Living Room Furniture - UK - March 2008

ISSUES IN THE MARKET
Key themes
Definitions
 ABBREVIATIONS
INSIGHTS AND OPPORTUNITIES
Customisation and flexibility
Blurring the boundaries
Helping the aged
Green and pleasant land
FAST FORWARD TRENDS
 TREND 1: LIFE AS SCIENCE FICTION
Definition
What next?
 TREND 2: HOME OF THE SENSES
Definition
What next?
MARKET IN BRIEF
Market decline
Growth inhibitors
Positive developments
Future trends
INTERNAL MARKET ENVIRONMENT
Key points
Ownership and spend declines
Figure 1: Living room furniture ownership and purchase, 2003-07
Polarisation in spend
Figure 2: Living room furniture spend over the past 12 months, 2003-07
Has interest in extending living space peaked?
Figure 3: Home conversions, 2003-07
Let me entertain you
Figure 4: Lifestyle statements towards homes, 2003-07
Changing rooms
Future of furniture retailing
Cheap imports impact on market
UK and European manufacturers fight back
The Internet embraces interior décor
BROADER MARKET ENVIRONMENT
Key points
Housing market slows
Figure 5: House prices, transactions and average number of years between moves, 2002, 2007 and 2012
Opportunities for living room furniture
An ageing population – will pay for comfort
Figure 6: UK population, by age, 2002-12
Budget products appeal to the young
AB socio-economic status growing
Figure 7: Adult population trends, by socio-economic group, 2002-12
ABs – strong views on living room furniture
C1s – a more flexible approach
Smaller households on the rise
Figure 8: Number of UK households, by number of persons in household, 2002-12
Demand for more flexible living space
Eco living
COMPETITIVE CONTEXT
Key points
Furniture – not exciting enough
Figure 9: Expenditure priorities, 2006-08
Mixed fortunes for furniture
Figure 10: UK RETAIL SALES VALUE OF FURNITURE, BY TYPE, 2003, 2005 AND 2007
Future outlook
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Contemporary designs proliferate
Action packed – vogue for recliners and swivel chairs
Blurring the boundaries
Flexible furniture for fluid functionality
Sit back and enjoy the show
Celebrity endorsements
Improving auxiliary services
Going green
Internet initiatives
MARKET VALUE AND FORECAST
Key points
Uncomfortable position for living room furniture
Figure 11: Forecast of UK retail sales of living room furniture by value, at current and constant prices, 2007-12
Factors used in the forecast
The future living room – a flexible space
SEGMENT PERFORMANCE
Key points
Sofas – not such a soft option
Figure 12: UK retail sales of living room furniture, by type and value, 2005 and 2007
Recliners rise to the challenge
Leather losing its sheen
Figure 13: UK retail sales of upholstered living room furniture, by type and value, 2005 and 2007
Reappraising ready-assembled furniture
Figure 14: UK retail sales of cabinet and occasional furniture, by method of assembly and value, 2005 and 2007
Flatpack – a flatter future?
MARKET SHARE
Key points
Relatively poor brand recognition
Vertical integration aids growth
COMPANIES AND PRODUCTS
Sofa Brands International
DFS
Ekornes Ltd
The Innovators of Comfort
Ercol Furniture Ltd
IKEA
MFI Retail Ltd
New Heights (with the Sofa Workshop)
Sofa Workshop
Vale Bridgecraft
JDP Furniture Group
Thankyou for choosing JDP
Wade Furniture (with Multiyork Furniture Ltd)
Master Furniture Makers
La-Z-Boy Incorporated
SofaSofa
Others
BRAND COMMUNICATION AND PROMOTION
Key points
Investing more, achieving less
Figure 15: Main media advertising expenditure on living/dining room furniture*, 2003-07
DFS – hey big spender
Figure 16: Main media advertising expenditure on living/dining room furniture, by top 8 manufacturers and manufacturer/retailers, 2003-07
Power of the press
Figure 17: Main media advertising expenditure on living/dining room furniture, by media type, 2007
UK manufacturers fighting back
CHANNELS TO MARKET
Key points
Changing pattern of distribution
Figure 18: UK retail sales of living room furniture, by outlet type, 2005 and 2007
Specialists under threat
Established non-specialists – mixed fortunes
Grocery multiples muscling in
New distribution channels doing well
Homebase – a lone star
THE CONSUMER – REASONS FOR BUYING
Key points
Main reasons for buying
Figure 19: Main reasons for buying upholstered living room furniture, October 2007
Wear and tear
Figure 20: Wear and tear and moving house/setting up home as reasons for buying, by age, October 2007
Changing rooms, not address
Changing family structure – new look, new sofa
Figure 21: Wanting a new look/style and redecoration as reasons for buying, by Mintel’s Special Groups, October 2007
Attracting first-time buyers
THE CONSUMER – FACTORS AFFECTING CHOICE
Key points
Main factors influencing choice
Figure 22: Attitudes towards buying living room furniture, October 2007
Comfort and function – key requirements
Storage and flexibility – popular with families
Figure 23: Attitudes towards functionality over style, paying for quality and putting together flat-pack furniture, by age, October 2007
Quality versus flat-pack
Selling style
Figure 24: Interest in latest styles and matching or mixing and matching of furniture, by Mintel’s Special Groups, October 2007
Internet purchasing potential
THE CONSUMER – LIFESTYLE FACTORS AND TYPOLOGIES
Key points
How consumers view the living room
Figure 25: Attitudes towards the living room, October 2007
Frequent usage – more wear and tear
Couch potatoes
Figure 26: Living room for listening to music, eating dinner and entertaining, by age, October 2007
Come for supper
Eating – no social divide
TV makeover programmes
Identifying targets
Figure 27: Consumer typologies for living room furniture, October 2007
TV-Focused (24%)
Entertainers (14%)
Heart of the Home (23%)
Lounge/Diners (17%)
Apathetic (22%)
APPENDIX – REASONS FOR BUYING
Figure 28: Main reasons for buying upholstered living room furniture, by demographic sub-group, October 2007
APPENDIX – FACTORS AFFECTING CHOICE
Figure 29: Attitudes towards buying living room furniture, by demographic sub-group, October 2007
Figure 30: Attitudes towards buying living room furniture, by demographic sub-group, October 2007
APPENDIX – LIFESTYLE FACTORS AND TYPOLOGIES
Figure 31: Attitudes towards the living room, by demographic sub-group, October 2007
Figure 33: Motivations for buying living room furniture, by typologies, October 2007
Figure 34: Factors affecting choice of living room furniture, by typologies, October 2007