Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Abbreviations
Executive Summary
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- Buoyant housing market acts as a major driver
- Modest growth in retail value reflects price competition
- Increasing popularity of leather and self-assembly furniture
- Dining room furniture proving a challenge
- Supply remains fragmented
- Adspend remains robust despite sluggish sales
- Furniture multiples increasingly capture market share
- Consumer interest in furniture purchases remains generally strong
- Future for the market remains a challenge
Market Drivers
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- The greater the number of households, the greater the potential for sales
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- Figure 1: UK housing stock*, by tenure, 1998-2007
- Household size and the importance of families
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- Figure 2: Indexed trends in UK household size, 1998-2007
- Buoyant housing market also helpful
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- Figure 3: Number of UK household transactions, 1998-2007
- Growth in discretionary income encourages purchase
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- Figure 4: Trends and projections in PDI, consumer expenditure and savings ratio, 1998-2007
- Middle-aged buyers – an emerging sector within the market
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- Figure 5: Trends and projections in the UK population, by age group 15+, 1998-2007
- Consumer interest in home improvement remains strong
- Warm summers can depress demand
- Lifestyle changes – creating ripples within the market
- Effects of competition within the market
Market Size and Trends
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- Living and dining room furniture dominate expenditure in the sector
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- Figure 6: UK retail sales of furniture, by type and value, 2000 and 2002
- Limited growth of living and dining room furniture
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- Figure 7: UK retail sales of living and dining room furniture, by value, 1998-2003
- Upholstered and dining room furniture: a fall in value
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- Figure 8: UK retail sales of living and dining room furniture, by type and value, 2000 and 2002
Market Segmentation
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- Living room furniture
- Sales performance remains sluggish in face of competitive pressures
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- Figure 9: UK retail sales of living room furniture, by value, 1998-2003
- Non-upholstered posts stronger growth in sales
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- Figure 10: UK retail sales of upholstered and non-upholstered living room furniture, by value, 2000 and 2002
- Price competition hits value of upholstered
- Fabric sales suffer from rising affordability of leather
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- Figure 11: UK retail sales of living room upholstered furniture, by type and value, 2000 and 2002
- Dining room furniture
- Dining room furniture sales in decline
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- Figure 12: UK retail sales of dining room furniture, by value, 1998-2003
- Method of assembly
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- Figure 13: UK retail sales of living and dining room furniture, by method of assembly and value, 2000 and 2002
The Supply Structure
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- Production and trade
- A highly fragmented market
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- Figure 14: UK retail sales of living and dining room furniture*, by manufacturer and value, 2000 and 2002
- Companies and brands
- Christie-Tyler Furniture Group
- DFS
- Ercol Furniture
- IKEA
- MFI Furniture Group
- Silentnight Holdings
- Others
Advertising and Promotion
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- Use of above-the-line advertising remains strong
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- Figure 15: Main monitored media advertising expenditure on living and dining room furniture, 1998-2003
- Major retailers dominate advertising expenditure
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- Figure 16: Main monitored media advertising expenditure on living and dining room furniture, by five highest-spending suppliers, 2000-02
- Adspend according to media channel
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- Figure 17: Main monitored media advertising expenditure on living and dining room furniture, by media channel, 1998-2002
Distribution
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- Multiples increasingly steal share
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- Figure 18: UK retail sales of living and dining room furniture, by type of outlet and value, 2000 and 2002
- Selected leading multiples
- IKEA
- MFI Group
- DFS Furniture Company
- Courts
- SCS Upholstery
- Heal’s
- Furnitureland
- Land of Leather
- Furniture Village
- Multiyork
- Kingdom of Leather
- Reid Furniture
- House of Fraser
- Selected other outlets
The Consumer Ownership and Future Purchase
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- Ownership of living and dining room furniture
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- Figure 19: Ownership of living and dining room furniture, 1998-2003
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- Figure 20: Ownership of living and dining room furniture, by gender, age and socio-economic group, 2003
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- Figure 21: Ownership of living and dining room furniture, by region, 2003
