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
- Growth in the market slows
- 2017 shaping up to be a challenging year
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- Figure 1: Consumer spending on living and dining room furniture, 2012-22
- Inflation hits furniture in 2017
- Signs of consumer credit becoming more restricted
- Companies and brands
- Category specialists account for largest share of sales
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- Figure 2: Estimated channels of distribution for living and dining room furniture, 2016
- DFS the market leader
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- Figure 3: Estimated market shares of the living and dining room furniture market, 2016
- IKEA rolls out click-together furniture
- Furnico loses licence to sell La-Z-Boy in the UK
- Advertising spend reaches £125.5 million in 2016
- TV dominates living and dining room advertising
- The consumer
- Two thirds have a separate living room
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- Figure 4: Type of living room, June 2017
- Purchasing peaks in the year after moving in
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- Figure 5: What they spent on living and dining room furniture, June 2017
- Sofa the most popular purchase
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- Figure 6: Living and dining room furniture purchases in the past year, June 2017
- Half are interested in furniture with hidden storage
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- Figure 7: Ownership and interest in types of furniture, June 2017
- Living rooms are a place to relax
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- Figure 8: Attitudes towards living and dining room furniture, June 2017
- What we think
Issues and Insights
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- The risks and opportunities of generation rent
- The facts
- The implications
- Rising inflation could spell trouble for the sector
- The facts
- The implications
- Are furniture retailers still suffering a hangover from 2008?
- The facts
- The implications
The Market – What You Need to Know
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- Growth in the market slows
- 2017 shaping up to be a challenging year
- Inflation hits furniture in 2017
- Consumer credit could become more restricted
- Housing market remains stable in 2016
Market Size and Forecast
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- Market growth slows
- A challenging market in 2017
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- Figure 9: Consumer spending on Living and dining room furniture, 2012-22
- Figure 10: Consumer spending on living and dining room furniture, 2012-22
- Market Segmentation
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- Figure 11: Consumer spending on living and dining furniture, estimated breakdown by category, 2016
- Forecast methodology
Market Drivers
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- Deflation in 2016
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- Figure 12: Annual rate of inflation, 2007-16
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- Figure 13: Inflation, monthly change over 12 months, November 2016-July 2017
- Growth in the private rental sector
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- Figure 14: Housing tenure in England, 2005-16
- Stable housing market
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- Figure 15: UK residential property transactions with a value over £40,000, 2012-16
- Figure 16: Monthly residential housing transactions over £40,000, January 2015-July 2017
- The lingering effect of the financial crisis
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- Figure 17: Number of housing transactions that took place 6-10 years earlier, 2007-16
- The proportion living in flats has been rising
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- Figure 18: Type of dwelling lived in, June 2017
- Figure 19: Proportion of UK dwellings classified as ‘Flats’, 2008-15
- Completed new builds up, but still a long way behind the peak
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- Figure 20: Number of new build dwellings, started and completed, 2001/02-2015/16
- Consumer credit returning to pre-crisis levels
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- Figure 21: Monthly outstanding net unsecured lending to individuals (excluding student loans), February 2010-June 2017
- Lower availability of unsecured credit
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- Figure 22: Changes in the availability of unsecured credit to households over the past three months and in the next three months, Q1 2012-Q2 2017
Companies and Brands – What You Need to Know
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- Category specialists account for largest share of sales
- DFS the market leader
- IKEA rolls out click-together furniture
- Furnico loses licence to sell La-Z-Boy in the UK
- Advertising spend reaches £125.5 million in 2016
- TV dominates living and dining room advertising
Channels of Distribution
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- Category specialists continue to hold appeal
- General furniture retailers account for the majority of spending
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- Figure 23: Estimated channels of distribution for living and dining room furniture, 2016
Market Shares
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- Figure 24: Estimated market shares of the living and dining room furniture market, 2016
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Innovations and Launch Activity
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- IKEA rolls out click-together furniture
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- Figure 25: IKEA’s wedge dowel
- Innovation to maximise use of space
- Lord Kirkham launches Fabb Sofas
- Amazon explores the possibility of physical furniture stores
- The rise of residency retail
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- Figure 26: Henry’s room at the Hoxton, Holborn, March 2017
- IKEA teams up with Apple to create AR-based shopping app
- High-end furniture retailers launching in the UK
- Design partnerships proliferate
Manufacturer Profiles
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- Corndell Quality Furniture Co. Ltd
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- Figure 27: Corndell Quality Furniture Co. Ltd. financial performance, 2015-16
- Devonshire Pine & Oak
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- Figure 28: Devonshire Pine Limited financial performance, 2015-16
- Ekornes
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- Figure 29: Ekornes financial performance, 2015-16
- Ercol
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- Figure 30: Ercol financial performance, 2015-16
- Furnico (including La-Z-Boy)
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- Figure 31: Furnico financial performance, 2015-16
- Halo
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- Figure 32: Halo financial performance, 2014-15
- JDP Furniture Group
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- Figure 33: JDP Furniture Group financial performance, 2015-16
- Morris Furniture Brands/Nathan Furniture Group
- Sherborne Upholstery
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- Figure 34: Sherbourne Upholstery financial performance, 2015-16
- Sofa Brands International
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- Figure 35: Sofa Brands International financial performance, 2015-16
- Westbridge Furniture Design
