three years and intention to spend in the next 12 months, November 2016
- 45% of consumers have decorated in the last three years
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- Figure 34: Purchases and home improvement in the last three years, November 2016
- Impact of rising numbers renting privately
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- Figure 35: Purchases and home improvement in the last three years, by household tenure, November 2016
- Owner-occupiers are key
Intentions to Spend on the Home
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- 59% plan to spend on the home in the next twelve months
- Plenty of redecorating
- Positive momentum for carpets
- Infrequent projects
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- Figure 36: Intentions to spend on the home in the next twelve months, November 2016
Reasons for Spending on the Home
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- Replacement drives spending on the home
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- Figure 37: Reasons for spending on the home, November 2016
Interest in the Smart Home
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- High level of interest in the smart home
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- Figure 38: Interest in the smart home, November 2016
Shopping Preferences for the Home
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- Shopping for the home is a multi-channel activity
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- Figure 39: Shopping preferences for the home, browsing in-store or online, November 2016
- Shoppers engage with staff in-stores
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- Figure 40: Shopping preferences for the home, speaking to staff, November 2016
- 9% turn to customer reviews when judging quality
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- Figure 41: Shopping preferences for the home, looking at catalogues, reading reviews, November 2016
Attitudes Regarding the Home
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- Wide range of activities in the home
- Relaxing at home and sharing family time
- Home acts as a social space
- Cooking is a leisure pastime
- 75% of homes with a mortgage take pride in their homes
- Younger consumers engage in practical hobbies at home
- Self-employed and urban dwellers want a space for home working
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- Figure 42: Attitudes regarding the home, November 2016
- Entertainers represent the most commercial target group
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- Figure 43: Attitudes regarding the home, target groups, November 2016
- Typical characteristics of the target groups
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- Figure 44: Target groups for the home, by attitudes, November 2016
- Entertainers are the highest spending target group
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- Figure 45: Purchases for the home, by cluster groups, November 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast Methodology
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