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- Figure 22: Ownership of living and dining room furniture, by lifestage and presence of children, 2003
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- Figure 23: Ownership of living and dining room furniture, by household size, ownership and length of tenure, 2003
- Purchase in last 12 months skewed towards under-35s
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- Figure 24: Living and dining room furniture bought new in the last 12 months, 1998-2003
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- Figure 25: Living and dining room furniture bought new in the last 12 months, by gender, age and socio-economic group, 2003
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- Figure 26: Living and dining room furniture bought new in the last 12 months, by region, 2003
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- Figure 27: Living and dining room furniture bought new in the last 12 months, by lifestage and presence of children, 2003
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- Figure 28: Living and dining room furniture bought new in the last 12 months, by household size, ownership and length of tenure, 2003
- Expenditure on living and dining room furniture
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- Figure 29: Expenditure on lounge/living room furniture purchased in the last 12 months, 1998-2003
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- Figure 30: Expenditure on dining room tables and chairs purchased in the last 12 months, 1998-2003
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- Figure 31: Expenditure on other dining room furniture purchased in the last 12 months, 1998-2003
- Living and dining room furniture is a relatively high priority
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- Figure 32: Furniture purchasing plans for the next 12 months, June 2001 and April 2003
- ABs and dining room furniture
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- Figure 33: Purchasing of living and dining room furniture in the next 12 months, by gender, age and socio-economic group, April 2003
- The importance of families
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- Figure 34: Purchasing of living and dining room furniture in the next 12 months, by presence of children, lifestage and Mintel's Special Groups, April 2003
- Tenants as purchasers
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- Figure 35: Purchasing of living and dining room furniture in the next 12 months, by home ownership, household size and length of tenure, April 2003
- Storage space a factor in London
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- Figure 36: Purchasing of living and dining room furniture in the next 12 months, by region and ACORN category, April 2003
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- Figure 37: Purchasing of living or dining room furniture in the next 12 months, by media usage, April 2003
Reasons for Purchase and Consumer Typologies
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- The importance of replacement purchase
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- Figure I: Reasons or occasions that might prompt purchase of living and dining room furniture, April 2003
- Women, redecoration and replacement
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- Figure II: Reasons or occasions that might prompt purchase of living and dining room furniture, by gender, age and socio-economic group, April 2003
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- Figure III: Reasons or occasions that might prompt purchase of living and dining room furniture, by presence of children, lifestage and Mintel's Special Groups, April 2003
- Moving house encourages purchase
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- Figure IV: Reasons or occasions that might prompt purchase of living and dining room furniture, by home ownership, household size and length of tenure, April 2003
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- Figure V: Reasons or occasions that might prompt purchase of living and dining room furniture, by region and ACORN categories, April 2003
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- Figure VI: Reasons or occasions that might prompt purchase of living and dining room furniture, by media usage, April 2003
- Consumer typologies
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- Figure VII: Consumer typologies, by gender, age and socio-economic group, April 2003
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- Figure VIII: Consumer typologies, by lifestage, presence of children and Mintel’s Special Groups, April 2003
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- Figure IX: Consumer typologies, by region and ACORN categories, April 2003
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- Figure X: Consumer typologies, by media usage, April 2003
- Consumer typologies and potential purchase
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- Figure XI: Consumer typolgoes and potential purchase of furniture, April 2003
The Future
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- Market drivers remain generally positive…
- …despite market’s fixation with price
- Greater role for design
- Multi-functionality set to proliferate
- Retail consolidation at a pace
Forecast
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- Limited growth in retail value forecast to 2007
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- Figure 38: Forecast of the UK living and dining room furniture market, by value, 2003-07
- Living room furniture will remain dominant
- Space to become more of an issue
- Dining room furniture set to struggle
- Factors used in the forecast
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