Kitchens and Kitchen Furniture - UK - September 2012

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Consumer spending on kitchens and kitchen furniture, 2007-17
Market factors
Figure 2: Purchasing a kitchen, by length of time in present home, 2012
Number of house purchases
Figure 3: Number of residential UK property transactions with a value of £40,000 or above – seasonally adjusted, Q1 2006-Q2 2012
Companies, brands and innovation
Figure 4: Kitchen market shares, by company, 2011
Retail distribution
Figure 5: Distribution of kitchens, 2007 and 2011
The consumer
Types of kitchens owned
Figure 6: Types of kitchens and appliances owned, July 2012
Refurbishment and redecoration of kitchens
Figure 7: Kitchen refits, redecoration, purchasing and purchasing intentions, by financial situation, July 2012
Retailers used
Figure 8: Retailers used for purchasing kitchens, July 2012
Factors influencing choice of kitchen
Figure 9: Factors important for the next kitchen, July 2012
Factors influencing choice of retailer
Figure 10: Factors influencing where to buy kitchens, July 2012
Cluster analysis identifies three key target groups for kitchens
Figure 11: Target groups for kitchens, July 2012
What we think
ISSUES IN THE MARKET
In the current economic climate, are people taking on the task of refitting their own kitchens?
What are suppliers doing to encourage people to trade up?
How important is help with design and layout?
What are the key style trends in today’s kitchen market?
Is there anything that will help to create more demand in the near future?
TREND APPLICATIONS
Trend: Slow it all Down
Trend: Prepare for the Worst
2015 trend: Old Gold
INTERNAL MARKET ENVIRONMENT
Key points
Time in present home
Figure 12: Purchasing a kitchen, by length of time in present home, 2012
Creating more space
Figure 13: Trends in ownership of home extensions, 2007-12
A more sustainable future?
Figure 14: Trends in agreement with attitudinal statements relating to the home, 2007-12
Competition from biomass use
Stamping out illegal timber
Objects of desire
BROADER MARKET ENVIRONMENT
Key points
Number of house purchases
Figure 15: Number of residential UK property transactions with a value of £40,000 or above – seasonally adjusted, Q1 2006-Q2 2012
What has been happening to house prices?
Figure 16: Annual change in UK house prices, January 2005-July 2012
Borrowing against the value of the house
Figure 17: Housing equity withdrawal – seasonally adjusted, Q1 2006-Q1 2012
Internet first choice for information
Figure 18: Trends in broadband penetration, 2007-12
Figure 19: Trends in agreement with selected lifestyle statements on other media, 2007-11
Adding to the housing stock
Figure 20: UK households, by size, 2007-17
More families and greys
Figure 21: Trends in the age structure of the UK population, 2007-17
Growth in ABs positive for kitchens
Figure 22: Forecast adult population trends, by socio-economic group, 2007-17
Interest in the home
Figure 23: Agreement with selected lifestyle statements, 2007-11
COMPETITIVE CONTEXT
Key points
Consumer spending on household products
Figure 24: Consumer expenditure on selected household products, 2007-11
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
MARKET SIZE AND FORECAST
Key points
Consumer spend on kitchens
Figure 25: Consumer spending on kitchens and kitchen furniture, at current and constant 2012 prices, 2007-17
Weak demand in the outlook period
Forecast
Figure 26: Consumer spending on kitchens and kitchen furniture, 2007-17
WHO’S INNOVATING?
Key points
Weightless appearance and built-in technology
Facebook voters select eco-favourites
New materials for work surfaces
Franke adds iPad app with two levels
Online shopping made available to independents
Nolte’s invisible joints
COMPANIES AND PRODUCTS
Key points
Kitchen retailers
Figure 27: Multiple retailers, number of UK outlets, July 2012
How market shares stack up
Figure 28: Market shares of kitchen furniture, by major company, 2007-11
Recession hits weakest players first
Howden takes an innovative approach
Other phoenix companies
Concentration of the DIY sector
Nobia Group (Magnet, Gower, and Poggenpohl)
Howdens Joinery
Kingfisher (B&Q and Screwfix)
Homebase
Travis Perkins (Wickes and Benchmarx)
IKEA
 OTHER COMPANIES
Wren Kitchens and Bedrooms
Argos
Omega
Symphony
Canburg (Smallbone of Devizes, Mark Wilkinson Furniture and Brookmans)
Fired Earth
In-toto Kitchens
Betta Living
ALNO Kitchens
John Lewis
Jewson
Buildbase
Mereway Kitchens
Other companies
CHANNELS OF DISTRIBUTION
Key points
Figure 29: Distribution of kitchen furniture, by major channel, 2007-11
Tough going for retailers
Strong growth for Howdens
Ex-MFI execs take on the market once more
Big three now dominate DIY scene
Online retailing (all furniture)
Figure 30: Retailers used for furniture purchases, in-store and online, June 2012
BRAND COMMUNICATION AND PROMOTION
Key points
Nielsen Media Research data
Figure 31: Topline advertising spend on kitchen furniture, 2008-12
A look at individual advertisers
Figure 32: Advertising spend on kitchen furniture, top spenders, 2008-12
Who spent more?
