| KN36052 |
| KEY NOTE HOUSEHOLD FURNITURE : August 2002 |
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This report covers: living room furniture, dining room furniture, kitchen furniture, bedroom furniture, chairs, metal furniture, wooden bedroom furniture, plastic furniture, furniture of other materials, mattresses,
Companies covered include: Airsprung Furniture Group, Courts, DFS Furniture Company, HomeForm Group, Homestyle, IKEA, MFI, Moores Furniture, Silentnight Holdings,
EXECUTIVE SUMMARY
| The UK market for household furniture was valued at £7.56bn in 2001, having seen growth of 3 percent to 4 percent per year since 1997. |
| The sectors that make up this market include living room furniture, bedroom furniture, kitchen furniture, dining room furniture and `other furniture' (for home office, halls and bathrooms, etc.). The market value does not account for antique and other second-hand furniture. The living room sector is performing well, as the increase of home-entertainment technology is demanding new storage solutions. The home-office subsector is also seeing growth, spurred by changing working styles and the rise in home computer ownership. |
| The purchase of furniture competes with other discretionary spending on goods, and can be easily deferred as it is generally not an essential purchase. As a result, the performance of the household furniture market is dependent on the general economy as a whole, and the level of house building and moving activity in particular. |
| Moving often triggers the purchase of furniture, even from consumers who are not first-time buyers. The growth of the furniture market relies on reducing replacement cycles, stimulating consumers to buy new furniture before their existing furniture is worn out. Media coverage, especially via television programmes, has developed the market to some extent by raising interest in home interior design and, therefore, prompting consumers to buy new furniture purely for design reasons. This has also increased demand for a wider variety of products. |
| The trend towards smaller room sizes within new homes has also impacted the market by changing furniture needs in a household. Demand has risen for multifunctional and space-efficient furniture — for example, the market is experiencing a decline in demand for the traditional three-piece suite and large dining tables. |
| The household furniture market is highly competitive, with discounting playing a large part. The January sales are still important for the industry but sales and offers are found year-round, and consumers are aware of this and `shop around' before purchasing. |
| Key Note does not anticipate rapid growth for the market in the foreseeable future. However, home-office, multifunctional, space-saving and flat-pack furniture are all likely to achieve a higher growth rate than other products. |
TABLE OF CONTENTS
| Executive Summary 1 |
| 1. Market Definition 9 |
| REPORT COVERAGE 9 |
| MARKET SECTORS 9 |
| Living Room Furniture 9 |
| Bedroom Furniture 9 |
| Kitchen Furniture 9 |
| Dining Room Furniture 10 |
| Other Furniture 10 |
| MARKET TRENDS 10 |
| Property Transactions 10 |
| Single-Person Households 10 |
| Home Office 11 |
| Flat-Pack Furniture 11 |
| Media Influence 11 |
| MARKET POSITION 11 |
| Household Expenditure 11 |
| Table 1: Total UK Household Expenditure on Durables and UK Expenditure on Furniture and Furnishings by Value at Current Prices (£m and percent), 1997-2001 12 |
| The UK Housing Market 13 |
| 2. Market Size 14 |
| THE TOTAL MARKET 14 |
| Table 2: The UK Household Furniture Market by Value (£m at rsp), 1997-2001 14 |
| BY MARKET SECTOR 14 |
| Living Room Furniture 14 |
