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MP17007

MAPS HOUSEHOLD TEXTILES 1997

Overview

Table of Contents

Executive Summary

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EXECUTIVE SUMMARY

The market for Household Textiles is generally very mature in most sectors, with high consumer ownership levels for products such as sheets, pillows, towels and cushions. The market is an integral part of the total soft furnishings market which also includes carpets, windowcoverings and wallcoverings and is estimated to be worth around £3.5 billion at manufacturers’ prices.

The market for household textiles will be worth an estimated £830 million in 1997, with overall market conditions more buoyant than at any time since the consumer boom of the late 1980s. Growth rates have improved over the last two years, following a very difficult trading period in the early 1990s, when sales declined by over 15 percent in real terms.

The recession had a major impact on the market, but growing consumer confidence and sustained economic recovery are now feeding through into more favourable market conditions for a wide range of consumer durables.

A key factor influencing many product sectors in 1997 is the effect of the windfall gains as a result of building society and insurance company conversions which has released an estimated £35 billion into consumer spending.

This increase in spending power is combined with an underlying growth in economic activity as a result of falling unemployment and rising disposable incomes, which further improves the ‘feel good’ factor. In addition, recovery in the housing market, both in terms of new build and moving levels, is also contributing to growth in demand for household durables.

The key question is how long can this scenario be sustained? The windfall effects are feeding through into the economy and interest rate increases have been implemented to curb consumer demand. Current forecasts are for growth in GDP to fall from 3.5 percent in 1997 to around 2 percent in 1998, with consumer spending the main area of decline, which will result in a slowdown in the household textiles market.

In terms of product mix, bedlinen is the largest sector at an estimated £284 milliion, with sheets and duvet covers the key products. The duvet cover sector has increased share as ownership levels have risen over the last 15 years. Duvet covers and pillowcases have both benefited from the trend to co-ordinate soft furnishings. This has accelerated the replacement cycle. Sheets are a more stable market with little opportunity for product differentiation and added-value. Blanket sales are in steady decline as they are superseded by duvets in most domestic properties, with a large proportion of sales now accounted for by hospitals, prisons and military requirements.

Soft-filled products include duvets, cushions and pillowcases, with annual sales around £270 million. Over 65 percent of households now own duvets, though there are still reasonable prospects for further growth, either in older age groups or for secondthird bedrooms etc. There are generally more developments within soft-filled products than bedlinen at present, with growing design emphasis on natural rather than synthetic fillings.

Cushions are a more mature sector, with an estimated value of £106 million, though many younger householders now regard cushions as an integral part of room decor, and are also more widely used in teenage children’s bedrooms.

Towels represent the third major sector of the household textiles market, with an estimated value of £175 million. Beach towels have been a small, but growing niche sector, though the overall towel market has declined substantially in recent years in real terms. Import levels are very high in this sector, which has had a significant impact on retail price levels.

Market Assessment commissioned an exclusive survey by NOP into consumer purchasing intentions for a wide range of household textile products. Duvet covers and pillowcases had the highest levels at 46 percent of households planning to purchase over the next 12 months. Most other products such as sheets, towels, pillowcases etc, were priority items for 25-40 percent of households, with only blankets and bedspreads attracting relatively low levels of interest.

Females and younger home owners were generally more committed to purchasing household textiles which reflects a combination of changing family requirements and a higher propensity to relocate. In addition, interest in refurbishment of soft furnishings is highest in the younger to middle age groups, which is a key factor influencing the purchase levels of duvet covers, pillowcases and cushions.

The supply structure for household textiles is very fragmented, with imports accounting for around 50 percent of the market, primarily from countries such as Portugal, India, Pakistan and the Far East. Within the UK supply industry, Coats Viyella and Courtaulds are key manufacturers’, while the rest of the market is supplied by a wide range of companies, usually focusing within key product sectors.

The level of manufacturer branding is low in most sectors, with most brand identities based on retailers such as ‘St Michael’ and ‘Jonelle’ etc.

In terms of distribution, the major channels are Department and Variety Stores, Mail Order, Furnishing and Furniture Multiples, and Soft Furnishing specialists. Department and Variety Stores account for around 30 percent of sales, with Marks & Spencer particularly strong in this sector. Mail Order accounts for around 25 percent, while specialist retailers such as Rosebys and Harveys are strong, with around 20 percent share.

MFI has expanded into soft furnishings in recent years with the development of its Homeworks concept.

The key factors influencing future prospects are the general economic climate, the buoyancy of the housing market and consumer attitudes towards coordination of soft furnishings. Consumer confidence levels are high at present and there are reasonable prospects for growth in the short term, but high ownership levels and the continuing impact of imports on market prices will dampen growth levels in most product sectors in the longer term.

Text © 1997 MAPS

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Last updated by Duncan Nottage 5th February 1999