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| MS20002 |
| MSI DOMESTIC KITCHEN FURNITURE: UK : APRIL 2002 |
| Overview |
This report covers: domestic kitchen furniture, flat pack, rigid, retail, contract,
Companies covered include: Bernstein Group, Gower Furniture, Magnet, MFI Furniture Group, Moores Furniture Group, Regency Group, The Symphony Group,
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| 1 | EXECUTIVE SUMMARY | 1 |
| 2 | INTRODUCTION | 3 |
| 2.1 | Definitions | 3 |
| 2.2 | Methodology | 4 |
| 2.3 | Economic Background | 4 |
| 2.3.1 | Interest Rates | 6 |
| 2.3.2 | Inflation | 7 |
| 2.3.3 | Pre-Budget Report 2001 | 7 |
| 2.3.4 | Forecasts | 7 |
| 2.4 | Exchange Rates | 8 |
| 2.5 | Abbreviations | 8 |
| 3 | MARKET SIZE | 10 |
| 3.1 | Market Overview and Trends, 1997-2001 | 10 |
| 3.2 | Market Segmentation | 18 |
| 3.2.1 | By Product Type | 18 |
| 3.2.2 | By Type Of Work | 20 |
| 3.2.3 | By End User Sector | 21 |
| 3.2.4 | By Type Of Sale | 24 |
| 3.3 | Factors Affecting Demand | 25 |
| 3.4 | Forecast Market Overview and Trends, 2002-2006 | 28 |
| 3.5 | Forecast Market Segmentation | 32 |
| 3.5.1 | By Product Type | 32 |
| 3.5.2 | By Type Of Work | 33 |
| 3.5.3 | By End User Sector | 34 |
| 3.5.3.1 | By Type Of Sale | 37 |
| 4 | DISTRIBUTION | 39 |
| 5 | PRODUCTION | 42 |
| 5.1 | Overview | 42 |
| 5.2 | Critical Success Factors | 43 |
| 6 | INDUSTRY STRUCTURE | 48 |
| 6.1 | Overview | 48 |
| 6.2 | Company Profiles | 49 |
| 6.2.1 | Bernstein Group | 49 |
| 6.2.2 | Gower Furniture | 50 |
| 6.2.3 | Magnet | 51 |
| 6.2.4 | MFI Furniture Group | 53 |
| 6.2.5 | Moores Furniture Group | 55 |
| 6.2.6 | Regency Group | 56 |
| 6.2.7 | The Symphony Group | 57 |
| 7 | MAGAZINE ADDRESSES | 58 |
| 8 | TRADE ASSOCIATION ADDRESSES | 60 |
| 9 | TRADE FAIRS AND EXHIBITIONS | 61 |
| LIST OF TABLES | |
| 1. Economic Indicators On The UK Economy, 2000-2003 | 6 |
| 2. The UK Market For Kitchen Furniture, 1997-2001 | 10 |
| 3. Total Housing Construction Output In Great Britain, By Type Of Work, 1997-2001 | 12 |
| 4. Housing Starts And Completions In Great Britain, 1997-2001 | 13 |
| 5. Number Of Property Transactions In England, Wales, And Northern Ireland, 1997-2001 | 14 |
| 6. UK Stock Of Dwellings, By Tenure, 1991-2001 | 15 |
| 7. Owner Occupation Of Dwellings In The UK, 1997-2001 | 16 |
| 8. Number Of Households In England And Wales, 1991, 1996 And 2021 | 17 |
| 9. UK Population, 1997-2001 | 17 |
| 10. The UK Market For Kitchen Furniture, By Product Type, 1997-2001 | 19 |
| 11. The UK Market For Kitchen Furniture, By Type Of Work, 1997-2001 | 21 |
| 12. The UK Market For Kitchen Furniture, By End User Sector, 1997-2001 | 22 |
| 13. Total Housing Construction Output In Great Britain, By Sector, 1997-2001 | 23 |
| 14. Housing Completions In Great Britain, By Tenure, 1997-2001 | 24 |
| 15. The UK Market For Kitchen Furniture, By Type Of Sale, 1997-2001 | 24 |
| 16. Forecast UK Market For Kitchen Furniture, 2002-2006 | 29 |
| 17. Forecast Total Housing Construction Output In Great Britain, By Type Of Work, 2002-2006 | 30 |
| 18. Forecast Housing Starts And Completions In Great Britain, 2002-2006 | 31 |
| 19. Number Of Property Transactions In England, Wales, And Northern Ireland, 2002-2006 | 31 |
| 20. Forecast UK Market For Kitchen Furniture, By Product Type, 2002-2006 | 33 |
| 21. Forecast UK Market For Kitchen Furniture, By Type Of Work, 2002-2006 | 34 |
| 22. Forecast UK Market For Kitchen Furniture, By End User Sector, 2002-2006 | 35 |
