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The
Bedroom Furniture sector accounts for just over 13% of the overall furniture
market with an approximate value in 2005 of £508 million. Forecasts over the
next 4 years estimate fluctuating annual increases of between 1-2% to reach a
value of £536 million in 2007.
The bedroom furniture
market has grown since 1999, although has struggled in 2004 and 2005. Lowering
levels of consumer confidence, a weakening economic climate, a slowdown in the
housing market and higher interest rates have all contributed to the poor
performance of the sector, as well as the fact that a number of key
manufacturers and distributors have vacated the market in the last two years.
The bedroom furniture
market has also failed to benefit from increased RMI activity in the same way as
the kitchen and bathroom markets have, and while some increase in spending has
filtered through to this sector, the bedroom is not seen as such an important
room as the kitchen or bathroom for renovation activity.
The level of imports has
increased substantially in recent years and they now account for well over half
the market. This increase has significantly affected the performance of the
market due to their lower value, which has restricted overall market growth. The
increase in new entrants to the homewares retail market offering flat-pack
products has also affected value growth.
The furniture market is
very responsive to swings in consumer confidence, changes in disposable income
and to activity in the housing market. Due to the deferrable nature of
big-ticket items such as bedroom furniture, there is often a lengthy replacement
cycle, with purchases often seen as non-essential and delayed during periods of
financial uncertainty.
The bedroom furniture
market continues to be dominated by the freestanding sector, with market share
remaining constant and estimated at just under 75% in 2005. The fitted sector
accounts for around 25%, but continues to be constrained by pricing pressures
and is driven by activity in the housing sector. In addition, with the growth
of modular furniture ranges, a blurring between the two markets is occurring.
Household penetration
levels of fitted bedroom furniture were estimated to be around 14% in 2005, with
forecasts expecting a steady rise to reach around 17% in 2009. There remains
considerable scope for fitted bedroom furniture, with fitted furniture in the
kitchen and bathroom markets accounting for over 70% in each of these sectors.
The trend towards smaller new builds in the housing sector and the shrinking
size of bedrooms, requires a greater emphasis on space-saving storage solutions,
which will also benefit the overall market.
The self-assembly sector
has gained share in recent years with the rapid expansion of IKEA, and
the growing significance of
Argos,
as suppliers in this sector. A rapid increase in the level of imports has also
benefited the self-assembly market, with the majority of imports into the UK
made up of this type of furniture.
The market for bedroom
furniture for children and teenagers continues to grow and remains a relatively
large niche market, as the general enthusiasm for home improvement has extended
to junior bedrooms. Junior consumers are often now targeted through direct
advertising in media aimed at this age group. In addition, ranges for children
now include modular furniture that can be adapted as children grow, while the
changing use of children’s and teenagers bedrooms has led to changes in the
design of furniture in this sector.
In
recent years the use of the bedroom has changed from a place for sleeping into a
multi-purpose room used for both working and relaxing. In particular many second
or third bedrooms have been changed to incorporate a home office facility, and
some bedroom ranges now incorporate dual use furniture that can be used for both
storage and office use.
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