Author: Mintel Group Ltd.
Last saved by: HTTP server

Living Room Furniture - UK - February 2006

INTRODUCTION AND ABBREVIATIONS
Definition
Consumer research
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Moving away from the vagaries of the housing market
Reviving the lap tray
Lessons from the fridge market
The MOHO to replace the SOHO
Celebrity endorsements
Large and stronger furniture products required
EXECUTIVE SUMMARY
Buoyant housing market has been largely positive…
...but retraction in consumer spending effecting a market slowdown
Space and furniture requirements change with length of residency
Leather is the main driver in upholstered furniture
Sideboards and TV/entertainment units are popular purchases
Vertically integrated businesses keep ahead of the competition
DFS success is based on high advertising spend
Impact of changing household structure
Impact of the media
Homebase and Argos lead the offensive against the furniture specialists
Changing the way of life in the future
MARKET DRIVERS
House moves impact on demand for living room furniture
Figure 1: Length of time in present home, 2000-05
PDI and consumer expenditure continue to rise
Figure 2: PDI and consumer expenditure, 2000-05
Personal debt, a burden or boost?
Owner-occupation continues to rise
Figure 3: Household stock, by tenure, 2000-05
Household size
Figure 4: Household size, 2000 and 2005
Smaller households demand different furniture pieces
Extending the living space
Figure 5: Household ownership of home extensions, 2001-05
Home improvement – a ‘popular’ leisure activity
Figure 6: Agreement with selected lifestyle statements, 2000-04
Home improvements and home style magazines
Impact of decline in family eating together regularly, and rise in home entertaining
Figure 7: Agreement with the statement ‘We usually have family meals at the weekend’ and ‘I enjoy entertaining people at home’, by gender, age and socio-economic group, 2001-05
Decline in formal eating
Cocooning driving home entertainment at home
Homeworking and the rise of the laptop are changing working practices
Figure 8: Ownership of PCs, 2001-05
MARKET SIZE
Furniture sales suffer first when the consumer feelgood factor goes
Figure 9: UK retail sales of living room furniture, by value, 2000-05
MARKET SEGMENTATION
Upholstered furniture has a shorter replacement cycle
Figure 10: UK retail sales of upholstered and non-upholstered living room furniture, by value, 2002 and 2004
Leather growing in popularity as product prices fall
Figure 11: UK retail sales of living room upholstered furniture, by type and value, 2002 and 2004
Lift and rise chairs live up to their name in the marketplace
Ready-assembled furniture assembles a lead over flatpack
Figure 12: UK retail sales of cabinet and occasional living room furniture, by method of assembly and value, 2002 and 2004
THE SUPPLY STRUCTURE
 COMPANY SHARE
Figure 13: Estimated manufacturer share of UK sales of living room furniture*, by retail value, 2002 and 2004
Vertically integrated businesses compete more effectively
Level of brand recognition is low
 MAJOR COMPANIES AND BRANDS
Sofa Brands International
DFS Furniture Company plc
Ekornes Ltd
Ercol Furniture Limited
IKEA
MFI Furniture Group
Vale Upholstery Limited with Bridgecraft Furniture Limited
JDP Furniture Group Limited with Wade Furniture Group and Multiyork Furniture Limited
Stag Furniture (UK) Ltd
La-Z-Boy Incorporated
Thomas Lloyd Group
NEW PRODUCT DEVELOPMENTS AND TRENDS
The TV, the computer and the DVD determine furniture design
Conservatories add an extra living room requiring lighter furniture designs
Hard woods and painted pine are stealing a march on natural pine
Versatile, multi-functional and collapsible furniture items to suit small spaces and multi-purpose rooms
The flatpack revolution is extended to sofas
New shades and styles of leather upholstery expand the mass market
Impact of health and safety issues on living room furniture production and demand
ADVERTISING AND PROMOTION
Figure 14: Main monitored media advertising expenditure on living and dining room furniture, 2000-05
Company spend
Figure 15: Top ten main monitored media advertisers for living and dining room furniture, by company spend, 2003 and 2004
DFS ranks among top-spending UK advertisers in 2004
Figure 16: Top ten brands by adspend, October 2005
Media expenditure on living and dining room furniture by media channel
Figure 17: Main monitored media advertising expenditure on living and dining room furniture, by media channel, 2004 and 2005
Advertising around bank holidays
Figure 18: Main monitored media advertising expenditure on living and dining room furniture, by month, January 2004-December 2005
Below-the-line promotions
DISTRIBUTION
Furniture multiples dominate
Tough time for established retailers
Figure 19: UK retail sales of living room furniture, by type of outlet and value, 2002 and 2004
Homebase is leading the offensive from the DIY multiples
Internet and catalogue marketing are the dynamic retail sectors
 SELECTED LEADING MULTIPLES
IKEA
MFI Furniture Group
DFS Furniture Company plc
ScS Upholstery plc
Heal’s plc
Land of Leather
Furniture Village
Multiyork
Kingdom of Leather and Natuzzi spa
Reid Furniture
Homestyle Group plc
 DEPARTMENT STORES
House of Fraser
Marks & Spencer
Debenhams
 DIY MULTIPLES
Focus
Homebase
Catalogue shops and mail order
Argos
 SUPERMARKETS
Asda
Tesco
Living Room Furniture on the Internet
Channel for information
Figure 20: Top ten most visited UK home and garden retail websites, week to 19 November 2005
Broadband opening up opportunities
Pinesolutions UK
Satellite shopping channels
THE CONSUMER
 HOUSEHOLD LAYOUT
Figure 21: Living room/area layout in household, September-October 2005
Home living area layout
AB consumers are key target market