| 23. Forecast Total Housing Construction Output In Great Britain, By Sector, 2002-2006 | 36 |
| 24. Forecast Housing Completions In Great Britain, By Tenure, 2002-2006 | 37 |
| 25. Forecast UK Market For Kitchen Furniture, By Type Of Sale, 2002-2006 | 37 |
| 26. Distribution Of Kitchen Furniture In The UK, By Distribution Channel, 2001 | 40 |
| 27. UK Production Of Kitchen Furniture, 1997-2001 | 42 |
| 28. UK Production Of Kitchen Furniture, By Product Type, 1997-2001 | 43 |
| 29. Financial Summary Of Bernstein Group, 1996-2000 | 50 |
| 30. Financial Summary Of Gower Furniture, 1997-2000 | 51 |
| 31. Financial Summary Of Magnet, 1996-2000 | 52 |
| 32. Financial Summary Of MFI Furniture Group, 1997-2001 | 53 |
| 33. Turnover of MFI Furniture Group, By Geographical Region, 2000 And 2001 | 54 |
| 34. Financial Summary Of Moores Furniture Group, 1996-2000 | 55 |
| 35. Financial Summary Of Regency Group, 1996-2000 | 56 |
| 36. Financial Summary Of The Symphony Group, 1996-2000 | 57 |
1. MSI believe the value of the UK market for domestic kitchen furniture increased throughout the review period. The market was estimated to be valued at £880 million (1 417 million) at msp in 2001.
2. Flat pack furniture continued to account for the largest proportion of the domestic kitchen furniture market, representing some 63 percent of the total in 2001. This is believed to be a result of improved design and quality of flat pack kitchen furniture. However, the proportional importance of flat pack kitchen furniture is believed to be decreasing due to customers choosing to invest in more expensive rigid kitchen furniture which allows for more individual designs.
3. The refurbishment sector remains the most significant sector in the domestic kitchen furniture market, accounting for some 77 percent in 2001, reflecting the large amount of expenditure allocated to the refurbishment of existing housing in the UK.
4. Sales of domestic kitchen furniture to the private sector are believed to have increased during the review period. The sector accounted for 90 percent of the total market value in 2001, compared with 89 percent in 1997. Furthermore, MSI believe that the value of the retail sector of the UK domestic kitchen furniture market has increased between 1997 and 2001 by some 8 percent, as a result of increased consumer expenditure. The contract sector is increasing its proportion of the domestic kitchen furniture market.
5. The principal factors affecting the demand for domestic kitchen furniture within the UK are:
6. MSI believe that the UK market for domestic kitchen furniture will continue to increase during the forecast period. However, the rate of growth is expected to be slower than during the review period. The total market is forecast to increase by some 2 percent in real terms between 2002 and 2006.
7. Kitchen specialists, such as independents and retail chains account for the largest proportion of domestic kitchen furniture sales. Indeed, such outlets have increased in proportional importance at the expense of DIY outlets as a result of consumers placing a greater emphasis on design and quality. MSI believe that sales through kitchen specialists accounted for some 40 percent of the total market value in 2001.
8. MSI have identified a number of factors critical to the success of companies operating in the domestic kitchen furniture market, including the following: -
Text © 2002 MSI
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Last updated by Amanda Porteous April 2002