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Mix of Materials Used in the Bedroom Furniture Sector % by Value
2007
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This report
was first published in 1992 and this 9th Edition
assesses developments within the domestic bedroom furniture market
in the light of the current economic climate and provides an overall
analysis of the market, with indications of threats and
opportunities likely to affect future performance of the sector.
The bedroom
furniture market is mature, and growth has been relatively modest
during the past few years. This has been particularly evident during
the second half of 2007, as the recent ‘tightening up’ of consumer
credit, high interest rates and a declining housing market began to
inhibit consumer spending, particularly in terms of ‘big ticket’
items such as furniture. In addition, bedrooms have traditionally
been considered a less important area of the home than kitchens and
bathrooms and other more ‘visible’ or high profile rooms. |
The UK
Bedroom Furniture market was estimated to be worth approximately £520m
(MSP) in 2007 representing approximately 13% of the overall
Domestic Furniture market. Growth has been minimal in recent years, though
more specialised sectors have enjoyed stronger market conditions.
Other than the economy, pressures within the domestic furniture market
include the rapid penetration of low-cost imports driving down prices and
margins, increasing input costs (transport, raw materials, labour), as
well as the entry into the market of a number of high profile players,
including Tesco and newcomer Ilva. These new entrants are
widely expected to have an impact on the market and provide stronger
competition for more established retailers such as IKEA and
MFI.
Growing competition is also reflected in the increasing
number of liquidations in the sector, both at manufacturer and retail
level, reflecting a mature market and changes in the supply chain.
The
nature of furniture retailing is evolving. Online sales are increasing
and, while this may be beneficial to smaller suppliers unable to afford a
significant High Street presence, it is also placing additional demands on
all companies in terms of distribution and customer services. In addition,
use of alternative materials is changing, with the decline of pine
accelerating in recent years in favour of a wider range of more
contemporary materials and styles.
In
general, it appears that short term prospects for 2008 are likely to be
relatively difficult with no growth forecast. Most of the future growth
within the bedroom furniture sector is expected to come from the lower end
rather than the higher end of the market, driven by companies such as
IKEA, with their range of affordable and innovative products, the
expanding variety of cheap imports, and the ongoing expansion of the
buy-to-let sector.
However, design innovation will provide some opportunities for
differentiation and margin protection, though these are likely to remain
in niche markets, while a long term increase in housebuilding will also
offer underlying demand for well-designed bedroom furniture.
AMA Research’s “Domestic
Bedroom Furniture Market UK 2008-2012” report is available in hard
copy or electronic format for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450. |