| Table 3: The Living Room Furniture Sector by Value (£m at rsp), 1997-2001 15 |
| Bedroom Furniture 15 |
| Table 4: The Bedroom Furniture Sector by Value (£m at rsp), 1997-2001 16 |
| Fitted Bedroom Furniture 16 |
| Beds 16 |
| Kitchen Furniture 17 |
| Table 5: The Kitchen Furniture Sector by Value (£m at rsp), 1997-2001 17 |
| Dining Room Furniture 18 |
| Table 6: The Dining Room Furniture Sector by Value (£m at rsp), 1997-2001 18 |
| Other Furniture 19 |
| Table 7: The Other Furniture Sector by Value (£m at rsp), 1997-2001 19 |
| OVERSEAS TRADE 20 |
| Table 8: UK Balance of Trade for Household Furniture (£m), 2000 and 2001 20 |
| Imports 20 |
| Table 9: UK Imports of Household Furniture by Sector by Value (£m), 2000 and 2001 21 |
| Chairs 21 |
| Metal Furniture 22 |
| Wooden Bedroom Furniture 22 |
| Wooden Kitchen Furniture 22 |
| Plastic Furniture 22 |
| Furniture of Other Materials 22 |
| Mattresses 22 |
| Exports 22 |
| Table 10: UK Exports of Household Furniture by Sector by Value (£m), 2000 and 2001 23 |
| Chairs 23 |
| Other Wooden Furniture 23 |
| Wooden Bedroom Furniture 23 |
| Wooden Kitchen Furniture 24 |
| Plastic Furniture 24 |
| Mattresses 24 |
| 3. Industry Background 25 |
| Recent History 25 |
| Number of Companies 25 |
| Table 11: Number of VAT-Based Enterprises Engaged in the Manufacture of Household Furniture |
| by Turnover Size (£000), 2001 26 |
| Table 12: Number of VAT-Based Enterprises Engaged in the Manufacture of Household Furniture by Turnover by Sector (£000), 2001 27 |
| employment 27 |
| Table 13: Number of Local Units Engaged in the Manufacture of Household Furniture by Employment Size (number of employees), 2001 28 |
| Table 14: Number of Local Units Engaged in the Manufacture of Household Furniture by Number of Employees by Sector (number of employees), 2001 29 |
| REGIONAL VARIATIONS IN THE MARKETPLACE 29 |
| Retail Distribution 29 |
| Multiple Furniture Chains 29 |
| Independents 30 |
| Variety and Department Stores 30 |
| DIY Stores 30 |
| Mail Order and Catalogue Stores 30 |
| Other Distribution 30 |
| Distribution Share 30 |
| Upholstered Furniture 31 |
| Beds 31 |
| Bedroom Furniture 31 |
| Kitchen Furniture 31 |
| Other Furniture 31 |
| HOW ROBUST IS THE MARKET? 32 |
| LEGISLATION 32 |
| Fire Safety Regulations 32 |
| Environmental Regulations 32 |
| key TRADE ASSOCIATIONS 32 |
| Association of Master Upholsterers & Soft Furnishers 32 |
| British Furniture Manufacturers Ltd 33 |
| FIRA International Ltd 33 |
| The Kitchen Specialists Association 33 |
| 4. Competitor Analysis 34 |
| THE MARKETPLACE 34 |
| MARKET LEADERS 34 |
| Airsprung Furniture Group PLC 34 |
| Company Structure 34 |
| Current and Future Developments 34 |
| Financial Results 34 |
| Courts PLC 35 |
| Company Structure 35 |
| Current and Future Developments 35 |
| Financial Results 35 |
| DFS Furniture Company PLC 35 |
| Company Structure 35 |
| Current and Future Developments 35 |
| Financial Results 36 |
| HomeForm Group Ltd (formally Limelight Group PLC) 36 |
| Company Structure 36 |
| Current and Future Developments 36 |
| Financial Results 36 |
| Homestyle Group PLC 36 |
| Company Structure 36 |
| Current and Future Developments 37 |
| Financial Results 37 |
| IKEA Ltd 37 |
| Company Structure 37 |
| Current and Future Developments 37 |
| Financial Results 38 |
| MFI Furniture Group PLC 38 |
| Company Structure 38 |
| Current and Future Developments 38 |
| Financial Results 38 |
| Moores Furniture Group Ltd 39 |
| Company Structure 39 |
| Current and Future Developments 39 |
| Financial Results 39 |
| Silentnight Holdings PLC 39 |
| Company Structure 39 |
| Current and Future Developments 40 |
| Financial Results 40 |
