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UK design has emerged from the shadow of
manufacturing to become an important and valued discipline in its own right.
The industry has flourished through a combination of government support and the
realisation by manufacturers and service providers that good design is a key
asset when it comes to customer loyalty, commercial success and brand
longevity.
The transfer of design from being a largely in-house activity
to one which is contracted out has boosted the role of design consultancies.
This trend, alongside additional central government spending in the run-up to
the Millennium celebrations, the National Lottery and the globalisation of
business, has resulted in the emergence of a so-called `superleague' of design
consultancies. Beneath these, there are a large number of smaller agencies,
many of which specialise in certain key areas, such as packaging design,
interior design and retail outlet design.
In 1999, the UK's design
companies earned a total of £689m in fees. However, over 50 percent of
this was earned by the top 80 design consultancies and the majority of that 50
percent was earned by those considered to be in the design superleague. During
1998/1999, the gap widened between the superleague agencies and the rest, as a
result of the large amounts of money invested in design work relating to the
Millennium Dome in Greenwich, and various regional projects funded by the
National Lottery scheme. The larger consultancies won the bulk of this
lucrative work.
Increasingly, the major competitors in the UK design
league are global companies, either as a result of their client base or as
members of global media groups such as WPP Group PLC. The major players in the
UK market are Imagination Ltd, Enterprise IG Ltd, and Interbrand Newell and
Sorrell Ltd. Most of the major consultancies are now related to advertising
agencies and offer a broader range of services than they did a decade ago.
Additionally, new sectors have emerged, including electronic kiosks and
interactive television (TV). However, the major aspect of the electronic
revolution has been the meteoric growth of the Internet as a commercial tool
and a design space. The fast rise of this sector is illustrated by the fact
that AKQA New Media Ltd -- an Internet design specialist -- is now one of the
UK's leading 20 design consultancies.
1998 and 1999 were high points for
the design industry, with Millennium and National Lottery work resulting in an
upsurge in commissions and fees. Key Note estimates that, between 2000 and
2004, design consultancy fees will rise by 12.7 percent to £816m. Major
factors affecting growth will be the increasing internationalisation of the
design industry and the growth of the Internet.
Text © 2000Key Note
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Last updated by Jacob van Eldik 07th April 2000