Who made cuts?
Media used for advertising kitchens
Figure 33: Advertising spend on kitchen furniture, by media type, 2008-12
Figure 34: Advertising spend on kitchen furniture, by media type, 2008-12
Recent advertising campaigns
Magnet focuses on creating an individual kitchen
IKEA highlights its fitting service and its quality
Wickes promotes its app
Homebase transforms a square box and gives it feminine appeal
B&Q won’t be beaten on price and offers IFC
THE CONSUMER – OWNERSHIP AND PURCHASING
Key points
Figure 35: Types of kitchens and appliances owned, July 2012
Who eats in the kitchen?
Figure 36: Kitchens and eating areas, by socio-economic group, July 2012
Who has had a new kitchen?
Figure 37: Kitchen refits, redecoration, purchasing and purchasing intentions, by financial situation, July 2012
Who is planning a new kitchen?
THE CONSUMER – WHERE THEY BOUGHT KITCHENS
Key points
Retailers used for buying kitchens
Figure 38: Retailers used for purchasing kitchens, July 2012
Source of kitchens by retailer
Figure 39: Retailers used for purchasing kitchens, by retailer, July 2012
How many retailers were used?
Figure 40: Repertoire of retailers used for purchasing kitchens, July 2012
THE CONSUMER – FACTORS INFLUENCING CHOICE OF KITCHENS
Key points
Factors influencing choice of kitchens
Figure 41: Factors important for the next kitchen, July 2012
Best use of space
Modern style appeals to young consumers
Higher quality for high income groups
Individual choices
Making savings
Built-in or freestanding?
Natural materials have older appeal
Other influences
THE CONSUMER – FACTORS INFLUENCING WHERE TO BUY KITCHENS
Key points
Factors influencing choice of supplier
Figure 42: Factors influencing where to buy kitchens, July 2012
It’s got to be online
Budgeting for a new kitchen
Getting the kitchen installed
Personal service
Credit deals
THE CONSUMER – TARGET GROUPS
Key points
Target groups for kitchens
Figure 43: Target groups for kitchens, July 2012
Savers (30%)
Figure 44: Factors important for the next kitchen – Savers, July 2012
Figure 45: Factors influencing where to buy kitchens – Savers, July 2012
Integrated (28%)
Figure 46: Factors important for the next kitchen – Integrated, July 2012
Figure 47: Factors influencing where to buy kitchens – Integrated, July 2012
Modern (42%)
Figure 48: Factors important for the next kitchen – Modern, July 2012
Figure 49: Factors influencing where to buy kitchens – Modern, July 2012
APPENDIX – INTERNAL AND BROADER MARKET ENVIRONMENT
Figure 50: Agreement with attitudinal statements relating to home improvements, by demographics, 2012
Figure 51: Ownership of home extensions, by demographics, 2012
Figure 52: Agreement with attitudinal statements relating to the home, by demographics, 2012
Figure 53: Broadband penetration, by demographics, 2012
APPENDIX – CONSUMER – OWNERSHIP AND PURCHASING
Figure 54: Purchasing of kitchen furniture, by demographics, 2012
APPENDIX – CONSUMER – OWNERSHIP OF KITCHENS
Figure 55: Most popular types of kitchens owned, by demographics, July 2012
Figure 56: Next most popular types of kitchens owned, by demographics, July 2012
Figure 57: Kitchen purchasing in the last three years, by demographics, July 2012
APPENDIX – CONSUMER – WHERE THEY BOUGHT KITCHENS
Figure 58: Retailers used for any purchasing of kitchens, by demographics, July 2012
Figure 59: Retailers used for store and online purchasing of kitchens, by demographics, July 2012
Repertoire analysis
Figure 60: Repertoire of retailers used for purchasing of kitchens, by demographics, July 2012
APPENDIX – CONSUMER– IMPORTANT FEATURES OF THE NEXT KITCHEN
Figure 61: Most popular features of the next kitchen, by demographics, July 2012
Figure 62: Next most popular features of the next kitchen, by demographics, July 2012
APPENDIX – CONSUMER – FACTORS INFLUENCING WHERE TO BUY KITCHENS
Figure 63: Most popular factors influencing where to buy kitchens, by demographics, July 2012
Figure 64: Next most popular factors influencing where to buy kitchens, by demographics, July 2012
Figure 65: Other factors influencing where to buy kitchens, by demographics, July 2012
APPENDIX – CONSUMER – TARGET GROUPS
Figure 66: Target groups, by demographics, July 2012