Figure 22: Agreement with selected statements, by socio-economic group, September-October 2005
Potential at two levels
Figure 23: Agreement with selected statements, by Mintel’s Special Groups, September-October 2005
Space and furniture requirements change with length of residency
Figure 24: Agreement with selected statements, by length of current residence and household tenure, September-October 2005
Combined is affordable
 PURCHASING TRIGGERS
Figure 25: Purchasing triggers for living room furniture, September-October 2005
House moves and redecoration are primary drivers
Barriers to credit lowering
Young adults a key target market
Figure 26: Purchasing triggers, by age, September-October 2005
Affluence is a key indictor
Broadsheet vs commercial TV advertising
Purchase incentives for movers
 ITEMS OF FURNITURE OWNED, BY TYPE
Figure 27: Items of furniture owned, June 2005
Home entertainment takes precedence in the living area
Comfort and entertainment largely dictate furniture requirements
Figure 28: Number of items of furniture owned, June 2005
Six is the magic number
CHAID analysis
Figure 29: Optimal target groups for ownership of furniture pieces, June 2005
Length of tenure determines need
DETAILED DEMOGRAPHICS
 HOUSEHOLD LAYOUT
Figure 30: Living room/area layout in household, by gender, age and socio-economic group, September-October 2005
Figure 31: Living room/area layout in household, by presence of children, lifestage and Mintel’s Special Groups, September-October 2005
Figure 32: Living room/area layout in household, by marital status, working status and household size, September-October 2005
Figure 33: Living room/area layout in household, by region and ACORN category, September-October 2005
Figure 34: Living room/area layout in household, by media usage, commercial TV viewing and supermarket usage, September-October 2005
Figure 35: Living room/area layout in household, by length of current residence and household tenure, September-October 2005
 PURCHASING TRIGGERS
Figure 36: Purchasing triggers for living room furniture, by gender, age and socio-economic group, September-October 2005
Figure 37: Purchasing triggers for living room furniture, by presence of children, lifestage and Mintel’s Special Groups, September-October 2005
Figure 38: Purchasing triggers for living room furniture, by marital status, working status and household size, September-October 2005
Figure 39: Purchasing triggers for living room furniture, by region and ACORN category, September-October 2005
Figure 40: Purchasing triggers for living room furniture, by media usage, commercial TV viewing and supermarket usage, September-October 2005
Figure 41: Purchasing triggers for living room furniture, by length of current residence and household tenure, September-October 2005
THE CONSUMER – ATTITUDES AND BEHAVIOURS
Figure 42: Attitudes towards the living room area, September-October 2005
The TV room
A generation of couch potatoes
Figure 43: Agreement with selected statements, by age, September-October 2005
Affluent young have greatest need for viewing sofas
Socio-economic status
Figure 44: Agreement with selected statements, by socio-economic group, September-October 2005
 AB CONSUMERS ENJOY FORMAL FAMILY MEALS
Living room diners best reached by TV ads
Long-term residents receptive to new additions
Figure 45: Agreement with statement ‘I had an extension built to increase by living space’, by ACORN category and length of current residence, September-October 2005
Cross-selling potential
 LEATHER VS FABRIC SOFAS
Mid-market success on the cards
Affluent families can be encouraged to purchase
Workers’ choice
Desire for leather stretches across the economic divide
DETAILED DEMOGRAPHICS – ATTITUDES AND BEHAVIOURS
Figure 46: Attitudes towards the living room area, by gender, age and socio-economic group, September-October 2005
Figure 47: Attitudes towards the living room area, by presence of children, lifestage and Mintel’s Special Groups, September-October 2005
Figure 48: Attitudes towards the living room area, by marital status, working status and household size, September-October 2005
Figure 49: Attitudes towards the living room area, by region and ACORN category, September-October 2005
Figure 50: Attitudes towards the living room area, by media usage, commercial TV viewing and supermarket usage, September-October 2005
Figure 51: Attitudes towards the living room area, by length of current residence and household tenure, September-October 2005
 LEATHER VS FABRIC
Figure 52: Attitudes towards leather vs fabric sofas, by gender, age and socio-economic group, June 2005
Figure 53: Attitudes towards leather vs fabric sofas, by presence of children, lifestage and Mintel’s Special Groups, June 2005
Figure 54: Attitudes towards leather vs fabric sofas, by marital status, working status and household size, June 2005
Figure 55: Attitudes towards leather vs fabric sofas, by region and ACORN category, June 2005
Figure 56: Attitudes towards leather vs fabric sofas, by media usage, commercial TV viewing and supermarket usage, June 2005
Figure 57: Attitudes towards leather vs fabric sofas, by household tenure and length of current residence, June 2005
THE FUTURE
Home ownership and mobility fuel the market
Figure 58: Household stock, by tenure, 2005-10
Multi-functional furniture designed for the smaller household is a priority
Figure 59: Household stock, by household size, 2005 and 2010
Home improvement means more furniture sales
Increasing presence of the large retailers in the market
Growth of the Internet
FORECAST
Figure 60: Forecast of UK retail sales of living room furniture, 2005-10
Growth forecast set to rise
Smaller households helping growth
Factors incorporated in the forecast

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.