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- Figure 36: Westbridge Furniture Design financial performance, 2014-15
Advertising and Marketing Activity
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- Advertising spend reaches new high in 2016
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- Figure 37: Total above-the line, online display and direct mail advertising expenditure on living and dining room furniture, 2012-16
- DFS the biggest spender
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- Figure 38: Total above-the line, online display and direct mail advertising expenditure on living and dining room furniture by advertiser, 2016
- Figure 39: Total above-the line, online display and direct mail advertising expenditure on living and dining room furniture by advertiser, 2012-16
- DFS’ share of adspend in steady decline
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- Figure 40: Share of total above-the line, online display and direct mail advertising expenditure on living and dining room furniture by advertiser, 2012-16
- TV dominates adspend
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- Figure 41: Above-the line, online display and direct mail advertising expenditure on living and dining room furniture by media type, 2016
- And it is continuing to grow
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- Figure 42: Proportion of above-the line, online display and direct mail advertising expenditure on living and dining room furniture by media type, 2012-16
- SCS and Sofa Workshop focus on Press and Digital
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- Figure 43: above-the line, online display and direct mail advertising expenditure on living and dining room furniture by media type and advertiser, 2016
- Campaign highlights
- DFS works with Aardman for Christmas advert
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- Figure 44: DFS Christmas advert in collaboration with Aardman, November 2016
- Harveys launches ‘Any Excuse Will Do’ campaign:
- Habitat Voyeur campaign
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- Figure 45: Habitat Voyeur TV spot, March 2017
- Sofology’s ‘Life’s too short’ and small spaces campaigns
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Two thirds have a separate living room
- Purchasing peaks in the year after moving in
- Sofas are the most popular purchase
- 50% interested in furniture with hidden storage
- Living rooms are a place to relax
Types of Living Space
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- Almost two thirds have a separate living room
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- Figure 46: Type of living room, June 2017
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- Figure 47: Proportion of consumers with a separate living room, by age, June 2017
- Separate dining rooms becoming a rarity
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- Figure 48: Type of dining room, June 2017
What They Spent
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- Spending peaks between £250-£499
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- Figure 49: What they spent on living and dining room furniture, June 2017
- 25-34-year-olds the biggest spenders
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- Figure 50: What they spent on living and dining room furniture, by age group, June 2017
- Detached householders the biggest spenders
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- Figure 51: What they spent on living and dining room furniture, by dwelling type, June 2017
- The young most likely to make a purchase
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- Figure 52: Who made a purchase in the past year, June 2017
- Purchasing peaks after moving
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- Figure 53: Proportion that bought any living or dining room furniture in the past year, by how long they have lived in their current home, June 2017
- But spending peaks during the renewal phase
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- Figure 54: Average spend on living and dining room furniture, by how long they have lived in their current home, June 2017
Living and Dining Room Furniture Purchases
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- Living room purchases take priority
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- Figure 55: Living and dining room furniture purchases in the past year, June 2017
- Sofas replaced after 6-10 years
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- Figure 56: Sofa purchases in the past year, by length of time in their current home, June 2017
- Sofas and dining furniture more popular with homeowners
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- Figure 57: What they bought in the last year, by housing tenure, June 2017
- Dining room furniture appeals to those with the space
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- Figure 58: What they bought, by dwelling type, June 2017
- Repertoire analysis
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- Figure 59: Repertoire analysis of furniture items purchased for the living or dining room in the past year, June 2017
Ownership and Interest in Types of Furniture
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- Greatest interest in hidden storage solutions
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- Figure 60: Ownership and interest in types of furniture, June 2017
- 25-34-year-olds most likely owners of furniture solutions
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- Figure 61: Ownership of types of furniture, by age, June 2017
- Versatile furniture most popular in multi-functional spaces
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- Figure 62: Ownership of furniture items, by living space layout, June 2017
- Interest in hidden storage peaks among 45-54-year-olds
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- Figure 63: Interest in types of furniture, by age, June 2017
- Flat dwellers most interested in versatile furniture solutions
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- Figure 64: Interest in types of furniture, by housing type, June 2017
- Renters keen on furniture that can be dismantled
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- Figure 65: Interest in types of furniture, by housing tenure, June 2017
Attitudes towards Living and Dining Room Furniture
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- A place to relax
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- Figure 66: Attitudes towards living and dining room furniture, June 2017
- Private renters keen on space-saving solutions
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- Figure 67: Agreement with the statement “Space-saving furniture appeals to me”, by housing tenure, June 2017
- Wealthy most interested in furniture trends
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- Figure 68: Agreement with selected statements, by household income, June 2017
- Older consumers more concerned with comfort
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- Figure 69: Agreement with selected statements, by age, June 2017
- Differing attitudes to guests
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- Figure 70: Agreement with selected attitudes, by age, June 2017
Cluster Analysis
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- Figure 71: Attitudes towards the living and dining room, June 2017
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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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