| Slumberland PLC 40 |
| Company Structure 40 |
| Current and Future Developments 40 |
| Financial Results 40 |
| OUTSIDE SUPPLIERS 40 |
| ADVERTISING AND PROMOTION 41 |
| Table 15: Main Media Advertising Expenditure on Household Furniture by Product Category (£000), Years Ending March 2001 and 2002 41 |
| Bedroom Furniture 42 |
| Table 16: Main Media Advertising Expenditure on Bedroom Furniture by Brand (£000), Years Ending March 2001 and 2002 42 |
| Beds 42 |
| Table 17: Main Media Advertising Expenditure on Beds by Brand (£000), Years Ending March 2001 and 2002 43 |
| Kitchen Furnishings 43 |
| Table 18: Main Media Advertising Expenditure on Kitchen Furnishings by Brand (£000), Years Ending March 2001 and 2002 44 |
| Lounge and Dining Room Furniture 44 |
| Table 19: Main Media Advertising Expenditure on Lounge and Dining Room Furniture by Brand (£000), Years Ending March 2001 and 2002 45 |
| Exhibitions and Trade Shows 45 |
| Publications 46 |
| Trade Publications 46 |
| Consumer Publications 46 |
| 5. Strengths, Weaknesses, Opportunities and Threats 47 |
| the total MARKET 47 |
| Strengths 47 |
| Weaknesses 47 |
| Opportunities 48 |
| Threats 48 |
| LIVING ROOM Furniture 48 |
| Strengths 48 |
| Weaknesses 48 |
| Opportunities 49 |
| Threats 49 |
| BEDROOM furniture 49 |
| Strengths 49 |
| Weaknesses 49 |
| Opportunities 49 |
| Threats 49 |
| KITCHEN furniture 50 |
| Strengths 50 |
| Weaknesses 50 |
| Opportunities 50 |
| Threats 50 |
| DINING ROOM furniture 50 |
| Strengths 50 |
| Weaknesses 50 |
| Opportunities 51 |
| Threats 52 |
| 6. Buying Behaviour 53 |
| HOUSEHOLD EXPENDITURE 53 |
| Table 20: Average Weekly Household Expenditure on Furniture by Decile Group (£), 2000/2001 53 |
| Annual Expenditure 54 |
| By Reason for Purchase 54 |
| Table 21: Expenditure on Furniture in the Last 12 Months by Reason for Purchase ( percent of households buying), 2001 54 |
| By Price Range 55 |
| Table 22: Expenditure on Furniture in the Last 12 Months by Price Range ( percent of households buying), 2001 55 |
| By Age 56 |
| Table 23: Expenditure on Furniture in the Last 12 Months by Age ( percent of adults buying), 2001 56 |
| Consumer Penetration 56 |
| Table 24: Penetration of Household Furniture ( percent of households owning), 2001 57 |
| By Social Grade 57 |
| Table 25: Penetration of Household Furniture by Social Grade ( percent of households owning), 2001 58 |
| 7. Current Issues 59 |
| PRODUCT DEVELOPMENT 59 |
| THE ROLE OF THE INTERNET 59 |
| CORPORATE ACTIVITY 59 |
| 8. The Global Market 61 |
| INTERNATIONAL INFLUENCE 61 |
| Consolidation 61 |
| Worldwide 61 |
| US Household Furniture Market 62 |
| Other Countries 62 |
| 9. Forecasts 64 |
| introduction 64 |
| The Housing Market 64 |
| Consumer Confidence/Disposable Income 64 |
| Population 64 |
| New Working Practices 65 |
| Fashion/Media Influences 65 |
| FORECASTS 2002 TO 2005 65 |
| Table 26: The UK Household Furniture Market by Value (£m at rsp), 2002-2005 66 |
| Distribution Channels 66 |
| future TRENDS 66 |
| Living Room Furniture 66 |
| Bedroom Furniture 66 |
| Kitchen Furniture 67 |
| Dining Room Furniture 67 |
| Other Furniture 67 |
| 10. Company Profiles 68 |
| Airsprung Furniture Group Plc 69 |
| Courts Plc 71 |
| Dfs Furniture Company Plc 73 |
| Homeform group Ltd 75 |
| Homestyle Group Plc 77 |
| Ikea Ltd 79 |
| Mfi Furniture Group Plc 81 |
| Moores Furniture Group Ltd 83 |
| Silentnight Holdings Plc 85 |
| 11. Further Sources 87 |
| Associations 87 |
| Publications 88 |
| Directories 89 |
| General Sources 90 |
| Bonnier Information Sources 91 |
| Government Publications 92 |
| Other Sources 93 |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004
